North America Construction Market Size (2024 - 2029)

North America Construction Market Analysis

The North America Construction Market size is estimated at USD 2.46 trillion in 2024, and is expected to reach USD 3.11 trillion by 2029, growing at a CAGR of 4.82% during the forecast period (2024-2029).

• In 2023, the North American construction sector showcased resilience against a challenging backdrop of high interest rates, limited credit availability, and concerns over a potential financing crunch following US banking failures. Mexico emerged as the frontrunner, witnessing a notable surge primarily driven by heightened public infrastructure spending in anticipation of the Presidential election. Despite soaring mortgage rates in the United States, the scarcity of existing homes for sale bolstered demand for new homes. Government initiatives encouraging the return of manufacturing activities have propelled non-residential construction, outpacing the growth in residential construction.
• However, Canada faced a setback, with housing starts declining, primarily due to a slump in single-family home construction. On the other hand, non-residential construction gained momentum, buoyed by robust investments in industrial and institutional projects. Yet, the commercial segment, encompassing offices and retail, which constitutes half of the non-residential sector, witnessed a dip, currently down by approximately 3.5% YoY.
• The housing shortage is a big challenge in the United States. The National Association of Home Builders (NAHB) projects a 4.7% rise in single-family housing starts in the United States in 2024, followed by a further 4.2% uptick in 2025. These growth rates are expected to push the annual housing starts to a robust 1.3 million units by 2025. Despite facing headwinds, builders in the housing sector stand firm in their optimism, driven by a surge in consumer demand. A staggering 80% of builders are poised to commence construction on a greater number of homes this year. In addition, 51% of the builders anticipate a growth rate of over 10% in housing starts, surpassing the figures from 2023.
• For instance, in March 2023, The Governor and Mayor of New York City jointly launched the "Future Housing Initiative," a strategic collaboration that allocated USD 15 million to expedite the construction of 3,000 energy-efficient and all-electric affordable homes. This initiative marks a significant stride toward the targets set in the state's Climate Leadership and Community Protection Act, which aims to slash greenhouse gas emissions by 85% by 2050 and ensure that 35-40% of clean energy benefits reach underprivileged communities. The initiative aligns with New York City's green building objectives outlined in Local Law 97.

North America Construction Industry Segmentation

Construction is the installation, maintenance, and repair of buildings and other stationary structures. It includes the construction of roadways and service facilities that form fundamental components of structures and are required for their operation. Construction encompasses the processes involved in constructing buildings, infrastructure, industrial facilities, and related operations from start to finish.

The North American construction market is segmented by country (Canada and the United States), sector (commercial construction, residential construction, industrial construction, infrastructure (transportation) construction, and energy and utilities construction), and construction type (additions and demolition and new construction). The report offers market size and forecasts in value (USD) for all the above segments.