Construction Market Opportunities and Strategies to 2033

This report describes and explains the construction market and covers 2018-2023, termed the historic period, and 2023-2028, 2033F termed the forecast period. The report evaluates the market across each region and for the major economies within each region.

The global construction market reached a value of nearly $15.26 trillion in 2023, having grown at a compound annual growth rate (CAGR) of 5.28% since 2018. The market is expected to grow from $15.26 trillion in 2023 to $20.05 trillion in 2028 at a rate of 5.61%. The market is then expected to grow at a CAGR of 5.94% from 2028 and reach $26.75 trillion in 2033.

Growth in the historic period resulted from the investment in renewable power generation capabilities, increasing focus on infrastructure development, increase in renovation activities and rising industrialization. Factors that negatively affected growth in the historic period include volatility in raw material prices and geopolitical tensions.

Going forward, increasing government support, increase in smart cities, growing demand for eco-friendly and energy-efficient building practices will drive the market. Factors that could hinder the growth of the construction market in the future include rising interest rates, lack of skilled workers, safety and cyber security issues and health and safety challenges.

The construction market is segmented by type of construction into buildings construction, heavy and civil engineering construction, specialty trade contractors and land planning and development. The buildings construction market was the largest segment of the construction market segmented by type of construction, accounting for 46.56% or $7.1 trillion of the total in 2023. Going forward, the land planning and development segment is expected to be the fastest growing segment in the construction market segmented by type of construction, at a CAGR of 8.82% during 2023-2028.

The construction market is segmented by type of contractor into large contractors and small contractors. The large contractors market was the largest segment of the construction market segmented by type of contractor, accounting for 72.12% or $11.0 trillion of the total in 2023. Going forward, the small contractors segment is expected to be the fastest growing segment in the construction market segmented by type of contractor, at a CAGR of 5.92% during 2023-2028.

The construction market is segmented by end-use sector into public and private. The private market was the largest segment of the construction market segmented by end-use sector, accounting for 74.11% or $11.31 trillion of the total in 2023. Going forward, the public segment is expected to be the fastest growing segment in the construction market segmented by end-use sector, at a CAGR of 6.52% during 2023-2028.

Asia-Pacific was the largest region in the construction market, accounting for 40.84% or $6.23 trillion of the total in 2023. It was followed by North America, Western Europe and then the other regions. Going forward, the fastest-growing regions in the construction market will be Africa and South America, where growth will be at CAGRs of 18.87% and 10.66% respectively. These will be followed by the Middle East and Eastern Europe, where the markets are expected to grow at CAGRs of 10.25% and 5.51% respectively.

The global construction market is fragmented, with a large number of small players operating in the market. The top ten competitors in the market made up to 6.72% of the total market in 2023. The fragmented market can be attributed to the presence of a large number of small players in different geographies. China State Construction Engineering Co., Ltd. was the largest competitor with a 1.89% share of the market, followed by Skanska Group with 1.22%, China Railway Group Ltd. with 1.10%, China Railway Construction Corporation Limited with 0.97%, China Communications Construction Company, Ltd. with 0.62%, ACS (Actividades de Construcción y Servicios, S.A.) with 0.24%, Lennar Corporation with 0.22%, D.R. Horton, Inc. with 0.21%, Power Construction Corporation of China with 0.17% and Kiewit Corporation with 0.10%.

The top opportunities in the construction market segmented by type will arise in the buildings construction segment, which will gain $2.07 trillion of global annual sales by 2028. The top opportunities in the construction market by distribution channel will arise in the Large Contractors segment, which will gain $3.36 trillion of global annual sales by 2028. The top opportunities in the construction market by application will arise in the private segment, which will gain $3.32 trillion of global annual sales by 2028. The construction market size will gain the most in the USA at $818.79 billion.

Market-trend-based strategies for the construction market include focus on deploying innovative cutting-edge modular system, developing innovative beneficiated ash supports low-carbon building practices, using artificial intelligence (AI) and machine learning in construction, strategic collaborations and partnerships, introducing innovative building solutions, introducing building construction software to increase efficiency and using modular construction to ensure improved construction quality management.

Player-adopted strategies in the construction market include focus on expanding business through partnerships agreements and strengthening business operations through new construction projects.

To take advantage of the opportunities, the analyst recommends the construction companies to focus on adopting modular drilling systems for increased efficiency, focus on integrating low-carbon building materials, focus on leveraging AI for precise budgeting and project management, focus on advancing sustainable building solutions, focus on integrating building construction software, focus on leveraging modular construction for quality management, focus on land planning and development segment, focus on small contractors segment for faster growth, focus on strategic collaborations to expand distribution channels, expand in emerging markets, continue to focus on developed markets, provide competitively priced offerings, participate in trade shows and events, continue to use B2B promotions and focus on the private segment for strategic growth.