Commercial Buildings Market Report 2025

The commercial buildings market size has grown steadily in recent years. It will grow from $1.92 trillion in 2024 to $1.99 trillion in 2025 at a compound annual growth rate (CAGR) of 3.8%. The growth in the historic period can be attributed to economic growth and stability, urbanization trends, regulatory environment, consumer behavior and preferences, global events and crises.

The commercial buildings market size is expected to see steady growth in the next few years. It will grow to $2.33 trillion in 2029 at a compound annual growth rate (CAGR) of 4%. The growth in the forecast period can be attributed to flexible work arrangements, climate change mitigation, rapid urbanization in emerging markets, e-commerce impact on retail spaces, government initiatives and incentives. Major trends in the forecast period include advanced security systems, modular construction, data-driven decision-making, smart building technology, digital transformation.

The rising construction of green buildings is anticipated to drive growth in the commercial buildings market in the future. Green buildings involve a construction approach that utilizes fewer resources, leading to healthier, more environmentally friendly, and lower-maintenance structures. This sustainable construction method considers the entire life cycle of a building. Green buildings are favored in the commercial sector as they lower operational costs over time, which contributes to market growth. For example, in July 2024, the Building and Construction Authority (BCA), a statutory body under Singapore's Ministry of National Development, reported that earlier editions of the Green Building Masterplan aimed to green 80% of Singapore’s buildings (measured by gross floor area, GFA) by 2030. By the end of 2022, approximately 55% of these buildings had achieved green certification. Hence, the increase in green building construction is propelling the commercial buildings market.

The anticipated expansion of e-commerce is set to drive growth within the commercial buildings market. E-commerce involves the online exchange of goods and services, conducted over the Internet or electronic networks. Commercial buildings play a crucial role as distribution centers and fulfillment hubs, facilitating the smooth operations of e-commerce activities. For instance, as of August 2023, data from the Census Bureau revealed that U.S. retail e-commerce sales for the second quarter of 2023 reached $277.6 billion, marking a 2.1% (±0.9%) increase from the first quarter of the same year. This upward trend in e-commerce sales substantiates its pivotal role in propelling the growth of the commercial buildings market.

Key players in the commercial real estate sector are actively prioritizing sustainable practices by incorporating renewable energy solutions such as rooftop solar installations. This approach serves the dual purpose of environmental stewardship and gaining a competitive edge within the industry. An exemplar of this initiative occurred in January 2023 when JEG Development Corporation (JDC), a family-owned enterprise in the Philippines, partnered with COREnergy Inc., a US-based real estate investment trust. Together, they successfully implemented a 37kWp rooftop solar system atop the 22-story JEG Tower, One Acacia. This landmark project established the building as the inaugural solar-powered commercial high-rise in Cebu. Anticipated outcomes from this grid-tied solar venture include an annual energy generation of 77 MWh and a consequential reduction of 30 metric tons of carbon dioxide emissions per year. Additionally, JEG Tower's recognition with the highest Gold score in Cebu City's LEED rating system for sustainable buildings underscores COREnergy's achievement of their fifth operational distributed solar project in Cebu.

Major companies are directing their efforts towards the development of cutting-edge solutions, such as the BIM Plug-In, to empower architects and secure a competitive advantage. This software component significantly augments the functionality of building information modeling (BIM) software by offering specialized features and capabilities. For example, in July 2023, Cemex, a prominent Mexico-based supplier of building materials, introduced a plug-in specifically tailored for the Building Information Modelling (BIM) REVIT software, targeting architects and engineers engaged in construction ventures. This innovative tool enables users to pinpoint the most fitting Cemex products, prioritizing those that are both pioneering and environmentally sustainable. Within the BIM software, users can conduct exhaustive searches for concrete properties, undertake comparative analyses based on crucial characteristics, and focus on embodied carbon values. This tool stands as a pioneering solution within the UK's construction industry. Its core objective revolves around elevating efficiency and fostering collaborative efforts in the planning and visualization phases of construction projects.

In April 2022, Cianbro Corp., a construction company based in the United States, completed the acquisition of R. C. Stevens Construction Company for an undisclosed sum. This strategic move is poised to establish enduring footholds for both entities within the Southeast region while presenting fresh opportunities for market expansion. Notably, R. C. Stevens Construction Company, situated in Florida, specializes in the construction of commercial buildings.

Major companies operating in the commercial buildings market include Brookfield Business Partners LP, CBRE Group Inc., Bechtel Corporation, Turner Construction Company, Skanska AB, Jacobs Engineering Group Inc., Obayashi Corporation, Fluor Corporation, Kiewit Corporation, AECOM Technology Corporation, Lendlease Corporation, Prologis Inc., DPR Construction Inc., Clayco Inc., Suffolk Construction Company Inc., Boston Commercial Properties Inc., Walsh Group, Marcus & Millichap Inc., Segro plc, DLF Ltd., Mortenson Inc., Hunt Construction Group, RAK Properties PJSC, NAI Global, Link Asset Management Ltd., Nakheel PJSC, Onni Contracting Ltd.

Asia-Pacific was the largest region in the commercial buildings market in 2024. The regions covered in the commercial buildings market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the commercial buildings market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Commercial buildings are defined as any structures built for industrial or public purposes related to commercial activities that generate profit, excluding residential buildings. These buildings are utilized for business-related functions.

Commercial building projects encompass various product categories, including new construction, repair and maintenance, refurbishment, and demolition. New construction involves erecting structures or making additions to existing ones, resulting in a floor area increase of more than 100 percent. These buildings find applications in ownership and rental across diverse sectors such as offices, retail spaces, leisure facilities, and other industries.

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

The commercial buildings market includes revenues earned by entities by constructing buildings, lodging facilities, restaurants, and industrial 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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