Canada Construction Market Size, Trends And Sector Forecast To 2030 Housing, Energy, And Infrastructure Investment Fuels 2.8% Annual Growth Through 2030
Dublin, Oct. 01, 2026 (GLOBE NEWSWIRE) -- "Canada Construction Market Size, Trends, and Forecasts by Sector - Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market Analysis to 2030 (Q1 2026)" has been added to ResearchAndMarkets.com's offering.
Canada's construction industry is forecast to grow by 2.6% in real terms in 2026, supported by continued investment in residential and non-residential construction. Statistics Canada reported that total investment in building construction increased by 4.9% year on year (YoY) in 2025. Residential construction investment rose by 7.6% YoY, while institutional construction recorded growth of 5.7% YoY.
Despite this positive outlook, the Canadian construction market faces near-term challenges from declining building permit values, higher material costs and ongoing trade tensions with the US. The total value of building permits issued in Canada declined by 1.5% YoY in 2025. Non-residential building permit values fell by 2.1%, while residential permit values decreased by 1.1%.
Trade measures remain a significant risk for construction costs and project delivery. In October 2025, President Donald Trump announced an additional 10% tariff on Canadian goods, increasing the total tariff on many Canadian imports to 35%. In mid-February 2026, the US Supreme Court ruled that the International Emergency Economic Powers Act (IEEPA) could not be used to impose tariffs unilaterally, finding that taxation authority belongs to Congress. President Trump subsequently introduced a new 10% tariff on global imports.
The ruling and subsequent global tariff announcement did not remove sectorial tariffs affecting Canada. Duties on steel, aluminum, lumber and semi-finished copper products remain in effect, placing pressure on construction material prices. In 2025, the non-residential building construction price index across 15 Census Metropolitan Areas (CMAs) increased by 4.1%, while the residential building construction price index rose by 3.4%, according to Statistics Canada.
From 2027 to 2030, Canada's construction industry is projected to expand at an annual average rate of 2.8%. Growth will be supported by government investment in renewable energy, major infrastructure, mining development and affordable housing construction.
In January 2026, Prime Minister Mark Carney announced that Qatar had committed to significant investment in major Canadian construction projects, including energy and mining infrastructure. Canada also plans to finalize a long-stalled Investment Promotion and Protection Agreement with Qatar to facilitate large-scale capital investment.
Housing development will remain a central market driver. The federal Build Canada Homes agency, launched in mid-September 2025, plans to construct 4,000 homes across six federally owned sites through an investment of CAD13 billion ($9.5 billion). Under Canada's National Housing Strategy, the government also plans to build 60,000 housing units and renew 170,000 units by 2029. The 10-year program, launched in 2017, represents a total investment of CAD14.6 billion ($10.6 billion).
Report Overview
Thereport provides detailed analysis of the Canadian construction industry, including market forecasts, sector performance, project activity, investment trends and the risks influencing future growth.
- Growth prospects by construction market, project type and activity Analysis of major industry trends, risks and investment opportunities Assessment of the Canadian mega-project pipeline by development stage Listings of major projects and information on key market participants
Report Scope
- Historical valuations for 2021-2025 and construction industry forecasts for 2026-2030 Coverage of commercial, industrial, infrastructure, energy and utilities, institutional and residential construction Sector and sub-sector analysis supported by key growth drivers Projected spending across projects in the existing mega-project pipeline Profiles and details of leading contractors and consultants operating in Canada
Reasons to Buy
- Identify Canadian construction market opportunities using standardized valuation and forecasting methodologies Assess growth potential with more than 600 time-series data forecasts Monitor construction industry trends, investment patterns and policy developments Develop and validate business strategies using actionable market insight Evaluate cost, regulatory, trade and competitive risks Understand competitive conditions and the factors influencing project success
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
7.1 What is this Report About?
7.2 Definitions
7.3 Methodology
List of Tables [21]
List of Figures [47]
For more information about this report visit
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