Commercial Buildings Global Market Report 2025

Commercial buildings are defined as any structures built for industrial or public purposes related to commercial activities that generate profit, excluding residential buildings. These buildings are utilized for business-related functions.

Commercial building projects encompass various product categories, including new construction, repair and maintenance, refurbishment, and demolition. New construction involves erecting structures or making additions to existing ones, resulting in a floor area increase of more than 100 percent. These buildings find applications in ownership and rental across diverse sectors such as offices, retail spaces, leisure facilities, and other industries.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report's Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

The sharp rise in U.S. tariffs and the resulting trade tensions in spring 2025 are having a considerable impact on the construction sector, particularly in the areas of material procurement and overall project expenses. Increased duties on imported steel, aluminum, lumber, and machinery have raised costs for builders, contractors, and infrastructure developers, resulting in higher project bids and delays in execution. Manufacturers of construction equipment are also facing challenges, as tariffs on key components and raw materials are driving up production costs and compressing profit margins. Furthermore, retaliatory tariffs from major export markets have reduced demand for U.S.-made construction equipment and materials, putting additional pressure on revenue streams. In response, the sector is increasingly focusing on local sourcing, adopting modular construction methods, and diversifying supply chains to better manage rising costs and maintain project feasibility amid ongoing trade instability.

The commercial buildings market research report is one of a series of new reports from The Business Research Company that provides commercial buildings market statistics, including commercial buildings industry global market size, regional shares, competitors with commercial buildings market share, detailed commercial buildings market segments, market trends, and opportunities, and any further data you may need to thrive in the commercial buildings industry. The commercial buildings market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The commercial buildings market size has grown steadily in recent years. It will grow from $1877.12 billion in 2024 to $1924.25 billion in 2025 at a compound annual growth rate (CAGR) of 2.5%. The growth in the historic period can be attributed to economic growth and stability, urbanization trends, regulatory environment, consumer behavior and preferences, global events and crises.

The commercial buildings market size is expected to see steady growth in the next few years. It will grow to $2248.79 billion in 2029 at a compound annual growth rate (CAGR) of 4.0%. The growth in the forecast period can be attributed to flexible work arrangements, climate change mitigation, rapid urbanization in emerging markets, e-commerce impact on retail spaces, government initiatives and incentives. Major trends in the forecast period include advanced security systems, modular construction, data-driven decision-making, smart building technology, digital transformation.

The forecast of 4.0% growth over the next five years reflects a slight reduction of 0.2% from the previous projection. This reduction is primarily due to the impact of tariffs between the US and other countries. This is likely to directly affect the US through tariffs on imported construction materials, heating, ventilation, and air conditioning (HVAC) systems, and electrical components sourced from China and Mexico, potentially raising development costs and prolonging timelines. The effect will also be felt more widely due to reciprocal tariffs and the negative effect on the global economy and trade due to increased trade tensions and restrictions.

The rising construction of green buildings is anticipated to drive growth in the commercial buildings market in the future. Green buildings involve a construction approach that utilizes fewer resources, leading to healthier, more environmentally friendly, and lower-maintenance structures. This sustainable construction method considers the entire life cycle of a building. Green buildings are favored in the commercial sector as they lower operational costs over time, which contributes to market growth. For example, in July 2024, the Building and Construction Authority (BCA), a statutory body under Singapore's Ministry of National Development, reported that earlier editions of the Green Building Masterplan aimed to green 80% of Singapore's buildings (measured by gross floor area, GFA) by 2030. By the end of 2022, approximately 55% of these buildings had achieved green certification. Hence, the increase in green building construction is propelling the commercial buildings market.

The anticipated expansion of e-commerce is set to drive growth within the commercial buildings market. E-commerce involves the online exchange of goods and services, conducted over the Internet or electronic networks. Commercial buildings play a crucial role as distribution centers and fulfillment hubs, facilitating the smooth operations of e-commerce activities. For instance, as of August 2023, data from the Census Bureau revealed that U.S. retail e-commerce sales for the second quarter of 2023 reached $277.6 billion, marking a 2.1% (+-0.9%) increase from the first quarter of the same year. This upward trend in e-commerce sales substantiates its pivotal role in propelling the growth of the commercial buildings market.

Key players in the commercial real estate sector are actively prioritizing sustainable practices by incorporating renewable energy solutions such as rooftop solar installations. This approach serves the dual purpose of environmental stewardship and gaining a competitive edge within the industry. An exemplar of this initiative occurred in January 2023 when JEG Development Corporation (JDC), a family-owned enterprise in the Philippines, partnered with COREnergy Inc., a US-based real estate investment trust. Together, they successfully implemented a 37kWp rooftop solar system atop the 22-story JEG Tower, One Acacia. This landmark project established the building as the inaugural solar-powered commercial high-rise in Cebu. Anticipated outcomes from this grid-tied solar venture include an annual energy generation of 77 MWh and a consequential reduction of 30 metric tons of carbon dioxide emissions per year. Additionally, JEG Tower's recognition with the highest Gold score in Cebu City's LEED rating system for sustainable buildings underscores COREnergy's achievement of their fifth operational distributed solar project in Cebu.

Major companies are directing their efforts towards the development of cutting-edge solutions, such as the BIM Plug-In, to empower architects and secure a competitive advantage. This software component significantly augments the functionality of building information modeling (BIM) software by offering specialized features and capabilities. For example, in July 2023, Cemex, a prominent Mexico-based supplier of building materials, introduced a plug-in specifically tailored for the Building Information Modelling (BIM) REVIT software, targeting architects and engineers engaged in construction ventures. This innovative tool enables users to pinpoint the most fitting Cemex products, prioritizing those that are both pioneering and environmentally sustainable. Within the BIM software, users can conduct exhaustive searches for concrete properties, undertake comparative analyses based on crucial characteristics, and focus on embodied carbon values. This tool stands as a pioneering solution within the UK's construction industry. Its core objective revolves around elevating efficiency and fostering collaborative efforts in the planning and visualization phases of construction projects.

In April 2022, Cianbro Corp., a construction company based in the United States, completed the acquisition of R. C. Stevens Construction Company for an undisclosed sum. This strategic move is poised to establish enduring footholds for both entities within the Southeast region while presenting fresh opportunities for market expansion. Notably, R. C. Stevens Construction Company, situated in Florida, specializes in the construction of commercial buildings.

Major companies operating in the commercial buildings market include Brookfield Business Partners LP, CBRE Group Inc., Bechtel Corporation, Turner Construction Company, Skanska AB, Jacobs Engineering Group Inc., Obayashi Corporation, Fluor Corporation, Kiewit Corporation, AECOM Technology Corporation, Lendlease Corporation, Prologis Inc., DPR Construction Inc., Clayco Inc., Suffolk Construction Company Inc., Boston Commercial Properties Inc., Walsh Group, Marcus & Millichap Inc., Segro plc, DLF Ltd., Mortenson Inc., Hunt Construction Group, RAK Properties PJSC, NAI Global, Link Asset Management Ltd., Nakheel PJSC, Onni Contracting Ltd.

Asia-Pacific was the largest region in the commercial buildings market in 2024. The regions covered in the commercial buildings market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

The countries covered in the commercial buildings market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The commercial buildings market includes revenues earned by entities by constructing buildings, lodging facilities, restaurants, and industrial buildings. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

Commercial Buildings Global Market Report 2025 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.

This report focuses on commercial buildings market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.

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Where is the largest and fastest growing market for commercial buildings ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward, including technological disruption, regulatory shifts, and changing consumer preferences? The commercial buildings market global report from the Business Research Company answers all these questions and many more.

The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.

• The market characteristics section of the report defines and explains the market.
• The market size section gives the market size ($b) covering both the historic growth of the market, and forecasting its development.
• The forecasts are made after considering the major factors currently impacting the market. These include:

The forecasts are made after considering the major factors currently impacting the market. These include the technological advancements such as AI and automation, Russia-Ukraine war, trade tariffs (government-imposed import/export duties), elevated inflation and interest rates.

• Market segmentations break down the market into sub markets.
• The regional and country breakdowns section gives an analysis of the market in each geography and the size of the market by geography and compares their historic and forecast growth.
• The competitive landscape chapter gives a description of the competitive nature of the market, market shares, and a description of the leading companies. Key financial deals which have shaped the market in recent years are identified.
• The trends and strategies section analyses the shape of the market as it emerges from the crisis and suggests how companies can grow as the market recovers.

Scope

• Markets Covered:1) By Product: New Construction; Repair And Maintenance; Refurbishment And Demolition
• 2) By Application: Owned; Rental
• 3) By End User: Offices; Retail; Leisure; Other End Users
• Subsegments:
• 1) By New Construction: Office Buildings; Retail Spaces; Warehouses And Distribution Centers; Hotels And Hospitality
• 2) By Repair And Maintenance: Routine Maintenance Services; Emergency Repairs; Facility Management Services
• 3) By Refurbishment And Demolition: Interior Renovations; Structural Upgrades; Demolition Services
• Companies Mentioned: Brookfield Business Partners LP; CBRE Group Inc.; Bechtel Corporation; Turner Construction Company; Skanska AB; Jacobs Engineering Group Inc.; Obayashi Corporation; Fluor Corporation; Kiewit Corporation; AECOM Technology Corporation; Lendlease Corporation; Prologis Inc.; DPR Construction Inc.; Clayco Inc.; Suffolk Construction Company Inc.; Boston Commercial Properties Inc.; Walsh Group; Marcus & Millichap Inc.; Segro plc; DLF Ltd.; Mortenson Inc.; Hunt Construction Group; RAK Properties PJSC; NAI Global; Link Asset Management Ltd.; Nakheel PJSC; Onni Contracting Ltd.
• Countries: Australia; Brazil; China; France; Germany; India; Indonesia; Japan; Russia; South Korea; UK; USA; Canada; Italy; Spain
• Regions: Asia-Pacific; Western Europe; Eastern Europe; North America; South America; Middle East; Africa
• Time Series: Five years historic and ten years forecast.
• Data: Ratios of market size and growth to related markets, GDP proportions, expenditure per capita,
• Data Segmentations: country and regional historic and forecast data, market share of competitors, market segments.
• Sourcing and Referencing: Data and analysis throughout the report is sourced using end notes.
• Delivery Format: PDF, Word and Excel Data Dashboard.