North America Construction Market Size, Trend and Analysis by Sector, Competitive Landscape and Forecast to 2027
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Explore actionable market insights from the following data in the ‘North America Construction Market’ report:
- North America construction market outlook: analysis as well as historical figures and forecasts of opportunities from the sector and regional segments.
- Key Insights on Leading Sectors: Commercial Construction, Energy and Utilities Construction, Industrial Construction, Infrastructure Construction, Institutional Construction, and Residential Construction.
- Overview of the North America construction industry outlook to 2027.
- Analysis of the construction output values (Real) in major countries: Canada and the US.
- Dedicated section covering key industry participants by country including top consultants and contractors.
How is the ‘North America Construction Market’ report different from other reports in the market?
Businesses need to have a deeper understanding of the market dynamics to gain a competitive edge in the coming decade. Get the ‘ North America Construction Market’ report today, which will help you to:
- Evaluate regional trends in construction development from insight into output values and project pipelines.
- Identify the fastest growers to enable assessment and targeting of commercial opportunities in the markets best suited to strategic focus.
- Identify the drivers in the North America construction market and consider growth in developed economies.
- Formulate plans on where and how to engage with the market while minimizing any negative impact on revenues.
We recommend this valuable source of information to anyone involved in:
- Contractors Including Civil Works, Electrical, HVAC, and Others
- Building Material Merchants/Players
- Management Consultants and Investment Banks
- Portfolio Managers/Buy-Side Firms
- Strategy and Business Development
- Investment Banking
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North America Construction Market Overview
The North America construction market size is expected to reach $1,772.5 billion in 2023 and is estimated to grow at a compound annual growth rate (CAGR) of 3.3% over the forecast period (2023-2027). The increased spending from the public and private sectors in the regional energy and infrastructure domain is projected to aid the market growth over the predicted timeline.
The energy and utilities construction sector in the North American region is projected to expand by 10.3% in real terms in 2023. The market is expected to depict an annual average growth rate of 8.7% in real terms from 2024 to 2027, supported by investments in regional renewable energy and oil and gas projects. Similarly, the regional infrastructure industry is expected to grow by 10.4% in real terms in 2023, aided by an increase in commitments to transport developments under the federal and regional governments’ 2023 Budgets.
North America Construction Market Outlook, 2018-2027 ($ Billion)
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GlobalData expects the North America construction industry to shrink by 1.6% in real terms in 2023. The short-term outlook in the region is fairly bleak. To combat high levels of inflation both the US Federal Reserve (Fed) and the Central Bank of Canada have raised interest rates to levels not seen since 2008. The impact has come to a heavy detriment to the residential sector and is not likely to recover in the short term. The outlook over the latter part of the forecast period has been bolstered by the stronger outlook for infrastructure construction in the US.
|Market Size (2023)
|Report Scope & Coverage
|Sector Overview, Construction Output Value ($ Million) by Country and Sector, Regional Outlook by Key Countries, Key Industry Participants
|Commercial Construction, Energy and Utilities Construction, Industrial Construction, Infrastructure Construction, Institutional Construction, and Residential Construction
|The US and Canada
North America Construction Market Segmentation by Sectors
The North America construction industry covers commercial construction, energy and utilities construction, industrial construction, infrastructure construction, institutional construction, and residential construction. The residential construction category is predicted to account for the largest regional share in terms of construction output value (Real) in 2023.
Residential Construction: Despite its recent turbulences owing to the high mortgage rates, along with high construction costs and supply chain disruptions, the residential segment is anticipated to dominate the regional dynamics in 2023. The segment is predicted to shrink by 10.4% in real terms this year followed by a degrowth of 2.4% in 2024.
In addition, according to the US Census Bureau, new privately-owned residential building permits authorized declined by 21% YoY in the first four months of 2023 and construction of new housing starts fell by 15.5% in the first five months of 2023.
North America Construction Market Analysis by Sectors, 2023 (%)
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Institutional Construction: The segmental growth is likely to remain stable over the forecast period, supported by the increased public and private investment in educational and healthcare projects. This segment is projected to expand by 3.8% in real terms in 2023.
According to the US Census Bureau, the total value of construction put in place on educational and healthcare buildings increased YoY by 11.4% and 13.6% in the first four months of 2023 in nominal terms, respectively, which is higher by 2.7% and 28.1% compared to the same period of pre-pandemic levels in 2019.
Infrastructure Construction: The regional infrastructure sector is expected to observe the fastest compound annual growth rate (CAGR) of 9.3% over the forecast period. The sectoral growth momentum is driven by public spending to upgrade and modernize the existing transportation network. For instance, as of June 2023, the US government had announced $157.2 billion in transportation development projects including roads, bridges, public transportation, ports, and airports through the Rebuilding Infrastructure programme.
However, inflationary pressures, higher construction material prices, skilled and unskilled labor shortages, and the US debt ceiling may slow the rate of IIJA project executions in the short term, challenging contractors’ work. The Associated General Contractors of America (AGC) survey report released in March 2023 revealed that nearly 39% of contractors reported projects were postponed in 2022.
Industrial Construction: This segment is anticipated to account for the smallest regional share in real terms in 2023. The sectoral growth over the predicted timeline is expected to be driven by steady investments from the private sector. For instance, the White House reported that private companies had pledged $491 billion to invest in the domestic sector through the “Manufacturing the Future” program.
This commitment has resulted in a sharp increase in total construction put in place in the manufacturing sector by 83.8% YoY in nominal terms in January-April 2023, a 109.5% increase over the same period of pre-pandemic levels in 2019.
Energy and Utilities Construction: The energy and utilities construction segment is expected to account for the second-largest regional share in real terms in 2023. The segmental growth is likely to remain stable over the forecast period, supported by the eased investments in renewable energy and oil and gas projects.
For instance, the Energy Information Administration (EIA) stated in February 2023 that US developers plan to add 54.5GW of new electric generating capacity in 2023, with the majority of 54% to be powered by solar energy projects (29.1GW), followed by 17% from the battery (9.4GW), 14% from natural gas (7.5GW), 11% from wind energy (6GW), and 4% from nuclear energy (2.2GW).
Commercial Construction: The regional commercial construction industry is predicted to grow by 3.4% in real terms in 2023 owing to improvements in commercial project developments, along with positive indicators in underlying tourism and commercial business activities.
The regional commercial sector is expected to showcase an annual average growth rate (AAGR) of 2.6% from 2024 to 2027. The US commercial construction industry in particular is anticipated to remain a key driver for the market growth over the forecast period. According to the US Census Bureau, the total value of commercial building construction in nominal terms increased by 23.7 YoY % in the first four months of 2023, with the total value of lodging construction increasing by 41.1% and office construction increasing by 14.3%.
North America Construction Market Segmentation by Region
The North America construction sector is primarily dominated by the US, followed by Canada in terms of real construction output value. The US accounted for the majority of the regional share and is expected to showcase a compound annual growth rate of 3.6% over the forecast period.
The US construction industry is predicted to decline marginally in real terms in 2023 owing to the inflationary pressure and high-interest rates coupled with labor shortages. According to the US Bureau of Economic Analysis, the real gross output of the construction industry fell by 6.6% YoY in Q1 2023, declining from $1.4 trillion in Q1 2022 to $1.3 trillion in Q1 2023. This was preceded by a Y-o-Y decline of 8.2% in Q4 and 9.6% in Q3 2022. Overall, the real gross output of the construction industry declined by 8.2% in 2022. This was preceded by annual growth of 1% in 2021.
Although the sentiment is largely negative there are signs that overall output will start to improve again in 2024; major fiscal stimulus packages such as the IIJA, IRA and the CHIPS and Science Act will likely aid the recovery in infrastructure, industrial, and energy construction, driving growth over the forecast period.
Canada’s construction industry to decline by 5.2% this year, owing to a sharp fall in the residential sector amid a tightening in monetary policy and a weaker economic outlook. High construction costs and a skilled labor shortage are also factors that will dampen activity in the industry.
According to the Bank of Canada’s April 2023 Monetary Policy Report, economic growth is expected to slow from 3.4% in 2022 to 1.4% in 2023 and 1.3% in 2024, with inflation of 3.5% in 2023 and 2.3% in 2024. In April 2023, the IMF forecast that the Canadian economy will grow by 1.5% in 2023 and 2024, with inflation easing to 3.9% in 2023 and 2.4% in 2024.
North America Construction Market Analysis by Country, 2023 (%)
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North America Construction Market Segments and Scope
North America Construction Sectors Outlook (Value, $ Million, 2018-2027)
- Commercial Construction
- Energy and Utilities Construction
- Industrial Construction
- Infrastructure Construction
- Institutional Construction
- Residential Construction
North America Construction Countries Outlook (Value, $ Million, 2018-2027)
The North America construction market size will be evaluated at $1,722.5 billion in 2023. The construction market in the North America region is expected to grow at a CAGR of 3.3% during 2023-2027.
Table of Contents
- CHAPTER 01 Executive Summary
- CHAPTER 02 Construction Outlook
- 2.1 All Construction
- 2.2 Commercial Construction
- 2.3 Energy and Utilities Construction
- 2.4 Industrial Construction
- 2.5 Infrastructure Construction
- 2.6 Institutional Construction
- 2.7 Residential Construction
- CHAPTER 03 Construction Outlook – Country Level
- 3.1 Canada
- 3.1.1 Construction Market Overview
- 3.1.2 Key Industry Participants
- 3.2 US
- 3.2.1 Construction Market Overview
- 3.2.2 Key Industry Participants
- 3.1 Canada
- CHAPTER 04 North America Construction Regional Trends
- 4.1 North America Construction Market Data
- 4.1.1 Canada Construction Market Data
- 4.1.2 US Construction Market Data
- 4.1 North America Construction Market Data
- CHAPTER 05 Research Methodology
- 5.1 Introduction
- 5.2 Research Methodology Steps
- 5.2.1 Data Collection and Consolidation
- 5.2.2 Modelling and Estimation
- 5.2.3 Forecasting and Validation
- CHAPTER 06 About GlobalData
- Contact Us
Table 1 North America Construction Output Value (Real $ Million) and Growth (% Change), 2018-27
Table 2 North America, Construction Output by Sector (Real % Change), 2018–27
Table 3 North America, Commercial Construction Output by Project Type (Real % Change), 2018–27
Table 4 North America, Energy and Utilities Construction Output by Project Type (Real % Change), 2018–27
Table 5 North America, Industrial Construction Output by Project Type (Real % Change), 2018–27
Table 6 North America, Infrastructure Construction Output by Project Type (Real % Change), 2018–27
Table 7 North America, Institutional Construction Output by Project Type (Real % Change), 2018–27
Table 8 North America, Residential Construction Output by Project Type (Real % Change), 2018–27
Table 9 Canada, Top Construction Projects by Value
Table 10 Canada, Key Contractors
Table 11 Canada, Key Consultants
Table 12 US, Top Construction Projects by Value
Table 13 US, Key Contractors
Table 14 US, Key Consultants
Table 15 North America Construction Output Value, by Sector (Real $ Million), 2022–27
Table 16 Canada Construction Output Value, by Sector (Real $ Million), 2022–27
Table 17 US Construction Output Value, by Sector (Real $ Million), 2022–27
Fig.1 North America Construction Output Value (Real $ Million) and Growth (% Change), 2018-27
Fig.2 North America, Construction Output Value, by Sector (Real, $ Million), 2018–27
Fig.3 North America, Commercial Construction Output by Project Type (Real, $ Million), 2018–27
Fig.4 North America, Energy and Utilities Construction Output by Project Type (Real, $ Million), 2018–27
Fig.5 North America, Industrial Construction Output by Project Type (Real, $ Million), 2018–27
Fig.6 North America, Infrastructure Construction Output by Project Type (Real, $ Million), 2018–27
Fig.7 North America, Institutional Construction Output by Project Type (Real, $ Million), 2018–27
Fig.8 North America, Residential Construction Output by Project Type (Real, $ Million), 2018–27
Fig.9 Canada, Construction Output Value (Real, $ Million, 2017 Prices and Exchange Rate), 2018–27
Fig.10 Canada, Construction Output Value, by Sector (Real, $ Million), 2018–27
Fig.11 US, Construction Output Value (Real, $ Million, 2017 Prices and Exchange Rate), 2018–27
Fig.12 US, Construction Output Value, by Sector (Real, $ Million), 2018–27
Fig.13 Research Methodology Steps
Fig.14 Core Objectives of Data Collection and Consolidation
Fig.15 Modelling Approach
Fig.16 Forecasting and Validation Flow
Fig.17 GlobalData Proposition and Product Capabilities
Fig.18 GlobalData Sector Coverage
Frequently asked questions
What is the North America construction market size in 2023?
The North America construction market size is estimated to be $1,722.5 billion in 2023.
What is the North America construction market growth rate?
The construction market in North America is expected to grow at a CAGR of 3.3% during 2023-2027.
Which is the leading sector in the North America construction market?
The residential construction sector is the leading sector in the North America construction market in 2023.
Which country has the largest revenue share of the North America construction market?
The US dominates the North America construction market with the largest revenue share in 2023.
Is there a third level of segmentation in the report?
GlobalData’s focus is on providing reliable and accurate data that is supported by robust research methodology. Our reports undergo rigorous quality checks and are based on primary and secondary research sources, ensuring that the numbers and insights provided are trustworthy. However, despite the best efforts to gather comprehensive data, there could be instances where the available data is limited, making it challenging to provide third-level segmentation. In such cases, GlobalData may choose to provide high-level insights and general trends rather than forcing segmentation that may not be backed by sufficient data. This approach ensures that the report’s overall quality and credibility are maintained.
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