(MENAFN- GlobeNewsWire - Nasdaq) Key market opportunities in the construction sector include increased urbanization, growing demand for smart and green infrastructure, and adoption of automation and AI. Emerging markets like China, India, and Brazil present growth potential, while innovations in sustainable materials and digital technologies drive efficiency gains.Dublin, Sept. 30, 2025 (GLOBE NEWSWIRE) -- The "Construction Market Report 2025" report has been added to ResearchAndMarkets's offering.
The construction market size has grown steadily in recent years. It will grow from $15.78 trillion in 2024 to $16.45 trillion in 2025 at a compound annual growth rate (CAGR) of 4.3%. The growth in the historic period can be attributed to the increasing infrastructure development, the increase in renovation activities, rapid growth in the elderly population, and the rise in domestic manufacturing. Asia-Pacific was the largest region in the construction market in 2024. North America was the second-largest region in the construction market.
The construction market size is expected to see strong growth in the next few years. It will grow to $20.44 trillion in 2029 at a compound annual growth rate (CAGR) of 5.6%. The growth in the forecast period can be attributed to rising urbanization, increasing population growth, increasing government support, rising industrialization, and an increase in smart cities.
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Major trends in the forecast period include automated construction equipment, construction equipment vehicles, development of high-performance equipment, integration of digital platforms and innovative solutions, the introduction of artificial intelligence (AI) and machine learning, strategic collaborations and partnerships, launch of innovation network, the introduction of fully electric construction equipment, technological innovations and new lot development in suburban areas.
The forecast of 5.6% growth over the next five years reflects a slight reduction of 0.2% from the previous projection. This reduction is primarily due to the impact of tariffs between the US and other countries. This is poised to impact the US through tariffs on imported heavy machinery, raw materials, and construction tools from China and Mexico, which could slow project timelines and raise overall costs. The effect will also be felt more widely due to reciprocal tariffs and the negative effect on the global economy and trade due to increased trade tensions and restrictions.
The anticipated surge in global construction activity is poised to drive growth in the construction market in the coming years. Noteworthy emerging markets, such as China, Brazil, India, Saudi Arabia, and Indonesia, have exhibited robust construction undertakings. This heightened construction activity generates demand for both construction services and materials, thereby bolstering and expanding the construction market. A case in point is the data from February 2023, where the Office for National Statistics, a UK-based statistics authority, reported a 5.6% annual increase in construction output in 2022 compared to 2021. This follows a record surge of 12.8% in 2021, highlighting the significant contribution of rapid construction growth to the construction market.
The expansion of urbanization is projected to be a key driver for the growth of the construction market. Urbanization, denoting the escalating growth and sprawl of cities accompanied by population migration from rural to urban areas, relies heavily on construction to provide essential infrastructure and buildings for a burgeoning urban populace. Illustratively, data from April 2022, as reported by the World Economic Forum, a Switzerland-based independent international organization, indicates that over 4.3 billion people, constituting 55% of the world's population, resided in urban settings. This figure is expected to climb to 80% by 2050, underscoring the pivotal role of increasing urbanization in propelling the construction market.
Building construction firms are increasingly embracing green construction techniques to erect energy-efficient structures while concurrently mitigating construction costs. Green construction involves utilizing sustainable building materials and construction processes to create environmentally friendly buildings with enhanced energy efficiency. The World Green Building Trends Survey indicates that approximately 60% of global construction firms are engaged in green construction projects.
Certifications such as Leadership in Energy and Environmental Design (LEED) empower construction companies to craft high-performance, sustainable residential and commercial buildings, offering various advantages from tax deductions to marketing opportunities. The adoption of sustainable construction materials, such as natural paints and recycled steel beams, is becoming widespread in the UK. Additionally, green construction practices such as cross-ventilation for a more natural environment, the use of green construction software such as Construction Suite for ensuring green compliance, and the Green Globes management tool are gaining traction in the construction industry. Noteworthy companies implementing green construction techniques include Turner Construction Co, Clark Group, AECOM, Hensel Phelps, and Holder Construction.
Major players in the construction market are actively pursuing innovative technologies, particularly automation, to elevate project efficiency, curtail costs, and attain a competitive advantage. An automated construction service center, serving as a centralized facility, leverages automation and technology to streamline diverse aspects of construction projects, encompassing scheduling, resource allocation, and communication.
Construction Market Competitive Landscape and Company Profiles
Construction Market Competitive Landscape Construction Market Company Profiles China State Construction Engineering Co., Ltd Overview, Products and Services, Strategy and Financial Analysis China Railway Group Ltd Overview, Products and Services, Strategy and Financial Analysis China Railway Construction Corporation Limited Overview, Products and Services, Strategy and Financial Analysis China Communications Construction Group Ltd Overview, Products and Services, Strategy and Financial Analysis Vinci S.A. Overview, Products and Services, Strategy and Financial Analysis
Construction Market Other Major and Innovative Companies
Grupo ACS Lennar Corporation D.R. Horton, Inc. Bouygues S.A. Power Construction Corp. Of China CIMIC Group Shimizu Corporation Lendlease Group CapitaLand Limited L&T Engineering & Construction Division Tata Projects Ltd Hindustan Construction Company Yunnan Zhiling Construction Engineering Co., Ltd. Zhejiang Yijian Construction Group Co Zeppelin GmbH
Key Attributes:
| Report Attribute | Details |
| No. of Pages | 250 |
| Forecast Period | 2025 - 2029 |
| Estimated Market Value (USD) in 2025 | $16.45 Trillion |
| Forecasted Market Value (USD) by 2029 | $20.44 Trillion |
| Compound Annual Growth Rate | 5.6% |
| Regions Covered | Global |
Key Topics Covered:
1. Executive Summary
2. Construction Market Characteristics
3. Construction Market Trends and Strategies
4. Construction Market - Macro Economic Scenario Including the Impact of Interest Rates, Inflation, Geopolitics, Trade Wars and Tariffs, and Covid and Recovery on the Market
4.1. Supply Chain Impact from Tariff War & Trade Protectionism
5. Global Construction Growth Analysis and Strategic Analysis Framework
5.1. Global Construction PESTEL Analysis (Political, Social, Technological, Environmental and Legal Factors, Drivers and Restraints)
5.2. Analysis of End Use Industries
5.3. Global Construction Market Growth Rate Analysis
5.4. Global Construction Historic Market Size and Growth, 2019 - 2024, Value ($ Billion)
5.5. Global Construction Forecast Market Size and Growth, 2024 - 2029, 2034F, Value ($ Billion)
5.6. Global Construction Total Addressable Market (TAM)
6. Construction Market Segmentation
6.1. Global Construction Market, Segmentation by Type, Historic and Forecast, 2019-2024, 2024-2029F, 2034F, $ Billion
Buildings Construction Heavy and Civil Engineering Construction Specialty Trade Contractors Land Planning and Development
6.2. Global Construction Market, Segmentation by Type of Contractor, Historic and Forecast, 2019-2024, 2024-2029F, 2034F, $ Billion
Large Contractors Small Contractors
6.3. Global Construction Market, Segmentation by End User, Historic and Forecast, 2019-2024, 2024-2029F, 2034F, $ Billion
6.4. Global Construction Market, Sub-Segmentation of Buildings Construction, by Type, Historic and Forecast, 2019-2024, 2024-2029F, 2034F, $ Billion
Residential Buildings Commercial Buildings Institutional Buildings Industrial Buildings
6.5. Global Construction Market, Sub-Segmentation of Heavy and Civil Engineering Construction, by Type, Historic and Forecast, 2019-2024, 2024-2029F, 2034F, $ Billion
Highways and Roads Bridges Railways Utilities and Infrastructure
6.6. Global Construction Market, Sub-Segmentation of Specialty Trade Contractors, by Type, Historic and Forecast, 2019-2024, 2024-2029F, 2034F, $ Billion
Electrical Contractors Plumbing, Heating, and Air-Conditioning Contractors Roofing Contractors Flooring Contractors
6.7. Global Construction Market, Sub-Segmentation of Land Planning and Development, by Type, Historic and Forecast, 2019-2024, 2024-2029F, 2034F, $ Billion
Site Development Land Subdivision Urban Planning Environmental Planning
7. Construction Market Regional and Country Analysis
7.1. Global Construction Market, Split by Region, Historic and Forecast, 2019-2024, 2024-2029F, 2034F, $ Billion
7.2. Global Construction Market, Split by Country, Historic and Forecast, 2019-2024, 2024-2029F, 2034F, $ Billion
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