United States Construction Market Outlook
According to the report by Expert Market Research (EMR), the United States construction market reached a value of approximately USD 1.90 trillion in 2024. Bolstered by robust infrastructure development initiatives, expanding urbanisation, and the resurgence of residential and commercial real estate investments, the market is projected to grow at a CAGR of 4.40% during the forecast period of 2025-2034, attaining a value of around USD 2.92 trillion by 2034.
The construction industry in the United States represents one of the largest and most significant sectors of the national economy, contributing substantially to GDP and employment. Encompassing various subsectors including residential, commercial, industrial, and infrastructure construction, the market is driven by both public and private sector investment. With new policies emphasizing sustainable infrastructure, green building technologies, and smart urban planning, the United States construction market is poised for continued expansion over the coming decade.
U.S. Construction Market Size
The substantial size of the United States construction market is indicative of the broad scope of activity across various construction segments. As of 2024, the market volume has achieved an estimated valuation of USD 1.90 trillion, fuelled by increased expenditure on both new construction and renovation projects across residential, commercial, and infrastructure sectors. The demand for construction services is notably strong in high-growth states such as Texas, California, Florida, and New York, driven by population growth, economic development, and the presence of large-scale infrastructure projects.
U.S. Construction Market Share
In terms of market share, the residential construction segment remains the largest contributor, accounting for a significant portion of total construction expenditure. This dominance is supported by rising housing demand, favourable mortgage rates, and government support for affordable housing. Meanwhile, the commercial construction sector is gaining momentum, with investments in office spaces, retail outlets, warehouses, and hospitality infrastructure. Infrastructure construction, including roads, bridges, airports, and public utilities, is also expanding due to federal funding through programs such as the Infrastructure Investment and Jobs Act (IIJA), which is expected to contribute significantly to sectoral growth through 2034.
United States Construction Market Trends
Several transformative trends are shaping the evolution of the United States construction market. A prominent trend is the growing emphasis on sustainable and green building practices. Increasing environmental awareness, stringent building regulations, and incentives for energy-efficient construction have driven the adoption of eco-friendly materials, energy-saving technologies, and sustainable design methodologies.
Additionally, there is a notable shift towards modular and prefabricated construction methods. These techniques enable faster project delivery, reduced labor dependency, and cost efficiencies. The trend is gaining popularity particularly in the residential and healthcare sectors, where time-sensitive demands are common.
Urbanisation and smart city development continue to influence the construction landscape. Cities across the country are upgrading infrastructure to meet the demands of connected technologies, electric transportation, and population growth. Consequently, projects focusing on public transit, broadband networks, smart grids, and resilient infrastructure are expanding rapidly.
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Drivers of Growth
One of the primary drivers of growth in the U.S. construction market is government investment. Federal infrastructure spending has surged following major policy implementations, including the Infrastructure Investment and Jobs Act, which allocated over USD 1.2 trillion to enhance transportation networks, water systems, and broadband infrastructure. These investments are expected to generate long-term demand across the construction supply chain.
Population growth and urban expansion are also critical growth catalysts. As urban populations rise, the demand for new housing, commercial buildings, schools, hospitals, and public services increases in parallel. This demographic pressure creates long-term demand across residential and public infrastructure segments.
Furthermore, low-interest rates in recent years have incentivised real estate development and homeownership. Although interest rate hikes and inflation have posed short-term challenges, the long-term outlook remains positive due to structural demand and policy support.
Technology and Advancement
Technological innovation is a significant force in reshaping the U.S. construction market. The integration of Building Information Modeling (BIM) is enhancing project visualization, coordination, and risk mitigation. BIM adoption is particularly strong in large-scale infrastructure and commercial projects due to its ability to improve collaboration and accuracy across project phases.
Another technological advancement is the increased use of automation and robotics. Drones, 3D printing, and autonomous machinery are increasingly being deployed to improve safety, reduce costs, and accelerate project timelines. These technologies are particularly useful in high-risk or remote construction sites.
Digital project management platforms and construction software are gaining widespread adoption, facilitating real-time communication, workflow automation, and predictive maintenance. These tools are helping contractors improve efficiency, manage labor shortages, and maintain quality standards across complex projects.
United States Construction Market Segmentation
The market can be divided based on construction type, end use and region.
- Demolition and New Constructions
- Additions
Market Breakup by End Use
- Commercial Construction
- Residential Construction
- Industrial Construction
- Energy and Utilities Construction
- Others
Market Breakup by Region
- New England
- Mideast
- Great Lakes
- Plains
- Southeast
- Southwest
- Rocky Mountain
- Far West
Competitive Landscape
Some of the major players explored in the report by Expert Market Research are as follows:
- Hensel Phelps Construction Company
- Lennar Corporation
- Kiewit Corporation
- D.R. Horton, Inc.
- Tutor Perini Corporation
- PCL Constructors Inc.
- Kajima Corporation
- Hochtief AG
- Pultegroup, Inc.
- NVR, Inc. (Ryan Homes)
- Others
Challenges and Opportunities
Despite a positive growth trajectory, the United States construction market faces several challenges. Inflationary pressures have driven up the cost of raw materials including steel, cement, and lumber, impacting project budgets and timelines. Additionally, global supply chain disruptions have led to delays and cost overruns, particularly in high-demand sectors like residential and renewable energy.
Labour shortages continue to constrain the industry’s ability to scale, especially amid rising project demand. Recruiting, training, and retaining skilled labour will remain a key priority in addressing capacity constraints.
However, these challenges also present opportunities for innovation and reform. The increasing demand for sustainable construction creates a growth avenue for companies offering green materials, energy-efficient designs, and climate-resilient infrastructure. Companies that embrace digital transformation and automation stand to gain a competitive edge in terms of operational efficiency and project execution.
Government incentives and public-private partnerships (PPPs) present additional opportunities for expansion, particularly in underserved and rural areas. As governments at all levels prioritize equitable infrastructure development, construction firms can participate in a wide range of community-focused projects including affordable housing, healthcare facilities, and public transport.
United States Construction Market Forecast
Looking ahead, the United States construction market is projected to grow steadily over the forecast period of 2025 to 2034. With a projected CAGR of 4.40%, the market is expected to reach approximately USD 2.92 trillion by 2034. This growth will be underpinned by sustained public and private sector investment, technological advancement, and continued urban development.
Residential construction is expected to remain the largest segment, driven by population growth and housing demand. Meanwhile, the infrastructure segment is anticipated to experience the fastest growth, buoyed by federal spending on roads, bridges, water systems, and transit. The commercial sector is expected to gradually rebound as consumer confidence improves and demand for office, retail, and hospitality spaces recovers.
In the long term, the convergence of digital transformation, sustainable construction practices, and demographic demand will shape a resilient and dynamic construction industry in the United States. Companies that invest in innovation, workforce development, and strategic partnerships will be well-positioned to capitalise on the growth opportunities in this evolving market.
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