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.

Based on short-term projections, the U.S. non-residential construction market is expected to increase by approximately two percent in 2024. That year, growth is expected to be the highest in the data center construction segment, with a year-on-year change of 21.9 percent. Meanwhile, the value of spending on warehouses was expected to decrease that year, but to recover in 2026. The value of private non-residential buildings put in place in the U.S. soared in 2023 and continued growing in 2024. That was similar to how public non-residential construction has evolved, which also had a noticeable growth in 2023 and 2024. Non-residential construction market There are various drivers that impact the non-residential construction market and can be highly dependent on the sector. Demand for leisure travel has a major influence on the value of hotel construction in the United States. For example, construction spending on the hotels fell sharply in the first years of the COVID-19 pandemic, when travel was constrained. On the other hand, the growth in the office building market is guided to a large extent by corporate relocations, the lack of vacant spaces in major metropolitans, and trends in the hybrid working policies of companies. Industrial real estate receives most investment The value of investment in commercial real estate in the U.S. fell significantly in 2022 and 2023, but it started recovering slightly in 2024. The value of investment in office real estate fell the most in the past years, but it grew at a faster pace than other segments in 2024.

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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 new constructions put in place in the United States in 2023 were valued at almost two trillion U.S. dollars. In the coming years, the value of construction is expected to keep growing, reaching roughly 2.3 trillion U.S. dollars in 2028. Construction spending has been growing steadily over the last couple of years. Up to 2021, residential building construction spending also increased.

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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

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.

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 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.

Based on planned construction development over the next few years, the value of non-residential construction put in place in 2028 in the United States is expected to reach roughly 870 billion U.S. dollars. Non-residential construction can include segments like the construction of lodging, offices, commercial buildings, health care, and education. Generally, the U.S. construction industry is linked to the economic wellbeing of the country. Construction industry needs Within the non-residential building industry, commercial building construction in the U.S. increased considerably in 2022. However, the construction industry faces challenges such as the rising construction costs. The modernization of a typically conservative industry will be important in the near future to support customer demands and to improve operation models. Integrating sustainable building processes and features in projects as well as establishing technological advancements like building information modeling (BIM) will be essential for the future of the construction industry. Non-residential vs. residential During the past years, new residential construction in the United States usually had a higher value than non-residential construction. Until 2019, the values of new residential and non-residential construction had remained fairly similar. However, the value of new residential construction started quite fast between 2020 and 2022. Nevertheless, the number of permits for private housing construction started decreasing in late 2022 and early 2023.

The Report Covers United States Data Center Construction Companies and the Market is Segmented by Infrastructure (Electrical Infrastructure (UPS Systems and Other Electrical Infrastructure), Mechanical Infrastructure (Cooling Systems, Racks, and Other Mechanical Infrastructure), General Construction), by Tier Type (Tier-I and -II, Tier-III, and Tier-IV), by End User (BFSI, IT and Telecommunications, Government and Defense, Healthcare, and Other End Users). The Market Sizes and Forecasts are Provided in Terms of Value in USD for all the Above Segments.

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.

The United States construction equipment market size reached US$ 43.53 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 68.11 Billion by 2032, exhibiting a growth rate (CAGR) of 4.60% during 2024-2032. The increasing infrastructure development, including roads, bridges, airports, and public transportation, the construction of residential and commercial properties, and the integration of advanced technology into construction equipment represent some of the key factors driving the market.

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 solution type, equipment type, type, application, and industry.

This graph illustrates the construction sector's nominal output in the United States from 2008 and 2018 with an outlook for 2028. This sector's output is projected to amount to approximately 1.58 trillion US dollars by 2028.

Construction Spending in the United States decreased 0.20 percent in January of 2025 over the previous month. This dataset provides the latest reported value for - United States Construction Spending - plus previous releases, historical high and low, short-term forecast and long-term prediction, economic calendar, survey consensus and news.

The North America Data Center Construction Market Report is Segmented (by Infrastructure (Electrical Infrastructure (Power Distribution Solution(PDU, Transfer Switches, Switchgear, Power Panels and Components, Others)), Power Back-Up 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, Other Mechanical Infrastructure)), General Construction)), by Tier Type (Tier 1 and 2, Tier 3, and Tier 4), by End User (Banking, Financial Services and Insurance, IT and Telecommunications, Government and Defense, Healthcare, and Other End Users), and by Geography (United States, Canada, and Mexico). The Market Sizes and Forecasts are Provided in USD Values for all the Above Segments.

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.

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 size of the United States Data Center Construction market was valued at USD 13.24 Million in 2023 and is projected to reach USD 23.23 Million by 2032, with an expected CAGR of 8.36% during the forecast period.Overview US Data Center Construction Market Drives Through Growing Demand for Data Storage and Processing Capabilities Growing US data center construction market: Overview This is one of the fastest-growing markets around. Data centers are specialized facilities that are designed to house computer systems and networking equipment so that critical IT infrastructure works safely and reliably. They have become indispensable for any business, organization, or government to store and process these huge amounts of information day in and day out. Data centers accommodate varied applications, including cloud computing, e-commerce, online gaming, artificial intelligence, and the Internet of Things. As far as most firms are becoming more reliant on digital technologies, demand for data center capacity keeps on increasing. America boasts an exceptionally powerful technology infrastructure and a conducive regulatory environment, setting it apart as one of the world's leaders in data center construction. Some factors driving this U.S. data center construction market growth include increased adoption of cloud-based computing services, data-intensive applications, and demand for security and disaster recovery solutions. In addition, with the available skilled labor to support infrastructure development in digital development, this government is taking various initiatives to support the infrastructure of digital development. Recent developments include: In February 2024, in Caldwell County outside of Austin, Texas, Prime Data Centers proposed to construct a USD 1.3 billion data center complex. Such investments from the data center providers will create more demand for DC construction players in the near future., In November 2023, H5 Data Centres announced the expansion of its downtown San Antonio edge data center at 100 Taylor Street as a national colocation and wholesale data center provider. Up to 340 cabinets and up to 1.5 MW of additional UPS capacity will be enabled by the Tier III expansion of colocation space in Turnkey. In 2023, five new telecommunications operators were deploying infrastructure on the data center campus to drive continued growth of the network-rich ecosystem.. Key drivers for this market are: 4., Growing Cloud Applications, AI, and Big Data4.; Rising Adoption of Hyperscale Data Centers. Potential restraints include: 4., Increase in Real Estate Costs. Notable trends are: UPS Systems to Lead the Electrical Infrastructure Segment.

The report covers US Transportation Infrastructure Construction Companies and the market is Segmented by Type (roadways, Railways, Airports, Ports, and Inland Waterways). the Market Size and Forecasts for the Transportation Infrastructure Construction Market are Provided in Terms of Value (USD) for all the Above Segments.