U.S. Commercial Building Construction Market Size & Share Analysis - Emerging Trends, Growth Opportunities, Competitive Landscape, and Forecasts (2025

Description

The U.S. commercial building construction market is poised for substantial expansion, with its valuation projected to rise from USD 560.5 billion in 2024 to USD 843.9 billion by 2032, advancing at a CAGR of 5.4%. This growth is fueled by a resurgence in demand for modern office spaces, logistics centers, healthcare facilities, and hospitality buildings as businesses and populations adapt post-pandemic.

Notably, 2024 marked a pivotal year of recovery for the sector, spurred by urbanization trends and a renewed emphasis on flexible, sustainable infrastructure. The uptick in domestic and international travel has also bolstered investment in hotels and entertainment complexes. Additionally, states like Texas, Florida, and Arizona are experiencing accelerated commercial development due to favorable living costs and expanding industries.

The sector is benefiting from supportive government initiatives, such as the Infrastructure Investment and Jobs Act, which is channeling USD 550 billion into the modernization of transportation infrastructure across the nation. With businesses prioritizing smart, eco-friendly building solutions, the U.S. is set to witness a robust surge in commercial construction projects over the coming years.

Key Insights

The office buildings category accounted for 65% of the market share in 2024, as demand surged for energy-efficient, suburban office spaces equipped with modern amenities, particularly in cities like Austin, Seattle, and San Jose.

Healthcare facilities are projected to register the fastest CAGR, driven by rising needs for outpatient clinics, mental health centers, and advanced hospital infrastructure incorporating robotic surgery and smart monitoring systems.

Warehouses and logistics centers are seeing heightened construction activity, propelled by the e-commerce boom. Companies like Amazon and Walmart are building facilities near urban areas and highways for quicker delivery. These spaces increasingly utilize robotics and AI for improved efficiency.

In 2022, nonfarm employer businesses invested USD 1,899.9 billion in new and used structures and equipment-up 12.9% from 2021-underscoring the ongoing infrastructure drive.

Government expenditure remains a core market driver. Major transportation projects like California High-Speed Rail (USD 77 billion) and Sound Transit 3 (USD 54 billion) are reshaping the urban landscape, while renovations of major airports such as LAX and SFO signal a new era of smart travel infrastructure.

New construction held the largest project share at 60% in 2024, supported by businesses favoring modern, tech-ready spaces and government investments in public facilities.

Renovation and remodeling projects are expanding rapidly as older office designs are adapted for hybrid work environments, and land scarcity in urban areas limits new builds.

Owned properties comprised 70% of applications in 2024 due to long-term cost benefits and property control. Meanwhile, the rental segment is growing fast as firms prioritize flexibility amid uncertain market conditions.

The Southern region dominated the market with a 40% share in 2024, led by booming commercial development in Texas, Florida, and Georgia due to lower costs and rising population influx.

The Western region is forecasted to grow at the highest rate, with significant investment in transportation and smart city infrastructure in California and Washington enhancing commercial construction demand.

The market is highly fragmented due to varied regional regulations, land costs, and diverse sectoral demands. Leading players include Turner Construction, Bechtel, Kiewit, Skanska USA, and DPR Construction, among others.

Recent industry updates include Kiewit Corporation's selection for Louisiana's largest barrier island restoration project and JE Dunn Construction's completion of The Broadleaf, a major mixed-use development in Colorado.

Product Code: 13590

Chapter 1. Research Scope

1.1. Research Objectives
1.2. Market Definition
1.3. Analysis Period
1.4. Market Size Breakdown by Segments
- 1.4.1. Market Size Breakdown, by Building Type
- 1.4.2. Market Size Breakdown, by Project
- 1.4.3. Market Size Breakdown, by Application
1.5. Market Data Reporting Unit
- 1.5.1. Revenue
1.6. Key Stakeholders

Chapter 2. Research Methodology

2.1. Secondary Research
- 2.1.1. Paid
- 2.1.2. Unpaid
- 2.1.3. P&S Intelligence Database
2.2. Primary Research
2.3. Market Size Estimation
2.4. Data Triangulation
2.5. Currency Conversion Rates
2.6. Assumptions for the Study
2.7. Notes and Caveats

Chapter 3. Executive Summary

Chapter 4. Market Indicators

Chapter 5. Industry Outlook

5.1. Industry Background
5.2. Market Dynamics
- 5.2.1. Trends
- 5.2.2. Drivers
- 5.2.3. Restraints/Challenges
- 5.2.4. Emerging Economies and Key Opportunities
- 5.2.5. Impact Analysis of Drivers/Restraints
5.3. Impact of COVID-19
5.4. Sociopolitical Impact
5.5. Porter's Five Forces Analysis
- 5.5.1. Bargaining Power of Buyers
- 5.5.2. Bargaining Power of Suppliers
- 5.5.3. Threat of New Entrants
- 5.5.4. Intensity of Rivalry
- 5.5.5. Threat of Substitutes
5.6. Innovation and Technology Trends
5.7. Supply Chain and Value Chain Insights
5.8. Economic and Regulatory Impact
5.9. Market Entry Strategies

Chapter 6. Competitive Landscape

6.1. List of Market Players and their Offerings
6.2. Market Share of Key Players (2024)
6.3. Competitive Benchmarking of Key Players
6.4. Product Benchmarking of Key Players
6.5. Recent Strategic Developments by Key Players
6.6. Company Leadership Matrix

Chapter 7. U.S. Market

7.1. Overview
7.2. Market Revenue, by Building Type (2019-2032)
7.3. Market Revenue, by Project (2019-2032)
7.4. Market Revenue, by Application (2019-2032)
7.5. Market Revenue, by Country (2019-2032)

Chapter 8. Northeast Market

8.1. Overview
8.2. Economic Indicators
8.3. Demographics and Population Insights
8.4. Regional Hotspots
8.5. Growth Drivers
8.6. Challenges and Barriers
8.7. Competitive Strategies
8.8. Emerging Players
8.9. Import/Export Policies
8.10. Compliance Requirements
8.11. Emerging Investment Areas
8.12. Major Ongoing Projects
8.13. Market Size and Forecast
- 8.13.1. Market Revenue, by Building Type (2019-2032)
- 8.13.2. Market Revenue, by Project (2019-2032)
- 8.13.3. Market Revenue, by Application (2019-2032)

Chapter 9. Midwest Market

9.1. Overview
9.2. Economic Indicators
9.3. Demographics and Population Insights
9.4. Regional Hotspots
9.5. Growth Drivers
9.6. Challenges and Barriers
9.7. Competitive Strategies
9.8. Emerging Players
9.9. Import/Export Policies
9.10. Compliance Requirements
9.11. Emerging Investment Areas
9.12. Major Ongoing Projects
9.13. Market Size and Forecast
- 9.13.1. Market Revenue, by Building Type (2019-2032)
- 9.13.2. Market Revenue, by Project (2019-2032)
- 9.13.3. Market Revenue, by Application (2019-2032)

Chapter 10. West Market

10.1. Overview
10.2. Economic Indicators
10.3. Demographics and Population Insights
10.4. Regional Hotspots
10.5. Growth Drivers
10.6. Challenges and Barriers
10.7. Competitive Strategies
10.8. Emerging Players
10.9. Import/Export Policies
10.10. Compliance Requirements
10.11. Emerging Investment Areas
10.12. Major Ongoing Projects
10.13. Market Size and Forecast
- 10.13.1. Market Revenue, by Building Type (2019-2032)
- 10.13.2. Market Revenue, by Project (2019-2032)
- 10.13.3. Market Revenue, by Application (2019-2032)

Chapter 11. South Market

11.1. Overview
11.2. Economic Indicators
11.3. Demographics and Population Insights
11.4. Regional Hotspots
11.5. Growth Drivers
11.6. Challenges and Barriers
11.7. Competitive Strategies
11.8. Emerging Players
11.9. Import/Export Policies
11.10. Compliance Requirements
11.11. Emerging Investment Areas
11.12. Major Ongoing Projects
11.13. Market Size and Forecast
- 11.13.1. Market Revenue, by Building Type (2019-2032)
- 11.13.2. Market Revenue, by Project (2019-2032)
- 11.13.3. Market Revenue, by Application (2019-2032)

Chapter 12. Company Profiles

Chapter 13. Appendix

13.1. Sources and References
13.2. Related Reports

U.S. Commercial Building Construction Market Size & Share Analysis - Emerging Trends, Growth Opportunities, Competitive Landscape, and Forecasts (2025 - 2032)