Construction Market is Expected to Reach USD 16.11 Trillion by 2030

Economic Expansion and Population Growth Boost the Construction Market Demand Globally. 

According to Next Move Strategy Consulting, the global Construction Market was valued at USD 11.39 trillion in 2024 and is projected to grow to USD 12.34 trillion by 2025. Additionally, the industry is expected to continue its growth trajectory, reaching USD 16.11 trillion by 2030, with a CAGR of 5.5% from 2025 to 2030.

Economic growth plays a crucial role in driving the construction market expansion. As economies grow, demand increases for various construction projects, such as infrastructure, commercial buildings, and residential developments. This growth also encourages more investment in urban infrastructure and new facilities, boosting construction activity across regions. A strong economy raises disposable incomes and consumer confidence, leading to a higher demand for residential properties, which in turn accelerates the development of housing complexes and apartment buildings to meet growing population needs.

For example, Saudi Arabia’s GDP growth was driven by a 4.3% rise in non-oil sectors in 2024. India’s GDP grew by 6.2% in 2024, while Argentina’s economy is forecasted to grow by 5%, supported by a recovery in key sectors after 2 years of recession. These figures underscore the growth potential of the construction sector.

Additionally, population growth and urbanization are major drivers of the construction market trends. Rapid urban migration increases the need for residential complexes, commercial centres, shopping malls, and public infrastructure to accommodate growing populations. The United Nations projects the global population will increase from 7.6 billion today to 8.6 billion by 2030, adding 1 billion people over the next 5 years. This surge underscores the need for construction solutions that address urban challenges and promote sustainability.

Urban areas will also require essential services like healthcare, education, and utilities, further driving the construction market demand. The World Bank estimates that the urban population will reach 6 billion by 2045, more than half of the global population. The construction industry is critical in shaping future cities to ensure they are liveable, inclusive, and resilient.

However, the construction industry faces challenges related to regulatory complexities. Projects often encounter time-consuming approval processes that involve multiple layers of government oversight at local, regional, and national levels. These requirements include zoning, environmental assessments, building codes, and safety standards. The time and cost involved in navigating these regulatory hurdles can lead to significant delays in project timelines. Additionally, inconsistencies in regulations across jurisdictions and sudden policy changes can disrupt ongoing work and discourage future investments.

For example, in the United States, the Environmental Protection Agency oversees a range of construction-related regulations that address air quality, waste disposal, lead control, and water management. The agency also offers resources to help construction firms comply with environmental regulations, such as the safe handling of demolition waste and the proper disposal of HVAC systems. While these regulations are crucial for public safety and environmental protection, they also present ongoing challenges to efficient project execution and investor confidence.

On the other hand, digital transformation is unlocking new construction market opportunities, with Building Information Modeling (BIM) playing a crucial role in modernization. BIM enables digital design, simulation, and management of building infrastructure, improving coordination, reducing errors, and boosting efficiency. A recent example is the April 2024 release of Allplan 2024-1, which enhanced BIM capabilities and introduced cloud-based features. The U.S. General Services Administration has also emphasized BIM’s use for federal construction projects. Integrating BIM with technologies like AI, IoT, and cloud computing facilitates real-time collaboration, predictive maintenance, and improved facility management, providing long-term value throughout the construction lifecycle.

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According to the report, leading players in the construction industry include China State Construction Engineering Corp. Ltd. (CSCEC), China Railway Group Ltd. (CREC), China Railway Construction Corp. Ltd. (CRCC), China Communications Construction Group Ltd. (CCCC), Metallurgical Corporation of China Ltd. (MCC), Power Construction Corp. of China, Vinci SA, China Energy Engineering Corp. (CEEC), Shanghai Construction Group (SCG), Bouygues Group, Skanska AB, Bechtel Corporation, Hochtief AG, Obayashi Corporation, Balfour Beatty plc., and others. These companies are adopting strategies such as investment, innovation, and business expansion across various regions to maintain their dominance in the sector. 

The global construction industry is evolving significantly, with key players embracing innovative strategies to address rising demands, technological advancements, and sustainability goals. A prominent trend is the adoption of green building practices and advanced technologies to reduce environmental impact and enhance project efficiency. For instance, Visionary megaprojects like NEOM in Saudi Arabia are expected to become the first hyper-connected cognitive community in the world. The project will have a very strong focus on technology, biomedical, and education, creating an opportunity of unprecedented scope for sustainable living, technological innovation, and human progress.

Large-scale infrastructure projects, such as the ambitious Gulf Railway Project with a construction budget of USD 250 billion, are expected to connect six Gulf countries, such as Kuwait, Saudi Arabia, Qatar, the UAE, Oman, and Bahrain, with a 2,177 km rail network. In early 2025, Oberoi Realty initiated development on an 81-acre luxury residential-commercial project in Alibaug, India. These developments reflect the sector’s ongoing focus on urban growth, sustainability, and evolving lifestyle needs.

Digital tools and modular construction are further optimizing efficiency. In late 2024, PT Blink delivered a seven-storey, 56-unit apartment block nicknamed “The Fells” in Brisbane using an integrated off-site manufacturing and digital management approach. This project’s structural frame was fully erected on site in just 11 days, compared to a typical 4–6 week cycle for similar mid-rise concrete projects. It was possible through precision-fabricated modular units and real-time digital coordination. Despite these advancements, challenges such as high material costs, labour shortages, and integrating new technologies into traditional workflows remain. However, companies that adapt to these trends are well-positioned to lead the construction market growth.

Key Insights from the Construction Market Report:

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

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

• The report provides a competitive analysis of the key players along with their respective positions in the construction market share.