US Construction Market US Construction Market Research Report: By Type Of Construction (Buildings Construction, Heavy And Civil Engineering Construction, Specialty Trade Contractors, Land Planning And Development), By End-Use Sector (Public, Private) and By Type Of Contractor (Large Contractor, Small Contractor) - Forecast to 2035

US Construction Market

US Construction Market Research Report: By Type Of Construction (Buildings Construction, Heavy And Civil Engineering Construction, Specialty Trade Contractors, Land Planning And Development), By End-Use Sector (Public, Private) and By Type Of Contractor (Large Contractor, Small Contractor) - Forecast to 2035.

US Construction Market Overview:

As per MRFR analysis, the US Construction Market Size was estimated at 1,294 (USD Billion) in 2023. The US Construction Market Industry is expected to grow from 1,358.7(USD Billion) in 2024 to 1,995.8 (USD Billion) by 2035. The US Construction Market CAGR (growth rate) is expected to be around 3.557% during the forecast period (2025 - 2035).

Key US Construction Market Trends Highlighted

The US construction market is experiencing significant trends driven by various factors. One key market driver is the growing demand for residential and commercial buildings, fueled by population growth and urbanization. The trend of increased investment in infrastructure projects is also notable, as many cities prioritize updates to transportation and public facilities to improve livability and economic efficiency. Additionally, sustainability has become a major focus, with a shift towards green building practices aimed at reducing environmental impact and enhancing energy efficiency. Opportunities to be explored in the US construction market include the adoption of advanced technologies such as Building Information Modeling (BIM) and modular construction.These innovations can streamline project management, reduce waste, and improve construction timelines. Furthermore, the increasing availability of smart building technologies presents an opportunity for contractors to offer more customized and efficient solutions to clients, enhancing the functionality and appeal of newly constructed properties. Trends in recent times have also highlighted a growing emphasis on workforce development and training. With a skills gap in the workforce, the construction industry is actively investing in training programs and partnerships with educational institutions to develop skilled labor. This measure not only addresses immediate labor shortages but also ensures the future workforce is equipped with the necessary skills for emerging construction technologies.Overall, the US construction market is evolving to meet new demands while embracing innovative practices that contribute to sustainability and efficiency.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

US Construction Market Drivers

Increasing Investment in Infrastructure Development

The US Construction Market Industry is significantly driven by the increasing investment in infrastructure development. According to the American Society of Civil Engineers, the US will need to invest approximately $4.5 trillion by the year 2025 to improve its infrastructure, including roads, bridges, and utilities, in order to maintain and enhance the quality of public facilities. This investment is being fueled by bipartisan support at various government levels, leading to the allocation of federal funding and state resources.This growth is expected to create numerous job opportunities and stimulate the demand for construction projects across the country. With established organizations such as the Federal Highway Administration and the Department of Transportation implementing positive policies, the infrastructure sector is projected to flourish, thereby propelling the US Construction Market Industry.

Growth in Residential Construction

The US Construction Market Industry is also seeing significant growth in residential construction due to an expanding population and rising demand for housing. The US Census Bureau reported that the population in the United States is projected to reach approximately 400 million by 2040, driving the need for more housing units. As a response to this demand, states and local governments are easing regulatory hurdles and providing incentives for home builders.With organizations such as the National Association of Home Builders advocating for policies that support new home construction, the residential sector is poised for substantial growth, which in turn supports the broader US Construction Market Industry.

Technological Advancements in Construction

Technological advancements in construction processes are notably contributing to the growth of the US Construction Market Industry. The adoption of Building Information Modeling (BIM), prefabrication, and advanced construction materials is reshaping the industry. A report from the National Institute of Standards and Technology highlighted potential productivity gains of 10 to 20 percent for firms utilizing these technologies. Major construction firms like Turner Construction and Bechtel are leading the way in implementing these innovations, reducing costs and project timelines.With the ongoing emphasis on efficiency and sustainability, the integration of these technologies will likely position the US Construction Market Industry for continued expansion.

US Construction Market Segment Insights:

Construction Market Type Of Construction Insights

The Type Of Construction segment within the US Construction Market is a crucial part of the industry, reflecting various activities that cater to the growing demands of urbanization and infrastructure development. This segment encompasses a wide array of activities, including Buildings Construction, Heavy And Civil Engineering Construction, Specialty Trade Contractors, and Land Planning And Development, all of which significantly contribute to the overall market dynamics. Buildings Construction generally focuses on residential, commercial, and industrial buildings, serving as the backbone of real estate development. Given the increasing population and urban migration in the United States, this segment witnesses a consistent demand, as more housing and commercial spaces are needed to accommodate the workforce and enhance economic activities. Heavy And Civil Engineering Construction plays a pivotal role in infrastructure development, which includes the construction of highways, bridges, and other civil structures. The focus on rebuilding aging infrastructures, particularly in metropolitan areas, has driven a resilient growth outlook for this segment, offering opportunities to address pressing challenges like traffic congestion and sustainability. Specialty Trade Contractors are another vital component, providing essential services in electrical, plumbing, and HVAC (heating, ventilation, and air conditioning). Their specialized skills are in high demand as technology and energy efficiency standards evolve, making this segment instrumental to achieving desired construction quality and sustainability goals.Land Planning And Development encompasses crucial aspects such as zoning, site development, and environmental considerations, which are increasingly gaining focus amid rising regulatory demands and concerns about land scarcity. This segment is important as it sets the groundwork for effective urban planning and sustainable development, and it plays a key role in managing growth in property development while balancing the needs of the community and environment. The synergy among these various activities not only fosters infrastructure growth but also promotes innovation and the adoption of advanced construction technologies across the board, enhancing efficiency and reducing costs.As urban landscapes continue to transform, the Type Of Construction segment of the US Construction Market is poised to face both challenges and opportunities. Challenges such as labor shortages, material costs, and regulatory environments may impact the performance of these sectors, yet, the ongoing trends toward green building practices, smart technology integration, and sustainable development provide significant growth opportunities. This diverse segmentation enables a more detailed understanding of the market landscape, fostering informed strategic decisions among stakeholders. Furthermore, with investments flowing into infrastructure and development projects across the United States, the Type Of Construction segment remains a key focus area, poised to adapt to changing market conditions and emerging needs in the years to come.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Construction Market End-Use Sector Insights

The End-Use Sector of the US Construction Market plays a pivotal role in shaping the industry's landscape, particularly through its Public and Private segments. The Public sector encompasses projects funded by government entities, which often prioritize infrastructure development, such as roads, bridges, and public transportation systems. This focus on improving public amenities significantly influences US Construction Market statistics, as government expenditures spur substantial market growth and create numerous job opportunities. On the other hand, the Private sector, which includes residential, commercial, and industrial construction, drives demand through urbanization and demographic shifts, contributing to an escalating need for new housing and business facilities.Significant investments in private construction projects also facilitate innovation in building materials and techniques, promoting sustainability and efficiency within the market. As urban areas continue to expand and population density increases, the balance between these segments will be crucial for understanding US Construction Market revenue dynamics, as both sectors work hand in hand to meet the infrastructure and housing needs of an evolving society. The interplay of growth drivers such as economic conditions and government policies creates a complex environment, yet also opens avenues for continued opportunities within the construction industry.

Construction Market Type Of Contractor Insights

The Type Of Contractor segment within the US Construction Market plays a pivotal role in shaping industry dynamics, reflecting the diverse needs and capabilities of the market. Large Contractors dominate the landscape, benefiting from economies of scale and extensive resources, which enable them to undertake major infrastructure projects and commercial developments. Their ability to invest in advanced technologies and skilled labor enhances their competitive edge, positioning them as leaders in large-scale project execution. Conversely, Small Contractors contribute significantly to the market by addressing localized construction needs, thereby fostering community development and delivering personalized services.They often excel in residential and small commercial projects, leveraging agility and close client relationships to thrive in niche markets. The ongoing growth in the US construction sector is driven by increasing infrastructure investments, urbanization trends, and the demand for sustainable building practices, providing ample opportunities for both large and small contractors. A balanced mix of both types within the market not only fuels innovation but also helps in addressing the varying scale and complexity of construction projects across the US.

US Construction Market Key Players and Competitive Insights:

The US Construction Market is characterized by intense competition, driven by a variety of factors including economic fluctuations, technological advancements, and evolving regulatory frameworks. Major players in the industry are continuously adapting to these changes to maintain their competitive edge. With a multitude of construction firms specializing in various sectors such as residential, commercial, and infrastructure projects, the market is highly fragmented. Companies are leveraging innovations, enhancing their project management capabilities, and focusing on sustainability to capture market share. This competitive landscape compels firms to not only deliver high-quality build outcomes on time and within budget but also to build strong relationships with clients and stakeholders to foster long-term partnerships.Hensel Phelps has established a robust presence in the US Construction Market, known for its expertise in general contracting, construction management, and design-build services. The company has gained recognition for its commitment to delivering high-quality construction projects across various sectors, including commercial, education, and healthcare. With a strong emphasis on innovation and collaboration, Hensel Phelps emphasizes a culture of continuous improvement, utilizing advanced technologies in project execution. Their workforce is highly skilled and aligns with the company's values focusing on safety, quality, and sustainability. Such strengths position Hensel Phelps as a leader in the construction industry, making it a preferred choice for clients in the US.Jacobs Engineering stands out in the US Construction Market through its wide-ranging portfolio of services that includes engineering, architecture, and program management, helping clients navigate complex projects from conception to completion. The company is particularly notable for its capabilities in infrastructure development and its strategic approach to delivering cutting-edge solutions tailored to each client's needs. Jacobs Engineering has made significant strides through strategic mergers and acquisitions, enhancing its market presence and diversifying its service offerings. Its strengths lie in a strong culture of innovation and sustainability, positioning the company at the forefront of industry trends. The focus on integrating technology and digital solutions into their projects allows Jacobs Engineering to optimize efficiency and improve outcomes for their clients, further solidifying their status as a significant player in the US construction landscape.

Key Companies in the US Construction Market Include:

Hensel Phelps

Jacobs Engineering

Tishman Realty and Construction

Mortenson Construction

Skanska USA

DPR Construction

Clark Group

McCarthy Building Companies

Balfour Beatty

Kiewit Corporation

Fluor

Bechtel

Gilbane Building Company

Turner Construction

US Construction Market Industry Developments

The US Construction Market has seen significant developments recently, particularly with companies like Hensel Phelps, Jacobs Engineering, Mortenson Construction, and Turner Construction actively engaged in large-scale projects across various sectors, including infrastructure and residential buildings. In recent months, Hensel Phelps announced a major expansion of their operations, focusing on sustainable construction practices to align with national environmental goals. Jacobs Engineering is, meanwhile, leveraging advancements in technology to enhance project efficiency and reduce costs, contributing positively to their stock valuation. Notably, Balfour Beatty and Skanska USA have recently entered into new partnerships aimed at improving safety standards on construction sites, addressing industry-wide concerns. In terms of mergers and acquisitions, Bechtel completed its acquisition of a specialized project management firm in August 2023, enhancing its capabilities in handling large-scale infrastructure projects. Additionally, Fluor has expressed interest in strategic partnerships to boost its market position, reflecting the growing trend of consolidation within the industry. Overall, these developments are contributing to a more robust construction landscape in the US, fostering growth and encouraging innovation among key players in the market.

US Construction Market Segmentation Insights

Construction Market Type Of Construction Outlook

Buildings Construction

Heavy And Civil Engineering Construction

Specialty Trade Contractors

Land Planning And Development

Construction Market End-Use Sector Outlook

Public

Private

Construction Market Type Of Contractor Outlook

Large Contractor

Small Contractor

Report Scope:

Report Attribute/Metric Source:	Details
MARKET SIZE 2018	1294.0(USD Billion)
MARKET SIZE 2024	1358.7(USD Billion)
MARKET SIZE 2035	1995.8(USD Billion)
COMPOUND ANNUAL GROWTH RATE (CAGR)	3.557% (2025 - 2035)
REPORT COVERAGE	Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
BASE YEAR	2024
MARKET FORECAST PERIOD	2025 - 2035
HISTORICAL DATA	2019 - 2024
MARKET FORECAST UNITS	USD Billion
KEY COMPANIES PROFILED	Hensel Phelps, Jacobs Engineering, Tishman Realty and Construction, Mortenson Construction, Skanska USA, DPR Construction, Clark Group, McCarthy Building Companies, Balfour Beatty, Kiewit Corporation, Fluor, Bechtel, Gilbane Building Company, Turner Construction
SEGMENTS COVERED	Type Of Construction, End-Use Sector, Type Of Contractor
KEY MARKET OPPORTUNITIES	Sustainable building materials, Smart construction technologies, Modular construction solutions, Infrastructure modernization projects, Workforce development initiatives
KEY MARKET DYNAMICS	Labor shortages, Rising material costs, Regulatory changes, Technological advancements, Sustainability focus
COUNTRIES COVERED	US