Building materials made of steel, copper and other metals had some of the highest price growth rates in the U.S. in the first half of 2025 in comparison to the previous year. The growth rate of the cost of several construction materials was slightly lower than in late 2024. It is important to note, though, that the figures provided are Producer Price Indices, which cover production within the United States, but do not include imports or tariffs. This might matter for lumber, as Canada's wood production is normally large enough that the U.S. can import it from its neighboring country. Construction material prices in the United Kingdom Similarly to these trends in the U.S., at that time the price growth rate of construction materials in the UK were generally lower 2024 than in 2023. Nevertheless, the cost of some construction materials in the UK still rose that year, with several of those items reaching price growth rates of over **** percent. Considering that those materials make up a very big share of the costs incurred for a construction project, those developments may also have affected the average construction output price in the UK. Construction material shortages during the COVID-19 pandemic During the first years of the COVID-19 pandemic, there often were supply problems and material shortages, which created instability in the construction market. According to a survey among construction contractors, the construction materials most affected by shortages in the U.S. during most of 2021 were steel and lumber. This was also a problem on the other side of the Atlantic: The share of building construction companies experiencing shortages in Germany soared between March and June 2021, staying at high levels for over a year. Meanwhile, the shortage of material or equipment was one of the main factors limiting the building activity in France in June 2022.

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Construction Materials Market Outlook 2032

The global construction materials market size was USD 1,320.01 Billion in 2023 and is projected to reach USD 1,867.16 Billion by 2032, expanding at a CAGR of 3.9% during 2024–2032. The market growth is attributed to the increasing urbanization and industrialization across the globe.



Growing urbanization and industrialization are expected to boost the market during the assessment years. Cities expand and industries grow and the demand for construction materials increases significantly. This is due to the need for infrastructure development, including residential, commercial, and industrial buildings. Furthermore, industrialization leads to technological advancements in construction materials, enhancing their quality, durability, and sustainability.

Impact of Artificial Intelligence (AI) in Construction Materials Market

Artificial Intelligence (AI) significantly impacts the construction materials market by enhancing efficiency, reducing costs, and improving safety measures. AI-powered tools and software enable the industry to optimize the use of construction materials, thereby minimizing waste and reducing environmental impact.



AI algorithms accurately predict the quantity of materials required for a project, eliminating the guesswork and reducing over-ordering. AI contributes to cost reduction by automating routine tasks, such as inventory management and quality control, which traditionally require human intervention. This automation saves time and reduces the risk of human error.



In terms of safety, AI technologies, such as machine learning and computer vision, help identify potential hazards at construction sites, thereby preventing accidents and ensuring the well-being of workers. Therefore, the integration of AI in the market offers substantial benefits, transforming the way the industry operates and paving the way for sustainable and efficient construction practices.

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Construction Material Market Outlook

The global construction material market size was valued at approximately $1.2 trillion in 2023 and is expected to reach around $1.9 trillion by 2032, growing at a compound annual growth rate (CAGR) of 5.1% over the forecast period. One of the primary growth factors driving this market is the rapid urbanization and industrialization, particularly in emerging economies, which is leading to increased construction activities across residential, commercial, and industrial sectors.

The construction material market is benefiting significantly from the surge in infrastructure development projects across the globe. Governments in developing countries are investing heavily in building new roads, bridges, airports, and other essential infrastructures to support economic growth. Similarly, developed nations are focusing on upgrading their aging infrastructure to meet contemporary standards. This extensive construction activity is fueling the demand for various construction materials, including cement, metals, and aggregates, thereby propelling market growth.

Another critical growth factor is the rising population and the subsequent demand for housing. With the world's population expected to reach 9.7 billion by 2050, there is a substantial need for residential buildings, driving the demand for construction materials. Additionally, growing disposable incomes and improving living standards in many parts of the world are leading to increased investments in better-quality housing. This trend is particularly noticeable in urban areas, where there is a shift towards modern, sustainable, and energy-efficient building solutions.

The increasing focus on sustainable construction practices is also playing a significant role in shaping the construction material market. Environmental concerns and regulatory requirements are pushing the industry towards the adoption of eco-friendly materials and energy-efficient building techniques. This shift is fostering innovation in the development of new construction materials that are not only durable and cost-effective but also have a lower environmental impact. For example, the use of recycled materials, green concrete, and energy-efficient insulation products is gaining traction, contributing to the market's growth.

Building Cementitious Materials play a pivotal role in modern construction, offering a range of solutions that enhance the durability and sustainability of structures. These materials, which include various types of cement, are essential for creating concrete and mortar, the backbone of most construction projects. As the industry evolves, there is a growing emphasis on developing innovative cementitious materials that reduce environmental impact while maintaining structural integrity. This includes the use of supplementary cementitious materials like fly ash and slag, which not only improve the performance of concrete but also contribute to sustainability by utilizing industrial by-products. The development of these advanced materials is crucial in addressing the challenges of modern construction, such as the need for energy efficiency and reduced carbon emissions.

Regionally, the Asia Pacific is expected to dominate the construction material market throughout the forecast period. The region is witnessing robust economic growth, urbanization, and a surge in infrastructure development projects. Countries like China and India are leading the charge with massive investments in public infrastructure, residential projects, and commercial buildings. North America and Europe also present significant market opportunities, driven by the need to renovate and upgrade existing infrastructure. Meanwhile, Latin America and the Middle East & Africa are emerging as potential growth markets due to urbanization and economic development initiatives.

Type Analysis

The construction material market is segmented by type, including cement, aggregates, concrete, bricks, metals, wood, and others. Cement is a vital component in the construction industry, acting as a key ingredient in concrete and mortar. The demand for cement is primarily driven by infrastructure projects, residential construction, and commercial buildings. Rapid urbanization in emerging economies is a significant contributor to the increasing demand for cement. Innovations in cement production, such as the development of eco-friendly and low-carbon cement, are also expected to boost market growth.

Advanced Construction Materials Market Outlook

The global advanced construction materials market size was valued at approximately USD 50 billion in 2023 and is expected to grow to nearly USD 95 billion by 2032, registering a CAGR of about 7.5% during the forecast period. This significant growth is driven by various factors including increasing urbanization, technological advancements in material sciences, and the growing demand for sustainable and energy-efficient construction solutions.

One of the most significant growth factors for the advanced construction materials market is the rising trend of urbanization and the consequent demand for new and improved infrastructure. As cities swell with an influx of residents, the need for durable, efficient, and sustainable building materials has never been greater. Advanced materials such as high-performance concrete and composites are being increasingly adopted to meet these demands, offering better strength, durability, and resistance to environmental factors. This rapid urbanization, especially in emerging economies, is fueling the growth of the market.

Another crucial growth factor is the technological advancements in material sciences. Innovations such as nanotechnology, self-healing materials, and 3D printing are revolutionizing the construction industry. These advanced materials not only enhance the structural integrity and longevity of buildings but also allow for more complex and innovative architectural designs. The development and adoption of these cutting-edge materials are expected to drive the market further, as they provide significant cost savings over the lifecycle of a building, reducing the need for maintenance and repairs.

The growing emphasis on sustainability and energy efficiency is also a pivotal factor propelling the advanced construction materials market. With increasing awareness of environmental impacts and the urgent need to reduce carbon footprints, both governments and private sectors are pushing for greener construction practices. Advanced materials like eco-friendly composites, energy-efficient glass, and sustainable polymers are gaining traction as they help in reducing energy consumption and enhancing the thermal performance of buildings. This shift towards sustainable construction is expected to significantly boost the market over the forecast period.

Regionally, the Asia Pacific is anticipated to dominate the advanced construction materials market, followed by North America and Europe. The rapid urbanization and industrialization in countries like China, India, and Southeast Asian nations are driving the demand for advanced construction materials. In North America and Europe, the focus on sustainable construction practices and stringent building codes are key factors supporting market growth. The regional outlook remains strong with substantial investments in infrastructure development and refurbishment projects.

Material Type Analysis

The advanced construction materials market is segmented by material type into concrete, steel, wood, composites, polymers, and others. Each of these materials plays a crucial role in modern construction, offering distinct advantages and applications. Concrete remains one of the most widely used materials due to its excellent compressive strength and versatility. Innovations such as high-performance and self-healing concrete are extending its applications even further, making it indispensable in both residential and commercial construction.

Steel is another critical material in the advanced construction materials market, known for its high tensile strength and flexibility. It is extensively used in building frameworks, bridges, and industrial structures. The development of advanced steel alloys and fabrication techniques has enhanced the material's properties, making it more resistant to corrosion and environmental stressors. This has significantly contributed to the growth of the steel segment in the market.

Wood, especially engineered wood products like cross-laminated timber (CLT), is gaining popularity due to its sustainability and renewable nature. Engineered wood products offer improved strength and durability compared to traditional wood, making them suitable for a wide range of construction applications. The eco-friendly nature of wood, combined with advancements in wood treatments and manufacturing processes, is driving the growth of this segment.

Composites are increasingly being used in construction due to their high strength-to-weight ratio and corrosion r

China Purchasing Price Index: Building Material data was reported at 94.300 Prev Year=100 in 2024. This records an increase from the previous number of 94.100 Prev Year=100 for 2023. China Purchasing Price Index: Building Material data is updated yearly, averaging 102.600 Prev Year=100 from Dec 1986 (Median) to 2024, with 39 observations. The data reached an all-time high of 140.900 Prev Year=100 in 1993 and a record low of 94.100 Prev Year=100 in 2023. China Purchasing Price Index: Building Material data remains active status in CEIC and is reported by National Bureau of Statistics. The data is categorized under China Premium Database’s Inflation – Table CN.IE: Purchasing Price Index.

Lightweight Construction Material Market size was valued at USD 142.5 Billion in 2023 and is projected to reach USD 223.11 Billion by 2030, growing at a CAGR of 6.7% during the forecast period 2024-2030.

Global Lightweight Construction Material Market Drivers

The market drivers for the Lightweight Construction Material Market can be influenced by various factors. These may include:

Energy Efficiency and Sustainability: It is frequently more energy-efficient to create, transport, and use lightweight materials in building. The need for materials that support green construction techniques is rising as sustainability and energy efficiency become more and more important considerations.

Tighter construction Codes and Regulations: To improve the safety and environmental performance of structures, several regions have established or are proposing tighter construction codes and regulations. Advanced composites and engineered wood products are examples of lightweight building materials that frequently fulfil these needs while also providing further advantages like enhanced seismic performance.

Growing Urbanisation: As a result of the worldwide urbanisation trend, there is a greater need for building supplies that facilitate quicker and more affordable construction projects. Lightweight materials can save project costs overall and frequently enable faster building periods.

Growth of the Transportation Industry: In the automotive and aerospace sectors, lightweight materials are essential for lowering emissions and improving fuel economy. Lightweight building materials are becoming more and more necessary as these sectors expand in order to preserve efficiency and consistency in design.

Developments in Material Science and Technology: New lightweight building materials with enhanced strength, durability, and insulating qualities have been created as a result of ongoing advances in material science and technology. The industry is expanding because to advancements in materials such as lightweight concrete, aerogels, and high-performance polymers.

Cost Savings: Because lightweight materials weigh less, they can typically result in lower transportation, handling, and installation expenses, even though they may initially cost more. The use of lightweight building materials is greatly influenced by this financial benefit.

Demand in End-use Industries: End-use industries including residential and commercial building as well as infrastructure development have an impact on the demand for lightweight materials. The need for materials that provide advantages in terms of both performance and weight is increasing along with these areas.

Emphasis on Seismic Resistance: Because lightweight materials can absorb and dissipate seismic forces more effectively than traditional construction materials, they are frequently used in areas that are prone to seismic activity.

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Advanced Building Materials Market Size 2025-2029

The advanced building materials market size is forecast to increase by USD 16.21 billion at a CAGR of 4.7% between 2024 and 2029.

Advanced building materials continue to gain traction in the construction industry due to several key trends. The rise in the number of smart cities is driving the demand for advanced building materials such as smart glass, solar panels, and digital technologies for energy efficiency and sustainability. Additionally, there is a growing preference for eco-friendly and recycled materials, including insulation, sealants, and greenhouse gases-absorbing concrete. Uncertain macroeconomic conditions have also led to an increased focus on cost-effective and durable construction materials such as Structural Insulated Panels (SIPs), ready-mix concrete, and steel. Furthermore, the trend towards green buildings and energy-efficient residential real estate is expected to continue, with a focus on reducing carbon footprints and improving indoor air quality. Boron-based materials, such as boron nitride nanotubes, are also gaining attention for their potential to enhance the properties of cement and roofing materials. Overall, the market in the US is poised for significant growth, driven by these trends and the need for sustainable, cost-effective, and energy-efficient solutions.

What will be the Size of the Advanced Building Materials Market During the Forecast Period?

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The market encompasses a broad range of innovative and high-performance materials that are transforming the construction industry. These materials, which include cross-laminated timber, structural insulated panels, sealants, ready-mix concrete, precast products and elements, Ondura, advanced cement, and various green materials, are driving the sector's growth through their ability to reduce construction time, enhance energy efficiency, and offer cost-effective solutions. The market's size is significant, with continued expansion expected due to the global focus on decarbonization and the circular economy. Key trends include the increasing adoption of green materials, such as those derived from renewable sources, and the integration of smart technologies into building materials.
Traditional construction materials, such as cement and concrete, are also undergoing advancements to improve their sustainability and performance. Energy-efficient buildings and infrastructure are major applications for these advanced materials, with high-performance windows, insulation materials, and smart glass playing crucial roles. Companies are at the forefront of this innovation, developing and implementing new materials and technologies to meet the evolving needs of the construction industry.

How is this Advanced Building Materials Industry segmented and which is the largest segment?

The advanced building materials 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.

Type

  ACC
  Cross-laminated timber
  Sealants
  Structural insulated panel
  Others


End-user

  Commercial
  Industrial
  Residential


Product Type

  Green materials
  Composite materials
  Smart materials
  Nanomaterials


Geography

  APAC

    China
    India
    Japan


  Europe

    Germany
    UK
    France
    Italy


  North America

    Canada
    US


  Middle East and Africa



  South America

    Brazil

By Type Insights

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

The advanced cement and concrete market is experiencing significant innovations, transforming the construction industry with materials offering superior durability, strength, and environmental benefits. Technologies such as photocatalytic cement, self-healing concrete, and high-performance additives are gaining popularity. Governments and organizations worldwide support the adoption of modern cement and concrete to reduce carbon emissions and enhance infrastructure durability. Notable advancements include Ultra-High-Performance Concrete (UHPC), which provides exceptional strength and longevity, reducing the need for bulky reinforcements and lowering maintenance costs. Cross-laminated timber, structural insulated panels, insulated concrete forms, energy-efficient windows, engineered lumber, and other green materials are also revolutionizing the building construction sector.

Companies are at the forefront of these innovations, focusing on sustainable construction practices and decarbonization. Infrastructure projects and urbanization in sectors such as residential, commercial, and infrastructure benefit from these high-performance materials, which offer energy efficiency, soundproofing, moisture resistance, and resi

Cutting, shaping, and finishing of stone were the types of construction materials with the highest price increases in Italy in 2024. Meanwhile, the cost of cement fell by **** percent higher that year. The cost of most of building materials decreased in 2024. Construction material prices in Germany followed a similar trend that year.

Denmark Construction Cost Index: RB: Material Cost (MC) data was reported at 128.900 2015=100 in Nov 2023. This records an increase from the previous number of 127.900 2015=100 for Aug 2023. Denmark Construction Cost Index: RB: Material Cost (MC) data is updated quarterly, averaging 98.850 2015=100 from Feb 2003 (Median) to Nov 2023, with 84 observations. The data reached an all-time high of 129.000 2015=100 in May 2023 and a record low of 77.000 2015=100 in Nov 2003. Denmark Construction Cost Index: RB: Material Cost (MC) data remains active status in CEIC and is reported by Statistics Denmark. The data is categorized under Global Database’s Denmark – Table DK.EA011: Construction Cost Index: 2015=100.

Dry Construction Material Market Outlook

The global dry construction material market size was valued at USD 85 billion in 2023 and is projected to reach USD 145 billion by 2032, growing at a compound annual growth rate (CAGR) of 6.1% during the forecast period. The growth in this market is primarily driven by an increasing demand for efficient and sustainable construction methods, coupled with rapid urbanization and industrialization across various regions.

The escalating need for cost-effective, time-saving, and environmentally friendly construction techniques has significantly propelled the demand for dry construction materials. These materials are preferred due to their lightweight nature, ease of installation, and reduced construction time, which directly translates to lower labor costs and increased project efficiency. Moreover, the rising awareness about sustainable building practices has led to a surge in the adoption of dry construction methods, as they generate less waste and facilitate recycling and reuse of materials.

Technological advancements and innovations in dry construction materials are further fueling market growth. The development of high-performance materials with enhanced durability, fire resistance, and acoustic properties is widening their application scope. Industries are increasingly investing in research and development to produce advanced materials that meet stringent building standards and regulations. Additionally, the integration of smart technologies and automation in construction processes is expected to drive the market forward.

Government initiatives and favorable policies promoting green building practices and energy-efficient construction have also played a crucial role in boosting the dry construction material market. Various countries are implementing stringent regulations to minimize carbon footprints and enhance building sustainability, encouraging the use of dry construction materials. Financial incentives and subsidies for green building projects are further motivating builders and contractors to adopt dry construction techniques.

Regionally, North America and Europe are leading the dry construction material market due to their well-established construction sectors and high environmental awareness. However, the Asia Pacific region is expected to exhibit the highest growth rate during the forecast period, driven by rapid urbanization, increasing population, and substantial investments in infrastructure development. The rising disposable incomes and changing lifestyles in emerging economies like China and India are also contributing to market growth in this region.

Material Type Analysis

The dry construction material market can be segmented by material type into plasterboard, wood, metals, plastic, and others. Plasterboard, also known as drywall, is one of the most widely used dry construction materials due to its ease of installation, cost-effectiveness, and fire-resistant properties. It is extensively used in residential and commercial buildings for creating interior walls and ceilings. The demand for plasterboard is expected to remain strong due to ongoing construction activities and renovations worldwide.

Wood is another vital segment in the dry construction material market. It is favored for its natural aesthetic appeal, versatility, and sustainability. Wood is primarily used in residential construction for framing, flooring, and cabinetry. The increasing preference for eco-friendly and renewable materials has boosted the demand for wood in dry construction applications. However, concerns related to deforestation and stringent regulations on timber harvesting may pose challenges to the growth of this segment.

Metals, including steel and aluminum, are extensively used in dry construction due to their strength, durability, and recyclability. Metal studs and frames are commonly used in non-load-bearing walls and partitions, especially in commercial and industrial buildings. The demand for metal-based dry construction materials is anticipated to grow, driven by the need for robust and long-lasting building components. Additionally, innovations in metal processing techniques are leading to the development of high-strength, lightweight metals that enhance construction efficiency.

Plastic materials, such as PVC and polycarbonate, are gaining traction in the dry construction market due to their lightweight, weather-resistant, and low-maintenance characteristics. These materials are widely used for applications like wall panels, roofing, and ins

The prices of most construction materials in Mexico increased from January to October 2024. Ready-mixed concrete increased its cost by over 8.6 percent from 2023 to the first 10 months of 2024. Meanwhile, the price of wire products decreased by **** percent during that period. Building material costs in the United States followed a similar trend that year.

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Construction Output Price Indices (OPIs) from January 2014 to June 2025, UK. Summary

According to Cognitive Market Research, the Residential Construction Market Size will be USD XX Million in 2024 and is set to achieve a market size of USD XX Million by the end of 2033, growing at a CAGR of XX% from 2025 to 2033.

Asia-Pacific held largest share of xx% in the year 2024 
Europe held share of xx% in the year 2024 
North America held significant share of xx% in the year 2024 
South America held significant share of xx% in the year 2024
Middle East and Africa held significant share of xx% in the year 2024 

MARKET DYNAMICS: Residential Construction Market

KEY DRIVERS

The increasing global population is driving the need for the residential construction market.

The worldwide population has been consistently rising and is expected to keep expanding over the upcoming years. As per the United Nations, the global population is projected to hit 8 billion in 2024 and is projected to reach a maximum of approximately 10 billion. The effects of this population increase are substantial, influencing multiple sectors such as housing and healthcare. With the rise in population, there is a related increase in the demand for residential housing, requiring careful planning and resource distribution to meet the escalating needs. To meet the demand, both government entities and private sector firms are elevating their construction activities. Governments in various nations, like India, are also focusing on the advancement of rural regions. These are the main factors that have been driving the expansion of the residential construction market. Moreover, the younger population is prevalent in the age demographics of emerging markets like India, Japan, and China. The younger generation is more drawn to newly designed homes than to older buildings. The need for increased living space during and following the coronavirus pandemic resulted in heightened demand for housing, with a significant flow of new immigrants driving household formation. This is yet another element that fuels the expansion of the residential building sector. Thus, the rising global population is fuelling the demand for the residential construction sector.

(Source:https://population.un.org/wpp/assets/Files/WPP2024_Summary-of-Results.pdf

https://www.cbo.gov/publication/60727)

Restraints

Volatility of raw material prices, such as steel, concrete, is hindering the growth of the residential construction market.

The expansion of the residential building market is increasingly hindered by fluctuations in raw material costs, especially for crucial materials like aluminium, steel, concrete, and softwood lumber. With the increasing prices of these construction materials, housing affordability suffers, creating greater difficulties for both developers and homebuyers.

This increase in prices is mainly influenced by the fundamental economic concept of supply and demand. In peak construction periods, the demand for building supplies increases significantly, yet availability frequently stays limited because of worldwide shortages and disruptions. These constraints inherently drive prices upward, worsening the problem. Adding to the issue are uncertainties in the production process and erratic timelines for material arrivals, which hinder builders from finishing projects on time. Widespread inflationary pressures in the overall economy further increase expenses, as the overall increase in prices for products and services inevitably affects construction materials.

Furthermore, numerous raw materials employed in home construction are commodities traded worldwide. This makes the market more vulnerable to additional volatility resulting from geopolitical conflicts, trade disagreements, and alterations in global trade regulations, all of which can interfere with supply chains and cause price surges. As reported by the Associated Builders and Contractors, construction material prices increased by 1.3% in January 2023 alone. This figure is not only 1.3% above December 2022, but it also indicates a 4.9% rise from the prior year. Even though this is the least annual rise since January 2021, it highlights the ongoing upward trend in material expenses.

In conclusion, the fluctuations in raw material prices caused by supply-demand disparities, inflation, and global market disturbances are greatly obstructing the expansion of the residential construction sector by increasing expen...

Snapshot img

US Residential Construction Market Size 2025-2029

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

Major Market Trends & Insights

By Product - Apartments and condominiums segment was valued at USD 509.50 million in 2022
By Type - New construction segment accounted for the largest market revenue share in 2022

Market Size & Forecast

Market Opportunities: USD 39.65 million
Market Future Opportunities: USD 242.90 million 
CAGR : 4.5%

Market Summary

The residential construction market in the US is experiencing a significant shift towards sustainability, with indexed adoption rates of green building practices increasing by approximately 15% over the past decade. This trend is driven by both environmental concerns and consumer demand for energy-efficient homes. However, the market faces challenges, including a persistent skilled labor shortage, which has led to a 6% increase in construction costs for large-scale residential projects. Despite these hurdles, the sector continues to evolve, with technological advancements streamlining processes and enhancing efficiency.
For instance, the use of modular and prefabricated housing solutions has gained traction, reducing on-site construction time by up to 50%. These trends and challenges underscore the dynamic nature of the residential construction market in the US.

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

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The residential construction market in the US remains a significant economic sector, with current activity demonstrating a steady expansion of 3.5%. This growth is expected to persist, as future expectations indicate a continuous increase of 2.8%. A noteworthy comparison reveals that the residential sector accounts for approximately 25% of the total construction output, surpassing the commercial sector's 20% share. This data underscores the market's ongoing importance and its substantial contribution to the US economy.

How is this US Residential Construction Market segmented?

The residential construction in US 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.

Product

  Apartments and condominiums
  Luxury Homes
  Other types


Type

  New construction
  Renovation


Application

  Single family
  Multi-family


Construction Material

  Wood-framed
  Concrete
  Steel
  Modular/Prefabricated


Geography

  North America

    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 witnessing significant growth and transformation, driven by various trends and innovations. Approximately 40% of new single-family homes in the US are now being built with energy-efficient designs, incorporating smart home technology, and adopting high-performance building practices. Net-zero energy buildings, a key component of sustainable building, have seen a 25% increase in adoption, with IoT in construction enabling real-time monitoring and automation. Quality control procedures, risk management software, and automation in construction have become essential for managing complex projects and ensuring timely completion. Sustainable building practices, including the use of geotechnical engineering, sustainable building materials, and passive fire protection, have gained significant traction, accounting for 30% of total residential construction projects.

MEP engineering software, project scheduling software, and construction management software are vital tools for optimizing design and construction processes. The market for prefabricated components, such as modular construction and prefabricated housing, has experienced a 20% growth in recent years, offering cost savings, reduced construction time, and improved sustainability. LEED certification and water management systems are increasingly being adopted to ensure energy efficiency and environmental sustainability. Building automation systems, including seismic design, supply chain management, and waste management, are also becoming standard features in modern residential construction projects. Future industry growth is expected to be robust, with an estimated 35% of new residential construction projects adopting passive house design and 45% utilizing cost estimation software.

Robotics in construction, wastewater treatment, and 3D-printed structures are emerging trends that are poised to disrupt the market. Overall, the residential construction market in the US continues to evolve, offering numerous opportunities for inno

Snapshot img

Construction Market in EMEA Size 2024-2028

The construction market in emea size is forecast to increase by USD 382.8 billion at a CAGR of 5.34% between 2023 and 2028. The market (Europe, Middle East, and Africa) is experiencing significant changes, driven by various factors. One key trend is the increasing adoption of green buildings, which are in the Innovator's stage in some regions and the Early Majority in others, leading to varying adoption rates and penetration levels. Another trend is the implementation of new technologies and materials, such as Building Information Modeling (BIM) and precast concrete, which are altering purchase criteria for construction projects. The market also faces challenges, including the rising cost of construction, particularly in heavy & civil engineering and specialty trade contracting sectors. These trends and challenges are shaping the future of the construction industry in EMEA, with a focus on sustainability, efficiency, and cost-effectiveness.

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The construction industry in Europe, the Middle East, and Africa (EMEA) is experiencing a significant rebound, fueled by the real GDP recovery and increased economic activity. This resurgence is evident in various sectors, including residential and non-residential building construction. Construction sheets, such as flooring, walls & ceilings, roofing, and HVAC systems, are in high demand as the end-user industry continues to recover. The urban population growth and immigration trends are driving the demand for new residential buildings, leading to a surge in residential building permits. Infrastructure building is another sector witnessing a resurgence, with public investments in roads, electricity and power, water and sewage, ports, and airports contributing to the growth.

Concrete machinery and other construction equipment sales are experiencing a corresponding increase due to the heightened infrastructure development activities. The construction industry's recovery is also influenced by energy prices and material prices. While lower energy prices have reduced production costs, material prices have been on the rise due to increased demand and supply chain disruptions. The EU-backed investment in green initiatives, such as carbon neutrality and reducing greenhouse gas emissions, is also impacting the construction market. This trend is leading to an increased focus on sustainable building materials and energy-efficient HVAC systems. Commercial and industrial construction sectors are also experiencing growth, driven by the economic recovery and the need for new facilities to accommodate expanding businesses.

The demand for new offices, warehouses, and factories is expected to continue, leading to increased sales of construction equipment and materials. In conclusion, the market is experiencing a robust recovery, driven by the real GDP growth, increased economic activity, and public investments in infrastructure. The demand for construction sheets, concrete machinery, and other equipment is expected to remain strong, with flooring, walls & ceilings, roofing, HVAC, and infrastructure building sectors leading the growth. The focus on sustainability and carbon neutrality is also influencing the market trends, with a growing emphasis on green building materials and energy-efficient systems.

Market Segmentation

The 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.

End-user

  Private sector
  Public sector


Type

  Commercial
  Residential


Geography

  EMEA

By End-user Insights

The private sector segment is estimated to witness significant growth during the forecast period.In the EMEA region, the construction industry has witnessed significant activity in the private sector, with a focus on residential and commercial projects. The need for maintaining and renovating existing buildings is on the rise due to the increasing population and the presence of aging structures. This trend is particularly noticeable in the residential sector, where the demand for energy-efficient and modernized homes is driving the need for retrofitting and renovation. Government regulations have also played a role in this trend, with stricter policies being implemented to ensure that building contractors and property owners adhere to energy-efficient building norms.

As a result, there is a growing emphasis on optimizing heating and cooling systems, as well as other energy-saving measures, within buildings. Construction sheets and equipment sales are expected to benefit from this increased demand for renovation and retrofitting activities. End-user industries, including the residential and commercial sectors, are expected to drive the growth in this market. According to recent economic data, t

Bio Based Building Materials Market size was valued at USD 100 Billion in 2023 and is projected to reach USD 168.85 Billion by 2031, growing at a CAGR of 5.00% during the forecasted period 2024 to 2031.

Global Bio Based Building Materials Market Drivers The market drivers for the Bio Based Building Materials Market can be influenced by various factors. These may include:

Sustainability and Environmental Awareness: Increasing awareness of environmental issues and the desire to reduce carbon footprints are major drivers. Bio-based building materials are often seen as more sustainable compared to conventional materials, as they typically have a lower impact on the environment and can be sourced from renewable resources.

Regulatory Support and Incentives: Government regulations and incentives promoting green building practices and sustainable materials contribute significantly. Policies that encourage or mandate the use of eco-friendly materials can boost the market for bio-based building materials.

Global Bio Based Building Materials Market Restraints

Several factors can act as restraints or challenges for the Bio Based Building Materials Market. These may include:

High Costs: Bio-based materials often come with higher production and material costs compared to traditional materials. This can be due to the cost of raw materials, processing, and technology. Higher costs can make these materials less competitive in price-sensitive markets.

Limited Availability: The supply chain for bio-based materials may not be as developed or extensive as for conventional materials. This can lead to limited availability and variability in supply, affecting market stability.

In the first quarter of 2025, San Francisco, Chicago, New York, and Honolulu were some of the U.S. cities with the highest housing construction costs. Meanwhile, Phoenix had one of the lowest construction costs for high-end multifamily homes at *** U.S. dollars per square foot and Las Vegas for single-family homes between *** and *** U.S. dollars per square foot. Construction cost disparities As seen here, the construction cost for a high-end multi-family home in San Francisco in the first quarter of 2024 was over ***** more expensive than in Phoenix. Meanwhile, there were also great differences in the cost of building a single-family house in New York and in Portland or Seattle. Some factors that may cause these disparities are the construction materials, installation, and composite costs, differing land values, wages, etc. For example, although the price of construction materials in the U.S. was rising at a slower level than in 2022 and 2023, several materials that are essential in most construction projects had growth rates of over **** percent in 2024. Growing industry revenue Despite the economic uncertainty and other challenges, the size of the private construction market in the U.S. rose during the past years. It is important to consider that supply and demand for housing influences the revenue of this segment of the construction market. On the supply side, single-family home construction fell in 2023, but it is expected to rise in 2024 and 2025. On the demand side, some of the U.S. metropolitan areas with the highest sale prices of single-family homes were located in California, with San Jose-Sunnyvale-Santa Clara at the top of the ranking.