Construction Market to Grow by USD 1.18 Trillion (2024-2028), Driven by Residential and Commercial Projects, Report Highlights AI-Driven Transformation - Technavio

NEW YORK, Jan. 23, 2025 /PRNewswire/ -- Report with the AI impact on market trends - The global construction market  size is estimated to grow by USD 1.18 trillion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of  5.3%  during the forecast period. Increase in residential and commercial infrastructure projects is driving market growth, with a trend towards integration of AI in construction sector. However, high cost of construction machinery  poses a challenge. Key market players include ACS Actividades de Construccion Y Servicios SA, AECOM, BAUER AG, Bechtel Corp., Bouygues Construction SA, China State Construction Engrg. Corp. Ltd., Clark Construction Group LLC, Etex NV, Fluor Corp., Gilbane Inc., Hindustan Construction Co. Ltd, Jacobs Solutions Inc., Larsen and Toubro Ltd., Lendlease Corp. Ltd., M. A. Mortenson Co., McCarthy Building Companies Inc., PCL Constructors Inc., Shimizu Corp., Skanska AB, Turner Construction Co., and Vinci.

AI-Powered Market Evolution Insights. Our comprehensive market report ready with the latest trends, growth opportunities, and strategic analysis- View Free Sample Report PDF

The construction market is thriving with various trends shaping the industry. Building frameworks using efficient models and designs are in demand, with raw resources like clay, stone, timber, brick, concrete, metals, and plastics being utilized. Securing permissions and planning are crucial steps in starting a building project, followed by site preparation, excavation, framing, installing utilities, interior, and exterior work. Infrastructure development is a significant trend, with projects including airports, dams, public facilities, and efficient infrastructure. Climate change initiatives and innovative technologies, such as IT and telecommunications, are driving the market. Residential and commercial complexes, housing, offices, roads, bridges, and infrastructural properties are popular product offerings. Sustainability regulations and innovative technologies, like 3D printing, are shaping the industry. Civil engineering projects, such as schools, healthcare centers, tourism, retail activities, economic development, smart cities, cold storage, and sustainability regulations, are also trending. Maintenance and laborers are essential for the successful completion of projects. The construction market is a dynamic and ever-evolving sector, with a focus on meeting the needs of modern society. 

The global construction industry is undergoing a major shift with the implementation of Artificial Intelligence (AI) technologies. This trend is fueled by the requirement for increased efficiency, superior decision-making, and streamlined project management. AI's integration in construction is set to revolutionize the sector by tackling age-old challenges and enhancing various aspects of project execution. For instance, in April 2024, Mytek launched an AI-driven platform for contractors to deliver infrastructure projects more proficiently. This advanced technology aims to optimize processes, augment efficiency, and boost overall project success. By leveraging AI capabilities, the platform is poised to enhance resource allocation, risk management, and communication with stakeholders, ultimately leading to more accomplished project completions. 

Insights on how AI is driving innovation, efficiency, and market growth- Request Sample!

•         The construction market faces various challenges in building frameworks for diverse projects, including residential complexes, commercial buildings, airports, dams, public facilities, and more. Securing permits and site preparation are crucial initial steps. Excavation and framing follow, with the installation of utilities, interior and exterior work, and finishing touches. Raw resources like clay, stone, timber, brick, concrete, metals, and plastics are essential for creating structures. Civil engineering projects, such as roads and bridges, require efficient infrastructure planning. Climate change and sustainability regulations add complexity. Innovative technologies like IT and telecommunications, 3D printing, and smart cities are transforming the industry. Laborers are a vital resource, and maintaining a skilled workforce is essential. Infrastructural properties, including housing, office spaces, schools, healthcare centers, and tourism developments, offer various product offerings. Challenges also include securing funding, managing budgets, and adhering to safety regulations. Effective project planning and collaboration between stakeholders are crucial for successful building projects. Infrastructure maintenance and upkeep are ongoing concerns. Overall, the construction market is dynamic and requires continuous innovation to meet the demands of modern society.

•         The global construction industry encounters a substantial challenge due to the elevated costs of acquiring construction machinery. This concern significantly affects project budgets, timelines, and overall profitability, necessitating the attention of industry players. Machinery costs vary significantly depending on the type and size of the equipment. For instance, small excavators cost between USD100,000 and USD200,000, while medium-sized bulldozers range from USD200,000 to USD500,000. Large cranes, essential for heavy lifting and extensive projects, are priced between USD500,000 and USD1,000,000. Heavy-duty trucks, vital for transporting materials and equipment, cost between USD100,000 and USD500,000. Road graders, necessary for creating even surfaces, are approximately priced between USD150,000 and USD300,000.

Insights into how AI is reshaping industries and driving growth- Download a Sample Report

This construction market report extensively covers market segmentation by

1. Type 
• 1.1 Buildings construction
• 1.2 Heavy and civil engineering construction
• 1.3 Land planning and development
• 1.4 Specialty trade contractors
2. End-user 
• 2.1 Private sector
• 2.2 Public sector
3. Geography 
• 3.1 APAC
• 3.2 Europe
• 3.3 North America
• 3.4 Middle East and Africa
• 3.5 South America

1.1 Buildings construction-  The global construction market is divided into various sectors, with building construction being a significant and continuously evolving segment. This segment includes residential, commercial, and multifamily buildings, each contributing to the expansion of the global construction industry. For instance, in July 2022, Ivanhoe Cambridge and Hines announced a strategic joint venture to develop, own, and manage high-end multifamily buildings in Sao Paulo, Brazil. With an investment capacity of approximately USD750 million in equity, this venture aims to deliver superior amenities and international-standard products and services, addressing a critical need for purpose-built rental projects in the market. In October 2024, DLF, a leading Indian real estate developer, introduced several new building projects. These include DLF Privana South Sector 77 Gurgaon, a modern residential project; Lux5, a luxurious residential development targeting the high-end market; DLF The Ultima, a commercial project known for its award-winning design and affordability; and DLF Gardencity Enclave Road, a residential project currently under construction in Sector 93, Gurgaon. The building construction sector is fueled by factors such as urbanization, population growth, and the requirement for modern infrastructure. Residential construction, in particular, is influenced by the increasing demand for housing due to demographic shifts and economic growth. Multifamily buildings, like those developed by Ivanhoe Cambridge and Hines, cater to the growing preference for rental properties in urban areas, offering convenience and high-quality living standards.

Download complimentary Sample Report to gain insights into AI's impact on market dynamics, emerging trends, and future opportunities- including forecast (2024-2028) and historic data (2018 - 2022) 

The construction industry involves the building and infrastructure sector, encompassing various activities such as design, planning, securing permissions, site preparation, and the actual construction of houses, commercial buildings, roads, dams, and other structures. The industry relies heavily on raw resources and innovative technologies to bring building projects to life. The economy plays a significant role in the construction industry, with fluctuations often impacting the demand for new buildings and infrastructure. Smart cities, cold storage facilities, and buildings in the hospitality, retail, and leisure sectors are just a few examples of the diverse range of projects undertaken in the industry. Maintenance and infrastructure upkeep are also crucial aspects of the construction market. Worker safety regulations and sustainability regulations are increasingly important considerations in the industry, driving the adoption of new technologies and materials. Infrastructure development, including roads and utilities, is a major focus area for governments and private entities alike. The construction industry is continually evolving, with new materials and technologies driving efficiency and sustainability. Overall, the construction market is a dynamic and essential sector, contributing significantly to economic growth and development.

The construction industry encompasses the building and infrastructure sectors, involving the planning, securing permissions, site preparation, excavation, framing, installing utilities, interior and exterior work, and maintenance of various structures. These structures include houses, commercial buildings, roads, dams, bridges, airports, public facilities, and residential and commercial complexes. Raw resources such as clay, stone, timber, brick, concrete, metals, and plastics are used in the construction process. Efficient infrastructure, climate change mitigation, IT and telecommunications, and sustainable regulations are driving innovation in the industry. New technologies like 3D printing and innovative materials are being used to build more efficient and sustainable structures. Construction projects require careful planning and coordination between various laborers and civil engineering teams. Building a garden shed or a large-scale infrastructure project like a dam or an airport involves similar processes, from design and planning to execution and maintenance. The industry also includes infrastructural properties like roads, dams, and bridges, which are essential for economic development and tourism. The construction industry offers a wide range of product offerings, from housing and office spaces to schools, healthcare centers, and retail activities. Sustainability regulations and innovative technologies are playing an increasingly important role in shaping the industry's future.

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

• Type
• Buildings Construction
• Heavy And Civil Engineering Construction
• Land Planning And Development
• Specialty Trade Contractors
• End-user
• Private Sector
• Public Sector
• Geography
• APAC
• Europe
• North America
• Middle East And Africa
• South America

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio's report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio's comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: [email protected]
Website: www.technavio.com/

SOURCE Technavio