Canada Commercial Construction Market Size (2024 - 2029)

The Canadian commercial construction market is poised for significant expansion, driven by factors such as low mortgage rates, economic recovery post-pandemic, and substantial government investments in industrial research and manufacturing. Despite challenges like labor shortages, the sector is witnessing growth through large warehouse projects and commercial office buildings, contributing to the overall market size. The construction industry remains a crucial economic driver and indicator of Canada's economic strength, with a notable increase in the value and number of infrastructure projects across the country.

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Market Size of Canada Commercial Construction Industry

Canada Commercial Construction Market Summary
Study Period 2020 - 2029
Base Year For Estimation 2023
Forecast Data Period 2024 - 2029
Historical Data Period 2020 - 2022
CAGR 5.00 %
Market Concentration Low

Major Players

Canada Commercial Construction Market Major Players

*Disclaimer: Major Players sorted in no particular order

Canada Commercial Construction Market Analysis

Canada's commercial construction market is expected to register a CAGR of more than 5% through the forecast period.

  • The commercial construction industry in Canada is expanding due to many factors, including low mortgage rates, pent-up assets, and a general shift in usage away from services and goods. The global pandemic slowed growth in the construction industry, but the sector has recovered significantly in the last four quarters as a result of economic recovery.In addition, Canadian commercial construction markets have faced labor shortages during COVID-19, further adding to capacity constraints.
  • In Canada, the federal government has placed more than USD 1 billion in investments in the advancement of industrial research and the development of vaccines, which have assisted in the growth of the manufacturing sector. Large warehouse investments from a diverse group that includes the government, e-commerce players, and investment funds are also factoring into growth. Overall, significant growth in the Canadian commercial construction sector will happen in the coming years.
  • Commercial office building projects will contribute to the industry's growth in Canada over the next few years. Even as the prospect of the workplace remains uncertain, 19 million square feet of office space is being constructed across the country. Moreover, in 2022, 252 large infrastructure projects were under development, valued at over 25 million U.S. dollars. The value of construction projects has also increased, as is evident by the skyscrapers built over the last decade in major Canadian cities. In general, the construction industry is an important economic driver for Canada as well as an indicator of the strength of the nation's economy.

Canada Commercial Construction Industry Segmentation

Commercial construction is the business of building and leasing or selling spaces in the private sector. These spaces can include but aren't limited to, offices, manufacturing plants, medical centers, and retail shopping centers. Commercial construction projects and businesses primarily vary in size and scale. Additionally, it involves the designing, renovating, and building of commercial structures.

Canada's commercial construction market is segmented by type (hospitality, office buildings, retail, institutional, and others) and by key cities (Toronto, Ottawa, Vancouver and the Rest of Canada). The report offers market size and forecast values (USD) for all the above segments.

By Type
Hospitality Construction
Office Building Construction
Retail Construction
Institutional Construction
Other Types
By Key Cities
Toronto
Ottawa
Vancouver
Rest of Canada
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Canada Commercial Construction Market Size Summary

The Canadian commercial construction market is experiencing significant growth, driven by factors such as low mortgage rates and a shift in usage patterns. The sector has rebounded from the pandemic's impact, with economic recovery fueling expansion. Government investments in industrial research and vaccine development have bolstered the manufacturing sector, while substantial warehouse investments from various stakeholders, including the government and e-commerce companies, have contributed to market growth. The construction of commercial office buildings is a key driver, with millions of square feet of office space under development across the country. Despite uncertainties in the workplace landscape, the demand for office space remains high, particularly in regions like Ontario, which is a major contributor to Canada's GDP.

The market is characterized by a competitive and fragmented landscape, with major players like SNC-Lavalin Group Inc., PCL Construction, and EllisDon Group holding significant market shares. These companies are expanding through strategic partnerships and acquisitions to meet the growing demand. The trend towards sustainable construction is evident, with an increasing number of LEED-certified projects, which enhance building efficiency and reduce operational costs. This focus on sustainability is expected to drive demand for green buildings in the coming years. Notable projects, such as the Currie Barracks Mixed-use Development and the Metrotown Property Redevelopment, highlight the ongoing investment in diverse commercial spaces, including residential, retail, and innovation facilities.

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Canada Commercial Construction Market Size - Table of Contents

  1. 1. MARKET INSIGHTS

    1. 1.1 Overview of Commercial Construction Market in Canada

    2. 1.2 Current Market Scenario

    3. 1.3 Technological Trends

    4. 1.4 Government Regulations

    5. 1.5 Value Chain / Supply Chain Analysis

    6. 1.6 Brief on Construction Costs (average cost, office and retail space, per sq feet)

    7. 1.7 Insights into the newly office space completions (sq. feet)

    8. 1.8 Insights into Existing and Upcoming Projects

    9. 1.9 Impact of COVID-19 on Canada Commercial Construction Market (Analyst View)

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Type

      1. 2.1.1 Hospitality Construction

      2. 2.1.2 Office Building Construction

      3. 2.1.3 Retail Construction

      4. 2.1.4 Institutional Construction

      5. 2.1.5 Other Types

    2. 2.2 By Key Cities

      1. 2.2.1 Toronto

      2. 2.2.2 Ottawa

      3. 2.2.3 Vancouver

      4. 2.2.4 Rest of Canada

Canada Commercial Construction Market Size FAQs

The Canada Commercial Construction Market is projected to register a CAGR of greater than 5% during the forecast period (2024-2029)

SNC-Lavalin Group Inc., PCL Construction, EllisDon Group, Pomerleau, Inc. and Bird construction company are the major companies operating in the Canada Commercial Construction Market.

Canada Commercial Construction Market Report Snapshots

Canada Commercial Construction Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)