PUBLISHER: Prescient & Strategic Intelligence | PRODUCT CODE: 1803217
PUBLISHER: Prescient & Strategic Intelligence | PRODUCT CODE: 1803217
The U.S. industrial building construction market is projected to rise from USD 43.8 billion in 2024 to USD 61.6 billion by 2032, progressing at a CAGR of 4.5% from 2025 to 2032. This growth reflects the increasing importance of robust infrastructure to support America's manufacturing, logistics, and technological ecosystems. Industrial construction is essential to developing advanced facilities like smart warehouses, AI-powered data centers, and energy-efficient manufacturing plants, which underpin the nation's economic and supply chain expansion.
Key factors driving market expansion include the exponential rise of e-commerce and the need for next-generation logistics hubs, cold storage units, and automated systems. These developments are further reinforced by substantial federal initiatives promoting domestic manufacturing. Programs such as the CHIPS and Science Act are channeling billions into semiconductor and electronics production, bolstering construction demand and technological capacity across the country.
Key Insights
The manufacturing sector dominates the U.S. industrial building construction market, accounting for the largest industry share at 25% in 2024. This is largely due to surging investment in semiconductor and electric vehicle production infrastructure.
New construction is the leading construction type in the market, with a 45% share in 2024. Significant spending on new facilities, especially for computer and electronics production, fuels the demand for entirely new developments over renovations or expansions.
Traditional construction materials such as concrete and steel remain the most used, due to their proven strength, durability, and accessibility. These materials continue to be the backbone of industrial developments nationwide.
Sustainable and green building construction is the fastest-growing category, as builders and stakeholders prioritize energy-efficient designs to meet modern environmental and operational standards.
Data centers are the fastest-growing industry segment, driven by the increasing demand for cloud computing, AI deployment, and data storage. Notably, a $2 billion financing package supports a 100-acre AI data center in West Jordan, Utah.
The South leads regionally with a 40% revenue share in 2024, boosted by massive investments in the Sunbelt region from major firms such as TSMC and Ford, who are developing high-value semiconductor and EV manufacturing facilities.
The Western U.S. is emerging as the fastest-growing region, attracting significant interest for advanced technology and clean energy facility construction.
Federal support, particularly through the CHIPS and Science Act, has injected over $30 billion in grants into the industrial sector, spurring a revival of factory construction activity not seen in decades.
Turner Construction, Bechtel, and Fluor Corporation are among the market leaders, with a competitive landscape characterized by both large-scale contractors and numerous specialized mid-sized firms operating regionally.
The market is seeing increased consolidation in sectors like semiconductors and data centers, where major builders secure long-term contracts due to their deep expertise and financial strength.
In recent developments, Turner Construction and The Weitz Company marked the topping out of a $445 million airport expansion in Des Moines in January 2025. Additionally, in July 2024, Turner acquired Dornan Engineering Group to enhance its footprint in Europe's advanced technology construction sector.