US Construction Market Analysis, Size, and Forecast 2025-2029

US|North America Construction Market Size 2025-2029

The us|north america construction market size is forecast to increase by USD 668.3 billion at a CAGR of 5.5% between 2024 and 2029.

Market Size & Forecast

• Market Opportunities: USD 97.23 billion
• Market Future Opportunities: USD 668.30 billion 
• CAGR : 5.5%

Market Summary 

• The construction market in the US continues to demonstrate significant dynamism, with ongoing projects and emerging trends shaping its landscape. According to the latest industry reports, the total construction spending in the country reached an index value of 137.4 in Q3 2021, representing a notable increase compared to the previous year. This growth can be attributed to various factors, including the resilience of the residential sector and the gradual recovery of the commercial and institutional markets. Moreover, the adoption of advanced technologies, such as Building Information Modeling (BIM) and modular construction, is gaining traction, streamlining project delivery and enhancing overall efficiency.
• In terms of sectoral breakdown, residential construction accounts for the largest share, followed by commercial and institutional projects. As the market continues to evolve, it is essential for businesses to stay informed about the latest trends and developments to capitalize on opportunities and navigate challenges effectively.

What will be the size of the US|North America Construction Market during the forecast period?

 Explore in-depth regional segment analysis with market size data with forecasts 2025-2029 - in the full report.  
Request Free Sample 

• The construction market in the US continues to evolve, integrating advanced technologies and innovative practices to enhance efficiency, safety, and sustainability. Two notable trends include the adoption of robotics in construction and the implementation of building energy modeling using artificial intelligence. According to industry estimates, the market value for robotics in construction is projected to reach USD1.3 billion by 2027, representing a compound annual growth rate of 15%. Meanwhile, energy modeling using AI is expected to save 20% to 30% in energy costs and reduce construction time by up to 10%. These technologies, along with other initiatives such as BIM data interoperability, passive building design, and seismic design standards, contribute to a more efficient and resilient construction industry.
• Additionally, the use of lean construction principles, value engineering techniques, and lifecycle cost analysis helps ensure project risk mitigation and cost savings throughout the building process. Other areas of focus include permitting and approvals, contract negotiation strategies, inspection and testing, and sustainable site development.

How is this US|North America Construction Market segmented?

The us|north america construction market market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion" for the period 2025-2029,for the following segments.

• Type
  • Residential construction
  • Commercial construction
  • Infrastructure construction
  • Industrial construction
• Product Type
  • Buildings
  • Engineering
• Modality
  • Private
  • Public
• Geography
  • North America
    • US

By Type Insights

The residential construction segment is estimated to witness significant growth during the forecast period.

The US construction market is experiencing significant advancements in various sectors, with plumbing system design and electrical system design playing crucial roles in ensuring efficiency and safety. Prefabricated construction methods, fueled by digital twin technology, are revolutionizing project scheduling and cost estimation, enabling faster turnaround times and cost savings. Building automation systems and HVAC system installation are essential components of sustainable building practices, contributing to energy efficiency and reducing operational costs. Excavation and demolition processes are streamlined with drone surveying techniques, offering enhanced accuracy and safety. Concrete mix design and foundation engineering are undergoing continuous innovation, with a focus on improving durability and reducing waste.

Construction safety protocols are being strengthened through heavy equipment utilization and labor productivity metrics, ensuring a safer work environment. Material procurement strategies are being optimized with building information modeling, BIM software integration, and supply chain optimization. Modular construction techniques and 3D printing construction are gaining popularity for their cost-effectiveness and time savings. Green building certifications, such as LEED and Energy Star, are driving the market towards sustainable materials and practices. Geotechnical engineering analysis and risk assessment methodologies are essential in ensuring the stability and safety of structures. Structural engineering software and structural engineering analysis are crucial in designing and constructing buildings that can withstand various environmental conditions.

According to the latest industry reports, the US construction market is expected to grow by 6.2% in 2024, with the residential sector accounting for 55% of the total growth. Furthermore, the non-residential sector is projected to expand by 5.8%, driven by the increasing demand for commercial and institutional buildings. These trends underscore the ongoing evolution of the construction industry and its applications across various sectors.

Request Free Sample

Market Dynamics

Our researchers analyzed the data with 2024 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.
Optimizing Construction Projects in the US: Performance Improvements and Innovations In the dynamic and complex construction industry, US businesses and professionals are continuously seeking ways to enhance performance, ensure compliance, and drive innovation. This article explores several key areas where significant improvements can be achieved. Firstly, the prefabricated components installation process has gained traction, reducing on-site construction time by up to 30%. By manufacturing and assembling components off-site, projects can benefit from improved quality control and weather-resistant structures. Secondly, sustainable building material sourcing is a growing concern. Adopting green building certification requirements, such as LEED or WELL, not only contributes to environmental sustainability but also attracts eco-conscious clients and tenants. Thirdly, digital twin technology is revolutionizing construction monitoring, enabling real-time project tracking and predictive maintenance. This results in reduced downtime and improved efficiency, as well as enhanced safety and compliance. Fourthly, 3D printing concrete structures is an emerging trend, offering faster construction times, reduced labor costs, and greater design flexibility. However, it is essential to consider the environmental impact and material sourcing for this innovative technology. Moreover, innovation extends to modular building assembly techniques, which streamline the construction process and offer cost savings of up to 20%. These techniques also contribute to labor productivity improvements and supply chain risk management. Lastly, businesses must prioritize heavy equipment maintenance scheduling, ensuring optimal performance and reducing downtime. Structural engineering software comparisons, geotechnical investigation report analysis, and project cost overrun prevention strategies are essential tools in this regard. In conclusion, the US construction market is ripe for performance improvements and innovation. By focusing on areas such as prefabricated components, sustainable materials, digital twin technology, 3D printing, and operational efficiency, businesses can stay competitive and meet the evolving needs of their clients.

What are the US|North America Construction Market market drivers leading to the rise in adoption of the Industry?

• Urbanization and population growth serve as the primary catalysts for market expansion. 

• The US construction market is experiencing significant growth due to population expansion and urbanization. Approximately 83% of the US population now resides in urban areas, as reported by the World Bank in 2023. This trend is driving the demand for residential, commercial, and infrastructure development. New housing, including single-family homes, multi-family apartments, and condominiums, is being constructed to accommodate the increasing urban population. The demand for housing is fueled by various factors, such as the influx of people seeking better job opportunities, access to amenities, and enhanced quality of life in urban centers.
• According to recent industry reports, the construction sector is projected to expand by 5% in the upcoming year. This growth is a testament to the market's resilience and the ongoing demand for infrastructure and housing solutions.

What are the US|North America Construction Market market trends shaping the Industry?

• Sustainability is the emerging market trend, with a focus on green building practices.

• The construction market in the US continues to prioritize sustainability, with a significant shift towards energy-efficient buildings, green materials, and LEED certification. This trend is fueled by increasing consumer demand and regulatory standards, driving the adoption of solar energy, green roofs, and energy-efficient HVAC systems in both commercial and residential projects. According to recent industry reports, the market for green building materials is projected to grow by 12% in the next five years. For instance, a major construction firm recently reported a 15% increase in sales from projects incorporating sustainable features.
• The US Green Building Council's commitment to promoting sustainable building practices further strengthens this trend. Initiatives like New York City's Future Housing Initiative, launched in March 2023, underscore the growing importance of sustainable construction in the US.

How does US|North America Construction Market market faces challenges face during its growth?

• The shortage of skilled labor poses a significant challenge to the industry's growth trajectory. This issue, which is mandatory for businesses to address, hinders expansion and productivity. The lack of a sufficient workforce with the necessary expertise can lead to project delays, increased costs, and decreased competitiveness. To mitigate this challenge, companies must invest in training and development programs, collaborate with educational institutions, and consider alternative work arrangements such as outsourcing or temporary staffing solutions. 

• The construction industry in the US faces a significant challenge due to a persistent labor shortage. Approximately 650,000 unfilled positions existed as of August 2023, impacting project timelines, costs, and productivity. This issue is compounded by an aging workforce and a lack of new entrants in the field. Experienced workers are retiring, and the number of young professionals entering the construction trades is insufficient to replace them. This labor shortage poses a substantial challenge for the industry, which is expected to continue growing at a robust pace.
• According to industry reports, the US construction market is projected to expand by around 5% in the coming years. This growth is driven by increasing demand for infrastructure projects, residential construction, and commercial development. Despite the labor shortage, the sector remains optimistic about its future prospects.

Exclusive US|North America Construction Market Customer Landscape

The us|north america construction market market forecasting 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 market growth analysis strategies.

 Customer Landscape

Key Companies & Market Insights

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

AECOM - This company specializes in construction services, delivering design-build, construction management, modularization, and engineering-procure-construction solutions to various industries. Their expertise encompasses innovative approaches to project execution, ensuring efficiency, quality, and cost savings.

The us|north america construction market research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:

• AECOM
• Balfour Beatty Plc
• Bechtel Corp.
• Bouygues Construction SA
• Clark Construction Group LLC
• DPR Construction
• Fluor Corp.
• Gilbane Inc.
• Kiewit Corp.
• M. A. Mortenson Co.
• MasTec Inc.
• McCarthy Building Companies Inc.
• McDermott International Ltd.
• PCL Constructors Inc.
• Skanska AB
• STO Building Group
• The Whiting Turner Contracting Co.
• Turner Construction Co.
• Tutor Perini Corp.
• Vinci

Qualitative and quantitative analysis of companies 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 companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Recent Development and News in Construction Market In US

• In January 2024, Bechtel Corporation, a leading construction company, announced the successful completion of the Vogtle 3 and 4 nuclear expansion project in Georgia, marking the largest nuclear construction project in the US in decades. The USD25 billion expansion added two new reactors, increasing the plant's capacity by 1.6 gigawatts (GW) (Bechtel Corporation, 2024).
• In March 2024, Skanska USA and Autodesk, a design software company, formed a strategic partnership to integrate Autodesk's construction software into Skanska's projects, aiming to improve efficiency and reduce costs (Skanska, 2024).
• In May 2024, Procore Technologies, a construction management software provider, raised USD150 million in a Series E funding round, bringing its total funding to USD550 million. This investment will support the company's continued growth and product development (Procore Technologies, 2024).
• In January 2025, the US Department of Transportation awarded a USD1.5 billion grant to the South Florida Express Lanes project, a public-private partnership to expand highway capacity and reduce congestion in Miami-Dade and Broward counties (US Department of Transportation, 2025).

Research Analyst Overview

The construction market in the US continues to evolve, with various sectors adopting innovative technologies and methods to enhance productivity, reduce costs, and improve safety. One such trend is the increasing use of prefabricated construction methods, which allow for faster and more efficient plumbing system design and electrical system design. For instance, a leading construction firm reported a 25% increase in project completion time by implementing prefabricated plumbing and electrical systems. Another significant development is the integration of digital twin technology, project scheduling software, and building information modeling (BIM) in construction projects. These tools enable real-time monitoring of project progress, improved communication between stakeholders, and more accurate project cost estimation.

Moreover, the use of drone surveying techniques for excavation and demolition sites offers enhanced site safety and increased efficiency in material procurement strategies. The construction industry is expected to grow at a robust pace, with industry experts forecasting a 5% annual growth rate over the next decade. This growth is driven by factors such as the increasing adoption of green building certifications, the rise of sustainable building materials, and the ongoing optimization of supply chain logistics and heavy equipment utilization. Construction safety protocols remain a top priority, with the implementation of structural engineering software and risk assessment methodologies helping to minimize accidents and ensure compliance with building code requirements.

Foundation engineering, geotechnical analysis, and quality control procedures are also essential components of modern construction projects, ensuring the durability and longevity of buildings. The ongoing evolution of construction methods and technologies is transforming the industry, with 3D printing construction, modular construction techniques, and steel structure fabrication offering new possibilities for cost savings, labor productivity improvements, and enhanced building design. The integration of BIM software and project management tools is further streamlining the construction process, enabling more accurate and efficient project delivery. In conclusion, the US construction market is a dynamic and ever-evolving landscape, with ongoing innovations in prefabricated construction methods, digital technologies, and sustainable building practices driving growth and improving productivity and safety.

The integration of various technologies, from plumbing system design to project cost estimation, is transforming the industry, enabling more efficient and cost-effective construction projects.

Dive into Technavio’s robust research methodology, blending expert interviews, extensive data synthesis, and validated models for unparalleled Construction Market in US insights. See full methodology.

Request Free Sample

What are the Key Data Covered in this Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting between 2025 and 2029
• Precise estimation of the size of the market  and its contribution of the market in focus to the parent market
• Accurate predictions about upcoming market growth and trends and changes in consumer behaviour
• Growth of the market across US and North America
• Thorough analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of market companies

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