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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

The Report Covers Oman's Construction Market Analysis & Companies. The Market is Segmented by Sector (Commercial, Residential, Industrial, Infrastructure (Transportation), and Energy and Utilities). The Report Offers Market Size and Forecasts for the Omani Construction Market in Value (USD) for all the Above Segments.

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.

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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

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.

The global remote construction market is currently valued at around US$ 973.9 million in comparison to US$ 853.2 million in the previous year 2022. As per the market analysis, it is anticipated to experience high growth and surge ahead at a CAGR of 14.2% through 2033. This remote construction market analysis report further predicts the overall valuation of the market to reach US$ 3,674.3 million by the year 2033.

Attributes	Details
Remote Construction Market Size (2022)	US$ 853.2 million
Remote Construction Market Size (2023)	US$ 973.9 million
Remote Construction Sales Forecast (2033)	US$ 3,674.3 million
Global Remote Construction Market Growth Rate (2023 to 2033)	14.2% CAGR
Share of Top 5 Remote Construction Market Players	50%

Category-wise Insights

Market Segments by Application	Remote Management
Value in 2023	US$ 320.4 million
CAGR (2023 to 2033)	14.9%

Market Segments by Application	Construction Management
Value in 2023	US$ 414.6 million
CAGR (2023 to 2033)	14.1%

Market Segments by Application	Communication
Value in 2023	US$ 184.1 million
CAGR (2023 to 2033)	13.8%

Market Segments by Application	Other Applications
Value in 2023	US$ 54.8 million
CAGR (2023 to 2033)	12.4%

Market Segments by End-use Industry	Construction
Value in 2023	US$ 477.2 million
CAGR (2023 to 2033)	15.3%

Market Segments by End-use Industry	Energy & Utilities
Value in 2023	US$ 231.9 million
CAGR (2023 to 2033)	14.3%

Market Segments by End-use Industry	Mining
Value in 2023	US$ 155.2 million
CAGR (2023 to 2033)	12.9%

Market Segments by End-use Industry	Others
Value in 2023	US$ 109.6 million
CAGR (2023 to 2033)	11.1%

Explore the detailed segmentation analysis of the Internet of Things (IoT) in Construction market. Understand detailed breakdown for each segment and uncover market opportunities.

Indian Construction Industry is segmented by Sector (Commercial Construction, Residential Construction, Industrial Construction, Infrastructure (Transportation) Construction, and Energy and Utility Construction). The report offers market size and forecasts for the Indian construction market in value (USD billion) for all the above segments.

Global modular construction market size and share will grow to USD 160.15 billion by 2032, at a CAGR of 5.70%. The increasing emphasis on work-zone safety measures and a reduction in environmental impacts are among the primary drivers.

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Turkey Construction Market Size 2024-2028

The Turkey construction market size is forecast to increase by USD 68.3 billion, at a CAGR of 5.96% between 2023 and 2028.

The market is experiencing significant growth, driven by the increasing demand for urbanization and housing in major cities such as Ankara and Afyonkarahisar. This trend is further fueled by the focus on improving urban infrastructure, including the expansion of airports. 
The economic prospects of the country are also contributing to the growth of the construction sector, as investments in education, healthcare, and enhancing quality of life become priorities. However, the rising cost of construction materials poses a challenge for market participants. Despite this, the market remains a promising area for investment, offering potential returns for businesses involved in residential and commercial projects.

Market Analysis

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Turkey construction market has been a significant contributor to the country's economic growth, with residential and commercial sectors playing pivotal roles. The industry's resilience is evident in its ability to adapt to various market conditions and global trends. The construction sector's linkages with other sectors, such as education, healthcare, and urban infrastructure development, are essential for improving the quality of life and enhancing the overall economic prospects of the country. In recent years, Turkey has shown a strong commitment to sustainable development, with renewable energy becoming an increasingly important focus. The Turkish government's efforts to reduce greenhouse gas emissions and adhere to the Organisation for Economic Co-operation and Development (OECD) standards have led to a rise in the adoption of renewable energy sources.
In addition, the Construction Industry Development Board of Turkey (CBRT) has been instrumental in promoting the use of green technologies and materials in the construction sector. The construction industry's impact on Turkey's Gross Domestic Product (GDP) is substantial. According to the OECD, the sector accounted for approximately 6% of Turkey's GDP in 2020. The sector's contribution to the economy is expected to continue, with the demand for housing and urban infrastructure projects remaining strong. Mortgage loans have been a crucial financing instrument for the residential sector. The availability of affordable mortgage loans has led to a rise in demand for housing, contributing to urbanization and population growth.

Market Segmentation

The Turkey construction market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.

Sector

  Private
  Public


End-user

  Residential
  Infrastructure
  Commercial


Geography

  Turkey

By Sector Insights

The private segment is estimated to witness significant growth during the forecast period.The private construction sector in Turkey plays a pivotal role in the country's development, particularly in urban areas such as Afyonkarahisar, Ankara, and Izmir. The private sector's impact extends beyond infrastructure, with a focus on residential housing and urbanization. This investment in housing and urban infrastructure enhances economic prospects, creating jobs and driving growth. Additionally, the private sector's involvement in education and healthcare projects improves the quality of life for Turkish citizens. The construction sector's continued expansion in Turkey is a testament to its importance in the country's overall economic growth.

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The private segment accounted for USD 125.60 billion in 2018 and showed a gradual increase during the forecast period.

Market Dynamics

The commercial sector has also seen significant investment, with a focus on modernizing and expanding existing infrastructure. The construction sector's macroeconomic stability is influenced by various factors, including inflation, materials cost, and labor cost. The sector's ability to manage these factors effectively is crucial for maintaining competitiveness and ensuring sustainable growth. The Turkish railway network is undergoing significant expansion, with the government investing heavily in modernizing and expanding the network. This investment is expected to boost economic growth by improving connectivity and reducing transportation costs. The construction sector's growth is not without challenges, however. Earthquakes pose a significant risk to the sector, with Turkey situated in a seismically active region.

Turkey construction market researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companie

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 size of the North America Data Center Construction market was valued at USD XX Million in 2023 and is projected to reach USD XXX Million by 2032, with an expected CAGR of 6.20% during the forecast period. Rising growth in North America Data Center Construction Market Growing demand for robust and scalable data storage and processing solutions drives growth momentum in North America's Data Center Construction Market. Data centers are special types of facilities housing servers, networking equipment, and storage systems. They are planned with secure storage, processing, and transmission of enormous amounts of data. They are a primary enabler of digital transformation in the spheres that include IT/telecom, finance, healthcare, and government. Increasing demand for data centers due to a surging rise in advanced cloud computing, artificial intelligence, and IoT is increasingly felt. North America is the global leader in data center infrastructure, and major hub locations are located in Northern Virginia and Dallas-Fort Worth and Silicon Valley, says market researcher. This region has the attractiveness of a developed technological ecosystem supported by more welcoming regulatory environments and rich power resources, thus attracting investments from hyperscale providers, colocation service providers, and enterprises. On-site data center construction continues to proliferate as demand for energy efficiency, sustainability, and resilience gains momentum in keeping pace with the requirements of digital age. Key drivers for this market are: Growing Cloud Applications, AI, and Big Data, Growing Adoption of Hyperscale Data Centers in Large Enterprises; Advent Green Data Center. Potential restraints include: High CaPex, OpEx & TCO for building Data Center. Notable trends are: United States of America to hold major market share.

In 2023, the Sweden Construction Market reached $52.43 billion, and is projected to surge to $77.80 billion by 2030 due to growth of infrastructure sector

Explore the detailed segmentation analysis of the Cold Storage Construction market. Understand detailed breakdown for each segment and uncover market opportunities.

Data Center Construction Market is expected to grow at a high CAGR during the forecast period 2024-2031 | DataM Intelligence

United States Commercial Construction Market size was valued at USD 104.42 Billion in 2024 and is projected to reach USD 184.57 Billion by 2031, growing at a CAGR of 7.38% during the forecast period 2024-2031.

United States Commercial Construction Market Drivers

The market drivers for the United States Commercial Construction Market can be influenced by various factors. These may include:

Economic Growth: When the economy grows, there is usually a rise in the demand for commercial real estate, which includes hotels, offices, retail stores, and industrial buildings.
Population Growth: In order to handle the growing number of residents, there is an increasing need for infrastructure and commercial areas.
Urbanisation: The need for commercial construction projects in cities, such as high-rise buildings, mixed-use developments, and infrastructure upgrades, is driven by the trend of urbanisation.
Technological Advancements: By increasing productivity, cutting costs, and satisfying regulations, developments in construction technology, such as prefabrication, Building Information Modelling (BIM), and sustainable building practices, can have an impact on the industry.
Government rules: The commercial construction industry can be greatly impacted by government rules pertaining to zoning, building codes, taxes, and environmental standards. For example, spending packages on infrastructure or incentives for green building techniques might boost construction activity.
Interest Rates and Financing Availability: Developers’ capacity and inclination to take on commercial construction projects are influenced by the cost and accessibility of financing as well as changes in interest rates.

Global modular construction market size and share is expected to reach USD 160.15 billion, at 5.70% CAGR by 2032.

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

Qatar Construction Market size was valued at USD 58.36 Billion in 2024 and is projected to reach USD 120.63 Billion by 2031, growing at a CAGR of 9.50 % during the forecast period 2024-2031.

Global Qatar Construction Market Drivers

FIFA World Cup 2022: The FIFA World Cup 2022 preparations are the primary and most immediate driver. To handle the surge of visitors and competitors, Qatar has started large-scale development projects to provide additional stadiums, lodging, and infrastructure. High-profile developments like the Lusail Iconic Stadium, Al Bayt Stadium, and considerable renovations to current facilities have all benefited from this event. The construction industry is also being driven by related infrastructure projects including airports, metro lines, and roadways.

National Vision 2030: Qatar’s National Vision 2030 is a strategy plan designed to make the country an advanced civilization that can continue to grow and give its people a high level of living. Four pillars make up this vision: environmental, social, human, and economic development. Significant investments are being made in a number of areas, including infrastructure, healthcare, and education, to meet these objectives. Smart cities, green buildings, and other cutting-edge construction projects are being developed as a result of the emphasis on sustainable and diverse economic growth.

Economic Diversification: Qatar is aggressively working to broaden its economic basis, given that it has previously relied heavily on oil and gas. The construction industry is being stimulated by government investments in non-oil areas like real estate, banking, and tourism. Urban developments like Lusail City and Msheireb Downtown Doha are instances of projects meant to boost the real estate market and draw in foreign investors and inhabitants.

Population Growth and Urbanisation: Qatar has one of the highest rates of urbanisation in the world, mostly due to an influx of expats and a quickly expanding population. There is a growing need for residential, commercial, and recreational spaces, which is driving up building. To accommodate the needs of an expanding urban population, massive residential developments, commercial centres, schools, and hospitals are being constructed.

Infrastructure Development: To support its long-term vision and economic objectives, the Qatari government is making significant investments in infrastructure projects. The extension of Hamad International Airport, the Doha Metro, and vast road networks are among the major projects. Along with improving connectivity and transportation, these initiatives are creating a lot of chances for the construction sector. The construction of ports, like the Hamad Port, emphasises the need to improve logistical capacities in order to facilitate economic diversification.

Foreign Investment and Public-Private Partnerships (PPPs): To stimulate the construction industry, the Qatari government is promoting both PPPs and foreign investment. International contractors and investors are drawn to initiatives aimed at fostering a favourable investment climate, such as incentives and regulatory reforms. The quality and scope of construction projects in Qatar are being improved by the inflow of foreign finance and expertise.

Technological Advancements: Another motivating factor is the use of sustainable practices and cutting-edge construction technologies. Prefabrication, green building technologies, and building information modelling (BIM) are being used more and more to guarantee environmental sustainability, cut expenses, and increase efficiency. With the aid of these developments, Qatar is establishing itself as a pioneer in contemporary building techniques.

Published on: January 31, 2020