Construction Market

Plastic Optic Fiber Market Report Thumbnail

Construction Market by Type (Renovation and New Construction), by Sector (Real Estate, Infrastructure, and Industrial) – Global Opportunity Analysis and Industry Forecast, 2024–2030

Industry: Construction & Manufacturing | Publish Date: 04-Dec-2024 | No of Pages: 126 | No. of Tables: 160 | No. of Figures: 125 | Format: PDF | Report Code : CM439

  • Facebook
  • Linkedin
  • Whatsapp

The Construction Market size was valued at USD 10.43 trillion in 2023, and is predicted to reach USD 16.10 trillion by 2030, with a CAGR of 5.9% from 2024 to 2030. 

The construction industry plays a crucial role in the economy, covering the entire process from planning to maintenance of various physical structures, such as infrastructure, buildings, and facilities.

The sector is involved in a broad range of projects, including residential, commercial, industrial, civil engineering, and institutional construction, with multiple stakeholders such as architects, engineers, contractors, suppliers, developers, investors, and government agencies participating in the process.

With a heightened emphasis on environmentally friendly practices, such as the use of green building materials and energy-efficient designs, the industry is set to experience positive growth. Furthermore, factors such as rising per capita income in emerging economies and low-interest rates in developed countries are expected to fuel the expansion of the construction market.

Rising Economic Expansion Across the Globe Fuel the Construction Industry

Economic expansion is a crucial driving force behind the growth of the construction industry. It significantly influences the demand for a wide range of construction projects, including infrastructure, commercial ventures, and residential developments. The growth in the country’s economy creates a greater opportunity for investment, particularly in the construction of new buildings and facilities. Thus, driving the demand for the construction market. 

Furthermore, the strong economy leads to increased disposable incomes and consumer confidence, which in turn drives demand for residential properties. This result in the construction of new housing complexes and apartment buildings to meet the growing demand.

The World Bank's latest report reveals that the Gross Domestic Product (GDP) growth rates of major economies, including India, Saudi Arabia, and Argentina among others, are undergoing substantial growth. For example, the annual GDP growth rate of Saudi Arabia is recorded 8.7%, followed by India by 7.2%, and Argentina by 5.0% in 2022. This growth trajectory is indicative of a robust expansion in economic activities across these regions, particularly in the construction sector.

With the surge in GDP growth rates in these countries, the construction sector is poised for even greater expansion, leading to further economic development and prosperity.

 

Increasing Population Growth and Urbanization Drives the Industry

The increasing global population and the trend towards urban migration are fueling a persistent demand for new residential complexes, commercial structures, shopping centers, and public infrastructure to cater to the expanding urban population.

This urbanization phenomenon results in heightened population densities, necessitating the development of transportation systems such as roads, bridges, and public transit networks to enhance mobility and connectivity within urban areas. As per the report by the United Nations (UN), the global population is expected to increase by 2 billion persons in the next 30 years, from the current 8 billion to 9.7 billion in 2050.

This trend underscores the critical role of the construction industry in meeting the evolving needs of urban populations and developing sustainable urban environments. 

Moreover, urban regions require essential facilities such as schools, healthcare centers, green spaces, and utilities, prompting a surge in construction activities to meet the rising need for critical services. According to report by The World Bank, by the year 2045, the global urban population is projected to grow to 6 billion, representing 1.5 times increase from the current figure where over 50% of the world's population resides in urban areas. 

 

Strict Regulatory Complexities Associated with Construction Projects is Hindering the Market Growth

The construction industry faces substantial obstacles due to the intricate nature of government regulations and permitting processes. Construction projects typically require various permits and approvals from government authorities at the local, regional, and national levels.

These permits may involve zoning regulations, environmental assessments, building codes compliance, safety standards, and other regulatory requirements. Delays in obtaining permits, bureaucratic inefficiencies, and inconsistencies in regulations across jurisdictions can significantly extend project timelines and escalate costs. 

Furthermore, fluctuations in regulations or unforeseen policy changes can disrupt ongoing projects and disincentivize future investments. For example, the United States Environmental Protection Agency (EPA), regulates various aspects of the construction sector, including air, general, lead, waste, and water regulations.

The EPA's compliance assistance centers provide resources for managing environmental responsibilities during demolition, reducing and recycling construction and demolition materials, and disposing of refrigeration and air-conditioning equipment.

Integration of Digitalization and Building Information Modeling (BIM) Creates Opportunity

Digital transformation and the adoption of building information modeling (BIM) are revolutionizing the construction sector by incorporating cutting-edge technologies to boost efficiency, precision, and collaboration across various projects. BIM, a sophisticated 3D modeling tool, empowers stakeholders to generate and oversee digital representations of structures and infrastructure, fostering enhanced coordination and communication among project teams. 

For instance, in September 2022, the National Institute of Building Sciences (NIBS) launched the U.S. National Building Information Management (BIM) Program to transform the construction industry and achieve a new level of industrial efficiency through digitalization. The program is aimed at addressing the low level of digitalization in the U.S. construction industry, which prevents it from transforming lifecycle work processes to be more efficient, less expensive, more resilient, and safer to build and maintain.

Asia-Pacific is Predominantly Leading the Construction Industry

The construction sector in the Asia-Pacific region is witnessing a strong upward trend, primarily due to substantial government funding in infrastructure development. Key areas of focus include transportation systems, energy, water systems, and urbanization projects.

According to the latest report by Internation Trade Administration (ITA), the Chinese government has invested heavily in infrastructure projects, with a projected overall investment of USD 4.2 trillion during the 14th Five-Year Plan period (2021-2025). This plan prioritizes new infrastructure projects in transportation, energy, water systems, and new urbanization. The Chinese government is also advocating for green building and energy efficiency.

Moreover, the Indian government is making significant investments in the construction sector, with a focus on infrastructure development and urbanization. The National Investment Pipeline (NIP) has an investment budget of USD 1.4 trillion for infrastructure, with 24% allocated to renewable energy, 18% to roads and highways, 17% to urban infrastructure, and 12% to railways.

Moreover, there is a clear emphasis on environmentally friendly building practices and energy efficiency is expected to further expansion and development of the construction market in the region. For instance, South Korea’s Seoul City expanded regulations to promote green buildings, aiming to reduce greenhouse gas emissions and enhance energy efficiency. The initiative aligns with the city's goal of achieving carbon neutrality by 2050.

North America is Expected to Witness the Fastest Growth in the Construction Industry

North America holds a significant portion of the construction industry market share. Ongoing mega project and government investments are key drivers expected to boost revenue growth for market participants in this region. In 2023, the U.S. government invested over USD 220 billion to support more than 32,000 projects across 4,500 communities in all 50 states, the District of Columbia, and U.S. territories.

This funding aims to rebuild and modernize the country's infrastructure, replace lead pipes, clean up pollution, expand affordable high-speed internet access, and promote the transition to clean energy.

Moreover, the construction industry in the region is presently undergoing remarkable expansion, fueled primarily by a notable upsurge in substantial project investments and infrastructure development.

For example, the top ten megaprojects in the construction sector in Canada includes the Site C Clean Energy Project, GO Expansion – On-Corridor Works, Bruce Power Refurbishment, Darlington Nuclear Refurbishment, Eglinton Crosstown LRT, Ontario Line, GO Expansion Projects – Early Works, Iona Island Wastewater Treatment Plant, TTC Vehicles Program, and Reseau express metropolitan. These megaprojects significantly propelled the growth of the construction market within the country.

 

Competitive Landscape

Various market players operating in the construction market include China State Construction Engineering Corp. Ltd. (CSCEC), China Railway Group Ltd. (CREC), China Railway Construction Corp. Ltd. (CRCC), China Communications Construction Group Ltd. (CCCC), Metallurgical Corporation of China Ltd. (MCC), Power Construction Corp. of China, Vinci SA, China Energy Engineering Corp. (CEEC), Shanghai Construction Group (SCG), Bouygues Group, and others. These market players are adopting strategies such as investment and business expansion across various regions to maintain their dominance in the construction market.

For instance, in February 2024, CSCEC and SK Ecoplant collaboratively invested USD 1.9 billion in green hydrogen project in Egypt to drive a renewable energy revolution. This joint venture aims to develop renewable energy, green hydrogen, and green ammonia projects in Egypt. 

Moreover, in December 2023, Power Construction Corporation of China (POWERCHINA) completed the construction of the Cirata floating photovoltaic (PV) power generation project in Indonesia, located in the Cirata reservoir in West Java province. The floating solar power plant generates 300,000MWh of clean energy annually and help reduce coal usage by 117,000 tons per year. 

Also, in September 2023, CEEC expanded its business reach with the construction of 640MW ammonia/methanol facility in Songyuan, Jilin province. This project aims to utilize renewable energy sources such as wind and solar power to produce green ammonia and methanol.

Furthermore, in September 2023, Bouygues Construction invested in the reuse sector with the launch of Cyneo, a new subsidiary dedicated to the reuse of construction materials. The aim is to develop the circular economy in the building sector by increasing the reuse of materials. 

Key Market Segments

By Type

  • Renovation

  • New Construction

By Sector

  • Real Estate

    • Residential

      • Affordable

      • Luxury

    • Commercial

      • Retail Buildings

      • Office Buildings

      • Hospitality

      • Healthcare Facilities

      • Educational Institutes

      • Entertainment Ventures

  • Infrastructure

    • Transportation

      • Airport

      • Port

      • Rail

      • Road

    • Water and Wastewater

    • Energy

    • Telecommunication

  • Industrial

    • Manufacturing Plant

    • Warehouses

    • Power Plants

    • Oil Refineries

    • Chemical Plants

By Region

  • North America

    • The U.S.

    • Canada

    • Mexico

  • Europe

    • The UK

    • Germany

    • France        

    • Italy        

    • Spain        

    • Denmark        

    • Netherlands        

    • Finland        

    • Sweden        

    • Norway        

    • Russia

    • Austria

    • Hungary

    • Poland

    • Czech Republic        

    • Rest of Europe    

  • Asia-Pacific

    • China

    • Japan

    • India

    • South Korea

    • Australia

    • Indonesia

    • Singapore

    • Taiwan

    • Thailand

    • Rest of Asia-Pacific

  • RoW

    • Latin America

    • Middle East

    • Africa

Key Players

  • China State Construction Engineering Corp. Ltd. (CSCEC)

  • China Railway Group Ltd. (CREC)

  • China Railway Construction Corp. Ltd. (CRCC)

  • China Communications Construction Group Ltd. (CCCC)

  • Metallurgical Corporation of China Ltd. (MCC)

  • Power Construction Corp. of China

  • Vinci SA

  • China Energy Engineering Corp. (CEEC)

  • Shanghai Construction Group (SCG)

  • Bouygues Group

REPORT SCOPE AND SEGMENTATION:

Parameters

Details

Market Size in 2023

USD 10.43 Trillion

Revenue Forecast in 2030

USD 16.10 Trillion

Growth Rate

CAGR of 5.9% from 2024 to 2030

Analysis Period

2023–2030

Base Year Considered

2023

Forecast Period

2024–2030

Market Size Estimation

Trillion (USD)

Growth Factors

  • Rising Economic Expansion Across the Globe Fuel the Construction Industry
  • Increasing Population Growth and Urbanization Drives the Industry

Countries Covered

32

Companies Profiled

10

Market Share

Available for 10 companies

Customization Scope

Free customization (equivalent to up to 80 working hours of analysts) after purchase. Addition or alteration to country, regional, and segment scope.

Pricing and Purchase Options

Avail customized purchase options to meet your exact research needs.

Bar chart Pie chart Pie chart

Frequently Asked Questions

According to the Next Move Strategy Consulting, the global size of the construction market is estimated to be at USD 16.10 trillion in 2030.

Asia-Pacific dominates the construction market in 2023, and is estimated to dominate the industry by 2030.

The integration of building information modeling (BIM) to boost efficiency, precision, and collaboration across various projects

The strict regulatory complexities associated with construction projects is majorly hindering the growth of the market.

The top five companies operating in the construction market include China State Construction Engineering Corp. Ltd. (CSCEC), China Railway Group Ltd. (CREC), China Railway Construction Corp. Ltd. (CRCC), China Communications Construction Group Ltd. (CCCC), and Metallurgical Corporation of China Ltd. (MCC).

Download Free Sample

Please Enter Full Name

Please Enter Valid Email ID

Please enter Country Code and Phone No

Please enter message

popular
$4,975
$3,975
$6,975
$2,975

This website uses cookies to ensure you get the best experience on our website. Learn more