Construction Market In 2029
construction market demand
construction market analysis
construction market growth
The Business Research Company's Construction Market In 2029
LONDON, GREATER LONDON, UNITED KINGDOM, January 12, 2026 /EINPresswire.com/ -- "Construction Market to Surpass $21 billion in 2029.
Which Will Be the Biggest Region in the Construction Market in 2029
Asia Pacific will be the largest region in the construction market in 2029, valued at $8,304 million. The market is expected to grow from $6,462 million in 2024 at a compound annual growth rate (CAGR) of 5%. The strong growth can be attributed to the increasing focus on infrastructure development and increasing urbanization.
Which Will Be The Largest Country In The Global Construction Market In 2029?
The USA will be the largest country in the construction market in 2029, valued at $4,885 million. The market is expected to grow from $3,912 million in 2024 at a compound annual growth rate (CAGR) of 5%. The strong growth can be attributed to the increasing focus on infrastructure development and increasing demand for green buildings.
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What will be Largest Segment in the Construction Market in 2029?
The construction market is segmented by type of construction into buildings construction, heavy and civil engineering construction, specialty trade contractors and land planning and development. The buildings construction market will be the largest segment of the construction market segmented by type of construction, accounting for 45% or $9,531 million of the total in 2029. The buildings construction market will be supported by rising urbanization and rapid population growth driving residential and commercial demand, increasing government investment in affordable housing projects, strong growth in office and retail space development, expansion of smart cities and sustainable building initiatives, rising demand for energy-efficient and green-certified buildings, steady private sector investments in infrastructure modernization, and increasing adoption of prefabricated and modular construction methods.
The construction market is segmented by type of contractor into large contractors and small contractors. The large contractors market will be the largest segment of the construction market segmented by type of contractor, accounting for 71% or $14,877 million of the total in 2029. The large contractors market will be supported by their ability to manage large-scale complex infrastructure projects, increasing participation in government-backed megaprojects, rising demand for integrated design-build services, access to advanced project management technologies and equipment, strong financial capabilities enabling large investments, expansion into international markets, and growing partnerships with governments and private investors for PPP projects.
The construction market is segmented by end-use sector into public and private. The private market will be the largest segment of the construction market segmented by end-use sector, accounting for 72% or $15,015 million of the total in 2029. The private market will be supported by strong demand for residential housing and luxury apartments, rapid commercial real estate development including malls and office complexes, growing private sector participation in infrastructure development through PPP models, expansion of industrial and manufacturing facilities, rising demand for energy-efficient private buildings, increasing private investments in healthcare and educational institutions, and growth of private-led smart city and technology-driven urban projects.
What is the expected CAGR for the Construction Market leading up to 2029?
The expected CAGR for the construction market leading up to 2029 is 5%.
What Will Be The Growth Driving Factors In The Global Construction Market In The Forecast Period?
The rapid growth of the global construction market leading up to 2029 will be driven by the following key factors that are expected to reshape infrastructure development, on-site productivity, and sustainable building practices worldwide.
Increasing Focus On Infrastructure Development - The increasing focus on infrastructure development will become a key driver of growth in the construction market by 2029. As attention shifts toward upgrading and building infrastructure, such as roads, bridges, airports, and public utilities—the demand for construction projects rises. Both governments and private investors are increasing their budgets to modernize existing facilities and develop new ones, presenting significant opportunities for construction firms. This surge in activity leads to a higher volume of projects, increased hiring of skilled labor, and greater demand for construction materials and equipment. Moreover, infrastructure development often has a ripple effect, stimulating growth in related sectors like real estate, logistics, and transportation, thereby further energizing the overall market. As a result, the increasing focus on infrastructure development is anticipated to contributing to a 1.3% annual growth in the market.
Increasing Urbanization - The increasing urbanization will emerge as a major factor driving the expansion of the construction market by 2029. As more people move to urban areas, the demand for housing, commercial developments, and supporting infrastructure increases significantly. To accommodate growing urban populations, both governments and private developers are investing in residential complexes, office buildings, transportation systems, and public amenities. Urbanization also drives the expansion of essential utilities such as water supply, electricity, and waste management. Additionally, the shift toward urban living promotes the adoption of modern, high-density construction methods designed to efficiently utilize limited space in city environments. Consequently, the increasing urbanization capabilities is projected to contributing to a 1.0% annual growth in the market.
Growth in Logistics Infrastructure - The growth in logistics infrastructure will serve as a key growth catalyst for the construction market by 2029. Increasing demand for facilities like warehouses, distribution centers, and transportation hubs is fuelling a surge in construction activity. With the rapid rise of e-commerce and global trade, businesses require modern, large-scale structures to efficiently store and distribute goods. This trend is leading to both new builds and upgrades of existing infrastructure. Additionally, government support for trade corridors and industrial zones is further boosting construction opportunities. Many of these logistics projects involve specialized features, such as cold storage or automated systems opening the door for innovative and technically advanced construction solutions. Therefore, this growth in logistics infrastructure operations is projected to supporting to a 0.8% annual growth in the market.
Increase in Demand for Green Buildings - The increase in demand for green buildings will become a significant driver contributing to the growth of the construction market by 2029. This trend is encouraging the adoption of sustainable and energy-efficient building practices across the industry. Developers are increasingly utilizing eco-friendly materials, improved insulation technologies, and renewable energy systems to align with regulatory requirements and meet the growing preferences of environmentally conscious consumers. Green buildings offer long-term cost savings through reduced energy consumption, making them appealing to both residential and commercial buyers. Furthermore, government incentives and sustainability certifications are motivating greater investment in eco-friendly construction projects. Consequently, the increase in demand for green buildings strategies is projected to contributing to a 0.5% annual growth in the market.
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What Are The Key Growth Opportunities In The Construction Market in 2029?
The most significant growth opportunities are anticipated in the large construction contractor market, private construction market, and specialty construction trade contracting market. Collectively, these segments are projected to contribute over $9 billion in market value by 2029, driven by accelerating infrastructure development, rising investments in residential and commercial real estate, and the growing demand for specialized, high-skill construction services. This surge reflects the increasing adoption of advanced construction methodologies, digital project management tools, and sustainable building practices that improve efficiency, reduce project delays, and enhance overall construction quality, fuelling transformative growth within the broader construction industry.
The large construction contractor market is projected to grow by $3,318 million, the private construction market by $3,150 million, and the specialty construction trade contracting market by $2,086 million over the next five years from 2024 to 2029.
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Oliver Guirdham
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