Construction Market Report 2026

The construction market size has grown steadily in recent years. It will grow from $16.45 trillion in 2025 to $17.26 trillion in 2026 at a compound annual growth rate (CAGR) of 4.9%. The growth in the historic period can be attributed to growth in urbanization, expansion of public infrastructure programs, increasing residential construction demand, adoption of early prefabrication methods, historical reliance on manual labor.

The construction market size is expected to see strong growth in the next few years. It will grow to $21.73 trillion in 2030 at a compound annual growth rate (CAGR) of 5.9%. The growth in the forecast period can be attributed to accelerating digital construction adoption, rising demand for sustainable building materials, expansion of smart infrastructure projects, growing use of automation and robotics, increased investment in modular and 3d construction technologies. Major trends in the forecast period include modular and prefabricated construction adoption, growth in 3d building construction, expansion of land planning and urban development projects, rising demand for maintenance and repair services, increasing use of advanced construction materials.

The increasing government investment in infrastructure is expected to drive growth in the construction market in the coming years. Government infrastructure spending refers to public sector capital allocated to transport networks, energy facilities, water systems, telecommunications, and other critical physical assets. Such spending is rising as part of economic recovery initiatives, with governments prioritizing infrastructure development to stimulate economic growth and address long-term productivity challenges across key sectors. Consequently, higher government infrastructure expenditures boost demand for construction services, as roads, bridges, railways, energy facilities, and water systems require extensive construction, renovation, and expansion. For example, in July 2025, the Office for National Statistics (ONS), a UK-based government department, reported that in 2024, total market sector investment in infrastructure reached USD 24.8 billion (£20.3 billion) in 2022 chained volume measures, a 16.9% increase compared with 2023. During the same period, total general government investment in infrastructure grew by 2.2% to USD 35.3 billion (£28.9 billion) in current prices. Therefore, the growth of the construction market is being propelled by rising government infrastructure spending.

Major players in the construction market are actively pursuing innovative technologies, particularly automation, to elevate project efficiency, curtail costs, and attain a competitive advantage. An automated construction service center, serving as a centralized facility, leverages automation and technology to streamline diverse aspects of construction projects, encompassing scheduling, resource allocation, and communication. Notably, in July 2023, Tata Steel, a leading provider in the Indian construction solutions industry, unveiled its inaugural fully automated construction service center in Odisha. This pioneering initiative aims to revolutionize reinforcement applications in the construction sector, meeting the escalating infrastructure demand in Odisha through a commitment to sustainability, precision, quality, and expeditious construction practices.

In February 2023, Webuild S.p.A., an Italy-based construction and civil engineering firm, acquired Clough Group for an undisclosed sum. Through this acquisition, Webuild sought to broaden its infrastructure delivery presence in Australia and Papua New Guinea, enhancing both its project backlog and regional market standing. Clough Group is an Australia-based company offering engineering, construction, and asset-support services across the energy, resources, and infrastructure sectors.

Major companies operating in the construction market are 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., Interconstruct, 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, 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, TSAI design studio.

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 increasing project costs and creating material supply delays within the construction market by raising prices of imported steel, cement, machinery, and prefabricated components. These impacts are most evident in buildings construction, heavy and civil engineering construction, and specialty trade contractors, particularly across regions reliant on international material sourcing such as Asia-Pacific and Europe. Land planning and development activities also face higher operational expenses due to elevated equipment and materials tariffs. However, tariffs are indirectly encouraging localized manufacturing, domestic material sourcing, and investment into alternative construction technologies, generating selective positive effects for regional industry competitiveness.

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

Construction refers to the process of constructing, modifying, repairing, enhancing, or demolishing structures or buildings according to a detailed design and plan. This process encompasses various activities that necessitate careful planning, coordination, and execution to guarantee structural integrity and safety.

Various construction categories include building construction, heavy and civil engineering construction, specialty trade contractors, land planning, and development. Building construction involves the deconstruction of current structures, erection of new ones, integration of new structures with existing ones, and necessary adjustments to align existing structures with recent additions. Contractors operate in different scales - ranging from large to small - and cater to both public and private sectors.Asia-Pacific was the largest region in the construction market in 2025. 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. The countries covered in the 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 construction market includes revenues earned by entities by constructing buildings or engineering projects (such as highways and utility systems). Establishments that prepare sites for new construction and those that subdivide land for sale as building sites are included in this market. The construction market includes new work, additions, alterations, maintenance, and repairs. The market also includes modular building construction, prefabricated building construction, 3D building construction and green building construction 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.

This product will be delivered within 1-3 business days.