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.

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.

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!

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

Europe construction market size reached US$ 3.38 Billion in ​2023​. Looking forward, IMARC Group expects the market to reach US$ 5.42 Billion by ​2032​, exhibiting a growth rate (CAGR) of 5.10% during 2024-2032. The market is mainly driven due to rapid urbanization, along with an increasing number of infrastructure projects and green building initiatives. The rising demand in residential and commercial sector mainly in Germany, France and the United Kingdom is also driving the market toward growth across the European region.

The North American residential construction market is segmented by property type (single family and multi-family), construction type (new construction and renovation), and region (United States, Canada, and Mexico). The report offers size and forecasts for the North American residential construction market in terms of value (USD billion) for all the above segments. The impact of the COVID-19 pandemic is also covered in the report.

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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

Get detailed insights into the current valuation of Construction market size, including growth analysis, current market status and future market projections.

Trillions are spent every year on the buildings, infrastructure, and industrial installations by the global construction sector. In 2015, China’s construction market reached 3.3 trillion U.S. dollars, while North America’s construction sector had a market size of 1.9 trillion U.S. dollars. The construction market in Asia is expected to account for almost half of global construction spending by 2020.

Construction productivity

However, in the past decades, the industry has lost a large amount in value due to low labor productivity. The productivity growth of the construction sector has been comparatively lower than that of the total global economy and the manufacturing industry. Low productivity may be attributable to several reasons, including a highly regulated industry and dependency on public sector demand. The difficulties of the market can bring poor project management and execution, a lack of skill, and inadequate design processes. There are known ways to overcome these barriers, however, it is difficult for individual entities, despite high revenues, to change a traditional system.

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!

The private sector construction spending increased by 89 billion U.S. dollars in 2024. That year, the value of new private construction put in place amounted to 1.66 trillion U.S. dollars. Private construction constituted most of the overall construction spending in the U.S.

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 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 construction market in South Korea was estimated to be at 166 billion U.S. dollars in 2023. Until 2022, the South Korean construction had grown consecutively since 2018.

China Construction Market size was valued at USD 1.3 Trillion in 2024 and is projected to reach USD 2.2 Trillion by 2032, growing at a CAGR of 7.2% from 2025 to 2032.

China Construction Market Drivers

Population Growth and Urbanisation

The need for residential, commercial, and industrial construction is still being driven by rapid urbanisation.
Construction is fuelled by the government’s ambition to create “megacities” and urban clusters.
Development of Infrastructure

National initiatives like the Belt and Road Initiative (BRI) continue to prioritise large expenditures in infrastructure, including energy projects, water management systems, and transportation (airports, highways, and railroads).
The construction landscape is growing as a result of projects targeted at improving rural infrastructure.
Stimulus measures and economic policies

Large-scale construction projects are frequently a part of fiscal plans aimed at economic growth.
A balanced building demand is indirectly supported by the central government’s emphasis on lowering house speculation while preserving steady real estate expansion.

The market size of the hotel construction sector in the United States increased from 2022 to 2023. In 2023, the sector's market size reached 19.5 billion U.S. dollars, up from the previous year's total of 18.06 billion U.S. dollars.

The global market for modular construction is expected to grow under rapid urbanization in developing countries. Modular construction is largely used in these regions to renovate existing buildings. In 2025, the global market value of modular construction is expected to reach about 175 billion U.S. dollars.

The Italy construction market size reached US$ 338.4 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 433.88 Billion by 2032, exhibiting a growth rate (CAGR) of 2.72% during 2024-2032. The increasing government infrastructure investments, urbanization trends, rising focus on renovation, favorable energy efficiency initiatives, surging demand for residential and commercial properties, and the adoption of advanced construction technologies are some of the major key factors impelling the market demand.

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the country level for 2024-2032. Our report has categorized the market based on product, sector, category, and end user.

This statistic shows the distribution of the construction market share in Asia Pacific in 2014, by country. That year, China reached a market share of approximately 47 percent for that region. Investments in transportation and manufacturing infrastructure is expected to continue dominating the market.

Construction market in Asia-Pacific – additional information

With a steady annual growth over the past few years, Asia Pacific is expected to be one of the world’s largest construction markets. In 2014, China continued to lead the Asia Pacific construction market, accounting for close to half of the region’s construction output. According to the Fortune China 500 ranking in 2015, China State Construction Engineering (CSCEC) ranked first among the leading Chinese construction companies ranking with annual revenue of about 800 billion yuan in 2014. China Railway Group and China Railway Construction came in second and third with 610 billion and 590 billion yuan in revenue in the same year.

Driven by changing demographic trends, such as an aging population, Asia Pacific investments in transportation and manufacturing infrastructure are expected to continue dominating the construction market. In 2014, infrastructure and residential spending in Asia accounted for 37 and 34 percent share of its total construction spending. Construction costs of average standard buildings in Asia remained the highest among high rise offices and retail space. Chinese companies, for example, spent an average of around 1,100 U.S. dollar per square meter for high rise offices and about 850 U.S. dollar per square meter for retail space.

Europe's Residential Construction Market Report is Segmented by Property Type (single-Family and Multi-Family), Construction Type (new Construction and Renovation), and Country (Germany, United Kingdom, France, Italy, and the Rest of Europe). The Europe Residential Construction Market Report Offers the Market Sizes and Forecasts in Value (USD) for all the Above Segments