Government Buildings Global Market Report 2024

The government buildings market size has grown marginally in recent years. It will grow from $48.28 billion in 2023 to $49.05 billion in 2024 at a compound annual growth rate (CAGR) of 1.6%. The growth observed in the historical period can be attributed to several factors, including government infrastructure investments, population growth and urbanization, policy changes and regulatory requirements, efforts towards modernization and upgrading, as well as concerns related to security and safety.

The government buildings market size is expected to see marginal growth in the next few years. It will grow to $52.86 billion in 2028 at a compound annual growth rate (CAGR) of 1.9%. The anticipated growth in the forecast period can be attributed to the adoption of sustainable and green building practices, the integration of smart infrastructure, the utilization of public-private partnerships (PPPs), evolving work dynamics, and demographic shifts with a focus on community services. Major trends expected in the forecast period include an emphasis on accessibility and inclusivity, the renovation and retrofitting of existing structures, the digital transformation in government services, the promotion of collaboration and co-working spaces, and the incorporation of biophilic design principles.

The anticipated growth of the government buildings market is expected to be driven by the increasing expenditure by governments. This expenditure encompasses the capital spent on various goods and services, including the development of government buildings such as hospitals and schools. Notably, government spending has seen significant figures, as reported by the Central Statistics Office Ireland in March 2022, projecting general government spending to be 1,595.0 billion ISK ($11.61 billion) in 2021. Similarly, the Government of India's 2021-22 annual budget report indicates a substantial increase in overall government spending to INR 34,83,236 crore ($4,127,831.20) for 2021-22, demonstrating the driving force of increasing government expenditure on the growth of the government buildings market.

The growth of the government buildings market is further expected to benefit from the rising trend of urbanization. Urbanization, characterized by the transformation of rural areas into urbanized regions due to economic development, is anticipated to drive investments in the construction, renovation, and modernization of government buildings. The World Bank Group reported in April 2023 that more than half of the global population currently resides in urban areas, with projections indicating a surge to 6 billion urban residents by 2045. This uptick in urbanization is identified as a significant factor propelling the growth of the government buildings market.

A notable trend in the government buildings market is the emphasis on specialized government buildings, with major companies focusing on designing structures equipped with specialized systems. An example is the Central Vista Project launched by the Government of India in September 2021, featuring the construction of a new parliament building with modern audio-visual equipment and practical spaces designed for enhanced efficiency.

Sustainability and green building practices have emerged as prominent trends in the government building market, reflecting a commitment to environmentally responsible construction. Governments are increasingly adopting energy-efficient designs, renewable energy sources, and eco-friendly materials for their building projects. The Biden administration's announcement in November 2023 to invest $2 billion in federal building projects prioritizing materials that minimize carbon emissions underscores the growing emphasis on sustainable practices in government construction projects.

In October 2022, Pike Construction Services, a US-based construction company, acquired Charles A. Gaetano Construction Corporation and C2C Construction Solutions, LLC. This acquisition is expected to enhance Pike's position in the Central New York region and the Northeast while adding value to its client offerings. Charles A. Gaetano Construction Corporation and C2C Construction Solutions, LLC are providers of construction services, including projects related to government buildings.

Major companies operating in the government buildings market report are China State Construction Engineering Co. Ltd., Shanghai Construction Group Co. Ltd., Clark Construction Group LLC, The Whiting-Turner Contracting Company, Turner Construction Company, Balfour Beatty plc, Greenland Holding Corp. Ltd., Obayashi Corporation, Daiwa HouseIndustry Co. Ltd., HOCHTIEF Aktiengesellschaft, Vinci S.A., Bouygues SA, Kajima U.S.A. Inc., Bechtel Corporation, Skanska AB, Fluor Corporation, STO Building Group, PulteGroup Inc., Jacobs Solutions Inc., WSP Global Inc., Alfa Tech Ltd., AECOM Technology Corporation, DPR Construction, PCL Construction Enterprises Inc., Brasfield & Gorrie LLC, JE Dunn Construction, McCarthy Holdings Inc., Hensel Phelps Construction Co., Stanley Technology Group Inc., Suffolk Construction Company Inc., Summit Contracting Group Inc., McShane Construction Ltd., Ajax Building Co., HITT Contracting Inc., Harkins Builders Inc., Kiewit Corporation.

Asia-Pacific was the largest region in the government buildings market in 2023. The regions covered in the government buildings market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the government buildings market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The primary types of government buildings are institutional buildings and commercial buildings. Institutional buildings encompass structures used in industries such as healthcare, education, recreation, or public works. These buildings may include non-residential smart buildings and traditional buildings. They cater to diverse end-users, including both private and public entities.

The government buildings market research report is one of a series of new reports that provides government buildings market statistics, including government buildings industry global market size, regional shares, competitors with a government buildings market share, detailed government buildings market segments, market trends, and opportunities, and any further data you may need to thrive in the government buildings industry. This government buildings 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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