The United States Commercial Construction market report offers a thorough competitive analysis, mapping key players’ strategies, market share, and business models. It provides insights into competitor dynamics, helping companies align their strategies with the current market landscape and future trends.

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

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.

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

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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

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.

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.

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

The value of overall construction output in the United States grew by over 131 billion U.S. dollars in 2023. That refers to all construction activities, including the construction of buildings and infrastructure, as well as other specialized activities, such as roofing, HVAC, and plumbing installation, among others.

The construction sector during recessionsThe strength of the construction industry generally tends to parallel that of the nation’s economy. After the Great Recession in 2008, there was a noticeable decrease in the value of new construction put in place in the United States, as it can be observed in this statistic. Nevertheless, both public and private construction spending in the U.S. kept increasing in 2020 despite the effects of the start of the COVID-19 pandemic in the economy.Construction worker shortageTo sustain growth, there are several challenges that the construction industry in the U.S. has faced in the past years. The shortage if skilled labor in the construction industry has been one of the most notable barriers to growth in the industry in the past couple of years. The industry is facing that challenge at a time in which there is also a high demand for new buildings, as there was a significant housing shortage in metropolitan areas all throughout the United States.

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.

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 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.

Expert industry market research on the Industrial Building Construction in the US (2005-2030). Make better business decisions, faster with IBISWorld's industry market research reports, statistics, analysis, data, trends and forecasts.

The U.S. data center construction market size is projected to exhibit a growth rate (CAGR) of 5.94% during 2024-2032. The increasing reliance on digital technologies, the surge in cloud computing services, rapid advancement of the Internet of Things (IoT) and artificial intelligence (AI) technologies, and the rising demand for colocation services represent some of the key factors driving the market.

Explore the USA residential construction market, valued at USD 231 billion, with insights into growth drivers, key players, and future opportunities from 2028.

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.

United States Pipe For Building Construction Market size was valued at USD 11,387.16 Million in 2023 and is projected to reach USD 16,825.80 Million by 2031, growing at a CAGR of 5.09% from 2024 to 2031.

United States Pipe For Building Construction Market Overview

The growing construction in the U.S. is a significant driver of the U.S. Pipe for Building Construction Market in the near future. Pipe has a multiple application in construction of building for example it is used for water distribution, sewage and drainage, HVAC, electrical wiring, stormwater drainage, etc. Growing population, increasing construction activities, and growing infrastructure development driving the construction industry in the U.S. The construction industry is important to the US economy, with over 745,000 enterprises employing around 7.8 million people annually. Total construction spending in 2023 was $1.98 trillion, up 7.4% from the previous year. Nonresidential building grew 17.6% year on year, whereas residential construction spending declined by 3% due to rising interest rates and inflation. The construction industry accounts for roughly 4.3% of U.S. GDP.

However, the labor shortages in the construction industry is anticipated to negatively affect the market growth. The construction industry relies heavily on skilled labor to install and maintain piping systems efficiently and safely. However, the shortage of qualified workers delays project completion, which in turn postpones the demand for construction materials, including pipes. This labor shortfall became particularly pronounced during the COVID-19 pandemic and has persisted into 2023, affecting the pace at which new projects can be initiated and completed.

The restaurant construction sector in the United States was valued at approximately 9.1 billion U.S. dollars in 2023. This shows an increase of around 14 percent over the previous year's total of approximately 8.1 billion U.S. dollars.