Construction Market is Expected to Reach USD 17.31 Trillion By 2035

Accelerating Urban Growth and Infrastructure Modernisation Are Shaping Global Construction Market Demand

According to Next Move Strategy Consulting, the Construction Market size was valued at USD 12.55 trillion in 2025, and is expected to be valued at USD 13.04 trillion by the end of 2026. The industry is projected to grow, hitting USD 17.31 trillion by 2035, with a CAGR of 3.2% between 2026 and 2035.

Based on our assessment, we found that rapid urbanisation across both emerging and developed economies is a key force shaping the construction industry, as expanding urban populations continue to drive strong demand for residential, commercial, and mixed-use developments. Governments are simultaneously investing in modern transport networks, utilities, and civic infrastructure to support this growth. These integrated initiatives are accelerating investments in high-rise buildings, smart city projects, and mass transit systems. As a result, construction companies are increasingly adopting advanced project management tools and prefabrication techniques to meet tight delivery timelines, enhancing both project efficiency and technological sophistication.

At the same time, our evaluation indicates that complex regulatory frameworks remain a significant restraint on construction market growth. Specifically, project approvals, zoning regulations, environmental compliance requirements, and labour laws often extend timelines and increase overall project costs. Moreover, navigating multi-jurisdictional regulatory environments requires specialised expertise, which is not consistently available across all operators. As a result, delays caused by permitting bottlenecks and compliance challenges reduce capital efficiency and create barriers for smaller firms. Therefore, this remains a key moderating factor that continues to constrain market acceleration despite strong underlying demand.

However, sustainable and green construction is emerging as a major opportunity within the construction market. We noticed a growing shift toward energy-efficient materials, low-carbon construction techniques, and ESG-aligned project designs across both residential and commercial segments. Increasing emphasis on sustainability is attracting investment into green building initiatives, smart materials, and renewable-integrated infrastructure. Furthermore, companies adopting these practices benefit from long-term cost efficiencies, regulatory incentives, and enhanced brand positioning. We found that this alignment of environmental policies, investor priorities, and market demand is positioning sustainable construction as a key driver of future growth and competitive differentiation.

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According to the report, leading players in the Construction market include China State Construction Engineering Corporation, China Railway Group Ltd, China Railway Construction Corporation, China Communications Construction Group Ltd, Power Construction Corporation of China, VINCI Construction, ACS Group, Lennar Corporation, and others.

We observed that in March 2026, the Kenya Standard Gauge Railway extension, executed by China Road and Bridge Corporation (CRBC), resumed after a prolonged six-year delay through the adoption of revenue securitisation financing, reflecting a strategic shift toward innovative funding mechanisms while reinforcing CRBC’s continued role in international infrastructure development under Belt and Road initiatives.

Similarly, in December 2025, Lennar Corporation reported delivering over 82,583 homes, surpassing prior-year volumes despite affordability pressures, highlighting its strategic focus on supply optimisation, cost control, and incentive structures to sustain performance in a challenging U.S. residential construction environment.

In another key development, we found that in October 2025, the Huajiang Grand Canyon Bridge in China was inaugurated as the world’s tallest bridge, significantly enhancing regional connectivity in Guizhou Province, while also demonstrating the advanced engineering capabilities of China’s construction ecosystem, including firms such as China Communications Construction Group.

Additionally, in June 2025, China State Construction Engineering Corporation (CSCEC) reported newly signed contracts worth approximately USD 266.8 billion through May 2025, driven by strong growth in housing and infrastructure segments, thereby reinforcing its leadership position across both domestic and global construction markets.

Key Insights from the Construction Market Report:

• The information related to key drivers, restraints, and opportunities and their impact on the construction market demand is provided in the report.

• The value chain analysis in the market study provides a clear picture of the role of each stakeholder.

• The market share of the construction market players and their competitive analysis are provided in the report.