Canada Construction Market is Expected to Reach USD 349.78 billion by 2030
Published: 2025-09-01
Canada’s Record Immigration Levels Spur Unprecedented Construction Growth
According to the Next Move Strategy Consulting, Canada Construction Market size was valued at USD 283.63 billion in 2024 and is projected to grow to USD 296.44 billion by 2025. Additionally, the industry is expected to continue its growth trajectory, reaching USD 349.78 million by 2030, with a CAGR of 3.36% from 2025 to 2030.
Canada’s sustained high immigration levels are a powerful growth catalyst for the construction industry. Canada’s construction market continues to be buoyed by sustained immigration-driven population growth. Under IRCC’s 2024–2026 Levels Plan, Canada aims to welcome 485,000 new permanent residents in 2024 and ramp up to 500,000 in 2025, record highs designed to support labour-force expansion and economic vitality. As hundreds of thousands of newcomers arrive each year, settling not only in major urban centres but also in secondary and tertiary markets, demand surges for new homes, rental apartments and community amenities. This population influx drives developers to ramp up residential projects, accelerates mixed-use and neighborhood infill developments, and supports expanded commercial infrastructure, ensuring steady pipeline activity and sustaining employment across the sector.
However, Canada’s construction sector is facing mounting pressure from two critical challenges that are growing skilled labor shortage and rising material costs. According to BuildForce Canada, an estimated 270,000 workers are expected to retire by 2034, while rising infrastructure and real estate demand will require 380,500 new workers across the country. With only 272,200 young workers projected to enter the industry, this leaves a significant gap of over 108,000 skilled professionals. The shortfall is particularly acute in specialized trades and remote or fast-growing regions, threatening to delay project timelines, increase reliance on subcontracting, and reduce overall productivity. At the same time, input cost inflation is compounding the strain on the sector. For instance, Lumber futures have climbed almost 25% year-over-year, while newly implemented 25% tariffs on steel and aluminum imports have sharply increased the cost of essential materials. These inflationary pressures are squeezing contractor margins, creating procurement uncertainties, and delaying schedules. The dual impact of workforce and material challenges is prompting companies to adapt rapidly.
On the other hand, Canada’s push toward a net-zero economy is driving significant growth in green building and mass timber construction, opening attractive investment opportunities across the built environment. Among the most promising segments is the residential retrofit market, as millions of aging homes need energy-efficient upgrades like enhanced insulation, HVAC replacements, and window retrofits. According to Green Communities Canada, tens of thousands of deep retrofit projects have already been completed, signaling strong early momentum fueled by rising environmental awareness and substantial government incentives. At the same time, mass timber is emerging as a game-changing material in the commercial and residential sectors. Backed by insights from RBC’s Climate Action Institute, mass timber offers clear advantages; it significantly reduces embodied carbon, enables off-site prefabrication, accelerates construction timelines, and minimizes disruption on urban job sites. These qualities make it particularly suited for mid-rise housing and mixed-use developments in high-density areas. For investors, these evolving trends offer multiple entry points, from funding retrofit initiatives and energy-efficient technologies to partnering with manufacturers of engineered wood products and sustainable construction firms. Additionally, Canada’s regulatory environment, through carbon pricing mechanisms, emissions targets, and green building standards, further amplifies the attractiveness of climate-aligned construction. As sustainability becomes a mainstream priority in the real estate and infrastructure sectors, green building and mass timber represent not just a climate imperative but also a high-growth, future-focused investment frontier.
According to the report, the top players operating in the Canada Construction industry include PCL Construction, EllisDon, Pomerleau, Aecon Group Inc., Bird Construction among others.
These market players are adopting strategies, including partnerships and product launches across various countries and regions, to maintain their dominance in the market.
In recent years, the Canadian construction industry has undergone a strategic transformation, emphasizing innovation, sustainability, and smarter infrastructure delivery. No longer limited to traditional brick-and-mortar development, leading players are reimagining construction as a catalyst for building resilient, efficient, and future-ready communities. This evolution is fueled by a growing demand for climate-aligned infrastructure, high-performance buildings, and digital integration across project lifecycles. With Canada's ambitious net-zero goals and increasing urban density, the sector is embracing green building practices, modular construction, and advanced technologies such as BIM (Building Information Modeling) and IoT-enabled systems.
A strong example of innovation in the Canada Construction market is Kiewit, the Nuclear Waste Management Organization awarded Kiewit and WSP a USD 2.3 billion contract to build the above-ground facilities for Canada’s deep geological repository in northwestern Ontario.
Similarly, PCL has launched its cloud-based Digital Twin Services, integrating real-time site data with 3D BIM models to cut field rework by 15%. This move reinforces PCL’s digital-first strategy and elevates its competitiveness in premium infrastructure and urban projects, while also driving broader innovation and efficiency across Canada’s evolving construction landscape.
Meanwhile, Aecon Group Inc. completed its acquisition of U.S.-based United Engineers & Constructors, bringing advanced nuclear and power-generation expertise into its portfolio. This strategic integration boosts Aecon’s capabilities in energy infrastructure and enhances its competitiveness in large-scale, cross-border industrial projects, supporting Canada’s energy transition and reinforcing its role in North America’s evolving power sector.
Followed by Bird Construction announcement of its USD 100 million acquisition of Surrey-based Jacob Bros Construction, strengthening its heavy-civil expertise and expanding its infrastructure presence in Western Canada. This moves boosts Bird’s capacity to secure major municipal and utility projects while improving efficiency and project delivery, supporting growth in key regional corridors and reinforcing Canada's infrastructure development momentum.
Similarly, in February 2024, EllisDon partnered with The Link and Provision, winners of its inaugural ConTech Accelerator program to introduce AI-powered tools for contract analysis and project-specification insights into its construction workflows.
Key Insights from the Canada Construction Market Report:
The information related to key drivers, restraints, and opportunities and their impact on the Canada Construction market is provided in the report.
The value chain analysis in the market study provides a clear picture of the roles of each stakeholder.
The market share of the players in the Canada Construction market, along with their competitive analysis are provided in the report.
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