Nonresidential Building Construction Market Report 2025

The nonresidential building construction market size has grown steadily in recent years. It will grow from $3.08 trillion in 2024 to $3.19 trillion in 2025 at a compound annual growth rate (CAGR) of 3.6%. The growth in the historic period can be attributed to strong economic growth in emerging markets, low interest rate environment and rapid growth in the elderly population.

The nonresidential building construction market size is expected to see steady growth in the next few years. It will grow to $3.72 trillion in 2029 at a compound annual growth rate (CAGR) of 3.9%. The growth in the forecast period can be attributed to rapidly growing urban population, increasing population growth, a rise in disposable income, increasing infrastructure development expenditure by governments and the resumption of work from office post COVID-19. Major trends in the forecast period include green construction projects, use of autonomous construction vehicles, a rise in modular construction, use of advanced building materials to improve construction, construction robotics and a rise in 3D construction printing.

The forecast period anticipates a surge in demand for new residential and commercial buildings, propelled by the rapidly growing urban population. According to the UN World Urbanization Prospects report, it is projected that over 60% of the global population will reside in cities by 2050, with significant opportunities emerging in Asian countries such as Indonesia, Vietnam, and the Philippines, particularly in export-oriented manufacturing. The World Bank predicts a substantial growth of 250 million in the urban population of South Asia by 2030. This swift urbanization is poised to drive the demand for new infrastructure, thereby fueling the non-residential building construction market in the forecasted period.

The ongoing increase in economic growth is expected to be a driving force for the non-residential building construction market in the coming years. Economic growth, signifying the sustained rise in a country's production of goods and services, plays a pivotal role in stimulating the non-residential building construction sector. This growth leads to job creation, income generation, and heightened demand for materials and services, contributing to overall economic activity. For instance, as of June 2023, the Organization for Economic Co-operation and Development reported that the UK's gross domestic product growth is forecasted to be modest at 0.3% in 2023, with a moderate improvement to 1% in 2024. Consequently, the upward trajectory in economic growth is a key factor driving the expansion of the non-residential building construction market.

Building construction firms are increasingly adopting green construction techniques to construct energy-efficient buildings and cut down on construction costs. Green construction involves utilizing sustainable building materials and construction methods to create buildings with minimal environmental impact. According to the World Green Building Trends Survey, approximately 60% of construction firms globally are engaged in green construction projects. Certifications such as Leadership in Energy and Environmental Design (LEED) enable construction companies to create high-performance, sustainable residential and commercial buildings, offering benefits ranging from tax deductions to marketing opportunities. In the UK, sustainable construction materials such as natural paints and recycled steel beams are widely employed. Additional green construction methods include cross-ventilation for a more natural environment, the use of green construction software such as Construction Suite for ensuring green compliance, and the adoption of the Green Globes management tool within the construction industry.

In March 2023, The Cadillac Fairview Corporation Limited, a real estate company based in Canada, acquired Lincoln Residential for an undisclosed amount. This strategic acquisition enables Cadillac Fairview Corporation to expand its footprint in residential real estate, increase its market share, and enhance its array of customer offerings. Lincoln Residential, a US-based real estate development and management company, specializes in the development, acquisition, and management of multifamily residential properties.

Major companies operating in the nonresidential building construction market include China State Construction Engineering Co., Ltd., Shanghai Construction Group Co., Ltd., Hochtief AG, Vinci S.A., Bouygues SA, Greenland Holding Group, Skanska Group, Obayashi Corporation, AECOM, Bechtel Corporation, Ramky Infrastructure Limited, Rain City Industries Pty. Ltd., J.M. Industries Pty. Ltd., Jeshy Building Concepts Pty Ltd, Dixon Construction Limited, F J Ventures Limited, Operateur de Reseaux d'Energies, Deme Offshore Be, CAJOT LORRAINE, SAS AGENCE LORRAINE DE VIABILITE, PJ Hegarty & Sons U.C., Ballast Nedam Groep N.V., Voorbij Funderingstechniek B.V., Vroom Funderingstechnieken B.V., Van Wijnen Arnhem B.V., Dana Holdings, Swietelsky, Habau, Castagner Immobiliare S.R.L., V & R Edilcons Srl, Blueair Instal Srl, Dalmata Business Srl, Quanta Ten Estate Developments Srl, Zentec Construct Srl, Turner Corp, Clark Group, Swinerton, Hensel Phelps, Lendlease, Gilbane Building Co, Battle Lake Design Group, Alberta, Renewed Materials, Inc., Eco Caminhos, Construcciones Planificadas, WTorre Empreendimentos, Line Investments & Property LLC (LIP), Emaar, AF construction, La’ Ala Al-Kuwait Real Estate Co., Gav Yam Land Corporation Ltd., Al Sraiya Holding Group, Al Futtaim Colas, Kharafi National, Baran Group, Redcon Construction Company, Estim Construction Co. Ltd, Eco-Beam, Ecomo, TSAI design studio.

Asia-Pacific was the largest region in the non-residential building construction market in 2024. North America was the second-largest region in the non-residential building construction market. The regions covered in the nonresidential building construction market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the nonresidential building construction market report are Australia, China, India, Indonesia, Japan, South Korea, Bangladesh, Thailand, Vietnam, Malaysia, Singapore, Philippines, Hong Kong, New Zealand, USA, Canada, Mexico, Brazil, Chile, Argentina, Colombia, Peru, France, Germany, UK, Austria, Belgium, Denmark, Finland, Ireland, Italy, Netherlands, Norway, Portugal, Spain, Sweden, Switzerland, Russia, Czech Republic, Poland, Romania, Ukraine, Saudi Arabia, Israel, Iran, Turkey, UAE, Egypt, Nigeria, South Africa.

The non-residential building construction market includes revenues earned by entities by constructing non-residential buildings such as hotels, restaurants, educational buildings, health buildings, and other non-residential buildings. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

Non-residential construction encompasses the activities involved in constructing, modifying, repairing, enhancing, or demolishing any building or structure that is not intended for residential purposes. This category includes industrial facilities, commercial establishments, and structures designed for public entertainment.

The primary categories within non-residential building construction are institutional buildings and commercial buildings. Institutional buildings refer to structures owned by municipalities and can be financed through public or private means. These buildings often feature intricate designs and undergo substantial public scrutiny and participation throughout the design phase. Various types of non-residential buildings include smart buildings, traditional buildings, and structures implemented across different sectors, including private and public domains.

The non-residential building construction market research report is one of a series of new reports that provides non-residential building construction market statistics, including non-residential building construction industry global market size, regional shares, competitors with a non-residential building construction market share, detailed non-residential building construction market segments, market trends and opportunities, and any further data you may need to thrive in the non-residential building construction industry. This non-residential building construction market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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