Buildings Construction Global Market Report 2024

The buildings construction market size has grown steadily in recent years. It will grow from $7,265.96 billion in 2023 to $7,592.74 billion in 2024 at a compound annual growth rate (CAGR) of 4.5%. The growth observed in the historical period can be ascribed to factors such as population expansion, economic conditions, urbanization, government investment in infrastructure, and advancements in construction technology, materials, and methods.

The buildings construction market size is expected to see steady growth in the next few years. It will grow to $9,180.1 billion in 2028 at a compound annual growth rate (CAGR) of 4.9%. The anticipated growth in the forecast period can be attributed to factors such as sustainability and adherence to environmental regulations, digitalization, and the adoption of building information modeling (BIM), resilience and disaster mitigation measures, addressing housing affordability, and adapting to remote work and changing office space needs. Major trends expected in the forecast period include the rise of prefab and modular construction, the focus on wellness-centric buildings, the adoption of smart building technologies, increased interest in adaptive reuse, and the promotion of circular construction and recycling practices.

The shifting population demographics in many countries are marked by an aging population, leading to an increased demand for elderly-friendly infrastructure. For example, according to the World Health Organization (WHO), an authoritative government agency, the period from 2020 to 2050 is expected to witness a tripling of the number of people aged 80 years and older, reaching 426 million. Moreover, by 2050, the number of individuals aged 60 and above is projected to double to reach 2.1 billion. As a result, there is a growing need for infrastructure improvements that cater to the needs of the elderly during the forecast period. This necessitates modifications to residential and non-residential buildings to enhance safety and inclusivity, resulting in increased construction activity.

The primary categories of building construction encompass residential and non-residential construction. Non-residential construction covers structures, associated fixtures, utilities, equipment, site clearing, and preparation expenses. Various building types include smart buildings, conventional structures, and those utilized by both private and public sectors.

The building construction market research report is one of a series of new reports that provides building construction market statistics, including building construction industry global market size, regional shares, competitors with a building construction market share, detailed building construction market segments, market trends and opportunities, and any further data you may need to thrive in the building construction industry. This 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 increasing demand for residential projects is expected to drive the growth of the building construction market. Residential projects encompass a wide range of construction initiatives focused on creating living spaces. These endeavors include the construction of habitable structures, such as individual homes, multi-unit housing complexes, and tall apartment buildings, among others. For example, as of February 2023, as reported by Fit Small Business, a US-based digital resource for small businesses, the construction industry recorded a total of 1,382,000 new housing units initiated in December 2022, adjusted for seasonal factors. This number represented a 21.8% decline compared to the December 2021 rate of 1,768,000 and a slight decrease of 1.4% when compared to the revised November 2022 estimate of 1,401,000. Notably, single-family housing starts in December 2022 reached a rate of 909,000, signifying an 11.3% increase from the November 2022 total of 817,000. Over the course of 2022, approximately 1,553,300 housing units were initiated, reflecting a 3.0% reduction compared to the 2021 total of 1,601,000. Consequently, the growing demand for residential projects is set to be a driving force behind the expansion of the building construction market.

Building construction costs are steadily increasing due to the rising costs of materials. Companies in the industry have faced challenges in maintaining their profit margins as prices for materials like cement and clay products have continued to rise. According to the Department for Business and Trade, a UK-based department, the average annual construction cost, as measured by the new housing producer price indices, is projected to reach 148.2 in 2022, up from 128.5 in 2021 in the UK. These high material costs are expected to have a negative impact on the building construction market throughout the forecast period.

Building construction companies are increasingly embracing green construction techniques as a means to construct energy-efficient buildings and simultaneously reduce construction costs. Green construction involves the use of sustainable building materials and environmentally friendly construction methods to create energy-efficient structures with minimal environmental impact. In the UK, certifications like Leadership in Energy and Environmental Design (LEED) assist construction companies in developing high-performance, sustainable residential and commercial buildings. These green practices offer various benefits, from tax deductions to marketing opportunities. Sustainable construction materials, including natural paints and steel beams made from recycled materials, are gaining popularity in the UK. The adoption of other green construction techniques such as cross-ventilation for a more natural environment and the use of green construction software like Construction Suite to ensure green compliance is also on the rise in the construction industry. Some major companies leading the way in using green construction techniques include Turner Construction Co., Clark Group, AECOM, Hensel Phelps, and Holder Construction.

Major companies in the building construction market are increasingly forming partnerships to create strategic alliances in which two or more companies collaborate within the building construction industry. These strategic partnerships involve businesses or individuals pooling their resources to achieve collective success. For example, in April 2023, Skanska AB, a construction company based in Sweden, entered into a contract with Campus Ulleval AS and Aspelin Ramm to construct Campus Ulleval in Oslo, Norway. The primary focus of this research center will be on geosciences related to climate, energy, and environmental engineering. The contract is valued at NOK 1.0 billion, approximately equivalent to USD 91 million. Additionally, in March 2023, the Government of North Macedonia selected Bechtel, in a joint venture with partner ENKA, to build two new motorways in the country as part of infrastructure improvement and modernization efforts. These forthcoming motorways will have a combined length of 110 kilometers (about 68 miles), and construction is scheduled to commence in 2023. This strategic initiative is expected to drive Bechtel's business expansion and enhance its reputation, thus attracting a larger client base.

Major companies operating in the buildings construction market include China State Construction Engineering Corporation Ltd., China Evergrande Group, Country Garden Holdings Co Ltd., Sunac China Holdings Ltd., Greenland Holding Group, Daiwa House Group, Lennar Corporation, D.R. Horton Inc., Bouygues SA, The Metallurgical Corp of China, China Railway Group Limited, Bechtel, Fluor Corporation, The Whiting-Turner Contracting Company, Emcor Group, Turner Construction, Kiewit Corporation, STO Building Group Inc., AECOM, DPR Construction, Gilbane Building Company, Tutor Perini Corporation, Clark Construction Group LLC, Skanska USA, PCL Construction Enterprises Inc., McCarthy Holdings Inc., Hensel Phelps, Ryan Companies US Inc., Swinerton, Balfour Beatty US, The Boldt Company, JE Dunn Construction Group Inc., The Walsh Group Ltd., Mortenson, The Industrial Company, Webcor Construction, TDIndustries, The Haskell Company, KCI Technologies, Crossland Construction Company, Consigli Building Group Inc.

Asia-Pacific was the largest region in the building construction market in 2023. North America was the second-largest region in the building construction market. The regions covered in the building construction market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.

The countries covered in the buildings 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 building construction market includes revenues earned by entities by constructing buildings such as hotels, houses, apartments, restaurants, schools, sports, offices, hospitals, governments, and other 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.

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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