This report provides a detailed analysis of the prospects for the global construction industry up to 2029.
Heading into 2026, the global construction market remains fragmented as stakeholders adjust to a new trade environment shaped by tight financing conditions and increasingly protectionist US policies. Beyond the direct impact of higher cross border trade costs, 2025 produced knock on effects across the construction value chain as suppliers reconfigured supply routes to avoid levies, contributing to persistently high material prices. Contractors are also contending with skilled labor shortages, which are pushing up delivery costs and driving a rise in insolvencies across Europe and North America. At the same time, consumer and investor confidence remains subdued, reflecting uncertainty over the economic and geopolitical risks of investing in regions caught between competing US and Chinese interests. Against this backdrop, The analyst estimates global construction output grew only modestly in 2025, at 0.5% in real terms.
In developed markets such as the US and Western Europe, elevated interest rates and weak sentiment continue to weigh on residential building. US construction spending is estimated to have fallen by 0.4% in 2025, with multifamily construction down 11% and single family output declining 3.1%. Residential markets also contracted in Europe, with output falling by an estimated 3.0% in Germany, 2.6% in Sweden, and 1.3% in France. Infrastructure has been the main stabilizer: the EU’s Recovery and Resilience Facility, Canada’s renewable energy and transport programs, and Australian initiatives are supporting activity. Among the strongest infrastructure performers in 2025 were India and Saudi Arabia, expected to have grown by 8.1% and 4.0%, respectively.
Three regions are forecasted to have recorded negative construction output in 2025, led by North America, where activity is expected to have declined by 2.2%. North‑East Asia and Latin America are also projected to have faced decline, falling 1.0% and 0.2%, respectively. In contrast, South Asia, South‑East Asia, and the Middle East and North Africa are each expected to deliver growth of more than 5% in 2025. Advanced economies are projected to stagnate in 2025, with zero growth, while emerging markets are expected to post only modest gains - leading to further convergence. Even so, emerging-market growth is forecast at just 0.7%, down sharply from 3.9% in 2024 and 5.8% in 2023, demonstrating the difficulties the construction industry currently faces.
Heading into 2026, the global construction market remains fragmented as stakeholders adjust to a new trade environment shaped by tight financing conditions and increasingly protectionist US policies. Beyond the direct impact of higher cross border trade costs, 2025 produced knock on effects across the construction value chain as suppliers reconfigured supply routes to avoid levies, contributing to persistently high material prices. Contractors are also contending with skilled labor shortages, which are pushing up delivery costs and driving a rise in insolvencies across Europe and North America. At the same time, consumer and investor confidence remains subdued, reflecting uncertainty over the economic and geopolitical risks of investing in regions caught between competing US and Chinese interests. Against this backdrop, The analyst estimates global construction output grew only modestly in 2025, at 0.5% in real terms.
In developed markets such as the US and Western Europe, elevated interest rates and weak sentiment continue to weigh on residential building. US construction spending is estimated to have fallen by 0.4% in 2025, with multifamily construction down 11% and single family output declining 3.1%. Residential markets also contracted in Europe, with output falling by an estimated 3.0% in Germany, 2.6% in Sweden, and 1.3% in France. Infrastructure has been the main stabilizer: the EU’s Recovery and Resilience Facility, Canada’s renewable energy and transport programs, and Australian initiatives are supporting activity. Among the strongest infrastructure performers in 2025 were India and Saudi Arabia, expected to have grown by 8.1% and 4.0%, respectively.
Three regions are forecasted to have recorded negative construction output in 2025, led by North America, where activity is expected to have declined by 2.2%. North‑East Asia and Latin America are also projected to have faced decline, falling 1.0% and 0.2%, respectively. In contrast, South Asia, South‑East Asia, and the Middle East and North Africa are each expected to deliver growth of more than 5% in 2025. Advanced economies are projected to stagnate in 2025, with zero growth, while emerging markets are expected to post only modest gains - leading to further convergence. Even so, emerging-market growth is forecast at just 0.7%, down sharply from 3.9% in 2024 and 5.8% in 2023, demonstrating the difficulties the construction industry currently faces.
Report Scope
- An overview of the outlook for the global construction industry to 2029.
- Analysis of the outlook for the construction industry in major global regions: North America, Latin America, Western Europe, Eastern Europe, South Asia, South-East Asia, North-East Asia, Australasia, the Middle East and North Africa, and Sub-Saharan Africa.
- A comprehensive benchmarking of 91 leading construction markets according to construction market value and growth
- Analysis of the latest data on construction output trends in key markets.
Reasons to Buy
- Evaluate regional construction trends from insight on output values and forecast data to 2029. Identify the fastest growers to enable assessment and targeting of commercial opportunities in the markets best suited to strategic focus.
- Identify the drivers in the global construction market and consider growth in emerging and developed economies. Formulate plans on where and how to engage with the market while minimizing any negative impact on revenues.
Table of Contents
1 Global Outlook
2 Regional Outlook: US and Canada
3 Regional Outlook: Latin America
4 Regional Outlook: Western Europe
5 Regional Outlook: Eastern Europe & Central Asia
6 Regional Outlook: South-East Asia
7 Regional Outlook: South Asia
8 Regional Outlook: Australasia
9 Regional Outlook: North-East Asia
10 Regional Outlook: Middle East and North Africa
11 Regional Outlook: Sub-Saharan Africa
List of Tables
List of Figures
