Construction is the process of planning, designing, and building infrastructure, facilities, or structures such as residential and commercial buildings, roads, bridges, dams, and industrial plants. It involves a combination of engineering, architecture, project management, skilled labor, and the use of specialized equipment and materials. The primary purpose of construction is to create safe, functional, and durable built environments that support human activity, economic development, and societal needs.
The global construction market reached a value of nearly $16,047.55 billion in 2024, having grown at a compound annual growth rate (CAGR) of 5.07% since 2019. The market is expected to grow from $16,047.55 billion in 2024 to $20,791.35 billion in 2029 at a rate of 5.32%. The market is then expected to grow at a CAGR of 5.94% from 2029 and reach $27,743.51 billion in 2034.
Rising Smart City Initiatives
Rising smart city initiatives fueled the growth of the construction market in the historic period. Rising smart city initiatives are fueling the growth of the construction market by driving demand for modern infrastructure, including sustainable buildings, advanced transport systems, and digital utilities. These projects require large-scale construction of residential, commercial, and industrial spaces integrated with smart technologies, boosting overall market expansion. For instance, in December 2023, according to the National Institute of Standards and Technology, a US-based national metrology institute, the NIST global community technology challenge (GCTC) presented three innovative smart city projects at the Smart Cities Connect conference in Washington, D.C. These projects demonstrated efforts by cities to enhance transparency and improve access to information between local governments and residents, positioning them as models for other communities. Additionally, in April 2023, according to the IMD Smart City Index Report, a Switzerland-based business school, the number of smart cities worldwide increased from 118 cities in 2021 to 141 cities in 2023. Therefore, rising smart city initiatives fueled the growth of the construction market.
Innovative Port Development Boosts Trade And Transport Efficiency
Major companies in the construction market are developing innovative ports to enhance global trade efficiency, support larger vessels, integrate smart technologies, and improve sustainability in maritime infrastructure. For instance, in February 2025, Shimizu Corporation, a Japan-based construction and engineering firm, has secured a ¥2.5 billion (approximately $16 million) contract from the Tanzania Ports Authority to renovate the Port of Kigoma on Lake Tanganyika. This project, funded as Japanese government grant aid, represents Shimizu's first project in Tanzania and marks its expansion into the 16th African country. The renovation includes extending the passenger wharf by 130 meters, constructing a new terminal building, and paving a new access road to enhance port efficiency and safety of passenger and cargo operations, supporting regional trade infrastructure for Tanzania and neighboring landlocked countries.
The global construction market is fragmented, with a large number of small players operating in the market. The top ten competitors in the market made up to 5.15% of the total market in 2024.
Construction Global Market Opportunities And Strategies To 2034 from The Business Research Company provides the strategists; marketers and senior management with the critical information they need to assess the global construction market as it emerges from the COVID-19 shut down.
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Where is the largest and fastest-growing market for construction? How does the market relate to the overall economy; demography and other similar markets? What forces will shape the market going forward? The 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 history and forecasts market growth by geography. It places the market within the context of the wider construction market; and compares it with other markets.
The report covers the following chapters
- Introduction and Market Characteristics- Brief introduction to the segmentations covered in the market, definitions and explanations about the segment by type of construction, by type of contractor and by end-use sector.
- Key Trends- Highlights the major trends shaping the global market. This section also highlights likely future developments in the market.
- Growth Analysis And Strategic Analysis Framework- Analysis on PESTEL, end use industries, market growth rate, global historic (2019-2024) and forecast (2024-2029, 2034F) market values and drivers and restraints that support and control the growth of the market in the historic and forecast periods, forecast growth contributors and total addressable market (TAM).
- Regional And Country Analysis- Historic (2019-2024) and forecast (2024-2029, 2034F) market values and growth and market share comparison by region and country.
- Market Segmentation- Contains the market values (2019-2024) (2024-2029, 2034F) and analysis for each by type of construction, by type of contractor and by end-use sector in the market. Historic (2019-2024) and forecast (2024-2029) and (2029-2034) market values and growth and market share comparison by region market.
- Regional Market Size and Growth- Regional market size (2024), historic (2019-2024) and forecast (2024-2029, 2034F) market values and growth and market share comparison of countries within the region. This report includes information on all the regions Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa and major countries within each region.
- Competitive Landscape- Details on the competitive landscape of the market, estimated market shares and company profiles of the leading players.
- Other Major And Innovative Companies Details on the company profiles of other major and innovative companies in the market.
- Competitive Benchmarking- Briefs on the financials comparison between major players in the market.
- Competitive Dashboard- Briefs on competitive dashboard of major players.
- Key Mergers and Acquisitions- Information on recent mergers and acquisitions in the market is covered in the report. This section gives key financial details of mergers and acquisitions which have shaped the market in recent years.
- Recent Developments- Information on recent developments in the market covered in the report.
- Market Opportunities And Strategies- Describes market opportunities and strategies based on findings of the research, with information on growth opportunities across countries, segments and strategies to be followed in those markets.
- Conclusions And Recommendations- This section includes recommendations for construction providers in terms of product/service offerings geographic expansion, marketing strategies and target groups.
- Appendix- This section includes details on the NAICS codes covered, abbreviations and currencies codes used in this report.
Markets Covered:
- 1) By Type Of Construction: Buildings Construction; Heavy And Civil Engineering Construction; Specialty Trade Contractors; Land Planning And Development
- 2) By Type Of Contractor: Large Contractors; Small Contractors
3 By End-Use Sector: Public; Private
- Companies Mentioned: China State Construction Engineering Co., Ltd; China Railway Group Ltd.; China Railway Construction Corporation Limited; China Communications Construction Company, Ltd.; Vinci S.A
- Countries: Australia; China; India; Indonesia; Japan; South Korea; Bangladesh; Thailand; Vietnam; Malaysia; Singapore; Philippines; Hong Kong; New Zealand; USA; Canada; Mexico; Brazil; Chile; Argentina; Colombia; Peru; France; Germany; UK; Italy; Spain; Austria; Belgium; Denmark; Finland; Ireland; Netherlands; Norway; Portugal; Sweden; Switzerland; Russia; Czech Republic; Poland; Romania; Ukraine; Saudi Arabia; Israel; Iran; Turkey; UAE; Egypt; Nigeria; South Africa.
- 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; construction indicators comparison.
- 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.