Canada Construction Industry Report 2025 Output To Grow By 2.8% During 2026-2029, Supported By Developments In The Transport, Energy And Residential Sectors

(MENAFN- GlobeNewsWire - Nasdaq) The Canadian construction industry is set to rebound with a 2.6% growth in 2025, following two years of decline. Driven by increased investment in residential and non-residential buildings, the sector faces risks from US tariffs under Trump. The industry's growth will continue, aided by the 'Investing in Canada' plan, expecting a 2.8% annual average increase during 2026-29. Discover key trends in the "Construction in Canada - Key Trends and Opportunities to 2029" report.

Dublin, Aug. 08, 2025 (GLOBE NEWSWIRE) -- The "Canada Construction Market Size, Trends, and Forecasts by Sector - Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market Analysis to 2029 (Q2 2025)" report has been added to ResearchAndMarkets.com's offering.
Construction industry in Canada to expand by 2.6% in real terms in 2025, returning to growth after two years of contraction. Growth will be driven by rising investment in both residential and non-residential buildings evidenced through increasing building permits.

The industry is however expected to face additional external risks in 2025, caused predominately by US President Donald Trump's move to place punitive tariffs on the country. Most notably for Canada, President Trump's decision to pause "reciprocal tariff measures" on up to 60 countries for 90-days, starting April 9, 2025, instead applying a 10% baseline tariff, excluded Canada due its continuous retaliatory measures.

Canada instead continues to face a baseline of 25% tariff on many goods, with an exclusion on USMCA compliant goods and 10% tariffs on energy. Although Canada's retaliatory tariffs on the US products could be considered a positive measure to protect its domestic industries, retaliatory tariffs are expected to increase cost of production for contractors, lowering project viability.
The analyst expects the Canadian construction industry to continue its growth throughout the forecast period, increasing at an annual average rate of 2.8% during 2026-29. The industry will be supported by developments in the transport, energy and residential sectors, as well as by the 'Investing in Canada' plan that was initially launched in 2016. As part of the plan, the government will invest CAD180 billion ($131.9 billion) by the end of 2028, of which, approximately CAD157 billion ($115 billion) has already been invested in over 100,000 projects, as of March 2025, as per Canadian Government reports.

Out of the total 100,000 projects, 92% are now either completed or in the execution stage. Moreover, as part of the CAD6 billion ($4.4 billion) Canada Housing Accelerator Fund, initially launched in March 2023, the government is aiming to build 750,000 new homes by 2039. As part of this program, in March 2025, the Government of Canada signed agreements with 12 local governments to build 1,300 homes by 2028.
Scope

• Historical (2020-2024) and forecast (2025-2029) valuations of the construction industry in Canada, featuring details of key growth drivers.
• Segmentation by sector (commercial, industrial, infrastructure, energy and utilities, institutional and residential) and by sub-sector
• Analysis of the mega-project pipeline, including breakdowns by development stage across all sectors, and projected spending on projects in the existing pipeline.
• Listings of major projects, in addition to details of leading contractors and consultants

Reasons to Buy

• Identify and evaluate market opportunities using our standardized valuation and forecasting methodologies
• Assess market growth potential at a micro-level with over 600 time-series data forecasts
• Understand the latest industry and market trends
• Formulate and validate business strategies using the analyst's critical and actionable insight
• Assess business risks, including cost, regulatory and competitive pressures
• Evaluate competitive risk and success factors

Key Topics Covered:
1 Executive Summary
2 Construction Industry: At-a-Glance
3 Context
3.1 Economic Performance
3.2 Political Environment and Policy
3.3 Demographics
3.4 Risk Profile
4 Construction Outlook
4.1 All Construction

• Outlook
• Latest news and developments
• Construction Projects Momentum Index

4.2 Commercial Construction

• Outlook
• Project analytics
• Latest news and developments

4.3 Industrial Construction

• Outlook
• Project analytics
• Latest news and developments

4.4 Infrastructure Construction

• Outlook
• Project analytics
• Latest news and developments

4.5 Energy and Utilities Construction

• Outlook
• Project analytics
• Latest news and developments

4.6 Institutional Construction

• Outlook
• Project analytics
• Latest news and developments

4.7 Residential Construction

• Outlook
• Project analytics
• Latest news and developments

5 Key Industry Participants
5.1 Contractors
5.2 Consultants
6 Construction Market Data
7 Appendix
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