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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
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The US Residential Construction Market Report is Segmented by Type (Apartment & Condominiums, Villas and Landed Houses), by Construction Type (New Construction and Renovation), by Construction Method (Conventional On-Site, and More), by Investment Source (Public and Private), and by Region (Northeast, Midwest, Southeast, West, and Southwest). The Market Forecasts are Provided in Terms of Value (USD).
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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 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?
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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 communication linkages and operatio
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US Residential Construction Market Size 2025-2029
The us residential construction market size is valued to increase USD 242.9 million, at a CAGR of 4.5% from 2024 to 2029. Increasing household formation rates will drive the us residential construction market.
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 from 2024 to 2029 : 4.5%
Market Summary
The Residential Construction Market in the US is a dynamic and evolving industry, shaped by various factors and trends. Core technologies and applications, such as Building Information Modeling (BIM) and energy-efficient systems, are increasingly adopted to enhance project efficiency and sustainability. In fact, the use of BIM in residential construction is projected to reach 50% penetration by 2025, according to industry reports. Service types and product categories, including general contracting, design-build, and modular housing, cater to diverse residential construction needs. However, challenges persist, including rising material costs and skilled labor shortages for large-scale residential real estate projects. Regulations, such as the International Energy Conservation Code, drive the focus on sustainability in residential construction projects. The regional landscape is diverse, with the South and West regions leading in residential construction activity due to population growth and favorable economic conditions. These evolving market dynamics offer significant opportunities for industry players to innovate and adapt to the changing landscape.
What will be the Size of the US Residential Construction Market during the forecast period?
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How is the Residential Construction in US Market Segmented and what are the key trends of market segmentation?
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. ProductApartments and condominiumsLuxury HomesOther typesTypeNew constructionRenovationApplicationSingle familyMulti-familyConstruction MaterialWood-framed ConcreteSteel Modular/PrefabricatedGeographyNorth AmericaUS
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 continues to evolve, with apartments and condominiums being key contributors to its growth. Urbanization is a significant driver, as more Americans opt for the convenience and amenities of city living. In response, developers are constructing modern, sustainable, and community-focused high-rise buildings and condominium complexes. Smart home technology and energy efficiency standards are becoming increasingly important in these projects, with Building Information Modeling (BIM) software guiding the design process. Modular construction, geotechnical engineering, and quality control measures ensure structural integrity and safety. Building codes and permitting processes are strictly adhered to, with green building certifications such as LEED and Energy Star driving the adoption of sustainable building practices. Masonry techniques, foundation design, and exterior cladding are essential elements of the construction process, with insulation materials and HVAC systems ensuring energy efficiency. Safety regulations govern electrical wiring, roofing systems, and plumbing fixtures. Construction scheduling is facilitated by project management software, with prefabricated components and 3D building modeling streamlining the process. Construction automation and waste management are also crucial considerations, with cost estimation models helping developers stay within budget. Environmental impact assessments and structural engineering studies are essential to minimize the environmental footprint and ensure safety. Framing techniques and foundation design are optimized for durability and cost-effectiveness. Safety regulations and quality control measures are strictly enforced to ensure the safety and satisfaction of residents. Overall, the residential construction market in the US is dynamic and forward-thinking, with a focus on sustainability, safety, and community.
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The Apartments and condominiums segment was valued at USD 509.50 million in 2019 and showed a gradual increase during the forecast period.
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Market Dynamics
Our researchers analyzed the data with 2024 as
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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.
Based on short-term projections, the U.S. non-residential construction market is expected to increase by approximately *** percent in 2025. 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.
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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.
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Construction Market Size 2025-2029
The construction market size is valued to increase by USD 1288.3 billion, at a CAGR of 5.5% from 2024 to 2029. Increase in residential and commercial infrastructure projects will drive the construction market.
Major Market Trends & Insights
APAC dominated the market and accounted for a 53% growth during the forecast period.
By Type - Buildings construction segment was valued at USD 1608.40 billion in 2023
By End-user - Private sector segment accounted for the largest market revenue share in 2023
Market Size & Forecast
Market Opportunities: USD 63.08 billion
Market Future Opportunities: USD 1288.30 billion
CAGR from 2024 to 2029 : 5.5%
Market Summary
The market continues to be a significant economic driver, fueled by the increasing demand for infrastructure development in various sectors. This demand is spurred by population growth, urbanization, and technological advancements. One of the most notable trends shaping the industry is the integration of artificial intelligence (AI) in construction processes. AI is revolutionizing the sector by enhancing efficiency, reducing costs, and improving safety. However, the high cost of construction machinery and materials remains a significant challenge. To mitigate this, companies are exploring innovative solutions such as Modular construction and offsite fabrication. These approaches enable the production of high-quality structures at a lower cost and with reduced environmental impact.
Furthermore, the adoption of Building Information Modeling (BIM) and other digital technologies is enabling more accurate project planning, design, and execution. Despite these advancements, the market faces complex regulatory environments and labor shortages, which necessitate collaboration and innovation to overcome. The industry's future direction lies in the continued adoption of technology and the development of sustainable, cost-effective solutions.
What will be the Size of the Construction Market during the forecast period?
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How is the Construction Market 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 continues to evolve, with buildings construction being a significant and dynamic segment. This sector encompasses residential, commercial, and multifamily buildings, each contributing to the overall growth and development of the global construction industry. For instance, Egypt's ambitious project to build a new administrative capital (NAC) 45 kilometers east of Cairo is a testament to this ongoing activity. With a goal to ease overcrowding and pollution in the current capital, NAC is expected to accommodate over six million residents and become Egypt's new political and administrative center. CSCEC, a leading Chinese state-owned enterprise, is a major player in this transformation.
Risk assessment methodologies, building envelope systems, and foundation engineering are essential elements in this evolving landscape. Innovative approaches, such as prefabricated construction methods, green building certifications, and cost estimation techniques, are shaping the future of construction. For example, 3D printing construction and modular construction techniques are revolutionizing the industry, offering faster and more cost-effective solutions. Quality control procedures, structural engineering software, and lifecycle cost analysis are crucial components in ensuring the long-term success of construction projects. Safety management systems, construction site safety, and digital twin technology are essential in minimizing risks and optimizing resource allocation. Concrete mix design, structural analysis software, and heavy equipment operation are other critical aspects that require continuous improvement.
Building automation systems, sustainable building materials, and smart building technologies are becoming increasingly important in creating energy-efficient and environmentally friendly structures. Compliance with building codes, Geotechnical engineering principles, and mep engineering design are also essential in ensuring safety and
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The US Transportation Infrastructure Construction industry is experiencing robust growth, projected to reach a market size of $371.25 million in 2025, exhibiting a Compound Annual Growth Rate (CAGR) of 4.88% from 2019 to 2033. This expansion is driven by several key factors. Increased government spending on infrastructure projects, spurred by initiatives like the Bipartisan Infrastructure Law, is a significant catalyst. Furthermore, a growing need to modernize aging infrastructure, coupled with rising urbanization and population density, is creating a strong demand for new roads, bridges, railways, and transit systems. Technological advancements, such as the adoption of Building Information Modeling (BIM) and advanced construction materials, are also contributing to efficiency gains and cost reductions, further fueling market growth. While challenges such as material shortages, labor constraints, and fluctuating fuel prices pose potential restraints, the long-term outlook remains positive due to the consistent and substantial need for infrastructure development across the nation. The industry's competitive landscape is marked by a mix of large multinational corporations and regional players. Prominent companies like AECOM, Balfour Beatty US, Jacobs, and Turner Construction Co. are major players, leveraging their expertise and extensive networks to secure large-scale projects. However, smaller, specialized firms also play a crucial role, particularly in niche segments or geographically concentrated markets. The industry’s future trajectory will likely see increased consolidation, technological innovation driving efficiency and sustainability, and a growing emphasis on public-private partnerships to finance ambitious infrastructure upgrades. The ongoing focus on sustainable infrastructure development, encompassing environmentally friendly materials and construction methods, will also shape industry trends in the coming years. Key drivers for this market are: 4., Increase In Tourism Industry4.; Sustainability and Environmental Concerns. Potential restraints include: 4., Financial Constraints4.; High Maintenance. Notable trends are: Government Initiatives for Infrastructural Development to Boost the Market.
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Market Size statistics on the Commercial Building Construction industry in the US
The restaurant construction sector in the United States was valued at approximately *** billion U.S. dollars in 2023. This shows an increase of around ** percent over the previous year's total of approximately *** billion U.S. dollars.
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U.S. Construction Industry Spending Market size was valued at USD 1,970.97 Million in 2024 and is projected to reach USD 3,294.06 Million by 2032, growing at a CAGR of 6.74% from 2026 to 2032.The U.S. construction spending market is a crucial part of the nation's economy, impacting economic growth and the quality of life for millions of Americans. It includes various activities such as residential and commercial construction, as well as public infrastructure projects, and reflects the trends, challenges, and opportunities in the broader economy. Factors like demographic shifts, economic cycles, government policies, and technological advancements have shaped the construction spending landscape in recent years. The construction spending market can be divided into four main segments: residential, commercial, industrial, and public infrastructure. Residential construction involves building single-family homes, multifamily units, and residential developments.
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Gain insights into the USA Residential Construction Market, size at USD 231 billion in 2023, showcasing top players and strategic insights.
In 2024, the size of the construction industry relative to the gross domestic product of the United States was slightly higher than in the previous year. That means that the construction industry grew at a faster pace than the economy as a whole. The value added of that sector peaked in 2006 at **** percent of the GDP. The amount of construction investment as a share of GDP is, however, another indicator that provides a somewhat different insight into the industry as it is calculated differently. U.S. construction: a sizable market The construction market in the United States is one of the largest in the world, with private spending still increasing on a year-to-year basis. Most of that money comes from the private construction market, which is also the segment that has traditionally been more volatile. The number of people employed in the industry has also increased in the past years. During the coming years, it is also expected that the volume of new construction put in place will also keep increasing. Construction industry challenges To maintain its competitive standing, the construction industry must overcome various barriers, including those within the industry and external complications like the state of the U.S. economy. For example, a shortage in skilled labor, particularly for specific trade jobs, can be a relevant challenge. In 2022, many home builders also reported shortages of building materials and appliances.
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The U.S. Residential 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.
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Unlock data-backed intelligence on the USA Modular Construction Market, size at USD 12.3 billion in 2023, showcasing growth potential, key developments, and market dynamics.
The new construction put in place in the United States in 2024 was valued at **** trillion U.S. dollars. In the coming years, the value of construction is expected to keep growing, reaching roughly **** trillion U.S. dollars in 2029. Construction spending has been growing steadily over the last couple of years. Up to 2022, residential building construction spending also increased.
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Market Size statistics on the Construction industry in the US
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The North American construction market, valued at $2.46 trillion in 2025, is projected to experience robust growth, driven by a compound annual growth rate (CAGR) of 4.82% from 2025 to 2033. This expansion is fueled by several key factors. Firstly, increasing urbanization and population growth across the United States, Canada, and Mexico are creating significant demand for new residential and commercial buildings. Secondly, substantial investments in infrastructure projects, particularly in transportation networks and energy infrastructure upgrades, are stimulating considerable growth within the infrastructure construction segment. Furthermore, government initiatives promoting sustainable building practices and resilient infrastructure are further accelerating market expansion. The residential sector, encompassing new construction, additions, and renovations, constitutes a significant portion of the market, driven by strong housing demand and mortgage availability. Conversely, the commercial sector is experiencing growth fueled by expansion of existing businesses and the rise of e-commerce, necessitating more warehouse and logistics spaces. The industrial construction segment is also experiencing growth due to reshoring and near-shoring trends. However, the market is not without challenges. Rising material costs, labor shortages, and supply chain disruptions pose significant constraints on construction activity and project timelines. These factors contribute to increased project costs and potential delays. Furthermore, regulatory hurdles and permitting processes can impede project development. Despite these headwinds, the long-term outlook for the North American construction market remains positive, driven by sustained demand and ongoing investments in infrastructure and housing. Key players like Lennar Corporation, D.R. Horton, and Kiewit Corporation are well-positioned to capitalize on these opportunities while navigating the challenges. The market segmentation by construction type (additions, demolition, and new constructions) offers valuable insights into specific growth areas within this expansive sector. Recent developments include: June 2023: AXA XL's North American construction insurance business launched the Sustainability Circle. It is a network comprising 21 leaders in the sustainable construction industry. The goal of the initiative is to assist clients achieve their sustainability goals and enhance their construction risk management efforts., April 2023: Greystar Real Estate Partners LLC (“Greystar”) opened its flagship manufacturing facility for its modular construction business, Modern Living Solutions (“MLS”), which focuses on attainable and sustainable housing. The milestone was met with a ribbon-cutting ceremony at the western Pennsylvania site where MLS employed 170 full-time employees to execute the ramp-up and operations of its first modular factory.. Key drivers for this market are: Population Growth and Disposable Income, Demand from Office Sector Returning Post COVID-; Non-residential Construction on Upward Trend. Potential restraints include: Population Growth and Disposable Income, Demand from Office Sector Returning Post COVID-; Non-residential Construction on Upward Trend. Notable trends are: Residential Construction Segment Holds the Major Share in the Market.
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The US data center construction market is expected to grow from USD 48.18 billion in 2024 to USD 112.33 billion by 2030, at a CAGR of 15.15% from 2024 to 2030.
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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