The Construction sector has expanded over the past five years; nonresidential construction activity has been particularly strong, and a surge in materials costs has driven up contractors' rates. Contractors in the sector construct buildings and engineer projects across a wide range of industries and applications, so construction sector revenue tends to correlate with broader macroeconomic conditions. Volatile interest rates, specifically, have impacted sector activity in recent years, with high rates having cooled residential construction activity since 2022. Sector revenue has risen at a CAGR of 4.1% to reach an expected $3.7 trillion in 2025, including an estimated increase of 1.5% in 2025 alone as recent interest rate cuts encourage investment. In recent years, contractors have benefited from easing supply chain issues, with the price of construction materials having slowly fallen from its May 2022 peak (though remaining well above pre-pandemic prices). This more predictable business environment has only had a limited positive effect on the average sector profit margin, however, as the construction sector's perennial labor shortage has kept wage costs high. In 2025, the second Trump administration's policies have disrupted this previously stabilizing business environment, with ever-shifting tariff policies making it harder to plan for the future. A mounting trade war has the potential to disrupt supply chains and drive up the cost of materials, while plans for mass deportations threaten to further limit the sector's labor pool. Still, potential interest rate cuts in the coming years stand to spur increased investment in construction activity. Contractors are set to continue to benefit from increasing commercial and infrastructure construction activity, aided by the 2021 Infrastructure Investment and Jobs Act, the 2022 CHIPS and Science Act and the 2022 Inflation Reduction Act. The Trump administration has looked to disrupt some of the funding included in these bills, particularly that which targets the previous administration's climate goals, however. Basic macroeconomic drivers, including population growth, will continue to expand the construction sector. Areas of the country with lower regulatory burdens, namely the Southeast, will continue to outpace the country as a whole in both construction activity and population growth. Overall, sector revenue is set to climb at a CAGR of 2.0% to reach $4.1 trillion in 2030.

North America Data Center Construction Market is Segmented by Infrastructure (Electrical Infrastructure, Mechanical Infrastructure, IT Infrastructure, General Construction, Services), Tier Type (Tier I and II, Tier III, Tier IV), Data Center Type (Colocation, and More), End-User Industry (BFSI, IT and Telecommunications, and More), and Geography. The Market Forecasts are Provided in Terms of Value (USD).

Divergent trends in the building and infrastructure sectors have constrained the Construction division’s performance through the end of 2024-25, with revenue expected to drop by an annualised 1.2% to $521.2 billion. Rollercoaster-like trends in the residential building market and pandemic-related supply chain disruptions have constrained the performance of homebuilders and many special construction service industries. Still, favourable trends in non-residential building construction and non-building infrastructure construction generate buoyant conditions for some Construction division segments. New house construction surged to a record peak in 2021-22, supported by the Federal Government’s HomeBuilder stimulus and record-low interest rates. Still, new house construction has plunged in recent years following the hike in mortgage interest rates as the RBA seeks to quell inflation. Many small homebuilders have hit the wall in response to intense competition, escalating input costs and plunging profit margins. Conversely, the construction of multi-unit apartments and townhouses has gradually recovered from the deep trough in 2021-22 as investors return to address the severe rental shortages in the face of mounting population pressures. Divisional revenue contracted with the 2023-24 housing slump and is expected to sink 3.2% in 2024-25. Some large prime and specialist trade contractors have derived substantial stimulus from constructing landmark road and rail developments, including the WestConnex motorway in Sydney and the Cross River Rail in Brisbane. Similarly, conditions have been strong for contractors working on non-residential building projects, particularly accelerated growth in the construction of industrial warehouses and distribution facilities. Favourable trends in the residential building market are forecast to underpin modest growth in Construction division revenue at an annualised 1.2% over the five years through 2029-30 to $554.0 billion. Many prime building and special construction contractors will benefit from an upswing in demand for constructing multi-unit dwellings and, to a lesser extent, single-unit housing and home renovations. The housing market will benefit from the initiatives under the National Housing Accord. Construction activity will remain stable in the non-residential market. At the same time, the principal constraint on the Construction division will come from the staged completion of several landmark road and rail projects.

Heavy engineering contractors complete projects such as constructing oceanic navigational channels, beach dredging, mass transit support construction, tunnels, hydroelectric power plants and conservation development. Most of these projects are carried out by state and local governments independently or in conjunction with the federal government, so industry revenue tracks most closely with movements in public funding. Over the past five years, heavy engineering construction revenue has expanded at a CAGR of 5.2% to reach $49.2 billion in 2025, when revenue is set to climb 2.0%. While revenue has expanded, average industry profit has remained relatively level as contractors have been able to adjust to a surge in purchase and wage costs that occurred midway through the past five years. Industry revenue has recently benefited from growing federal funding, particularly as funding from the 2021 Infrastructure Investment and Jobs Act (IIJA) and the 2022 Inflation Reduction Act (IRA) has recently begun translating into shovels in the ground. These projects have included upgrades to the nation's ports, as supply chain issues earlier in the current period highlighted their issues. Growth has been countervailed by heightened interest rates, which have particularly served to discourage private sector heavy engineering construction projects, which account for a minority of the industry's revenue. Rate cuts, which began in 2024 and have continued into 2025, will benefit the industry. Moving forward, the industry will exhibit growth if federal funding and state investments remain steady. Already in 2025, however, the second Trump administration has moved to hamper spending on certain programs included in the IIJA and the IRA. A reduction in federal infrastructure spending would have a negative effect on industry revenue. Still, industry revenue is projected to rise at a CAGR of 1.7% to reach $53.5 billion in 2030. Continued interest rate cuts will benefit the industry, as will increased spending on conservation and development infrastructure and other infrastructure projects meant to deal with the growing impact of climate change.

According to Cognitive Market Research, the global Construction market size is USD 12415.3 million in 2024 and will expand at a compound annual growth rate (CAGR) of 5.00% from 2024 to 2031.

North America held the major market of more than 40% of the global revenue with a market size of USD 4966.12 million in 2024 and will grow at a compound annual growth rate (CAGR) of 3.2% from 2024 to 2031.
Europe accounted for a share of over 30% of the global market size of USD 3724.59 million.
Asia Pacific held the market of around 23% of the global revenue with a market size of USD 2855.52 million in 2024 and will grow at a compound annual growth rate (CAGR) of 7.0% from 2024 to 2031.
Latin America market of more than 5% of the global revenue with a market size of USD 620.77 million in 2024 and will grow at a compound annual growth rate (CAGR) of 4.4% from 2024 to 2031.
Middle East and Africa held the major market of around 2% of the global revenue with a market size of USD 248.31 million in 2024 and will grow at a compound annual growth rate (CAGR) of 4.7% from 2024 to 2031.
The General Construction held the highest Construction market revenue share in 2024

Market Dynamics of Construction Market

Key Drivers for Construction Market

Urbanization and Population Growth to Increase the Demand Globally

Urbanization and population increase are riding huge demand for new housing, industrial homes, and infrastructure worldwide. With extra human beings shifting to urban regions, cities are under stress to amplify and upgrade their infrastructure to meet the desires of growing populations. This consists of constructing new residential buildings, commercial areas, transportation networks, and utilities which include water and electricity systems. Additionally, urbanization spurs calls for amenities like schools, hospitals, and leisure facilities. Meeting those demands calls for massive construction and improvement projects, imparting opportunities for the construction industry whilst additionally posing demanding situations related to sustainability, useful resource control, and concrete planning.

Economic Growth to Propel Market Growth

Strong economic situations, especially in developing economies, drive multiplied investments in infrastructure tasks, public buildings, and personal development. Robust monetary growth stimulates the call for modernization and growth of transportation networks, utilities, and industrial spaces. Governments allocate finances to enhance public services and construct colleges, hospitals, and government homes, even as private investors capitalize on possibilities in actual property and commercial improvement. This financial momentum fosters innovation, process creation, and business growth, similarly fueling a boom throughout various sectors. Additionally, infrastructure investments enhance productivity, entice overseas investment, and enhance residing standards, contributing to sustained monetary improvement. As a result, financial increase acts as a catalyst for infrastructure improvement, using development and prosperity in each advanced and developing economy.

Restraint Factor for the Construction Market

Volatility in Material Prices to Limit the Sales

Volatility in material fees poses a tremendous mission for the construction industry, wherein raw substances are vital additives. Fluctuations inside the charges of substances, including steel, cement, lumber, and petroleum merchandise, can profoundly have an effect on task budgets and profitability. Sudden spikes in costs can purpose value overruns, delays, and reduced margins for contractors and developers. These fluctuations are motivated by elements like worldwide delivery and call for dynamics, geopolitical tensions, and forex fluctuations. To mitigate dangers, production companies often rent strategies such as ahead buying contracts, diversification of providers, and hedging in opposition to price fluctuations. Nonetheless, navigating this volatility stays a continual assignment inside the creation quarter, requiring careful tracking and adaptation to ensure venture viability and profitability.

Impact of Covid-19 on the Construction Market

The COVID-19 pandemic has drastically impacted the development marketplace globally. Lockdown measures, supply chain disruptions, and labor shortages have led to assignment delays and extended costs. Many construction websites were quickly shut down, causing a slowdo...

South America Data Center Construction Market is Segmented by Tier Type (Tier 1 and 2, Tier 3 and Tier 4), Data Center Type(Colocation, Self-Built Hyperscalers (CSPs), Enterprise, and Edge), and Infrastructure (Electrical Infrastructure, Mechanical Infrastructure). The Market Forecasts are Provided in Terms of Value (USD).

The global construction services market is experiencing robust growth, projected to expand from $6,822.71 billion in 2021 to $14,519.7 billion by 2033. This expansion is driven by increasing global population, rapid urbanization, and significant government investments in infrastructure development. Technological advancements, such as Building Information Modeling (BIM) and modular construction, are enhancing efficiency and productivity. The market is also witnessing a strong shift towards sustainable and green building practices, responding to environmental concerns and stringent regulations. While North America and Europe remain substantial markets, the Asia-Pacific and African regions are emerging as high-growth hotspots, fueled by economic development and a rising need for residential, commercial, and industrial infrastructure. However, the industry faces challenges, including skilled labor shortages and volatile raw material prices, which could temper growth potential.

Key strategic insights from our comprehensive analysis reveal:

The market is dominated by North America and Europe in terms of revenue, but the Asia-Pacific region is poised for the fastest growth, driven by massive infrastructure projects in countries like China and India.
Sustainability and digitalization are paramount trends. Companies integrating green building materials, energy-efficient designs, and technologies like BIM and drones are gaining a significant competitive edge.
Emerging economies in Africa and South America present untapped opportunities. Government initiatives to improve infrastructure and housing are creating a fertile ground for market expansion.

Global Market Overview & Dynamics of Construction Services Market Analysis The global construction services market is on a steady growth trajectory, characterized by a compound annual growth rate (CAGR) of 6.496% from 2021 to 2033. This growth is underpinned by a confluence of factors including government-led infrastructure spending, the rising demand for residential and commercial buildings due to urbanization, and the adoption of innovative technologies to improve project outcomes. The industry is evolving from traditional methods to more sophisticated, technology-driven processes, with a growing emphasis on sustainability and efficiency to meet modern demands and regulatory standards.

Global Construction Services Market Drivers

Increased Infrastructure Investment: Governments worldwide are heavily investing in public infrastructure projects, including transportation networks, public utilities, and smart cities, which directly fuels demand for construction services.
Rapid Urbanization and Population Growth: The continuous migration of populations to urban centers, particularly in developing nations, creates a persistent demand for new residential, commercial, and institutional buildings.
Technological Advancements: The adoption of technologies like Building Information Modeling (BIM), drones, 3D printing, and project management software is enhancing efficiency, reducing costs, and improving the quality of construction projects.

Global Construction Services Market Trends

Focus on Green and Sustainable Construction: There is a growing trend towards using sustainable materials and energy-efficient designs, driven by stricter environmental regulations and increasing consumer awareness about climate change.
Rise of Modular and Prefabricated Construction: Off-site construction methods are gaining popularity as they offer faster project completion times, reduced labor costs, and improved quality control compared to traditional building techniques.
Digital Transformation and Data Integration: The industry is moving towards digitalization, utilizing data analytics and IoT devices to monitor project progress, manage resources effectively, and enable predictive maintenance.

Global Construction Services Market Restraints

Skilled Labor Shortage: The construction industry faces a significant shortage of skilled labor, from architects and engineers to on-site workers, leading to increased labor costs and project delays.
Volatility in Raw Material Prices: Fluctuations in the prices of key construction materials like steel, cement, and copper can significantly impact project budgets and profitability.
Stringent Regulations and Permitting Processes: Complex and time-consuming regulatory hurdles, including zoning laws, environmental permits,...

The Industrial Building Construction industry in New Hampshire is expected to decline an annualized -x.x% to $x.x million over the five years to 2025, while the national industry will likely grow at x.x% during the same period. Industry establishments stagnated an annualized x% to xx locations. Industry employment has increased an annualized x.x% to xxx workers, while industry wages have increased an annualized x.x% to $x.x million.

Industry operators construct complete residential and non-residential buildings, either on their own account for sale, or on a fee or contract basis for external clients and property developers. Firms may outsource discrete segments of the construction phase to specialist tradespeople classified elsewhere, including electricians, mechanical engineers and scaffolders. Maintenance and repair solutions for residential and non-residential property also fall under the scope of the industry.

After several turbulent years, hospital construction activity is bouncing back, with contractors experiencing a much-needed rebound after the disruption brought on by the pandemic. The industry hit a low point between 2020 and 2023, when project activity stalled because of strict capital budgets, labor and material shortages and uncertainty about hospital demand. Contractors who saw a dwindling backlog during this time have enjoyed a resurgence in bidding and a ramping up of both new construction and remodeling jobs, spurred in part by rising hospital occupancy and the lure of federal tax incentives for energy-efficient upgrades. Climbing occupancy at hospitals has also boosted remodeling work, benefiting contractors. Overall, industry revenue has been increasing at a CAGR of 2.1% to total an estimated $34.6 billion in 2025, including an estimated 3.4% increase in 2025. Hospital construction contractors had to navigate persistent cost pressures and tough competition, all while handling shifts in hospital funding. Profitability took a hit as material prices and wages soared through 2022, with heightened material costs and labor shortages complicating job pricing and scheduling. Contractors were forced to accept slimmer profit just to keep projects moving when private hospitals delayed or downsized capital investments and nonprofit community hospitals struggled under tighter Medicaid reimbursements and operational losses. Only as pandemic-era constraints eased did capital flows begin to strengthen, allowing contractors to rebuild lost ground and pass on more costs to end customers from 2023 to 2025. Still, tariffs have led to climbing construction material costs, putting additional pressure on profit. Looking ahead, the outlook is a mix of opportunity and risk. Federal policy changes, including the One Big Beautiful Bill Act and the expiration of 179D tax credits, will shake up funding streams, pushing rural hospitals in particular to reshape their construction plans as they work through shrinking Medicaid reimbursements and temporary relief programs. On the other hand, rising occupancy rates and looming seismic retrofit mandates in states like California are expected to drive a wave of new projects, especially modernization and expansion work. Industry revenue is forecast to increase at a CAGR of 3.5% to total an estimated $41.1 billion through the end of 2030.

Construction Software Market Outlook

According to our latest research, the global construction software market size in 2024 stands at USD 10.3 billion, with a robust CAGR of 8.7% anticipated from 2025 to 2033. This sustained growth trajectory is driven by the increasing digitization of construction processes, rising demand for project transparency, and the urgent need to enhance productivity and efficiency across the sector. By 2033, the construction software market is forecasted to reach approximately USD 22.1 billion, underscoring the pivotal role that advanced software solutions play in transforming the construction industry landscape.

One of the primary growth factors fueling the construction software market is the widespread adoption of digital technologies to streamline project management and improve collaboration among stakeholders. The construction industry is traditionally fragmented and labor-intensive, often plagued by delays, cost overruns, and inefficient communication. Construction software platforms address these challenges by providing real-time updates, centralized document management, and seamless coordination between teams. The integration of Building Information Modeling (BIM), cloud-based collaboration tools, and mobile applications has further accelerated the adoption curve, enabling construction firms to optimize resource allocation, minimize risks, and deliver projects on time and within budget.

Another significant driver is the increasing complexity of construction projects, which necessitates advanced solutions for cost estimation, contract management, and field service management. As projects grow in scale and scope, the need for accurate forecasting, transparent budgeting, and stringent compliance management becomes paramount. Construction software solutions equipped with analytics and automation capabilities empower contractors, architects, engineers, and builders to make data-driven decisions, enhance operational efficiency, and reduce manual errors. The industry's growing focus on sustainability and green building practices also contributes to market growth, as software platforms help track energy consumption, material usage, and regulatory compliance.

The proliferation of cloud-based deployment models is reshaping the construction software market by offering scalable, flexible, and cost-effective solutions. Cloud-based platforms enable stakeholders to access project data from anywhere, facilitate real-time collaboration, and ensure business continuity even in remote or distributed environments. This is particularly valuable for small and medium enterprises (SMEs) that may lack the resources for extensive IT infrastructure. Furthermore, the integration of artificial intelligence (AI), machine learning, and Internet of Things (IoT) technologies within construction software is unlocking new opportunities for predictive maintenance, safety management, and process optimization, thereby driving sustained market expansion.

From a regional perspective, North America remains the dominant market for construction software, buoyed by high technology adoption rates, stringent regulatory standards, and significant investments in infrastructure modernization. Europe follows closely, driven by the region's focus on sustainable construction and digital transformation initiatives. The Asia Pacific region is emerging as a high-growth market, fueled by rapid urbanization, government-led smart city projects, and increasing investments in construction technology. Latin America and the Middle East & Africa are also witnessing steady growth, albeit from a smaller base, as construction companies in these regions recognize the benefits of digitalization and operational efficiency.

Component Analysis

The construction software market is bifurcated into two primary components: software and services. The software segment encompasses a wide range of solutions, including project management software, cost estimation tools, field service management platforms, contract management systems, and document management applications. These software solutions are the backbone of digital transformation within the construction industry, enabling stakeholders to automate workflows, enhance visibility, and improve decision-making. The software segment currently commands the largest share of the market, driven by the growing demand for integrated platforms that can manage the entire project lifecycle from planning to execution and mainte

The Commercial Building Construction industry in North Carolina is expected to grow an annualized x.x% to $x.x billion over the five years to 2025, while the national industry will likely grow at x.x% during the same period. Industry establishments increased an annualized x.x% to x,xxx locations. Industry employment has decreased an annualized -x.x% to x,xxx workers, while industry wages have increased an annualized x.x% to $x.x million.

The global residential construction market size reached approximately USD 4.92 Trillion in 2024. Further, the residential construction industry is further projected to grow at a CAGR of 5.00% between 2025-2034, reaching a value of USD 8.01 Trillion by 2034.

The remote construction market is estimated to be worth USD 1.45 billion in 2025 and anticipated to reach a value of USD 6 billion by 2035. Sales are projected to rise at a CAGR of 15.2% over the forecast period between 2025 and 2035. The industry is experiencing a profound change that could be attributed to technological progress, labor shortages, and the necessity of cost-efficient and effective construction solutions.

Metrics	Values
Industry Size (2025E)	USD 1.45 billion
Industry Value (2035F)	USD 6 billion
CAGR (2025 to 2035)	15.2%

Trend Analysis and Purchasing Criteria across Different End-Use Segments

Organization	Investment Value (USD Million)
Australian Government	USD 54 Million
UK Cabinet Office	USD 103,136 Million
Commonwealth Bank of Australia (CBA)	Not specified
Queensland Government	USD 530 Million

Segment-wise Analysis

Component	Share (2025)
Remote Construction Solutions	65.3%

Application	CAGR (2025 to 2035)
Remote Management	16.6%

Country-wise Analysis (2025 to 2035)

Country	CAGR (2025 to 2035)
USA	8.2%
UK	7.5%
France	6.8%
Germany	7%
Italy	6.3%
South Korea	8%
Japan	7.2%
China	9.5%
Australia	7.8%
New Zealand	6.5%

The Commercial Building Construction industry in Mississippi is expected to decline an annualized -x% to $x.x billion over the five years to 2025, while the national industry will likely grow at x.x% during the same period. Industry establishments decreased an annualized -x.x% to xxx locations. Industry employment has decreased an annualized -x.x% to x,xxx workers, while industry wages have decreased an annualized -x.x% to $x.x million.

The Netherlands Data Center Construction Market report segments the industry into By Tier Type (Tier 1 and 2, Tier 3, Tier 4), By Data Center Size (Small, Medium, Large, Mega, Massive), By Infrastructure (Cooling Infrastructure, Power Infrastructure, Racks and Cabinets, Servers, Networking Equipment, Physical Security Infrastructure, and more), and By End User (IT & Telecommunication, BFSI, Government, Healthcare, and more).

The Green Construction Market size to reach USD 788.5 Billion in 2034 growing at a CAGR of 8.5%. The research report classifies market by share, trend, demand and based on segmentation by Material, Product Type, Application, End-Use, and Region.

The Industrial Building Construction industry in Wisconsin is expected to grow an annualized x.x% to $x.x billion over the five years to 2025, while the national industry will likely grow at x.x% during the same period. Industry establishments increased an annualized x.x% to xxx locations. Industry employment has increased an annualized x.x% to x,xxx workers, while industry wages have increased an annualized x% to $x.x million.

Market Size statistics on the Commercial Building Construction industry in the US

Snapshot img

Construction Management Software Market Size 2025-2029

The construction management software market size is forecast to increase by USD 6.66 billion at a CAGR of 9.6% between 2024 and 2029.

The market is experiencing significant growth due to the increasing demand for large-scale construction projects and the integration of estimation and accounting software for streamlined operations. This trend is particularly prominent in regions with a high concentration of construction activity, such as North America and Asia-Pacific. Field service management and business analytics tools are also key features driving market growth. However, the market faces challenges from open-source construction software platforms, which offer cost-effective alternatives to proprietary solutions. These open-source platforms may lack commercial offerings' advanced features and support, but they are gaining traction among small and medium-sized construction firms. To capitalize on market opportunities, companies should focus on providing value-added services, such as project management consulting and training, to differentiate themselves from competitors.
Additionally, investing in research and development to enhance construction management software's functionality and user experience will be crucial for long-term success. Furthermore, the Internet of Things (IoT) is transforming the industry by providing real-time data and automating various processes. By staying abreast of market trends and addressing the unique needs of construction firms, companies can navigate challenges and seize opportunities in this dynamic market.

What will be the Size of the Construction Management Software Market during the forecast period?

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The market encompasses a range of platforms designed to streamline and optimize various aspects of construction projects. These solutions cater to diverse sectors, including home builders, remodelers, specialty contractors, and general contractors, among others. Key features include budget management, communication tools, databases, and the ability to replace Excel spreadsheets. Market dynamics are driven by the growing need for efficient project planning, goal setting, and job scheduling. Cloud-based technology, automation, and open-source software are prominent trends, offering advantages such as reduced installation costs and ongoing maintenance requirements.
Construction professionals increasingly leverage business analytics tools, IoT integration, lean management principles, and project management platforms to enhance productivity and profitability. The market continues to expand, driven by the diverse needs of the construction industry and the ongoing digital transformation.

How is the Construction Management Software Industry segmented?

The industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD million' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

End-user

  Builders and constructors
  Construction managers
  Engineers and architects


Deployment

  Cloud-based
  On-premises


Geography

  North America

    US
    Canada


  Europe

    France
    Germany
    Italy
    Spain
    UK


  APAC

    China
    India
    Japan


  Middle East and Africa



  South America

By End-user Insights

The builders and constructors segment is estimated to witness significant growth during the forecast period.

Construction management software plays a crucial role in optimizing the construction process by facilitating efficient labor management, site event tracking, data capture, and cost control. By implementing this technology, constructors can enhance project profitability and productivity. Construction professionals, including builders, contractors, engineers, architects, and remodelers, rely on construction management software for pre-construction planning, budgeting, and project scheduling. The software also offers features such as real-time collaboration, document management, cost estimation, and resource allocation. Construction management software platforms enable the integration of business analytics tools, IoT, artificial intelligence, machine learning, predictive analytics, and data-driven insights. These advanced technologies offer enhanced project communication, safety and reporting, field service management, and digital transformation.

Furthermore, the software is available as cloud-based technology, making it accessible from anywhere, at any time. Geographical boundaries are no longer a constraint, as the software caters to commercial and residential projects, commercial buildings, sustainable development, and green commercial buildings. The software's ease of use and flexibility make it an essential tool for general contractors, specialty contractors, and sub-contractors. Th