Factory Buildings Market Report 2026

The factory buildings market size has grown steadily in recent years. It will grow from $294.76 billion in 2025 to $302.02 billion in 2026 at a compound annual growth rate (CAGR) of 2.5%. The growth in the historic period can be attributed to growth in industrialization, expansion of manufacturing capacity, rising demand for warehouse space, increased investment in production facilities, development of large distribution networks.

The factory buildings market size is expected to see steady growth in the next few years. It will grow to $342.8 billion in 2030 at a compound annual growth rate (CAGR) of 3.2%. The growth in the forecast period can be attributed to rising adoption of smart factories, increasing shift to sustainable construction materials, growth in automated manufacturing facilities, expansion of global logistics infrastructure, increased demand for high-efficiency industrial buildings. Major trends in the forecast period include rising construction of large-scale distribution warehouses, growing development of light assembly and flexible production facilities, increased demand for high-clear-height factory buildings, expansion of heavy manufacturing structures for industrial capacity, growth in renovation of aging industrial plants.

The rising government expenditures on infrastructural development are expected to drive the growth of the factory buildings market in the coming years. Governments allocate funds for infrastructure development to boost national investment levels and stimulate economic growth. Factory buildings, as a form of industrial construction, represent an important component of infrastructural development. Therefore, increased government spending on infrastructure will elevate the demand for factory buildings. For example, in July 2024, according to the Office for National Statistics, a UK-based government department, total investment in the infrastructure sector reached $18 billion (£13.8 billion) in constant prices in 2023, marking a 3.9% increase from 2022. Additionally, the estimated net stocks of infrastructure in the market sector amounted to $456.9 billion (£350.2 billion) in 2023, reflecting a 0.3% rise compared to the previous year. Therefore, the increase in government expenditure on infrastructural development is contributing to the growth of the factory buildings market.

Major companies operating in the factory buildings market are focusing on developing technological advancements such as digital twin orchestration to optimize facility performance, improve operational efficiency, and enable predictive maintenance across manufacturing infrastructures. Digital twin orchestration refers to the integration and management of multiple digital twins within a manufacturing ecosystem to ensure seamless data flow, coordinated operations, and enhanced decision-making through real-time insights and automation. For example, in October 2025, Accenture Plc, an Ireland-based professional services company, launched the Physical AI Orchestrator, a cloud-based solution designed to help manufacturers evolve current and future factories and warehouses into software-defined facilities. It boosts operational efficiency, lowers design and capital costs, and enhances safety through real-time simulations and AI-driven automation. The solution supports agile manufacturing environments capable of adapting dynamically to changing requirements, enabling faster innovation and improved facility planning.

In December 2024, Interarch Building Products, an India-based construction company, partnered with Jindal Steel & Power (JSPL) to develop advanced steel solutions for factory building construction. This partnership seeks to transform India’s urban infrastructure by promoting steel as the preferred material for multi-story buildings, data centers, factory buildings, and heavy structures through sustainable and efficient construction practices. Jindal Steel & Power is an India-based steel manufacturer that provides a wide range of steel products, including rails, beams, and plates.

Major companies operating in the factory buildings market are Pretorius Structures Ltd., FEG Global Ltd., Tasin Company Ltd., Ajinomoto Engineering Corporation, N.S.L Construction Co. Ltd., Tata Projects Limited, Larsen & Toubro Limited, Hitachi Plant Construction Ltd., Primus Builders Inc., Sika AG, AME Construction Services Ltd., Hindustan Construction Company, Dilip Buildcon Ltd., Turner Construction Co., Bechtel Corporation, Fluor Corporation, AECOM Technology Corporation, Whiting-Turner Contracting Company, Kiewit Corporation, Skanska USA, PCL Construction Enterprises Inc., Leopardo Companies, Layton Construction Company LLC, McGough Construction Company LLC, Hill & Wilkinson Construction Group Ltd., Kraus-Anderson Company, Schimenti Construction Company, LeChase Construction Services LLC, ThermalTech Engineering Inc., W.E. O'Neil Construction Company, Robins & Morton Group, Nabholz Construction Corporation, Plaza Construction LLC, Hunter Roberts Construction Group, Hill International Inc., Hoar Construction LLC, Ghafari Associates LLC, Kitchell Corporation, IMC Construction Inc., KBE Building Corporation, Joeris General Contractors Ltd., STV Group Inc., Batson-Cook Company, Cumming Corporation, HITT Contracting Inc., Holder Construction Group LLC, Brasfield & Gorrie LLC.

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 on steel, aggregates, cement, and imported construction machinery have raised input costs for factory building construction, slowing project execution and increasing capital expenditure, particularly for non-residential industrial and warehousing developments in regions reliant on imported raw materials such as Asia-Pacific and Europe. Residential segments face minimal impact due to limited relevance. However, tariffs have encouraged domestic sourcing, promoted local manufacturing of structural materials, and stimulated investments in efficient construction technologies, benefiting long-term supply-chain resilience.

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

A factory building serves as a facility where products are manufactured and assembled. These industrial structures typically have less than 20% of their total area designated for office space, include truck loading docks, and feature a minimum clear height of 10 feet. Factory buildings are single-story structures used for heavy manufacturing and light assembly production, offering larger overhead spaces relative to their floor area.

Factory buildings can be categorized as either residential or non-residential, constructed using materials such as aggregates, cement, and bricks. Residential areas primarily serve housing purposes, while non-residential factory buildings are dedicated to industrial activities. The construction types for factory buildings include new construction and renovation. These buildings can be owned or rented, serving various public and private purposes.Asia-Pacific was the largest region in the factory buildings market in 2025. The regions covered in the factory buildings market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the factory buildings market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The factory buildings market includes revenues earned by entities by constructing heavy manufacturing buildings, light assembly buildings, general warehouses and distribution warehouses. 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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