As per MRFR Analysis, the global construction market was valued at USD 12,878.29 Billion in 2024 and is projected to grow to USD 20,298.08 Billion by 2035, with a CAGR of 4.23% from 2025 to 2035. The growth is driven by increasing population demands for housing, schools, and hospitals, alongside government infrastructure spending and technological advancements in construction practices.
Key trends influencing the construction market include population growth, economic expansion, and technological integration.
Key players include Grupo ACS, Lennar Corporation, D.R. Horton, Inc., Bouygues S.A., Power Construction Corp. of China, CIMIC Group, Shimizu Corporation, Lendlease Group, CapitaLand Limited, and Tata Projects Ltd.
Rising urbanization fueling demand for residential, commercial projects and Government investments boosting infrastructure and smart city developments are driving the growth of the Construction Market.
As per the Analyst at MRFR, the Construction Market is undergoing a significant transformation, driven by a combination of demographic trends, technological advancements, urbanization, sustainability demands, and shifting economic landscapes. One of the primary drivers is the rapid urbanization witnessed across emerging economies, particularly in Asia-Pacific, Africa, and Latin America.Â
As millions migrate to cities each year, the need for residential, commercial, and infrastructural developments continues to surge. Governments worldwide are investing heavily in mega infrastructure projects such as smart cities, transportation networks, and energy-efficient buildings to accommodate urban expansion and boost economic growth.
 FIGURE 1: CONSTRUCTION MARKET VALUE (2019-2035) USD BILLION
 Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
The global construction industry is undergoing a major transformation with the rise of green building practices. Increasing concerns about climate change, environmental degradation, and resource scarcity have pushed governments, businesses, and consumers to adopt sustainable construction methods. Green buildings are designed to reduce their environmental impact through energy efficiency, sustainable material usage, and minimized waste generation during both construction and operation.Â
As regulatory frameworks become stricter and environmental certifications like LEED (Leadership in Energy and Environmental Design) and BREEAM (Building Research Establishment Environmental Assessment Method) become more widespread, demand for eco-friendly construction is accelerating. Builders and developers now see green construction not only as a regulatory requirement but also as a market differentiator that can attract tenants, buyers, and investors who prioritize environmental responsibility.
Based on Type of Construction, the 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 Construction Market. It focuses on the development of residential, commercial, and institutional structures.Â
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 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.Â
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.
FIGURE 2: CONSTRUCTION MARKET SHARE BY END-USE SECTOR 2024 AND 2035 (USD BILLION)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Based on Type of Contractor, the 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 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.Â
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.
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.Â
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.Â
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.
FIGURE 3: CONSTRUCTION MARKET VALUE BY REGION 2024 AND 2035 (USD BILLION)
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Further, the countries considered in the scope of the Application Tracking System Market are the US, Canada, Germany, UK, France, Russia, Italy, Spain, Rest of Europe, China, India, Japan, South Korea, Malaysia, Thailand, Indonesia, Rest of APAC, Brazil, Mexico, Argentina, Rest of South America, GCC Countries, South Africa, Rest of Middle East & Africa and others.
Many global, regional, and local vendors characterize the Construction Market. The market is highly competitive, with all the players competing to gain market share. Intense competition, rapid advances in technology, frequent changes in government policies, and environmental regulations are key factors that confront market growth. The vendors compete based on cost, product quality, reliability, and government regulations. Vendors must provide cost-efficient, high-quality products to survive and succeed in an intensely competitive market.
The major competitors in the market are 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 are among others. The Construction Market is a consolidated market due to increasing competition, acquisitions, mergers and other strategic market developments and decisions to improve operational effectiveness.
February 2025: Lennar completed the acquisition of Rausch Coleman Homes, a residential homebuilder, expanding its footprint into new markets including Arkansas (Bentonville/Fayetteville, Little Rock, Jonesboro), Oklahoma (Tulsa, Stillwater), Alabama (Birmingham, Tuscaloosa), and Kansas/Missouri (Kansas City). This acquisition also added to Lennar’s existing markets in Texas, Oklahoma, Alabama, and Florida.
March 2025: L&T's Buildings & Factories vertical secured a large order from Brigade Group to construct residential and commercial towers in Hyderabad and Chennai. This is the largest residential project received from a private customer by this vertical, to be executed on a design-and-build basis within stringent timelines.
March 2025: CIMIC Group’s UGL secured several new contracts and extensions with clients in Western Australia, totaling approximately $150 million in revenue. Highlights include: 11-month contract extension with Alcoa for mining and refining maintenance, new contract with Chevron Australia for construction services, two-year extension with bp at Kwinana Energy Hub, and One-year extension of a framework agreement with Woodside Energy Global through IAS Group for technical and maintenance services
February 2025: Shimizu Corporation was awarded a contract by the Tanzania Ports Authority to renovate the Port of Kigoma on Lake Tanganyika, Tanzania. The project, valued at approximately 2.5 billion Japanese yen, is Shimizu’s first construction project in Tanzania and marks its entry into the 16th African country. The project includes expanding a 130-meter passenger wharf, constructing a passenger terminal building, and developing an access road, with construction scheduled from April 2025 to March 2027.
| Report Attribute/Metric | Details |
| Market Size 2024 | USD 12,878.29 Billion |
| Market Size 2025 | USD 13,413.27 Billion |
| Market Size 2035 | USD 20,298.08 Billion |
| Compound Annual Growth Rate (CAGR) | 4.23% (2025-2035) |
| Base Year | 2024 |
| Forecast Period | 2025-2035 |
| Historical Data | 2019-2023 |
| Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | By Type of Construction, By End-Use Sector, By Type of Contractor |
| Geographies Covered | North America, Europe, Asia Pacific, South America, Middle East & Africa |
| Countries Covered | The US, Canada, Germany, UK, France, Russia, Italy, Spain, Rest of Europe, China, India, Japan, South Korea, Malaysia, Thailand, Indonesia, Rest of APAC, Brazil, Mexico, Argentina, Rest of South America, GCC Countries, South Africa, Rest of Middle East & Africa |
| Key Companies Profiled | 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 |
| Key Market Opportunities | ·        Green building practices are creating new sustainable construction opportunities ·        Technological advancements are enhancing productivity and project management efficiency |
| Key Market Dynamics | ·        Rising urbanization fueling demand for residential and commercial projects ·        Government investments boosting infrastructure and smart city developments |
Construction Market Highlights:
Frequently Asked Questions (FAQ):
The Construction Market was valued at USD 12,878.29 Billion in 2024.
The Large Contractor segment by Type of Contractor holds the largest market share and grows at a CAGR of 4.09% during the forecast period.
Asia Pacific holds the largest market share in the Construction Market.
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 are prominent players in the Construction Market.
The Building Construction segment dominated the market in 2024.
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