In 2024, the U.S. Construction Market reached $1.77 trillion, and is projected to surge to $2.52 trillion by 2030 due to surge in government investment

The North America Construction Market report segments the industry into By Country (Canada, United States), By Sector (Commercial Construction, Residential Construction, Industrial Construction, Infrastructure (Transportation) Construction, Energy and Utilities Construction), and By Construction Type (Additions, Demolition and New Constructions). Five-year historical trends and forecasts are included.

The United States Commercial Construction Market Report is Segmented by Commercial Sector Type (Office, Industrial & Logistics, and More), by Construction Type (New Construction and Renovation), by Investment Source (Private and Public), and by States (Texas, Florida, California, and More). 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 * 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 **** 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.

The U.S. data center construction market size by investment was valued at USD 48.18 billion in 2024 and is expected to reach USD 112.33 billion by 2030, growing at a CAGR of 15.15% during the forecast period.

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.

The Residential Construction Market in the US is experiencing significant growth driven by increasing household formation rates and a rising focus on sustainability in new projects. According to the latest data, household formation is projected to continue growing at a steady pace, fueling the demand for new residential units. This trend is particularly evident in urban areas, where population growth and limited space for new development are driving up demand. Meanwhile, the emphasis on sustainability in residential construction is transforming the market landscape. With consumers increasingly prioritizing energy efficiency and eco-friendly features in their homes, builders and developers are responding by incorporating green technologies and sustainable materials into their projects.
This shift not only appeals to environmentally-conscious consumers but also offers long-term cost savings and regulatory compliance benefits. However, the market is not without challenges. Skilled labor shortages continue to pose a significant hurdle for large-scale residential real estate projects. The ongoing shortage of skilled laborers, including carpenters, electricians, and plumbers, is driving up labor costs and delaying project timelines. To mitigate this challenge, some builders are exploring alternative solutions, such as modular construction and automation, to streamline their operations and reduce their reliance on traditional labor sources. The Residential Construction Market in the US presents significant opportunities for companies seeking to capitalize on the growing demand for new housing units and the shift towards sustainability.
However, navigating the challenges of labor shortages and rising costs will require innovative solutions and strategic planning. By staying informed of market trends and adapting to evolving consumer preferences, companies can effectively position themselves for success in this dynamic market.

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

Request Free Sample

The residential construction market in the United States continues to exhibit dynamic activity, driven by various economic factors. Housing supply remains a key focus, with ongoing discussions surrounding the affordable housing trend and efforts to increase inventory, particularly for single-family homes and new constructions. Mortgage and federal funds rates have an impact on residential investment, with fluctuations influencing buyer decisions and construction costs. The labor market plays a crucial role, as workforce availability and wages affect both housing starts and cancellation rates. Inflation and interest rates, monitored closely by the Federal Reserve, also shape the market's direction. Recession risks and economic conditions influence construction spending across various sectors, including multifamily and single-family homes.
Federal programs, such as housing choice vouchers and fair housing initiatives, continue to support home buyers and promote equitable housing opportunities. Building permits and housing starts serve as essential indicators of market health and future growth, with some sectors experiencing double-digit growth. Overall, the residential construction market in the US remains a significant economic driver, shaped by a complex interplay of economic, demographic, and policy factors.

How is this market segmented?

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
  Luxury Homes
  Other types


Type

  New construction
  Renovation


Application

  Single family
  Multi-family


Construction Material

  Wood-framed
  Concrete
  Steel
  Modular/Prefabricated


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 both the apartment and condominium sectors, driven by the increasing trend toward urbanization and changing lifestyle preferences. Apartments, typically owned by property management companies, and condominiums, with individually owned units within a larger complex, contribute significantly to the market. The Federal Reserve's influence on the economy through the federal funds rate and mortgage rates impacts borrowing rates and home construction activity. The affordability of housing, particularly for younger generations, is a concern due to factors such as inflation, labor market conditions, and savings

Snapshot img

US Commercial Construction Market Size 2025-2029

The us commercial construction market size is forecast to increase by USD 191 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 design 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 time. This trend is expected to continue, with the US Green Building Council reporting that nearly half of all new commercial construction projects in the US are now green certified. However, the market is not without challenges. One of the most pressing issues is the lack of skilled labor in the construction industry. According to the Associated General Contractors of America, over 80% of contractors report difficulty in filling hourly craft positions. This labor shortage is driving up costs and delaying project timelines, making effective workforce management a critical challenge for construction companies. To capitalize on the growth opportunities in the market, companies must focus on innovative solutions to address the labor shortage, such as training programs and partnerships with vocational schools. Additionally, leveraging technology, such as automation and modular construction, can help improve efficiency and reduce reliance on manual labor. Overall, the Commercial Construction Market in the US presents significant opportunities for companies that can effectively navigate these challenges and stay ahead of the trend towards sustainable and smart building design.

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

Request Free Sample

The commercial construction market in the US is experiencing significant dynamics and trends. Labor force shrinkage and escalating costs are major challenges for office building construction, repair and maintenance, water infrastructure projects, and mixed-use developments. Infrastructure development programs and urban regeneration are driving the need for energy-saving designs, outdoor leisure facilities, and renovation and retrofitting. Product lead times and fluctuating material prices add complexity to retail building projects in the non-residential building market. Labor shortages and rising building material prices are also impacting infrastructure projects and refurbishment and demolition activities. These factors necessitate innovative solutions and strategic planning for US businesses in the construction sector. Market research firms like FMI, Grand View Research, and Juniper Research provide valuable insights into these trends and dynamics.

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 facilitiesOthersGeographyNorth AmericaUSEuropeMiddle East and AfricaAPACSouth AmericaRest of World (ROW)

By Sector Insights

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

The commercial construction market in the US encompasses the development of various structures, including restaurants, grocery stores, shopping centers, office facilities, hospitals, and educational institutions. Notable projects, such as the El Paso VA Health Care Center in Fort Bliss, which had its groundbreaking on August 28, 2024, and Skymark Reston Town Center, the tallest residential tower in the Capital Region, which reached its topping out point in October 2023, contribute significantly to this sector's expansion. Infrastructure development programs, such as electric grid reconstruction and water infrastructure projects, are also driving the commercial construction market. For instance, the infrastructure bill, which includes funding for infrastructure projects, is expected to boost the market's growth. Additionally, the non-residential building market is experiencing a surge due to urban regeneration and renovation and retrofitting initiatives. However, the market faces challenges, including labor shortages, cost escalation, and fluctuating material prices. The construction industry's labor shortage is a significant concern, with an estimated 200,000 unfilled jobs in 2023. Furthermore, infrastructure projects often face delays due to labor shortages and rising material prices. The non-residential segment, including office buildings and retail buildings, is experiencing increased demand due to the shift towards energy-saving designs and the need for better communic

The United States construction market size reached approximately USD 1.90 Trillion in 2024. The market is projected to grow at a CAGR of 4.40% between 2025 and 2034, reaching a value of around USD 2.92 Trillion by 2034.

The Market Report Covers US Residential Construction Companies and is segmented by Type (Single Family, and Multi-Family), by Construction Type (New Construction and Renovation), and by City (New York City, Los Angeles, San Francisco, Washington DC, Miami, and Other Cities). The market size and forecasts for the United States residential construction market are provided in terms of (USD Billion) for all the above segments.

In 2024, the North America Construction Market reached $2.58 trillion, and is projected to surge to $3.53 trillion by 2030 due to rising government investment

Snapshot img

Construction Market Size 2025-2029

The construction market size is forecast to increase by USD 1,288.3 billion at a CAGR of 5.5% between 2024 and 2029.

The market is experiencing significant growth, driven by the rise in residential and commercial infrastructure projects worldwide. This trend is fueled by increasing urbanization, population growth, and economic development in various regions. 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. Furthermore, the integration of Artificial Intelligence (AI) in the construction sector is revolutionizing the industry, enhancing productivity, efficiency, and safety. As the industry evolves, companies must navigate this obstacle by exploring cost-effective solutions, such as shared equipment ownership models or renting, to remain competitive.
To capitalize on the market's potential, businesses should focus on innovation, collaboration, and operational excellence, ensuring they deliver high-quality projects on time and within budget. By addressing these challenges and embracing the opportunities presented by the market, companies can effectively position themselves for long-term success. Another key driver is the integration of Artificial Intelligence (AI) in the construction sector, which is revolutionizing the industry by improving efficiency, reducing costs, and enhancing safety.

What will be the Size of the Construction Market during the forecast period?

Explore in-depth regional segment analysis with market size data - historical 2019-2023 and forecasts 2025-2029 - in the full report.
Request Free Sample

In the dynamic market, securing permissions for building projects remains a crucial aspect of the industry. Cold storage facilities, a niche segment, continue to gain traction in the hospitality and leisure sectors, driven by innovative technologies and consumer demand. Smart cities are at the forefront of integrating sustainability regulations into commercial buildings, leading to increased usage of eco-friendly construction materials and raw resources. Site preparation and worker safety regulations are under constant scrutiny, ensuring compliance and adherence to industry standards.
The retail sector is also embracing technology, with the integration of automation and smart systems becoming increasingly common. Innovative technologies continue to shape the construction landscape, from 3D printing to modular construction, streamlining processes and reducing costs. Regardless, the industry's focus on sustainability and safety regulations ensures a responsible and forward-thinking approach to construction projects. However, the high cost of construction machinery poses a substantial challenge for market participants.

How is this Construction Industry segmented?

The construction industry 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.

Type

  Buildings construction
  Heavy and civil engineering construction
  Land planning and development
  Specialty trade contractors


End-user

  Private sector
  Public sector


Product

  Traditional
  Sustainable


Geography

  North America

    US
    Canada


  Europe

    Germany
    UK


  APAC

    China
    India
    Indonesia
    Japan
    South Korea


  Rest of World (ROW)

By Type Insights

The buildings construction segment is estimated to witness significant growth during the forecast period. The market encompasses various sectors, with buildings construction being a prominent and evolving segment. This segment includes residential, commercial, and multifamily buildings, each contributing significantly to the market's growth. For instance, Egypt's ambitious project to develop a new administrative capital, the New Administrative Capital (NAC), is a notable example. Located approximately 45 kilometers east of Cairo, NAC is designed to alleviate overcrowding and pollution in the current capital. A key player in this transformation is the China State Construction Engineering Corporation (CSCEC), a Chinese state-owned enterprise. Meanwhile, smart cities are emerging as a significant trend in the construction industry.

Economic development and retail activities are integral to the market, with developers focusing on creating vibrant and sustainable communities. Civil engineering plays a crucial role in the development of infrastructure, including roads, bridges, and water supply systems. Climate change is a pressing concern, and the construction industry is responding by incorporating green and energy-efficient practices into their projects. Sustainability regulations are becoming increasi

The North America Construction Market size is valued at USD 2,350 billion in 2023, driven by market opportunities, sector trends, and player analysis. Explore market revenue, strategic insights, and industry challenges.

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 **** trillion US dollars by 2028.

The United States higher education construction market was valued at USD 61.80 Billion in 2024. The industry is expected to grow at a CAGR of 5.20% during the forecast period of 2025-2034. The market growth is due to the increased rate of construction of cutting-edge labs, classrooms, and innovation spaces. This was even further boosted by an ever-increased demand for advanced STEM programs and research facilities which have fueled government-backed investments in specialized infrastructure. In turn, all these factors have resulted in the market attaining a valuation of USD 102.60 Billion by 2034.

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 *** 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.

The Construction sector has expanded over the past five years; nonresidential construction activity has been particularly strong, and a surge in materials costs has driven up contractors' rates. Contractors in the sector construct buildings and engineer projects across a wide range of industries and applications, so construction sector revenue tends to correlate with broader macroeconomic conditions. Volatile interest rates, specifically, have impacted sector activity in recent years, with high rates having cooled residential construction activity since 2022. Sector revenue has risen at a CAGR of 4.1% to reach an expected $3.7 trillion in 2025, including an estimated increase of 1.5% in 2025 alone as recent interest rate cuts encourage investment. In recent years, contractors have benefited from easing supply chain issues, with the price of construction materials having slowly fallen from its May 2022 peak (though remaining well above pre-pandemic prices). This more predictable business environment has only had a limited positive effect on the average sector profit margin, however, as the construction sector's perennial labor shortage has kept wage costs high. In 2025, the second Trump administration's policies have disrupted this previously stabilizing business environment, with ever-shifting tariff policies making it harder to plan for the future. A mounting trade war has the potential to disrupt supply chains and drive up the cost of materials, while plans for mass deportations threaten to further limit the sector's labor pool. Still, potential interest rate cuts in the coming years stand to spur increased investment in construction activity. Contractors are set to continue to benefit from increasing commercial and infrastructure construction activity, aided by the 2021 Infrastructure Investment and Jobs Act, the 2022 CHIPS and Science Act and the 2022 Inflation Reduction Act. The Trump administration has looked to disrupt some of the funding included in these bills, particularly that which targets the previous administration's climate goals, however. Basic macroeconomic drivers, including population growth, will continue to expand the construction sector. Areas of the country with lower regulatory burdens, namely the Southeast, will continue to outpace the country as a whole in both construction activity and population growth. Overall, sector revenue is set to climb at a CAGR of 2.0% to reach $4.1 trillion in 2030.

In 2024, the Latin America Construction Market reached $464.50 billion, and is projected to surge to $514.29 billion by 2030 at a CAGR of 0.9% from 2025 to 2030

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 ** companies employing over 10,000 people.

Gain insights into the USA Residential Construction Market, size at USD 231 billion in 2023, showcasing top players and strategic insights.

Snapshot img

US Data Center Construction Market Size 2025-2029

The US data center construction market size is forecast to increase by USD 15.02 billion at a CAGR of 10.8% between 2024 and 2029.

US Data Center Construction Market is experiencing significant growth due to the increasing number of data centers being constructed to meet the surging demand for digital services and cloud computing. This trend is driven by the shift towards remote work and learning, as well as the increasing adoption of Internet of Things (IoT) devices and advanced technologies such as artificial intelligence and machine learning. Another key trend in the market is the focus on constructing eco-friendly data centers. With growing concerns over energy consumption and carbon footprint, data center operators are investing in renewable energy sources and energy-efficient designs to reduce their environmental impact.
However, the market is not without challenges. Cybersecurity issues remain a major concern, with data centers being prime targets for cyber attacks due to the sensitive information they house. As such, data center operators must invest in robust security systems and implement strict access controls to mitigate these risks. However, cybersecurity challenges must be addressed to ensure the secure operation of these facilities. Companies seeking to capitalize on market opportunities should focus on energy efficiency, cybersecurity, and sustainability to stay competitive.

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

Request Free Sample

US data center construction market is experiencing robust growth, driven by the increasing demand for advanced telecommunications infrastructure to support IT and telecommunications industries, government and defense sectors, 5G networks, cloud-based services, and edge data centers. This growth is reflected in the significant expansion of data center capacity, with a focus on electrical infrastructure, including UPS systems, and mechanical infrastructure, such as cooling systems. Edge data centers and edge computing are also gaining traction due to the need for real-time data processing and data-driven decision-making.
The market's size is substantial, with billions of dollars being invested annually. Physical damage from natural disasters and the increasing importance of advanced technology solutions are additional factors contributing to the market's momentum. Overall, the data center construction market is a dynamic and evolving sector, underpinned by the ongoing digital transformation and the growing importance of technology in various industries.

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.

Application

  Enterprise
  Cloud
  Colocation
  Hyperscale


End-user

  IT and telecom
  BFSI
  Government and defense
  Others


Infrastructure

  Electrical Infrastructure
  Mechanical Infrastructure
  Networking Infrastructure
  Power Distribution & Cooling Infrastructure


Geography

  US

By Application Insights

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

In today's digital economy, businesses across sectors including healthcare, finance, and IT are undergoing transformation through the adoption of cloud computing, big data analytics, IoT devices, and artificial intelligence (AI). The resulting surge in digital data from various sources necessitates the need for advanced data center infrastructure. Enterprise data centers must provide high-capacity storage and processing capabilities to manage and analyze vast volumes of data efficiently. This data is generated from sources such as social media, mobile devices, IoT sensors, and business applications. By deriving actionable insights from this data, businesses can support decision-making processes and optimize operations.

The electrical infrastructure of data centers includes UPS systems and other electrical infrastructure, while mechanical infrastructure comprises cooling systems. IT and telecommunications sectors are significant consumers of data center services, including cloud-based data storage, cloud applications, and AI algorithms. Government and defense sectors also utilize data centers for cloud-based healthcare solutions, smart devices, and disaster recovery protocols. The adoption of cloud computing and edge computing, 5G networks, and telecommunication providers' cloud-based services is driving the demand for data centers. However, data security and cyber threats, including data breaches, remain critical concerns. Innovative designs, modular power infrastructure, and OPEX savings through real-time monitoring software and free cooling techniques are essen