Buildings Construction Market Report 2026

The buildings construction market size has grown steadily in recent years. It will grow from $7.59 trillion in 2025 to $7.93 trillion in 2026 at a compound annual growth rate (CAGR) of 4.6%. The growth in the historic period can be attributed to increasing urbanization rates, strong growth in housing demand, rising government infrastructure spending, expansion of commercial real estate, increased availability of construction technologies.

The buildings construction market size is expected to see strong growth in the next few years. It will grow to $9.99 trillion in 2030 at a compound annual growth rate (CAGR) of 5.9%. The growth in the forecast period can be attributed to growing use of modular and prefabricated structures, rising focus on energy-efficient buildings, increased adoption of digital construction management tools, expansion of mixed-use developments, stronger penetration of smart building technologies. Major trends in the forecast period include increasing demand for large-scale construction projects, rising adoption of modular construction methods, expansion of urban residential complexes, increasing focus on green building certification, growth in commercial and institutional development.

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 instance, in 2024, according to the National Association of Home Builders, a US-based trade association representing the home building industry, the Survey of Construction (SOC) 2024 indicated that a total of 1,009,315 new single-family housing units entered the construction phase across the United States, reflecting a 7% rise compared to 2023. Consequently, the growing demand for residential projects is set to be a driving force behind the expansion of the building construction market.

Major companies in the building construction market are concentrating on introducing innovative solutions, such as building construction excavators, to boost productivity, enhance site safety, and minimize operational expenses. Building construction excavators are heavy construction equipment specifically designed to perform excavation and earthmoving activities in construction sites. For example, in September 2024, KOBELCO Construction Machinery Co., Ltd., a Japan-based construction machinery producer, unveiled the SK80 excavator, developed to improve productivity and overall performance in construction operations. This new model features advanced components such as a high-power engine, an upgraded hydraulic system, and improved operator comfort. The SK80 is tailored to fulfill the increasing need for compact yet powerful excavators in the Indian market, making it well suited for various uses, including urban construction and infrastructure projects.

In October 2024, Barratt Developments Plc, a UK-based residential property developer, revealed its acquisition of Redrow Plc for US$3.3 billion (£2.5 billion). This acquisition supports Barratt’s strategy to reinforce its presence in the UK housing sector, expand its development portfolio, and boost operational efficiency by leveraging scale and shared resources. Redrow Plc is a UK-based housebuilding company focused on developing residential homes and communities throughout England and Wales.

Major companies operating in the buildings construction market are 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.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

Tariffs are raising costs for imported cement, steel, machinery, and construction equipment, impacting residential and non-residential building construction timelines and budgets. Regions dependent on imported raw materials, including Asia-Pacific and Europe, experience the largest disruptions. Still, tariffs encourage domestic material production, localized procurement, and more strategic supply chain planning.

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.

Construction of buildings involves the systematic creation, modification, repair, enhancement, or removal of residential and non-residential structures, following a comprehensive design and blueprint.

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.Asia-Pacific was the largest region in the building construction market in 2025. 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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