Commercial Construction Market in US by Sector, Type, and Geography - Forecast and Analysis 2023-2027

The US commercial construction market is estimated to grow at a CAGR of 1.62% between 2022 and 2027. The size of the market is forecast to increase by USD 107.69 billion. The growth of the market depends on several factors, including an increase in the construction of green buildings, expanding manufacturing and distribution facilities in the US, and the booming real estate sector in the US. 

This report extensively covers market segmentation by sector (private construction and public construction), and type (building and others). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report consists of historic market data from 2017 to 2021.

What will be the size of the Commercial Construction Market in US During the Forecast Period?

To learn more about this report, Download Report Sample

Commercial Construction Market in US: Key Drivers, Trends, Challenges, and Customer Landscape

The increase in the construction of green buildings is notably driving the market growth, although factors such as a lack of workforce in the construction industry may impede the market growth. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

Key Commercial Construction Market in US Driver

The increase in the construction of green buildings is notably driving the market growth. A substantial amount of energy is consumed in the construction, establishment, and subsequent services of a building. The greenhouse gas emissions from buildings are also way higher than that from the transportation sector. Buildings continuously consume energy from the surroundings without any replenishment. As the natural resource of energy becomes polluted, the quantity of sufficient energy required by the buildings is exhausted at the source. This highlights the need for appropriate energy-efficient buildings, such as green buildings. 

Green buildings minimize energy consumption and efficiently utilize the available energy to meet all their requirements. In addition, the by-products released into the environment from the buildings are recycled. Therefore, such buildings help conserve energy while operating efficiently. Owing to the growing awareness of global warming and climate change the demand for green buildings will grow significantly. Therefore, such factors are expected to expand the market during the forecast period.

Significant Commercial Construction Market in US Trend

The emergence of smart cities is an emerging trend in the market. The effective management of operations in a city smart cities involves the integration of information and communication and the adoption of the latest technologies. The emergence of smart cities leads to developments in functional areas such as transportation, traffic management, energy efficiency and sustainability, and governance.

The growing number of smart city projects across the US will also give rise to the need for the construction of advanced road network systems. Therefore, such factors are expected to create growth opportunities for vendors operating in this market and will focus on expanding roadways to align with the vision of smart city projects undertaken by the federal government of the US. Thus, factors like these will fuel the market growth during the forecast period.

Major Commercial Construction Market in US Challenge

The lack of workforce in the construction industry is a major challenge impeding the market growth. In this industry, the demand for the both skilled and unskilled workforce is high. This shortage is more prominent in the case of skilled workers, as vendors in the construction industry are not able to find enough skilled workforce to carry out their operations.

Despite the growing demand for construction, companies need to turn down new orders owing to the lack of skilled workforces such as technicians, site managers, and plumbers. According to the German Chambers of Commerce and Industry, the lack of a skilled workforce is one of the significant issues hindering the growth of the market in the US during the forecast period.

Key Commercial Construction Market Customer Landscape

The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.

Global Commercial Construction Market Customer Landscape

Who are the Major Commercial Construction Market Vendors in the US?

Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

Clark Construction Group LLC - The company offers building and construction of facilities across the US The key offerings of the company include commercial construction such as offices, hotels, resorts, and others. 

The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:

• Actividades de Construccion y Servicios SA
• AECOM
• Bechtel Corp.
• Clayco
• DPR Construction
• Ferrovial SA
• Fluor Corp.
• Gilbane Inc.
• Hensel Phelps
• HOCHTIEF AG
• Holder Construction Group LLC
• Kiewit Corp.
• Parsons Corp.
• PCL Constructors Inc.
• Skanska AB

Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.

What is the Fastest-Growing Segment in the Commercial Construction Market in US?

The market share growth by the private construction segment will be significant during the forecast period. The private construction segment of the commercial construction market in US incorporates the construction of restaurants, grocery stores, shopping centers, office facilities, hospitals, and educational institutions.

Get a glance at the market contribution of various segments Request a PDF Sample

The private construction segment was valued at USD 1,286.75 billion in 2017 and continued to grow until 2021. Owing to rapid urbanization there have been huge investments in the US construction sector.  The private construction segment in the US is also increasing owing to the surging demand for new office spaces and administrative buildings along with the expansion of the existing office spaces. Furthermore, the private construction segment of the commercial construction market in US is expected to be leveraged during the forecast period due to the growing expansions of industrial facilities backed by surging industrialization and friendly government policies. Therefore, such establishments are expected to propel the growth of the private construction segment during the forecast period.

Parent Market Analysis

Technavio categorizes the commercial construction market in US as a part of the global construction and engineering market. The global construction and engineering market cover companies that are primarily engaged in non-residential construction, including engineering service providers and EPC contractors.  Our research report has extensively covered external factors influencing the parent market growth during the forecast period.

Segment Overview

The report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027. The market has been segmented by Sector (Private construction and Public construction), Type (Building and Others), and Geography (North America).

• Sector Outlook (USD Billion, 2017 - 2027)
  • Private construction
  • Public construction

• Type Outlook (USD Billion, 2017 - 2027)
  • Building
  • Others

Request PDF sample

What are the Key Data Covered in this Commercial Construction Market In Country Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the growth of the commercial construction market between 2023 and 2027
• Precise estimation of the commercial construction market size and its contribution to the parent market
• Accurate predictions about upcoming trends and changes in consumer behavior
• Growth of the market industry across the US
• A thorough analysis of the market’s competitive landscape and detailed information about vendors
• Comprehensive analysis of factors that will challenge the growth of commercial construction market vendors in the US

We can help! Our analysts can customize this report to meet your requirements. Get in touch