Building Construction

Demand for new housing and commercial real estate has generally kept growing in recent years, but supply struggles to keep up. Not only can construction space be scarce in the largest cities, but during the past years there have also been material and staff shortages, while more recently, inflation has kept material prices high. The increasing global awareness of climate changes has fostered some change in the industry, including the growth of the green building construction segment. However, those new trends and challenges have not hampered the growth of the construction industry.

Market size

What determines the size of the construction industry?

Projected value of green building materials market worldwide for 2018 and 2022, with forecasts until 2033 (in billion U.S. dollars)

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Further details: Visit original statistic Projected value of green building materials market worldwide for 2018 and 2022, with forecasts until 2033 (in billion U.S. dollars)

The United States, as one of the largest economies in the world, has an equivalently large building construction industry. Its residential segment alone is expected to reach a value of over one trillion U.S. dollars before the end of the decade. On the supply side, rising construction costs could have a negative impact on the revenue of that segment. However, the development of this industry also depends heavily on the real estate market, which signals demand for housing and other buildings.

U.S. non-residential construction forecast
Residential construction in Australia
Housing repair sector in the UK

Market segments

How much does it cost to construct an industrial facility?

Average industrial buildings construction cost in the United Kingdom (UK) as of 2023, by selected cities (in GBP per square meter)

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Further details: Visit original statistic Average industrial buildings construction cost in the United Kingdom (UK) as of 2023, by selected cities (in GBP per square meter)

The construction cost of an industrial building can vary significantly from city to city. These differences depend on several factors, like the price of land, the availability and price of materials, or the average salary. However, other developments can also affect these costs. During the early years of the COVID-19 pandemic, there was an increased demand for logistics which brought more attention to warehouse construction. More recently, inflation has had increased the cost of materials.

Industrial construction costs in the Philippines
Building construction costs in Ontario
Warehouse construction costs in the U.S.

Industry trends

What is the market size of the green building market?

Projected value of green building materials market worldwide for 2018 and 2022, with forecasts until 2033 (in billion U.S. dollars)

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Further details: Visit original statistic Projected value of green building materials market worldwide for 2018 and 2022, with forecasts until 2033 (in billion U.S. dollars)

The demand for structures with low greenhouse gas emissions – ideally both during as well after its construction – increased as climate change concerns grew. Whilst there is no unified global approach to how to best construct this type of building, it is believed its market size would more than double in six years’ time. In addition to having a smaller carbon footprint, green buildings also help reduce operational and maintenance costs.

Housing energy efficiency in England and Wales
Green buildings investment Germany
LEED surface area in the U.S. states

Industry leaders

Who are the largest home builders?

Leading home builders in the United States in 2022, by gross revenue (in billion U.S. dollars)

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Further details: Visit original statistic Leading home builders in the United States in 2022, by gross revenue (in billion U.S. dollars)

The home construction segment plays a big role in most countries, but its structure can vary from region to region. In the U.S., for instance, construction companies like Lennar Corp and D.R. Horton are specialized in the construction of residential property. This is unlike Europe, though, where residential is but one part found within a larger company. France’s Vinci – Europe’s largest construction company – has several construction activities within several branches, not just residential.

Biggest housing construction companies in Japan
Biggest residential building construction companies in Colombia
Largest UK builders' merchants

Unique aspect of the industry

What is the impact of climate change on the HVAC industry?

Annual sales of heat pumps in Europe in 2020 with forecasts until 2022, by type (in 1,000s)

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Further details: Visit original statistic Annual sales of heat pumps in Europe in 2020 with forecasts until 2022, by type (in 1,000s)

(changes in red) The heating, ventilation, and air conditioning (HVAC) market has become increasingly relevant in the past years. Increasing global temperatures are a driver of this development, alongside an increasing demand for this kind of equipment. Some countries, such as China, the U.S. or Italy, already use these systems extensively. Others could follow soon, the German HVAC market, for example, has grown significantly in the last decade.

HVAC revenue in Germany
HVAC establishments in the U.S.
Biggest providers of refrigerated warehousing in Latin America

State of the industry

  • Residential construction in the United States
  • Green and energy-efficient buildings in the United States
  • Construction industry in the GCC
  • Construction industry in China
  • Construction industry in Australia
  • Construction industry in India
  • Construction industry in New Zealand
  • Construction industry in Latin America
  • Construction industry in Japan
  • Construction industry in the United Kingdom (UK)
  • Construction industry in Europe

Industry Definition

The section Building Construction covers everything that impacts the process of adding structures to plots of land – such as residential and non-residential buildings (a category which includes commercial and industrial ones). This includes some other topics such as construction starts, building permits, green buildings, and HVAC&R – heating, ventilation, air conditioning and refrigeration.

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