New Urbanization Construction Market Report 2026

The new urbanization construction market size has grown strongly in recent years. It will grow from $2.77 trillion in 2025 to $3.01 trillion in 2026 at a compound annual growth rate (CAGR) of 8.7%. The growth in the historic period can be attributed to rising urban development initiatives, increasing adoption of green and energy-efficient construction, growing demand for smart city solutions, expansion of public infrastructure projects, rising use of prefabricated construction components.

The new urbanization construction market size is expected to see strong growth in the next few years. It will grow to $4.17 trillion in 2030 at a compound annual growth rate (CAGR) of 8.5%. The growth in the forecast period can be attributed to increasing integration of AI and IoT in urban construction, growth in modular and sustainable building solutions, rising adoption of digital twin technology, expansion of smart infrastructure deployment, development of eco-friendly and energy-efficient construction methods. Major trends in the forecast period include deployment of smart building materials, integration of AI-driven urban planning solutions, expansion of IOT-enabled infrastructure monitoring, adoption of sustainable construction technologies, development of energy-efficient urban systems.

A surge in government spending on infrastructure is expected to propel the growth of the new urbanization construction market going forward. Government spending on infrastructure refers to public expenditure by national, regional, or local governments on the development, maintenance, and improvement of physical systems and facilities such as transportation, energy, water supply, telecommunications, and public buildings. This increase in infrastructure spending is largely driven by efforts to stimulate economic growth through job creation and the enhancement of critical public assets. Government investment in infrastructure supports new urbanization construction by funding essential public facilities such as roads, utilities, and transportation networks that facilitate urban development and expansion. For instance, in July 2025, according to the Office for National Statistics, a UK-based government department, total investment in the infrastructure sector reached £20.3 billion ($23.64 billion) in 2024, reflecting a 16.9% increase compared to 2023. Therefore, the surge in government spending on infrastructure is driving the growth of the new urbanization construction market.

Major companies in the new urbanization construction markets are focusing on developing innovative solutions, such as circular technology platforms, to greatly reduce the environmental footprint of the construction sector. A circular technology platform enables the reuse, repair, recycling, and sharing of materials and resources to minimize waste and extend product lifecycles. For instance, in April 2023, Holcim, a Switzerland-based building materials company, introduced ECOCycle, a proprietary circular platform that recycles up to 100% of construction and demolition waste into new building materials. This innovative solution is designed to uphold high performance standards while significantly reducing the use of virgin raw materials, thereby lessening environmental impact. It supports the creation of low-carbon and resource-efficient cities, aligning with global sustainability objectives and new urbanization strategies.

In March 2025, Conmat Group, an Indian manufacturer of construction equipment, acquired KYB-Conmat for an undisclosed sum. With this acquisition, Conmat Group aims to obtain full control of the company, allowing faster decision-making and investment to accelerate growth. KYB-Conmat is an India-based manufacturer specializing in concrete construction equipment.

Major companies operating in the new urbanization construction market are China State Construction Engineering Corporation Ltd., China Railway Group Limited, China Railway Construction Corporation Limited, China Communications Construction Company Limited, Power Construction Corporation of China, China Metallurgical Group Corporation, China Vanke Co. Ltd., Poly Developments and Holdings Group Co. Ltd., Shanghai Construction Group Co. Ltd., Longfor Group Holdings Limited, China Resources Land Limited, China Overseas Land & Investment Ltd., China National Chemical Engineering Group Corporation Ltd., Sunac China Holdings Limited, Shimao Group Holdings Limited, China Fortune Land Development Co. Ltd., Beijing Urban Construction Group Co. Ltd., Sinohydro Corporation Limited, Country Garden Holdings Company Limited, Greenland Holdings Corporation Limited.

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 influencing the new urbanization construction market by increasing costs for imported smart building materials, energy-efficient lighting, advanced HVAC systems, and prefabricated construction components essential for residential, commercial, industrial, and infrastructure projects. Regions such as Asia-Pacific, Europe, and North Americawhere import dependence is highare most affected. However, tariffs are driving local material production, regional supply chain development, and innovation in sustainable and smart urban construction technologies, enhancing market resilience and project execution efficiency.

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

New urbanization construction involves the strategic development of urban areas focused on sustainable living, integrated infrastructure, and balanced growth between urban and rural regions. Its goal is to enhance quality of life by fostering smart city technologies, environmentally friendly practices, and inclusive urban planning.

The primary components of new urbanization construction include materials, services, and technology. Materials denote sustainable, high-performance building elements that support efficient, resilient, and eco-conscious urban development. Construction types consist of new builds, renovations, and retrofits. Infrastructure development covers roads and highways, bridges and tunnels, railways, airports and seaports, as well as utility infrastructure. Various applications span residential, commercial, industrial, and infrastructure sectors, serving multiple end-users such as government bodies, private enterprises, and public-private partnerships.North America was the largest region in the new urbanization construction market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in new urbanization construction report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the new urbanization construction market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The new urbanization construction market consists of revenues earned by entities by providing services such as smart city planning, infrastructure development, green building construction, and urban public service upgrades. The market value includes the value of related goods sold by the service provider or included within the service offering. The new urbanization construction market also consists of sales of products including smart building materials, energy-efficient lighting systems, advanced HVAC systems, and prefabricated construction components. Values in this market are ‘factory gate’ values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

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.