Market Size of North America Construction Industry
Study Period | 2019 - 2029 |
Base Year For Estimation | 2023 |
Market Size (2024) | USD 2.46 Trillion |
Market Size (2029) | USD 3.11 Trillion |
CAGR (2024 - 2029) | 4.82 % |
Market Concentration | Low |
Major Players*Disclaimer: Major Players sorted in no particular order |
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North America Construction Market Analysis
The North America Construction Market size is estimated at USD 2.46 trillion in 2024, and is expected to reach USD 3.11 trillion by 2029, growing at a CAGR of 4.82% during the forecast period (2024-2029).
- In 2023, the North American construction sector showcased resilience against a challenging backdrop of high interest rates, limited credit availability, and concerns over a potential financing crunch following US banking failures. Mexico emerged as the frontrunner, witnessing a notable surge primarily driven by heightened public infrastructure spending in anticipation of the Presidential election. Despite soaring mortgage rates in the United States, the scarcity of existing homes for sale bolstered demand for new homes. Government initiatives encouraging the return of manufacturing activities have propelled non-residential construction, outpacing the growth in residential construction.
- However, Canada faced a setback, with housing starts declining, primarily due to a slump in single-family home construction. On the other hand, non-residential construction gained momentum, buoyed by robust investments in industrial and institutional projects. Yet, the commercial segment, encompassing offices and retail, which constitutes half of the non-residential sector, witnessed a dip, currently down by approximately 3.5% YoY.
- The housing shortage is a big challenge in the United States. The National Association of Home Builders (NAHB) projects a 4.7% rise in single-family housing starts in the United States in 2024, followed by a further 4.2% uptick in 2025. These growth rates are expected to push the annual housing starts to a robust 1.3 million units by 2025. Despite facing headwinds, builders in the housing sector stand firm in their optimism, driven by a surge in consumer demand. A staggering 80% of builders are poised to commence construction on a greater number of homes this year. In addition, 51% of the builders anticipate a growth rate of over 10% in housing starts, surpassing the figures from 2023.
- For instance, in March 2023, The Governor and Mayor of New York City jointly launched the "Future Housing Initiative," a strategic collaboration that allocated USD 15 million to expedite the construction of 3,000 energy-efficient and all-electric affordable homes. This initiative marks a significant stride toward the targets set in the state's Climate Leadership and Community Protection Act, which aims to slash greenhouse gas emissions by 85% by 2050 and ensure that 35-40% of clean energy benefits reach underprivileged communities. The initiative aligns with New York City's green building objectives outlined in Local Law 97.
North America Construction Industry Segmentation
Construction is the installation, maintenance, and repair of buildings and other stationary structures. It includes the construction of roadways and service facilities that form fundamental components of structures and are required for their operation. Construction encompasses the processes involved in constructing buildings, infrastructure, industrial facilities, and related operations from start to finish.
The North American construction market is segmented by country (Canada and the United States), sector (commercial construction, residential construction, industrial construction, infrastructure (transportation) construction, and energy and utilities construction), and construction type (additions and demolition and new construction). The report offers market size and forecasts in value (USD) for all the above segments.
By Country | |
Canada | |
United States |
By Sector | |
Commercial Construction | |
Residential Construction | |
Industrial Construction | |
Infrastructure (Transportation) Construction | |
Energy and Utilities Construction |
By Construction Type | |
Additions | |
Demolition and New Constructions |
North America Construction Market Size Summary
The North American construction market is poised for growth, driven by significant infrastructure investments and government initiatives aimed at revitalizing manufacturing activities. Despite challenges such as high interest rates and a tightening credit environment, the sector has demonstrated resilience, particularly in Mexico, where public infrastructure spending has surged. The United States faces a housing shortage, which, coupled with limited existing homes for sale, has bolstered demand for new residential construction. However, the commercial segment of non-residential construction has experienced a downturn, with a notable decline in office and retail projects. In Canada, while residential construction has seen a decline, non-residential projects, especially in industrial and institutional sectors, have gained traction.
The market landscape in North America is characterized by a few dominant players, which has led to a detectable level of consolidation. This consolidation, along with the growing infrastructure investments, presents opportunities for increased competition and growth in the sector. Initiatives like the "Future Housing Initiative" in New York City highlight the region's commitment to sustainable construction practices. Additionally, the launch of networks such as AXA XL's Sustainability Circle underscores the industry's focus on achieving sustainability goals. The market's outlook, while facing some headwinds, remains optimistic, with expectations of recovery in residential construction and continued growth in non-residential sectors over the forecast period.
North America Construction Market Size - Table of Contents
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1. MARKET INSIGHTS
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1.1 Current Economic and Construction Market Scenario
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1.2 Technological Innovations in the Construction Sector
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1.3 Impact of Government Regulations and Initiatives on the Industry
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1.4 Review and Commentary on the Impact of Heavy Equipment Prices on the Construction Industry
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1.5 Comparison of the Key Industry Metrics of North American Countries (Analyst View)
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1.6 Comparison of Construction Cost Metrics of North American Countries (Analyst View)
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1.7 Impact of COVID-19 on the Market
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2. MARKET SEGMENTATION
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2.1 By Country
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2.1.1 Canada
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2.1.2 United States
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2.2 By Sector
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2.2.1 Commercial Construction
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2.2.2 Residential Construction
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2.2.3 Industrial Construction
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2.2.4 Infrastructure (Transportation) Construction
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2.2.5 Energy and Utilities Construction
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2.3 By Construction Type
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2.3.1 Additions
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2.3.2 Demolition and New Constructions
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North America Construction Market Size FAQs
How big is the North America Construction Market?
The North America Construction Market size is expected to reach USD 2.46 trillion in 2024 and grow at a CAGR of 4.82% to reach USD 3.11 trillion by 2029.
What is the current North America Construction Market size?
In 2024, the North America Construction Market size is expected to reach USD 2.46 trillion.