United States, September 2, 2025
News Summary
The US construction market is valued at approximately USD 1.90 trillion and is forecast to reach about USD 2.92 trillion over the coming decade, driven by large-scale infrastructure investment, commercial development, and manufacturing expansion. Rapid adoption of digital and automated technologies — including AI, BIM, 3D printing, AR, telematics and IoT — is improving schedule reliability, safety and collaboration. Equipment trends favor telematics, machine controls and electrification, while modular and prefabrication methods expand. Persistent skilled labor shortages and commodity volatility remain risks, and sustainability, low-carbon materials and predictive maintenance are shaping future competitiveness.
U.S. Construction Market Nears USD 1.9 Trillion in 2024; Forecast to Reach USD 2.92 Trillion by 2034
The United States construction market reached approximately USD 1.90 trillion in 2024 and is forecast to grow to about USD 2.92 trillion by 2034, expanding at a compound annual growth rate of 4.40% between 2025 and 2034. Growth is being driven primarily by widespread infrastructure upgrading, increased private-sector commercial development, and rising investment in manufacturing and smart buildings.
Key figures at a glance
- Market size (2024): ~USD 1.90 trillion
- Projected market (2034): ~USD 2.92 trillion
- Forecast CAGR (2025–2034): 4.40%
- Total construction spending (Apr 2025): USD 2.07 trillion annualized (seasonally adjusted)
- North America construction equipment market (2024): USD 22.11 billion; expected USD 26.92 billion by 2030 (CAGR 3.34%)
Why the market is expanding
Public and private investment in upgrades to roads, bridges, freight rail, ports, electrical grids, and internet provision is a core growth engine. Government initiatives prioritizing modernising ageing infrastructure and supporting large-scale capital projects are a principal factor behind continued spending. At the same time, corporate demand for new and expanded facilities, particularly in manufacturing for electronics and data-center related construction, is supporting commercial construction growth.
Major trends reshaping construction
Technology adoption and sustainability are central themes. Rapid uptake of artificial intelligence (AI), building information modelling (BIM), 3D printing, and augmented reality is being used to boost efficiency, cut errors, and improve on-site collaboration. Software and digital tools such as BIM and construction management platforms are linked to shorter timelines and lower costs in multiple studies, and many firms are adopting an AI strategy at an early stage.
The move toward smart buildings — integrating Internet of Things systems for HVAC, lighting, and security — is expected to increase demand for energy-efficient retrofits and new builds designed to meet green standards. Sustainability mandates and the push for lower-emission fleets are also influencing equipment and materials choices.
Segments to watch
Additions — expanding or enhancing existing structures — are expected to hold a major portion of market share, reflecting the emphasis on upgrading existing assets. Commercial construction is projected to be one of the fastest-growing end-use segments, driven by new offices, manufacturing plants, medical centres, shopping centres, and a stronger presence of private firms in developing regions.
Equipment and machinery outlook
The North America construction equipment market is valued at USD 22.11 billion for 2024 and is expected to reach USD 26.92 billion by 2030. Demand is supported by federal and state infrastructure spending and private investment. Key equipment trends include increasing use of telematics and machine control systems, growth in electric and hybrid machines for urban and low-emission projects, and wider adoption of rental models. Predictive maintenance and digital fleet management are becoming mainstream to reduce downtime and operating costs.
Labor and workforce constraints
Skilled labor shortages remain a serious headwind. The industry faces hundreds of thousands of open roles and estimates call for roughly 439,000 net new workers in 2025 to meet demand. An aging workforce and high retirement rates point to ongoing recruitment and training challenges despite recent increases in trade education enrollment.
Innovation and productivity tools
Robotics, automation, and modular construction are gaining traction. Examples range from autonomous excavators and robotic rebar tiers to large-scale 3D printing for walls and modules. These technologies promise faster timelines, lower labor needs on repetitive tasks, and reductions in waste and safety incidents when implemented at scale.
Market structure and players
The market analysis includes competitive and strategic assessments, with profiles of major firms active across segments. The competitive landscape covers mergers, acquisitions, investments, and expansion plans, alongside Porter’s Five Forces and SWOT reviews. Notable large firms operating across U.S. construction sectors are listed in the analysis and include long-established general contractors, homebuilders, and engineering giants that serve public and private clients.
Report scope and resources
The underlying market study provides historical data, regional breakdowns, construction-type and end-use forecasts, and market dynamics. It also includes economic indicators, country risk profiles, and a detailed table of contents covering topics from demand drivers to supplier selection and company strategies.
Practical implications for industry participants
Contractors, suppliers, manufacturers, and policymakers should anticipate continued investment in retrofit projects, steady commercial demand, growing use of digital tools, and pressure to fill skilled roles. Equipment manufacturers will contend with commodity price swings and emissions rules while accelerating electrification and telematics features.
FAQ
What is the current size of the U.S. construction market?
The U.S. construction market reached around USD 1.90 trillion in 2024.
How fast is the market expected to grow?
The market is forecast to grow at a CAGR of 4.40% between 2025 and 2034, reaching about USD 2.92 trillion in 2034.
What are the main drivers of growth?
Main drivers include large-scale infrastructure upgrades, expansion of commercial and manufacturing facilities, and investment in smart and green buildings.
Which segments will see the biggest gains?
Additions and commercial construction are expected to take significant shares of growth, reflecting demand for upgrades and new commercial facilities.
How is technology changing construction?
Wider adoption of AI, BIM, 3D printing, robotics, and IoT is improving planning, reducing errors, shortening schedules, and increasing collaboration across trades.
Is labor a limiting factor?
Yes. The sector faces a large shortage of skilled workers and will need hundreds of thousands of new hires to meet projected demand.
Key features summary
| Feature | Details |
|---|---|
| Market size (2024) | Approximately USD 1.90 trillion |
| Forecast (2034) | Approximately USD 2.92 trillion at 4.40% CAGR (2025–2034) |
| Top growth drivers | Infrastructure upgrades, commercial development, smart buildings, energy efficiency |
| Major trends | AI, BIM, 3D printing, robotics, electrification of equipment, modular construction |
| Equipment market | North America equipment market USD 22.11B in 2024; projected USD 26.92B by 2030 |
| Workforce challenge | Large skilled labor shortage; estimated need of ~439,000 net new workers in 2025 |
| Spending snapshot | Total construction spending annualized USD 2.07T as of April 2025 |
Deeper Dive: News & Info About This Topic
Additional Resources
- ResearchAndMarkets / Business Wire: United States Construction Industry Report 2025–2034
- Wikipedia: Construction industry in the United States
- GlobeNewswire: North America Construction Equipment Industry Report 2025
- Google Search: North America construction equipment market 2025
- JLL: 2025 Construction Perspective — US midyear update
- Google Scholar: JLL 2025 construction perspective
- KVUE: Austin tops list — apartments built in United States (BoomTown 2040)
- Encyclopedia Britannica: Search — Austin apartments BoomTown 2040
- WSMV: Nashville among top US metros — new construction homes report
- Google News: Nashville new construction homes 2025
Author: Construction NY News
NEW YORK STAFF WRITER The NEW YORK STAFF WRITER represents the experienced team at constructionnynews.com, your go-to source for actionable local news and information in New York and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the New York Build Expo, infrastructure breakthroughs, and cutting-edge construction technology showcases. Our coverage extends to key organizations like the Associated General Contractors of New York State and the Building Trades Employers' Association, plus leading businesses in construction and real estate that power the local economy such as Turner Construction Company and CMiC Global. As part of the broader network, including constructioncanews.com, constructiontxnews.com, and constructionflnews.com, we provide comprehensive, credible insights into the dynamic construction landscape across multiple states.
