United States Construction Market Size & Industry Trends | 2034

United States Construction Market Outlook

According to the report by Expert Market Research (EMR), the United States construction market reached a value of approximately USD 1.90 trillion in 2024. Aided by significant infrastructure developments, increasing urbanisation, and sustained residential and commercial building activities, the market is expected to grow at a CAGR of 4.40% during the forecast period from 2025 to 2034, reaching an estimated value of USD 2.92 trillion by 2034.

The construction market in the United States is one of the most crucial pillars of the national economy, encompassing a broad array of projects ranging from housing and offices to roads, bridges, schools, and manufacturing facilities. It plays a key role in job creation and economic development while directly supporting several related industries including building materials, equipment manufacturing, logistics, and engineering services.

United States Construction Market Size

In 2024, the United States construction market stood at USD 1.90 trillion, driven by both public and private sector investments. Residential construction continues to dominate the market due to rising demand for housing units, fuelled by population growth, changing demographics, and lifestyle shifts. Meanwhile, commercial construction—including office spaces, retail centres, and hospitality projects—remains resilient amid evolving economic conditions.

Government investments, especially under the Infrastructure Investment and Jobs Act (IIJA), are propelling the construction of roads, bridges, transit systems, and energy projects, contributing substantially to market expansion. Industrial construction is also witnessing notable growth as companies expand logistics centres and manufacturing plants to meet increasing demand and regionalise supply chains.

United States Construction Market Share

The United States construction market is fragmented and features a mix of multinational engineering firms, regional contractors, and specialised subcontractors. Key players such as Bechtel Corporation, Fluor Corporation, Jacobs Engineering Group, Turner Construction Company, and Kiewit Corporation hold significant shares due to their involvement in large-scale, complex infrastructure and commercial projects.

Local and regional construction firms continue to maintain a strong presence in residential and small to mid-size projects. These players benefit from their understanding of local regulations, cost efficiencies, and established client relationships, which enable them to secure repeat business.

United States Construction Market Trends

One of the prominent trends in the U.S. construction market is the increasing adoption of sustainable and green building practices. With growing emphasis on environmental conservation and carbon footprint reduction, builders are integrating energy-efficient technologies, recycled materials, and renewable energy solutions into projects.

Modular and prefabricated construction methods are gaining popularity for their ability to reduce build times, minimise waste, and lower project costs. This trend is particularly strong in the residential and healthcare segments where faster occupancy is a key consideration.

Smart construction technology is another rising trend. From Building Information Modelling (BIM) to drones and IoT-enabled sensors, digital tools are improving project planning, enhancing worker safety, and enabling real-time monitoring of construction progress. The integration of artificial intelligence and machine learning in project management software is streamlining scheduling, budgeting, and resource allocation.

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Drivers of Growth

Several factors are driving the expansion of the United States construction market. First and foremost is the strong federal commitment to infrastructure investment. The multi-trillion-dollar infrastructure bill signed into law is set to fund thousands of transportation, broadband, and utility projects across the country over the next decade, boosting demand for construction services and materials.

Population growth, particularly in southern and western states such as Texas, Florida, and Arizona, is fuelling demand for residential units, schools, hospitals, and commercial establishments. Urban redevelopment initiatives in major cities are also driving mixed-use developments that combine housing, retail, and office spaces.

Additionally, the reshoring of manufacturing, partly driven by global supply chain disruptions, is spurring the development of new factories and logistics hubs. This industrial growth is supported by policies that encourage domestic production of critical components such as semiconductors and electric vehicle parts.

The expansion of the renewable energy sector—particularly wind, solar, and battery storage—is another driver. These projects require specialised construction expertise and contribute to overall market value while aligning with national decarbonisation goals.

Technology and Advancement

Technological advancements are rapidly transforming the United States construction industry. The use of Building Information Modelling (BIM) is becoming standard practice for major projects, allowing teams to visualise designs, detect conflicts, and coordinate across disciplines. This digital collaboration improves efficiency and reduces costly rework.

Drones and unmanned aerial vehicles (UAVs) are being employed for site surveys, progress tracking, and safety inspections, while wearable tech enhances worker health monitoring and communication. IoT sensors embedded in construction equipment provide real-time data on machine performance and maintenance needs, reducing downtime and improving asset utilisation.

Automation and robotics are making inroads in tasks such as bricklaying, welding, and demolition, helping to address the labour shortage while increasing precision and safety. Additionally, 3D printing is being explored for producing components and even entire structures, potentially revolutionising the speed and cost-effectiveness of construction.

United States Construction Market Segmentation

The market can be divided based on construction type, end use and region.

Market Breakup by Construction Type

• Demolition and New Constructions

• Additions

Market Breakup by End Use

• Commercial Construction

• Residential Construction

• Industrial Construction

• Energy and Utilities Construction

• Others

Market Breakup by Region

• New England

• Mideast

• Great Lakes

• Plains

• Southeast

• Southwest

• Rocky Mountain

• Far West

Competitive Landscape

Some of the major players explored in the report by Expert Market Research are as follows:

• Hensel Phelps Construction Company

• Lennar Corporation

• Kiewit Corporation

• D.R. Horton, Inc.

• Tutor Perini Corporation

• PCL Constructors Inc.

• Kajima Corporation

• Hochtief AG

• Pultegroup, Inc.

• NVR, Inc. (Ryan Homes)

• Others

Challenges and Opportunities

The United States construction market faces several challenges. One of the most pressing is the persistent labour shortage. The industry continues to grapple with an aging workforce, a lack of new entrants, and competition from other sectors. This shortage increases labour costs and affects project timelines.

Material price volatility remains another major concern. Global supply chain constraints and geopolitical tensions have led to unpredictable cost swings in key inputs like steel, lumber, and cement, complicating project budgeting.

Environmental regulations are also becoming more stringent, particularly in states like California and New York. While this creates compliance challenges, it also opens opportunities for green building specialists and companies offering sustainable construction solutions.

Despite these challenges, opportunities abound. Digital transformation is creating demand for skilled workers in technology-enabled roles, such as BIM technicians and data analysts. The push for smart cities and sustainable infrastructure presents opportunities for contractors experienced in energy-efficient and tech-integrated construction.

The growing focus on equity and inclusion in public works procurement is creating opportunities for minority-owned and women-led construction firms to participate in large government projects.

United States Construction Market Forecast

The outlook for the United States construction market remains strong. From 2025 to 2034, the market is expected to grow at a CAGR of 4.40%, reaching a projected value of USD 2.92 trillion by 2034. Infrastructure modernisation, urban development, industrial expansion, and residential housing demand will be the primary drivers of this growth.

Increased adoption of smart building technologies, continued investment in renewable energy projects, and further advancements in construction automation will shape the next decade of industry development. Companies that embrace innovation, prioritise sustainability, and invest in workforce development will be best positioned to capitalise on emerging opportunities.

The United States construction market stands at the forefront of national economic development. With a robust foundation in residential, commercial, and infrastructure building, and backed by significant public and private investments, the industry is poised for steady growth in the coming years.

As technological advancements reshape how projects are designed and delivered, and as sustainability becomes a central priority, the U.S. construction sector is evolving to meet the demands of a modern economy. Despite existing challenges, the future of construction in the United States is promising, driven by innovation, strategic planning, and an unrelenting demand for development.

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