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Canada Construction Market Size, Trends, and Forecasts by Sector - Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market Analysis to 2028 (Q2 2024)

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    Report

  • 56 Pages
  • June 2024
  • Region: Canada
  • GlobalData
  • ID: 5782615

The Construction in Canada - Key Trends and Opportunities to 2028 (Q2 2024) report provides detailed market analysis, information, and insights into the Canadian construction industry, including :

  • The Canadian construction industry's growth prospects by market, project type and construction activity
  • Critical insight into the impact of industry trends and issues, as well as an analysis of key risks and opportunities in the Canadian construction industry
  • Analysis of the mega-project pipeline, focusing on development stages and participants, in addition to listings of major projects in the pipeline.
Following an annual decline of 1.3% in 2023, the construction industry in Canada is expected to continue to decline, falling a further 3.1% in real terms in 2024. The decline will be driven by a significant fall in the residential construction sector, amid continued elevated interest rates. Other factors such as the impact of high construction prices and a shortage of skilled labour further add to the problem. According to Statistics Canada, the total value of building permits issued in the country declined by 8.8% year on year (YoY) in 2023, with the number for residential buildings falling by 15.4% during that period. Despite high construction prices, the new average housing price index fell marginally by 0.3% in the first five months of 2024, this was preceded by annual marginal decline of 0.5% in 2023, suggesting weakness in housing demand. The negative growth can also be attributed to the cessation and delays of construction activity of various projects. For instance, in February 2024, the Windsor-Detroit Bridge Authority reported that the construction works of the CAD8.5 billion ($6.4 billion) Gordie Howe Bridge, which was originally scheduled for completion in 2024, has been delayed due to cost overrun, and government restrictions.

The analyst expects the Canadian construction industry to rebound at an annual average rate of 2.4% during 2025-28, supported by developments in the renewable energy, transport, and industrial sectors, coupled with the government’s focus on curbing housing deficit by the construction of 5.8 million new affordable houses by 2030. In April 2024, the Prime Minister launched a CAD6 billion ($4.4 billion) Canada Housing Infrastructure Fund as part of its target of building 750,000 new homes by 2033, as part of the Housing Accelerator Fund. In addition, growth over the forecast period will also be supported by the government’s plan to achieve carbon neutrality by 2050. In March 2024, Scottish offshore wind services company, Venterra Group, won a contract from the Government of Nova Scotia to conduct the feasibility study for the development of a 5GW offshore wind farm by 2030 in the province, which involves an estimated investment of CAD13.3 billion ($10 billion).

Scope

This report provides a comprehensive analysis of the construction industry in Canada. It provides :

  • Historical (2019-2023) and forecast (2024-2028) valuations of the construction industry in Canada, featuring details of key growth drivers.
  • Segmentation by sector (commercial, industrial, infrastructure, energy and utilities, institutional and residential) and by sub-sector
  • Analysis of the mega-project pipeline, including breakdowns by development stage across all sectors, and projected spending on projects in the existing pipeline.
  • Listings of major projects, in addition to details of leading contractors and consultants

Reasons to Buy

  • Identify and evaluate market opportunities using the analyst's standardized valuation and forecasting methodologies.
  • Assess market growth potential at a micro-level with over 600 time-series data forecasts.
  • Understand the latest industry and market trends.
  • Formulate and validate strategy using the analyst's critical and actionable insight.
  • Assess business risks, including cost, regulatory and competitive pressures.
  • Evaluate competitive risk and success factors.

Table of Contents

1 Executive Summary2 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 CRI Methodology
  • About the Analyst
  • Contact the Publisher
List of Tables
Table 1: Construction Industry Key Data
Table 2: Canada, Key Economic Indicators
Table 3: Canada, Commercial Construction Output by Project Type (Real % Change), 2019-28
Table 4: Canada, Top Commercial Construction Projects by Value
Table 5: Canada, Industrial Construction Output by Project Type (Real % Change), 2019-28
Table 6: Canada, Top Industrial Construction Projects by Value
Table 7: Canada, Infrastructure Construction Output by Project Type (Real % Change), 2019-28
Table 8: Canada, Top Infrastructure Construction Projects by Value
Table 9: Canada, Energy and Utilities Construction Output by Project Type (Real % Change), 2019-28
Table 10: Canada, Top Energy and Utilities Construction Projects by Value
Table 11: Canada, Institutional Construction Output by Project Type (Real % Change), 2019-28
Table 12: Canada, Top Institutional Construction Projects by Value
Table 13: Canada, Residential Construction Output by Project Type (Real % Change), 2019-28
Table 14: Canada, Top Residential Construction Projects by Value
Table 15: Canada, Key Contractors
Table 16: Canada, Key Consultants
Table 17: Canada, Construction Output Value (Real, $ Million)
Table 18: Canada, Construction Output Value (Nominal, CAD Million)
Table 19: the analyst Construction Market Definitions
Table 20: Risk Dimensions
Table 21: Ratings, Scores and Definitions
List of Figures
Figure 1: North America, Construction Output (Real % Change), 2022-28
Figure 2: Canada, Construction Output by Sector (Real % Change), 2022-24 and 2025-28
Figure 3: Canada, Risk Summary
Figure 4: Canada, Risk Regional Comparison
Figure 5: Canada, Construction Output Value (Real, $ Million, 2022 Prices and Exchange Rate), 2019-28
Figure 6: Canada, Construction Output Value, by Sector (Real, $ Million), 2019-28
Figure 7: Canada, Construction Value-Add (CAD Million, 2012 Constant Prices), Quarterly Average, Seasonally Adjusted at Annual Rates
Figure 8: Canada, Investment in Building Construction (CAD Million, Seasonally Adjusted Constant Prices)
Figure 9: Canada, Value of Building Permits Issued, in Seasonally Adjusted Constant Prices, % Change YoY
Figure 10: Canada, Building Construction Prices Indices, 2017=100, % Change (YoY)
Figure 11: Canada, Construction Employment, In Thousands, In Seasonally Adjusted Terms
Figure 12: Canada, Construction Projects Momentum Index
Figure 13: North America, Construction Projects Momentum Index
Figure 14: Canada, Commercial Construction Output by Project Type (Real, $ Million), 2019-28
Figure 15: Canada, Commercial Construction Projects Pipeline, Value by Stage ($ Million)
Figure 16: Canada, Investment on Commercial Building Construction (CAD Million, Seasonally Adjusted Constant Prices)
Figure 17: Canada, Value of Building Permits Issued for Commercial Buildings (CAD Million, Seasonally Adjusted Terms)
Figure 18: Canada, Number of Non-Resident Visitors Entering the Country, In Thousands
Figure 19: Canada, Retail Trade Sales (CAD Million)
Figure 20: Canada, Industrial Construction Output by Project Type (Real, $ Million), 2019-28
Figure 21: Canada, Industrial Construction Projects Pipeline, Value by Stage ($ Million)
Figure 22: Canada, Manufacturing Value add, Quarterly Average Seasonally Adjusted at Annual Rates (CAD Million, 2012 Constant Prices)
Figure 23: Canada, Investment on Industrial Building Construction (CAD Million, Seasonally Adjusted Constant Prices)
Figure 24: Canada, Value of Building Permits Issued for Industrial Buildings (CAD Million, Seasonally Adjusted Terms)
Figure 25: Canada, Sales Value of Goods Manufactured and New Orders of Manufacturing (CAD Million)
Figure 26: Canada, Merchandise Exports (CAD Million)
Figure 27: Canada, Infrastructure Construction Output by Project Type (Real, $ Million), 2019-28
Figure 28: Canada, Infrastructure Construction Projects Pipeline, Value by Stage ($ Million)
Figure 29: Canada, Value-add of Civil Engineering and Other Construction Activities, Quarterly Average, Seasonally Adjusted at Annual Rates (CAD Million, 2012 Constant Prices)
Figure 30: Canada, Energy and Utilities Construction Output by Project Type (Real, $ Million), 2019-28
Figure 31: Canada, Energy and Utilities Construction Projects Pipeline, Value by Stage ($ Million)
Figure 32: Canada, Capital Expenditure in the Oil and Gas Extraction Industries (CAD Million, In Seasonally Adjusted Terms)
Figure 33: Canada, Electric Power Generation, In GWh
Figure 34: Canada, Production of Crude Oil and Other Equivalent Products, YoY % Change
Figure 35: Canada, Institutional Construction Output by Project Type (Real, $ Million), 2019-28
Figure 36: Canada, Institutional Construction Projects Pipeline, Value by Stage ($ Million)
Figure 37: Canada, Investment on Institutional Building Construction (CAD Million, In Seasonally Adjusted Terms)
Figure 38: Canada, Institutional Building Permits Issued (CAD Million, Seasonally Adjusted Terms)
Figure 39: Canada, Residential Construction Output by Project Type (Real, $ Million), 2019-28
Figure 40: Canada, Residential Construction Projects Pipeline, Value by Stage ($ Million)
Figure 41: Canada, Value-add of Residential Building, Quarterly Average, Seasonally Adjusted at Annual Rates (CAD Million, 2012 Constant Prices)
Figure 42: Canada, Investment on Residential Building Construction (CAD Million, Seasonally Adjusted Terms)
Figure 43: Canada, Residential Building Permits Issued (CAD Million, Seasonally Adjusted Terms)
Figure 44: Canada, New Housing Price Index, 2016=100
Figure 45: Canada, Housing Construction Started in Census Metropolitan Areas
Figure 46: Canada, Headquarters of Key Contractors (% of Total Project Pipeline)
Figure 47: Canada, Headquarters of Key Consultants (% of Total Project Pipeline)