What Has Been the Progress and Growth of the Construction Market in Recent Years?
The construction market has seen considerable growth due to a variety of factors.
• In recent years, the size of the construction market has seen significant expansion. It is projected to increase from $16152.39 billion in 2024 to $17045.95 billion in 2025, with a compound annual growth rate (CAGR) of 5.5%.
The historically observed growth can be linked to factors like enhanced infrastructure development, a rise in refurbishment activities, a fast-growing aging population, and an uptick in domestic manufacturing.
What Can Be Expected from the Construction Market in the Coming Years?
The construction market is expected to maintain its strong growth trajectory in upcoming years.
• Predictions indicate robust expansion in the construction market in the upcoming years. A compound annual growth rate (CAGR) of 5.7% will push the market size to reach $21260.28 billion in 2029.
Factors such as accelerated urbanization, population growth, increased government backing, heightened levels of industrialization, and the rise of smart cities are projected to drive this growth during the forecast period. Some notable trends expected to shape the market include the use of automated construction gadgets, construction vehicle advancements, the creation of highly efficient equipment, adoption of digital platforms and inventive solutions, the use of artificial intelligence (AI) and machine learning, strategic collaborations and alliances, the initiation of innovative network, implementation of fully electric construction gear, technological novelties, and the development of new lots in suburban locales.
Which Factors Are Boosting Growth In The Construction Market?
The surge in worldwide construction activity is likely to boost the expansion of the construction market. Notable emerging markets experiencing substantial construction activity include China, Brazil, India, Saudi Arabia, and Indonesia. The augmentation of construction activities fuels the demand for construction services and materials, hence encouraging the growth of the construction market. For example, the Office for National Statistics, a UK-based statistics authority, reported that in February 2023, the annual construction output experienced a 5.6% rise in 2022 compared to 2021, following an unprecedented increase of 12.8% in 2021. This swift escalation in construction activity played a significant role in the expansion of the construction market.
How Are The Segments Defined Within The Global Construction Market?
The construction market covered in this report is segmented –
1) By Type Of Construction: Buildings Construction, Heavy And Civil Engineering Construction, Specialty Trade Contractors, Land Planning And Development
2) By Type Of Contractor: Large Contractor, Small Contractor
3) By End-Use Sector: Public, Private
Subsegments:
1) By Buildings Construction: Residential Buildings, Commercial Buildings, Institutional Buildings, Industrial Buildings
2) By Heavy and Civil Engineering Construction: Highways and Roads, Bridges, Railways, Utilities and Infrastructure
3) By Specialty Trade Contractors: Electrical Contractors, Plumbing, Heating, and Air-Conditioning Contractors, Roofing Contractors, Flooring Contractors
4) By Land Planning and Development: Site Development, Land Subdivision, Urban Planning, Environmental Planning
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How Are New Trends Expected To Influence The Growth Of The Construction Market?
A rising trend in the building construction sector is the adoption of eco-friendly methods to make energy-efficient buildings and lessen construction expenses. This approach, known as green construction, utilizes sustainable materials and construction techniques to produce energy-saving buildings while causing the least ecological damage. The World Green Building Trends Survey reports around 60% of worldwide construction firms are participating in such projects. Accreditations like Leadership in Energy and Environmental Design (LEED) guide construction firms to construct sustainable, high-performance buildings, offering benefits ranging from tax reductions to promotional opportunities. In the UK, the use of sustainable construction materials like natural paints and steel beams produced from recycled substances has gained wide acceptance. The usage of other green construction approaches, such as cross-ventilation for a more natural ambiance, green construction software tools like Construction Suite for eco-compliance and Green Globes management tool are prevalent in the construction sector. Major companies like Turner Construction Co, Clark Group, AECOM, Hensel Phelps, and Holder Construction are some examples of this inclination towards green construction.
Who Are the Key Players in the Construction Market?
Major companies operating in the construction market include:
• China State Construction Engineering Co. Ltd
• China Railway Group Ltd
• China Railway Construction Corporation Limited
• China Communications Construction Group Ltd
• Vinci S.A.
• Grupo ACS
• Lennar Corporation
• D.R. Horton. Inc.
• Bouygues S.A.
• Power Construction Corp. Of China
• CIMIC Group
• Shimizu Corporation
• Lendlease Group
• CapitaLand Limited
• L&T Engineering & Construction Division
• Tata Projects Ltd
• Hindustan Construction Company
• Yunnan Zhiling Construction Engineering Co. Ltd.
• Zhejiang Yijian Construction Group Co
• Zeppelin GmbH
• SGS
• Interconstruct
• Etex
• Anker Hansen & Co. A/S
• Christiansen & Essenbæk A/S
• C.C. Contractor A/S
• EKE-Construction Ltd
• Colas Group
• Eiffage Construction
• Bauer Group
• Bennett Construction Limited
• Collen Construction Limited
• Casais Group
• Balfour Beatty
• Laing O’ Rourke
• Interserve
• Morgan Sindall
• Kier
• Altaca Group
• Renaissance Construction
• ALFA Engineering & Construction Co
• Budimex Group
• STRABAG International GmbH
• BeautyWalls LLC
• SC Geamuri Serv SRL
• Octagon Contracting & Engineering SA
• PCL Construction
• EllisDon Corporation
• Aecon Group Incorporated
• Ledcor Group of Companies
• Graham Construction
• Pomerleau Incorporated
• Bird Construction Incorporated
• Empresas ICA
• Bechtel
• Fluor Corporation
• Turner Corporation
• Skanska USA
• Kiewit Corporation
• Jacobs Engineering Group
• Oderbrecht
• Camargo Corrêa
• Andrade Gutierrez
• Queiroz Galvão
• MRV Engenharia
• SalfaCorp
• Mourik General Contractors
• McCrory Construction Company
• Al Habtoor Group LLC
• Al-Naboodah Constructing
• Arabian Construction Company
• Dutco Balfour Beatty LLC
• SHIKUN & BINUI LTD
• Mekorot Water Company Ltd
• DANYA CEBUS LTD
• ASHTROM GROUP LTD
• Saudi Bin Ladin Group
• Al-Rashid Trading & Contracting Co
• Al Ayuni Investment & Contracting Co
• Al Harbi Trading & Contracting Co
• Arabian Bemco Contracting Co
• Redcon Construction Company
• Estim Construction Co. Ltd
• Eco-Beam
• Ecomo
• TSAI design studio
What Is The Most Dominant Region In The Construction Market?
Asia-Pacific was the largest region in the construction market in 2024. North America was the second-largest region in the construction market. The regions covered in the construction market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa
