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 $1.9 Trillion in 2024; Set to Reach About $2.92 Trillion by 2034
A market analysis report shows the United States construction industry reached approximately USD 1.90 trillion in 2024 and is forecast to grow to about USD 2.92 trillion by 2034. The estimate is based on a projected compound annual growth rate of 4.40% from 2025 through 2034. The largest near-term drivers are sustained public and private investments in infrastructure, accelerated modernization of ageing systems, and rising commercial development linked to manufacturing and retail expansion.
Why the market is expanding
The growth outlook is anchored in broad public infrastructure initiatives and higher private spending. Federal and state programs are increasing funding to upgrade highways, bridges, freight rail, ports, electrical grids and broadband access. These infrastructure flows are paired with new manufacturing investments, particularly for electronics and components, and with increased activity in commercial construction such as offices, manufacturing plants, medical centers and shopping centers. Additions — work that expands or enhances existing structures — are expected to take a major portion of market share in the coming years.
Technology and sustainability shaping the sector
Rapid adoption of technology and a push for energy efficiency are changing how projects are planned and executed. Tools such as artificial intelligence (AI), Building Information Modeling (BIM), 3D printing, augmented reality and IoT-enabled systems are increasingly used to boost productivity, cut errors, and improve coordination among architects, engineers, contractors and tradespeople. Smart buildings that integrate IoT for HVAC, lighting and security are anticipated to drive demand, especially as owners and regulators press for lower energy use and better operational data.
Equipment and digitalization trends
The North American construction equipment market is also expanding, reaching roughly USD 22.11 billion in 2024 and expected to rise to about USD 26.92 billion by 2030 at a ~3.34% CAGR. Telematics, machine-control systems and predictive maintenance tools are becoming standard on larger projects. Electric and hybrid powertrains, influenced by renewable-energy growth and emissions rules, are gaining traction for urban and noise-sensitive jobs. Equipment rental revenues and digital tools that enable remote monitoring and automation are supporting faster, safer site operations and helping contractors manage costs.
Labor and capacity constraints
A major constraint for the industry remains workforce capacity. The sector faces significant shortages of skilled workers, with hundreds of thousands of open positions reported in early 2025. Estimates indicate a need for roughly 439,000 net new workers in 2025 alone to meet demand. The average worker age also points to a near-term retention issue as a large share of the workforce approaches retirement. These shortages increase wage pressure, risk schedule delays, and can raise overall project costs.
Segments to watch
Commercial construction is expected to post significant gains, driven by the expansion of private firms and retail activity in growing regions and by a rising appetite for green-certified buildings. Residential, industrial, and energy & utilities remain important end uses, but commercial work — including manufacturing facilities and data centers — is singled out for faster growth through the forecast period. Additions and renovations are expected to remain a large part of total spend as owners update older assets and pursue efficiency gains.
Major industry players and competitive landscape
Leading firms across the sector include long-standing general contractors, large residential builders and heavy civil companies that specialize in highways, bridges and energy projects. The market analysis profiles multiple national and regional companies and includes strategic activity such as mergers, acquisitions, investments and expansion plans. The competitive review also applies tools like SWOT and Porter’s Five Forces to assess supplier and buyer dynamics, entry threats and rivalry intensity.
Other notable trends and innovations
Prefabrication and modular construction, BIM and VDC, robotics and autonomous equipment, and the growth of construction 3D printing are changing delivery methods and cost structures. Digital construction tools are linked to time and cost reductions: BIM and related platforms are widely cited for cutting timelines and rework. Sustainability efforts — including lower-embodied-carbon materials, electric equipment and circular waste practices — are increasingly integral to project planning and procurement.
Outlook
Overall, the construction sector in the United States is positioned for steady growth over the next decade, supported by infrastructure funding, rising commercial investment, and continued technology adoption. Key risks include labor shortages, volatile material prices, and the capital commitments needed to meet emissions and safety standards. Firms that invest in digital tools, workforce development and low-carbon solutions are likely to be better placed to capture the expected market gains.
FAQ
What is the current size of the U.S. construction market?
The U.S. construction market reached about USD 1.90 trillion in 2024.
How fast is the market expected to grow?
The market is forecast to grow at a compound annual growth rate of approximately 4.40% between 2025 and 2034, reaching around USD 2.92 trillion by 2034.
Which segments are driving growth?
Key drivers include infrastructure upgrades, growth in commercial construction (including manufacturing and data centers), and work on additions and renovations to existing structures.
What technology trends matter most?
Artificial intelligence, BIM and other virtual design and construction tools, 3D printing, IoT integration for smart buildings, robotics and autonomous equipment are among the top trends improving productivity and cutting errors.
Is labor a problem for the industry?
Yes. There is a significant skilled labor shortage, with estimates showing hundreds of thousands of open positions and a need for many more workers to meet demand.
Key Features at a Glance
| Feature | Detail |
|---|---|
| Market size (2024) | Approximately USD 1.90 trillion |
| Forecast (2034) | Around USD 2.92 trillion |
| Forecast CAGR (2025–2034) | 4.40% |
| Primary growth drivers | Infrastructure investment, commercial development, modernization, smart buildings |
| Major tech trends | AI, BIM, 3D printing, AR, IoT, robotics |
| Equipment market (NA) | USD 22.11B (2024) → USD 26.92B (2030); CAGR ~3.34% |
| Key challenge | Skilled labor shortage and volatile materials costs |
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 CA News
CALIFORNIA STAFF WRITER The CALIFORNIA STAFF WRITER represents the experienced team at constructioncanews.com, your go-to source for actionable local news and information in California 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 Rose Parade, Coachella, Comic-Con, and the California State Fair. Our coverage extends to key organizations like the California Building Industry Association and Associated General Contractors of California, plus leading businesses in technology and entertainment that power the local economy such as Apple and Alphabet. As part of the broader network, including constructionnynews.com, constructiontxnews.com, and constructionflnews.com, we provide comprehensive, credible insights into the dynamic landscape across multiple states.
