Smart city developments is driving the global construction market, are expected to drive market expansion in the near future at a CAGR of 4.23% during the forecast period 2025 to 2035

Market Research Future (MRFR) has published a cooked research report on the “Global Construction Market” that contains information from 2019 to 2035.

The Global Construction Market is estimated to register a CAGR of 4.23% during the forecast period of 2025 to 2035.

MRFR recognizes the following companies as the key players in the Global Construction Market— include Acs Group, Lennar Corporation, D.R. Horton, Inc, Bouygues S.A, Power Construction Corporation of China, Cimic Group Limited, Shimizu Corporation, Lendlease Group, CAPITALAND Group Pte. Ltd, Larsen & Toubro Limited and among others.

Market Highlights

The Global Construction Market is estimated to register a CAGR of 4.23% during the forecast period and is estimated to reach USD 20,298.08 Billion by 2035.

Urbanization is one of the most powerful forces reshaping the global construction market. As populations migrate from rural areas to cities, the demand for both residential and commercial infrastructure continues to surge. According to United Nations estimates, nearly 68% of the world’s population is expected to live in urban areas by 2050, compared to around 56% in 2020. This massive shift is creating unprecedented pressure on cities to expand housing, transportation networks, commercial spaces, and essential services. As a result, construction companies are experiencing significant rise in project opportunities ranging from high-rise apartments and shopping malls to office buildings and mixed-use developments. 

The sheer volume of people moving into urban centers requires an urgent and sustained response from the construction industry to accommodate housing shortages, meet evolving lifestyle needs, and enable economic activities within expanding metropolitan regions. Residential construction, in particular, has become a critical focal point. The influx of urban populations is driving the development of affordable housing units, luxury condominiums, rental apartments, and community-centric housing complexes. Different income groups create diverse housing demands, prompting governments and private developers to launch a wide range of residential projects. In many emerging economies, urbanization is happening at such a rapid pace that informal settlements and slums are expanding faster than formal housing can be built.

Segment Analysis

The Global Construction Market has been segmented based on By Type of Construction, By End-Use Sector, and By Type of Contractor.

Based on Type of Construction, the Global Construction market has been segmented Buildings Construction, Heavy and Civil Engineering Construction, Specialty Trade Contractors and Land Planning and Development. The Buildings Construction segment dominated the global market in 2024, while the Specialty Trade Contractors segment is projected to be the fastest–growing segment during the forecast period.

Building construction represents the largest and most recognizable segment of the global construction market. It focuses on the development of residential, commercial, and institutional structures. Residential construction includes the building of single-family homes, apartments, condominiums, and townhouses. Commercial construction encompasses office spaces, retail outlets, hotels, and entertainment facilities, while institutional construction covers schools, hospitals, government buildings, and religious centers. This segment is heavily influenced by factors such as urbanization, population growth, economic cycles, and housing demand. Innovation in green building materials, smart building technologies, and energy efficiency standards is increasingly shaping how building projects are planned and executed globally.

Based on the End-Use Sector, the Global Construction market has been segmented into Private and Public. The Private segment dominated the global market in 2024, while the public segment is projected to be the fastest–growing segment during the forecast period.

Private sector construction refers to all building and infrastructure projects funded and executed by private entities, including individuals, corporations, developers, and private institutions. This sector includes residential construction (such as single-family homes, multi-family housing units, and condominiums) and commercial construction (including offices, retail spaces, hotels, and private industrial facilities). Private construction is highly sensitive to economic conditions, interest rates, consumer confidence, and private investment flows. In recent years, the increasing urbanization trend, rising middle-class populations, and rapid expansion of industries like e-commerce and IT services have significantly propelled private construction activities, especially in emerging markets like India, China, and Southeast Asia.

Based on Type of Contractor, the Global Construction market has been segmented into Large Contractor and Small Contractor. The Large Contractor segment dominated the global market in 2024, while the Small Contractor segment is projected to be the fastest–growing segment during the forecast period.

Large contractors play a central role in shaping the global construction market. These firms typically possess extensive technical expertise, substantial financial resources, and strong project management capabilities, allowing them to undertake complex, large-scale projects across various sectors such as infrastructure, commercial buildings, energy, industrial facilities, and megaprojects like airports, highways, and skyscrapers. 

Their operations often span multiple countries and regions, and many large contractors are multinational corporations with a diversified service portfolio that includes engineering, procurement, construction (EPC), and project management consultancy (PMC). Their ability to deliver end-to-end solutions gives them a significant competitive edge in bidding for major government and private sector projects. Due to their scale, large contractors are also at the forefront of adopting innovative technologies such as Building Information Modeling (BIM), prefabrication, sustainable construction practices, and smart infrastructure development.

Regional Analysis

Based on the Region, the global Construction is segmented into North America, Europe, Asia-Pacific, South America and Middle East & Africa. The Asia Pacific dominated the global market in 2024, while the Asia Pacificis projected to be the fastest–growing segment during the forecast period.

Major demand factors driving the Asia Pacific market are The Asia Pacific construction market remains the largest and fastest-growing regional construction market globally, driven by rapid urbanization, demographic shifts, industrialization, and government initiatives toward infrastructure modernization. In 2024, the Asia Pacific construction market is estimated to be valued at over USD 6.5 trillion, accounting for a little over 50% of the global construction output. 

Countries like China, India, Japan, Australia, Indonesia, and Vietnam are at the forefront of this growth. China, despite a moderating real estate sector post-2022, continues to invest heavily in infrastructure projects such as high-speed rail networks, smart cities, and green energy projects under its 14th Five-Year Plan. Meanwhile, India’s construction sector, propelled by government-led programs like "PM Gati Shakti," "Smart Cities Mission," and "Housing for All," is witnessing double-digit growth, particularly in urban residential, industrial parks, and transport infrastructure segments.

Key Findings of the Study

• The Global Construction Market is expected to reach USD 20,298.08 Billion by 2035, at a CAGR of 4.23% during the forecast period.


• The Asia Pacific region accounted for the fastest growing in the global market.


• Based on Type of Construction, the Building Construction segment was attributed to holding the largest market in 2024.


• Acs Group, Lennar Corporation, D.R. Horton, Inc, Bouygues S.A, Power Construction Corporation of China, Cimic Group Limited, Shimizu Corporation, Lendlease Group, CAPITALAND Group Pte. Ltd, Larsen & Toubro Limited and among others are the key market players.