PUBLISHER: The Business Research Company | PRODUCT CODE: 1823026
PUBLISHER: The Business Research Company | PRODUCT CODE: 1823026
New urbanization construction involves the strategic development of urban areas focused on sustainable living, integrated infrastructure, and balanced growth between urban and rural regions. Its goal is to enhance quality of life by fostering smart city technologies, environmentally friendly practices, and inclusive urban planning.
The primary components of new urbanization construction include materials, services, and technology. Materials denote sustainable, high-performance building elements that support efficient, resilient, and eco-conscious urban development. Construction types consist of new builds, renovations, and retrofits. Infrastructure development covers roads and highways, bridges and tunnels, railways, airports and seaports, as well as utility infrastructure. Various applications span residential, commercial, industrial, and infrastructure sectors, serving multiple end-users such as government bodies, private enterprises, and public-private partnerships.
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 rapid escalation of U.S. tariffs and the resulting trade tensions in spring 2025 are significantly impacting the construction sector, particularly in materials procurement and project costs. Higher duties on imported steel, aluminum, lumber, and machinery have driven up expenses for builders, contractors, and infrastructure developers, leading to increased project bids and delayed timelines. Construction equipment manufacturers face similar challenges, with tariffs on essential components and raw materials inflating production costs and squeezing margins. Additionally, retaliatory tariffs in international markets have curtailed exports of U.S.-made construction equipment and materials, further affecting profitability. The sector must now prioritize local sourcing, modular construction techniques, and supply chain diversification to control costs and ensure project viability amid ongoing trade uncertainties.
The new urbanization construction market research report is one of a series of new reports from The Business Research Company that provides new urbanization construction market statistics, including the new urbanization construction industry global market size, regional shares, competitors with the new urbanization construction market share, detailed new urbanization construction market segments, market trends, and opportunities, and any further data you may need to thrive in the new urbanization construction industry. This new urbanization construction 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 new urbanization construction market size has grown strongly in recent years. It will grow from $2,544.82 billion in 2024 to $2,771.73 billion in 2025 at a compound annual growth rate (CAGR) of 8.9%. The growth observed during the historic period can be credited to increasing rural-to-urban migration, expanding industrialization, heightened government spending on infrastructure, rising demand for affordable housing, and the implementation of economic development policies focused on urban areas.
The new urbanization construction market size is expected to see strong growth in the next few years. It will grow to $3,849.44 billion in 2029 at a compound annual growth rate (CAGR) of 8.6%. The projected growth in the forecast period is driven by a stronger focus on smart city technologies, stricter environmental and climate resilience standards, the expansion of infrastructure supporting remote work, the rise of the urban middle class in emerging markets, and a greater emphasis on transit-oriented development. Key trends expected in the forecast period include urban redevelopment and densification, the integration of green infrastructure, prioritizing walkable and 15-minute cities, the use of modular and prefabricated construction techniques, and increased public-private partnerships in urban planning.
A surge in government spending on infrastructure is expected to drive the growth of the new urbanization construction market moving forward. Government spending on infrastructure refers to public expenditure by national, regional, or local authorities on the development, maintenance, and improvement of physical systems and facilities such as transportation, energy, water supply, telecommunications, and public buildings. This spending is increasing primarily to stimulate economic growth by creating jobs and enhancing critical public assets. Such expenditure supports new urbanization construction by funding essential public facilities such as roads, utilities, and transportation networks that facilitate urban development and expansion. For example, in June 2025, according to the Parliament of the United Kingdom, the government invested $35.7 billion (£26.0 billion) in vital economic infrastructure in 2022, accounting for 1% of GDP and 34% of overall government investment. Furthermore, in July 2024, the Office for National Statistics, a UK-based government department, reported that central government (CG) was responsible for 74.2% of general government (GG)'s total infrastructure expenditure in 2022, a 1.1 percentage point rise from 2021. Hence, the increase in government infrastructure spending is fueling the expansion of the new urbanization construction market.
Major companies in the new urbanization construction markets are focusing on developing innovative solutions, such as circular technology platforms, to greatly reduce the environmental footprint of the construction sector. A circular technology platform enables the reuse, repair, recycling, and sharing of materials and resources to minimize waste and extend product lifecycles. For instance, in April 2023, Holcim, a Switzerland-based building materials company, introduced ECOCycle, a proprietary circular platform that recycles up to 100% of construction and demolition waste into new building materials. This innovative solution is designed to uphold high performance standards while significantly reducing the use of virgin raw materials, thereby lessening environmental impact. It supports the creation of low-carbon and resource-efficient cities, aligning with global sustainability objectives and new urbanization strategies.
In March 2025, Conmat Group, an Indian manufacturer of construction equipment, acquired KYB-Conmat for an undisclosed sum. With this acquisition, Conmat Group aims to obtain full control of the company, allowing faster decision-making and investment to accelerate growth. KYB-Conmat is an India-based manufacturer specializing in concrete construction equipment.
Major players in the new urbanization construction market are China State Construction Engineering Corporation Ltd., China Railway Group Limited, China Railway Construction Corporation Limited, China Communications Construction Company Limited, Power Construction Corporation of China, China Metallurgical Group Corporation, China Vanke Co. Ltd., Poly Developments and Holdings Group Co. Ltd., Shanghai Construction Group Co. Ltd., Longfor Group Holdings Limited, China Resources Land Limited, China Overseas Land & Investment Ltd., China National Chemical Engineering Group Corporation Ltd., Sunac China Holdings Limited, Shimao Group Holdings Limited, China Fortune Land Development Co. Ltd., Beijing Urban Construction Group Co. Ltd., Sinohydro Corporation Limited, Country Garden Holdings Company Limited, Greenland Holdings Corporation Limited.
North America was the largest region in the new urbanization construction market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in new urbanization construction report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.
The countries covered in the new urbanization construction market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The new urbanization construction market consists of revenues earned by entities by providing services such as smart city planning, infrastructure development, green building construction, and urban public service upgrades. The market value includes the value of related goods sold by the service provider or included within the service offering. The new urbanization construction market also consists of sales of products including smart building materials, energy-efficient lighting systems, advanced HVAC systems, and prefabricated construction components. Values in this market are 'factory gate' values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.
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.
New Urbanization Construction 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 new urbanization construction 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.
Where is the largest and fastest growing market for new urbanization construction ? 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 new urbanization construction 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 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.