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US Commercial Construction Market Size 2025-2029

The us commercial construction market size is forecast to increase by USD 191 billion billion at a CAGR of 2.7% between 2024 and 2029.

The Commercial Construction Market in the US is experiencing significant growth driven by the increasing trend towards sustainable building practices and the emergence of smart cities. Green buildings, which incorporate energy-efficient designs and renewable energy sources, are gaining popularity due to their environmental benefits and cost savings over the long term. This trend is expected to continue as more businesses prioritize sustainability and energy efficiency in their operations. However, the market also faces challenges, most notably the lack of skilled labor in the construction industry. The industry's aging workforce and a decline in new entrants have created a labor shortage, leading to delays and increased costs for construction projects. To mitigate this challenge, companies are exploring innovative solutions such as modular construction and automation technologies to streamline processes and reduce reliance on manual labor. In , the US Commercial Construction Market presents significant opportunities for growth, particularly in the area of sustainable building practices and smart city development. However, companies must also address the challenge of the labor shortage by adopting new technologies and innovative construction methods to remain competitive and deliver projects on time and on budget. By staying informed of these trends and challenges, businesses can effectively capitalize on market opportunities and navigate challenges in the ever-evolving construction landscape.

What will be the size of the US Commercial Construction Market during the forecast period?

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The commercial construction market in the US continues to exhibit activity, driven by the demand for new office buildings, retail spaces, outdoor leisure facilities, and mixed-use developments. Urbanization and infrastructure development programs are significant growth areas, fueling the need for renovation and retrofitting of existing structures, as well as urban regeneration projects. Energy-saving designs and water infrastructure are key trends, with a focus on reducing costs through efficient building materials and product lead times. The non-residential building market is experiencing cost escalation due to fluctuating material prices, particularly for building materials like lumber, and labor shortages, exacerbated by a shrinking labor force. Despite these challenges, investments in commercial construction remain strong, reflecting the market's ongoing importance to the US economy.

How is this market segmented?

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments. SectorPrivate constructionPublic constructionTypeBuildingOthersEnd-userOffice buildingsRetail spacesHotels and hospitalityHealthcare facilitiesOthersGeographyUS

By Sector Insights

The private construction segment is estimated to witness significant growth during the forecast period.

The US commercial construction market encompasses the development of various structures, including office buildings, retail establishments, outdoor leisure facilities, and urban infrastructure projects. Notable initiatives in this sector include the construction of the El Paso VA Health Care Center in Fort Bliss, celebrated in August 2024, and the Skymark Reston Town Center, the tallest residential tower in the Capital Region, topped out in October 2023. These projects contribute to the expansion of the market, with a focus on mixed-use developments, infrastructure building, and energy-saving designs. However, challenges such as cost escalation due to fluctuating material prices, labor shortages, and infrastructure development programs require careful planning and management. Key areas of investment include public transportation, broadband internet, electric grid reconstruction, water infrastructure, and multifamily housing. Operational efficiency, service delivery, and safety are essential functional areas in the non-residential building market. Technological advancements in communication linkages, data and communication, and EV units are transforming the industry.

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The Private construction segment was valued at USD 1313.50 billion in 2019 and showed a gradual increase during the forecast period.

Market Dynamics

Our researchers analyzed the data with 2024 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advant

This statistic shows the projected number of firms in the construction industry in the United States in 2019 and 2026, by size of firm. By 2026, the construction industry in the U.S. is projected to have 49 companies employing over 10,000 people.

The construction industry in Great Britain, including value of output and type of work, new orders by sector, number of firms and total employment.

Explore the Construction Market trends! Covers key players, growth rate 5.7% CAGR, market size $21260.28 Billion, and forecasts to 2034. Get insights now!

The Report On the North American Construction Market is Segmented by Country (Canada and the United States), Sector (Commercial Construction, Residential Construction, Industrial Construction, Infrastructure (Transportation) Construction, and Energy and Utilities Construction), and Construction Type (Additions and Demolition and New Construction). The Report Offers Market Size and Forecasts in Value (USD) for all the Above Segments.

TBRC construction market report includes buildings construction, heavy and civil engineering construction, specialty trade contractors

The Report Covers US Commercial Building Construction Industry Statistics & Growth. The Market is Segmented by End User (Office Building Construction, Retail Construction, Hospitality Construction, Institutional Construction, and Others). The market size and forecasts are provided in terms of value (USD billion) for all the above segments.

This statistic displays a projection of the market output of the construction sector worldwide in 2021, broken down by region. It is expected that in that year, the Asia Pacific region's construction output will reach 4.8 trillion U.S. dollars.

Quarterly non-seasonally adjusted type of work and regional data at current prices, Great Britain.

In the fiscal year 2023, the construction industry in Japan generated sales of approximately 151 trillion Japanese yen. This represented an increase of slightly under one percent compared to the previous fiscal year.

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US Residential Construction Market Size 2025-2029

The residential construction market size in the US is forecast to increase by USD 242.9 million at a CAGR of 4.5% between 2024 and 2029.

The residential construction market is experiencing significant growth, driven by several key factors. Firstly, the increasing household formation rates in the US continue to fuel demand for new housing units. Secondly, there is a rising focus on sustainability in residential construction projects, with homebuilders increasingly adopting energy-efficient and eco-friendly building materials and practices.
However, the market also faces challenges, including a shortage of skilled labor for large-scale residential real estate projects, which can impact project timelines and budgets. These trends and challenges are shaping the future of the residential construction industry in the US.

What will be the US Residential Construction Market Size During the Forecast Period?

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The residential construction market is experiencing a significant shift as the affordable housing trend gains momentum. The Federal Reserve's decision to keep the federal funds rate low has contributed to a decrease in mortgage rates, making it an opportune time for home buyers to enter the market. However, the housing supply remains a concern, with construction spending in the residential investment sector showing only modest growth. The labor market's current state is another factor influencing the residential construction industry. With a low unemployment rate, there is a high demand for labor, leading to increased wages and, in turn, higher construction costs.
Inflation also poses a challenge, as it erodes the purchasing power of home buyers and builders alike. The economy's overall health plays a crucial role in the residential construction market's dynamics. A strong economy typically leads to increased demand for new homes, as evidenced by the double-digit growth in housing starts and building permits for single-family homes. However, a recession can lead to a significant decrease in construction activity, as seen in the cancellation rate of housing projects. The Federal Reserve's interest rate decisions, inflation, and the economy's health all impact the residential construction market. Affordable housing programs, such as housing choice vouchers and fair housing programs, play a vital role in ensuring access to housing for a broader population. The construction sectors must navigate these market dynamics to remain competitive and meet the demand for new homes.
The US residential construction market is seeing significant shifts, driven by various housing market trends. Sustainable homebuilding practices are gaining momentum, with a focus on energy-efficient homes and green building materials. Modular construction and prefab housing are becoming increasingly popular for their cost-effective and timely solutions. Urban redevelopment projects are revitalizing city areas, while suburban expansion is fueling demand for new homes. Affordable housing projects are crucial in addressing housing shortages, and real estate investment continues to thrive in these sectors. Smart home integration is also on the rise, with luxury home construction embracing high-tech features. The impact of mortgage rates, coupled with multifamily housing growth and home renovation demand, adds complexity to the market's dynamics.

How is this market segmented and which is the largest segment?

The market 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.

Product

  Apartments and condominiums
  Villas
  Other types


Type

  New construction
  Renovation


Application

  Single family
  Multi-family


Geography

  US

By Product Insights

The apartments and condominiums segment is estimated to witness significant growth during the forecast period.

The residential construction market in the US is experiencing growth in the apartment and condominium sectors, driven by shifting preferences and lifestyle choices. Urbanization is a significant factor fueling this trend, as more individuals opt for the conveniences and amenities offered in urban areas. As a result, developers are constructing modern, sustainable, and community-focused living spaces in the form of high-rise apartment buildings and condominium complexes. These structures cater to various demographics, including intergenerational groups and younger generations, reflecting diverse living circumstances. The labor economy and vaccination rates have also contributed to the continued activity in the residential sector, allowing for steady progress in construction projects. While the non-residential sector has faced challenges, the residential sector remains a vi

This table presents information about the developments in domestic turnover of the construction industry (SIC 2008 section F). The results are expressed in terms of indices with base year 2021 and by the percentual change of a period compared to the same period of the previous year. The data can be divided by a number of branches according to Statistics Netherlands' Standard Industrial Classification of all Economic Activities 2008 (SIC 2008) and by two size classes.

Data available from January 2005.

Status of the figures: The figures of January until December 2024 and January 2025 are provisional, the figures from the preceding periods are definitive.

Changes as of March 14, 2025: Figures of January 2025 have been added and the figures of October, November and December 2024 may have been adjusted.

When will new figures be published? Statistics Netherlands usually publishes the first results six to eight weeks after the end of the reporting period. Figures may be adjusted up to 75 days after the quarter as additional response becomes available. After this, the provisional figures will not be changed until they are made definitive. Five months after the reporting year, all delayed response is used to compile the definitive figures for all months in the reporting year. It is after this that the figures change from provisional to definitive.

Once the definitive figures have been published, Statistics Netherlands only adjusts them if significant corrections are necessary.

Explore the Nonresidential Building Construction Market trends! Covers key players, growth rate 3.9% CAGR, market size $3726.66 Billion, and forecasts to 2034. Get insights now!

This table presents information about developments in domestic turnover of the construction industry (SIC 2008 section F). The data can be divided by a number of branches according to Statistics Netherlands' Standard Industrial Classification of all Economic Activities 2008 (SIC 2008) and by four size classes. The results are expressed in terms of indices with base year 2015. Changes on the same period in the previous year are also published.

Data available from 1st quarter 2005 until 4th quater 2023.

Status of the figures: The figures of 2023 are provisional and the figures from the preceding periods are definite. Seeing as this table will no longer be updated, the figures of 2023 will not be finalised.

Changes as of August 15, 2024: None, as this table will no longer be updated.

When will new figures be published? No longer applicable.

Once definite figures have been published, Statistics Netherlands only adjusts them if significant corrections are necessary.

Global Buildings Construction Market to hit USD 9750.27B by 2029 growing at 5.5% CAGR. Explore trends, drivers, and competition for strategic insights with The Business Research Company.

The Mexico Data Center Construction Market Report is Segmented by Infrastructure (Electrical Infrastructure (Power Distribution Solution (PDU, Transfer Switches, Switchgear, Power Panels and Components, and Other Power Distribution Solutions)), Power Backup Solution (UPS, Generators), Service – Design & Consulting, Integration, Support & Maintenance)), Mechanical Infrastructure (Cooling Systems (Immersion Cooling, Direct-To-Chip Cooling, Rear Door Heat Exchanger, In-Row and In-Rack Cooling)), Racks, and Other Mechanical Infrastructure)), and General Construction)), Tier Type (Tier 1 and 2, Tier 3, and Tier 4), and End User (Banking, Financial Services and Insurance, IT and Telecommunications, Government and Defense, Healthcare, and Other End User). The Market Sizes and Forecasts are Provided in USD Value for all the Above Segments.

Quarterly new orders at current price and chained volume measures, seasonally adjusted by public and private sector. Quarterly non–seasonally adjusted type of work and regional data.

China has become the largest construction market in the world. In 2020, the construction industry value in China amounted to 1,049 billion U.S. dollars. As the government has planned to focus on improving the infrastructure in small and medium-sized cities, the construction industry was forecasted to maintain a continuous growth at around five percent annually.

Key Statistics on Business Performance and Operating Characteristics of the Building, Construction and Real Estate Sectors - Table 615-73013 : Principal statistics for all establishments in the construction sector by industry value added

Artificial Intelligence (AI) In Construction Market size was valued at USD 1.53 Billion in 2024 and is projected to reach USD 14.21 Billion by 2031, growing at a CAGR of 36.00% during the forecast period 2024-2031.

Global Artificial Intelligence (AI) In Construction Market Drivers

Technological Progress
Data Availability and Big Data Analytics: Building Information Modeling (BIM), drones, and Internet of Things (IoT) sensors are just a few of the sources that the construction sector is using to generate enormous amounts of data. AI uses this data to improve decision-making, streamline workflows, and offer predictive insights. AI applications are more reliable and accurate when big data analytics is used to handle and analyze complicated datasets.

Automation and Machine Learning: More complex and precise predictive models are made possible by developments in machine learning algorithms. Artificial intelligence (AI) automation is increasing efficiency by optimizing processes including resource allocation, project management, and scheduling. AI-powered robotics are also being utilized to increase safety and decrease human error in jobs like welding, demolition, and bricklaying.

Computer Vision: This technology is particularly transformative in construction. AI-powered computer vision can monitor site progress, ensure safety compliance, and detect defects in real-time. Drones and cameras equipped with AI analyze construction sites to provide actionable insights, improving quality control and reducing costly rework.

Economic Factors
Cost Reduction: AI helps in significantly reducing costs associated with construction projects. Through predictive maintenance, AI minimizes downtime and extends the life of equipment. Optimized resource management ensures materials are used efficiently, reducing waste and costs. Furthermore, AI-driven project management tools can prevent delays and associated costs by identifying potential issues early.

Competitive Advantage: Companies adopting AI technologies gain a competitive edge by enhancing their efficiency, reducing operational costs, and delivering projects faster. This is increasingly important in a highly competitive industry where margins are often tight. Early adopters of AI in construction are likely to set industry benchmarks and attract more business.

Operational Efficiencies
Enhanced Productivity: AI streamlines construction processes by automating repetitive tasks, improving scheduling, and optimizing workflows. This results in increased productivity and allows human workers to focus on more complex, value-added activities. AI also enhances the accuracy of labor forecasting and deployment, ensuring optimal use of human resources.

Improved Safety: Safety is a critical concern in construction. AI technologies, such as wearable devices and computer vision, monitor worker movements and site conditions in real-time to detect hazards and prevent accidents. AI-driven predictive analytics can foresee potential safety issues, allowing for proactive measures to mitigate risks.