INDUSTRY REPORT growth in the elderly population and the rise in domestic manufacturing. Asia-Pacific was the largest region in the construction market in 2024. North America was the second-largest region in the construction market,” said the analyst.
It expects the global construction market to see strong growth in the next few years, citing growth to US $ 20.44 trillion in 2029 at a compound annual growth rate( CAGR) of 5.6 %. The growth in the forecast period can be attributed to rising urbanisation, population growth, increasing government support, rising industrialisation and an increase in smart cities.
“ The forecast of 5.6 % 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 U. S. and other countries. This is poised to impact the U. S. through tariffs on imported heavy machinery, raw materials and construction tools from China and Mexico, which could slow project timelines and raise overall costs. 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,” cautioned the analyst.
The anticipated surge in global construction activity is poised to drive growth in the construction market in the coming years. Noteworthy emerging markets( such as China, Brazil, India, Saudi Arabia and Indonesia) have started robust construction projects. This heightened construction activity generates demand for both construction services and materials, bolstering and expanding the construction market.
Market drivers and trends
Major trends in the forecast period include automated construction equipment; construction equipment vehicles; development of high-performance equipment and the integration of digital platforms and innovative solutions. The market report also highlights the introduction of artificial intelligence( AI) and machine learning; strategic collaborations and partnerships; the launch of innovation networks;
Image: Unsplash.
Moulin de la chevrotière bridge, Deschambault, Canada.
Image: Unsplash.
Place Ville Marie, Montreal, Canada.
The global building construction market is undergoing a significant transformation, with a shift in focus to sustainability and green building practices that prioritise eco-friendly approaches and energy efficiency throughout the value chain
the introduction of fully electric construction equipment; technological innovations and new lot development in suburban areas.
The expansion of urbanisation is projected to be a key driver for the growth of the construction market. Urbanisation, denoting the escalating growth and sprawl of cities accompanied by population migration from rural to urban areas, relies heavily on construction to provide essential infrastructure and buildings for a burgeoning urban populace.
“ Building construction firms are increasingly embracing green construction techniques to erect energy-efficient structures, while concurrently mitigating construction costs. Green construction involves utilising sustainable building
materials and construction processes to create environmentally friendly buildings with enhanced energy efficiency,” added analyst ResearchandMarkets. com.
“ Certifications such as Leadership in Energy and Environmental Design( LEED) empower construction companies to craft high-performance, sustainable residential and commercial buildings, offering various advantages from tax deductions to marketing opportunities. The adoption of sustainable construction materials, such as natural paints and recycled steel beams, is becoming widespread in the UK,” it continued.
Additionally, green construction practices such as cross-ventilation for a more natural environment, the use of green construction software for ensuring green compliance and the Green Globes management tool are gaining traction in the construction industry.
“ Major players in the construction market are actively pursuing innovative technologies, particularly automation, to elevate project efficiency, curtail costs and gain a competitive advantage. An automated construction service centre, serving as a centralised facility, leverages automation and technology to streamline diverse aspects of construction projects, encompassing scheduling, resource allocation and communication,” added the analyst.
Image: Shutterstock. com.
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