Building Construction Market, Global, 2025-2030

Building Construction is Experiencing Transformational Growth Due to Sustainability Practices and Digital Solutions Amidst Geopolitical Tensions

The global building construction market is undergoing a significant transformation, with a shift in focus to sustainability and green building practices that prioritize eco-friendly approaches and energy efficiency throughout the value chain. Several new and advanced buildings now incorporate renewable energy and adopt sustainable strategies, such as using green insulation and environmentally friendly materials as part of the building design. Moreover, green building certifications are in place to promote green technologies, while smart building platforms enable better energy monitoring and control systems.

However, the US-China geopolitical tension presents a key challenge, with trade wars likely to create supply chain disruptions, which could drive up costs and impact the development of construction projects. Nevertheless, as the building construction value chain continues to evolve, emerging start-ups are providing digital solutions that facilitate more efficient and sustainable project execution, thereby reducing project durations and costs. Digital solutions are helping construction companies streamline their processes by integrating design work with procurement activities and construction execution. Furthermore, data analytics tools are enabling businesses in the construction sector to better manage their building material consumption, potentially supporting their goal of reducing their carbon footprint in the market.

This Frost & Sullivan report takes a comprehensive look at the factors shaping the transformation of the global building construction market. It analyzes the trends driving and restraining growth, provides relevant market figures and forecasts, and identifies the opportunities emerging from the changes in this space for market players and stakeholders to leverage. The base year is 2024, and the forecast period is from 2025 to 2030.

Scope of Analysis

• Frost & Sullivan defines the building construction market as services or activities involved in erecting a structure or facility, which can be permanent or temporary, and retrofitting and refurbishing existing buildings.
• The report segments building construction into residential and non-residential. Further segmentation by building types and end-user analysis are not applicable in this study.
• The study excludes small and unregistered renovations, unorganized construction contracts, demolition of buildings, supply of materials, construction equipment, non-building construction projects such as the construction of roads and bridges, and non-building facilities associated with power generation, water processing, wastewater treatment, and distribution networks.
• Competition market shares are not part of the research scope due to the nature of the building construction market that is highly fragmented and localized, and it involves various stakeholders such as architects, property developers, contractors, and installers.

Market Revenue

In this study, revenue refers to the output value of services and activities associated with building construction, such as design, engineering, and installation. Market and growth estimates rely on secondary research and 2024 interview data.

Primary Research

Researchers conducted interviews with major participants in the construction value chain of the building industry, following a structured discussion guide.

Secondary Research

Frost & Sullivan's internal database, industry reports, market databases, trade journals, industry literature, web-based materials, annual reports, and other sources form the basis of the secondary research.

The Impact of the Top 3 Strategic Imperatives on the Global Building Construction Industry

Transformative Megatrends

Why

• Sustainability and green building practices are transforming how buildings are being planned, built, and used.
• There will be a sustained emphasis on minimizing the negative effects of buildings on the environment and increasing energy efficiency in the construction processes and the life cycle of new buildings.

Frost Perspective

• New and state-of-the-art buildings are being constructed with emphasis on using renewable energy, green insulation, and environmentally friendly materials.
• Green building certifications define the parameters for sustainable construction, fostering the use of environmentally friendly technologies. Furthermore, the integration of smart building platforms and automation has enhanced the monitoring and control of energy use in buildings, enhancing efficiency.

Geopolitical Chaos

Why

• Most industries are likely to be affected by geopolitical chaos, including the building construction industry.
• National and international political tensions and trade wars are expected to disrupt the supply chain and inflate prices of goods and services, thus affecting building construction projects.

Frost Perspective

• Global political instabilities, especially in the Middle East, are exerting pressure on the supply and costs of some key commodities like oil and gas. These disruptions can result in time and cost overruns in construction projects.
• Trade relations and policies that arise from conflicts between the United States and China can impact the price of construction materials. This means that it may be costly to procure materials and equipment for other countries rapidly.

Competitive Intensity

Why

• Value chain compression is one of the key imperatives that is rapidly changing the building construction industry, as it is pushing the industry to enhance efficiency and sustainability in the execution and delivery of projects.
• The elimination and combination of many processes or construction stages will also bring down the costs and enhance the time taken to complete the project.

Frost Perspective

• Digital applications and solutions are improving collaboration and interaction between the industry participants of the construction value chain, which in turn integrates design, procurement, and construction phases.
• Construction companies are collaborating more closely with their suppliers to obtain better information about their requirements and utilizing data analytics to better manage demand and consumption of materials. Moreover, there is a greater focus on the integration of sustainability in the whole value chain.