Construction Market to grow by USD 1.18 Trillion from 2024-2028, Driven by Rising Residential and Commercial Projects, Report on AI Role in Transformation - Technavio

NEW YORK, Feb. 14, 2025 /PRNewswire/ -- Report with the AI impact on market trends - The construction market and it is set to grow by USD 1.18 trillion from 2024 to 2028. However, the growth momentum will progressing at a CAGR of 5.3% during the forecast period, according to Technavio. The construction market is fragmented, and the vendors are seeking strong partnerships with automotive, industrial, and commercial companies to compete in the market.  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 are some of the major market participants -. To know about the vendor offerings - Request a sample report

Construction Market 2024-2028: Scope

Technavio presents a detailed picture of the market by the way of study, synthesis, and summation of data from multiple sources. The construction market report covers the following areas:

• Construction Market Size
• Construction Market Trends
• Construction Market Industry Analysis
• Porter's Five Forces Analysis
• Customer Landscape

The construction market is fragmented, and the degree of fragmentation will accelerate. The increase in residential and commercial infrastructure projects will offer immense growth opportunities. However, the High cost of construction machinery will hamper the market growth

Construction Market 2024-2028: Drivers & Challenges

The global construction market is experiencing notable growth due to the increasing number of residential and commercial infrastructure projects. This trend is attributed to urbanization, population growth, and the demand for contemporary living and working spaces. For instance, in January 2023, Godrej Properties announced the acquisition of a 60-acre land parcel in Chennai, India, for a large-scale residential project. This development, encompassing around 1.6 million square feet of saleable area, primarily focuses on residential plots. This strategic move signifies the company's response to the escalating housing demand, aiming to expand its presence in the residential sector.

The global construction market encounters a substantial challenge due to the high expenses associated with acquiring construction machinery. This issue significantly affects project budgets, timelines, and overall profitability, making it a major concern for industry players. Machinery costs vary significantly based on equipment size and type. 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 smooth surfaces, are approximately priced between USD150,000 and USD300,000. These machinery costs pose a considerable challenge to construction market profitability.

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Segment Overview 

This construction market report extensively covers market segmentation by  

• 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

1.1 Buildings construction-  The global construction market is divided into various sectors, with building construction being a major and continually evolving segment. This segment includes residential, commercial, and multifamily buildings, each contributing significantly to the market's expansion. For instance, in July 2022, Ivanhoe Cambridge and Hines formed a strategic joint venture to create, manage, and operate top-notch 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 crucial need for purpose-built rental projects in the market. In October 2024, DLF, a renowned Indian real estate developer, introduced several new construction projects, illustrating the versatility of building construction. These projects consist of: 1. DLF Privana South Sector 77 Gurgaon: A residential project featuring modern designs and interiors, catering to the increasing demand for contemporary living spaces. 2. Lux5: Designed for the affluent market, this project boasts premium price points, underscoring the escalating preference for upscale residential properties. 3. DLF The Ultima: A commercial development in Gurgaon, recognized for its award-winning design and budget-friendly living options, highlighting the balance of aesthetic appeal and affordability in commercial construction. 4. DLF Gardencity Enclave Road: Currently under construction in Sector 93, Gurgaon, in 2023, this project further demonstrates the ongoing growth in residential construction. The building construction sector is fueled by factors such as urbanization, population growth, and the increasing requirement for modern infrastructure. Residential construction is particularly influenced by the burgeoning demand for housing, driven by demographic shifts and economic expansion. Multifamily buildings, like those developed by Ivanhoe Cambridge and Hines, cater to the growing trend of rental properties in urban areas, offering convenience and superior living standards.

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Construction Market 2024-2028: Key Highlights

• CAGR of the market during the forecast period 2024-2028
• Detailed information on factors that will assist construction market growth during the next five years
• Estimation of the construction market size and its contribution to the parent market
• Predictions on upcoming trends and changes in consumer behavior
• The growth of the construction market across APAC, Europe, North America, Middle East and Africa, and South America
• Analysis of the market's competitive landscape and detailed information on vendors
• Comprehensive details of factors that will challenge the growth of construction market vendors

About US
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.

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SOURCE Technavio