North America Construction Market Size
|CAGR:||> 4.75 %|
*Disclaimer: Major Players sorted in no particular order
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North America Construction Market Analysis
The size of the North America Construction market is USD 2.21 Trillion in the current year and is anticipated to register a CAGR of over 4.75% during the forecast period.
- The COVID-19 pandemic has enormously impacted the construction industry in the United States. The building sector in the United States is heavily reliant on supplies of steel, copper, aluminum, stone, and fixtures from other countries, many of which come from China.
- Non-residential construction started declining by 24% in 2020 due to the pandemic. Single-family dwelling starts are expected to rise by 11% in 2020. According to a report, the Canadian construction sector sank in the early stages of the COVID-19 pandemic, with Ontario taking the brunt of the damage, with activity plunging 57%. British Columbia and Ontario dropped to 41% below baseline in the first month of the pandemic, with Ontario falling to 57% in May 2020, while B.C. bounced back with a 7% decline.
- Industrial real estate has shown its strength, especially since the outbreak of the COVID-19 pandemic. This has rapidly accelerated the growth of e-commerce and has driven the demand for distribution space to new heights.
- As reported in June 2021, the US will need to add 330 million sq. ft of warehouse space dedicated to online fulfillment by 2025 to keep pace with the expected uptick in e-commerce sales over the same period. In Canada, demand for warehouse space far outnumbers supply, resulting in a spike in industrial construction.
- Following a 32% rise in online sales in 2020, Canada is expected to require an extra 40 million sq. ft of warehouse space over the next five years to meet demand by 2025. That is more than three times the combined storage capacity available in Canada's three busiest industrial cities: Toronto, Vancouver, and Montreal.
- Manufacturing, mining, and a range of services all include construction as one of their biggest customers. This encompasses all private and government real estate and commercial infrastructure developments in the United States, a primary workforce generator.
- Canada has one of the world's largest economies and is one of the world's wealthiest countries. Construction is the backbone of its economy, responsible for building and maintaining the constructed infrastructure of cities, towns, and communities.
- Over the last decade, infrastructure and construction have seen remarkable growth, with around 50 skyscrapers completed in major cities like Toronto, Vancouver, and Calgary. Infrastructure Canada financed 6,500 projects to develop and maintain thousands of kilometers of expressways and motorways.
- In keeping with its election promises, the Canadian government is likely to increase spending on housing and renewable energy initiatives. The party claimed in its election program that it would spend CAD 2.7 billion (USD 2.1 billion) over the next four years to build or repair 1.4 million affordable housing units and that greenhouse gas emissions would be reduced by 40-45% below 2005 levels by the end of the decade.
North America Construction Industry Segmentation
Construction is the installation, maintenance, and repair of buildings and other stationary structures and 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), by Sector (Commercial Construction, Residential Construction, Industrial Construction, Infrastructure (Transportation) Construction, and Energy and Utilities Construction), and by Construction Type (Additions and Demolition and New Construction). The report offers market size and forecasts for the North American Construction Market in value (USD billion) for all the above segments.
|Infrastructure (Transportation) Construction|
|Energy and Utilities Construction|
|By Construction Type|
|Demolition and New Constructions|
North America Construction Market Trends
This section covers the major market trends shaping the North America Construction Market according to our research experts:
Infrastructure Projects Driving the Market
The USD 20 trillion US economy relies on a vast infrastructure network from roads and bridges to freight rail and ports to electrical grids and internet provision. In July 2021, the Secretary of the United States Department of Transportation (USDOT) announced that the Infrastructure for Rebuilding America (INFRA) program would distribute USD 905.25 million in discretionary grants to 24 projects in 18 states.
The Los Angeles County Metropolitan Transportation Authority will receive USD 30.0 million in grant funding to construct a series of modifications to improve traffic flow in the 1.3-mile confluence area between the SR-57 and SR-60 highways in Los Angeles County.
The Georgia Ports Authority will receive USD 46.8 million to build a new inland container port in an unincorporated section of Gainesville along the I-85/I-985 corridor, which will be connected to the Port of Savannah through a direct 324-mile intermodal freight train service.
The Canadian government's intention (announced in February 2021) to invest CAD 14.9 billion (USD 12 billion) in public transportation projects over the next eight years will promote long-term output in the Canadian construction industry.
A new "COVID-19 Resilience" funding stream has been developed by the Government of Canada's Investing in Canada Infrastructure Program (ICIP) to support the pandemic response and economic recovery in collaboration with provinces and territories.
The combined federal-provincial financing is partly given through an allocation-based mechanism with a defined Local Government Intake in Ontario. A total of CAD 20.1 million (USD 15.77 billion) has been shown to the City of Ottawa.
A widely anticipated building project along the Trans-Canada Highway near the B.C.-Alberta border has begun, as reported in April 2021. The project will see a 4.8-kilometer stretch of highway in Kicking Horse Canyon near Golden restored to modern standards.
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Growth in Residential Construction Driving the Market
Since the third quarter of 2020, the residential construction sector has been the star performer in the US economic recovery from the COVID-19 crisis, generating double-digit growth rates and making significant contributions to the economy and overall construction industry's recovery.
Limited mortgage rates, robust demand for larger living spaces, and a meager housing inventory in the market continue to boost the sector. Home renovation, in addition to home construction, is a significant aspect of residential construction.
By 2023, the yearly value of residential building upgrades in the United States is expected to exceed USD 205 billion. More than 330,000 new rental units are scheduled to be supplied nationwide, comparable to the previous four years of a construction boom. Eight metros are expected to set five-year highs in new apartment deliveries, despite the pandemic's hurdles.
The continued expansion of the new home market implies that new homes are still being built, but mostly in locations where the market moves quickly. New York, Pennsylvania, and New Orleans are examples of this.
In March 2021, Canada's average home selling price increased by 31.6% Y-o-Y, setting a new high as sales rose to an all-time high. During the pandemic, record-low loan rates and a desire for greater room fueled demand for detached homes in smaller communities.
According to the Conference Board of Canada, low mortgage rates and strong population growth drive high home construction demand. In March 2021, residential construction investment climbed for 11 months, rising 7.6% to CAD 14.0 billion (USD 10.99 billion).
In the first quarter of 2021, total building construction investment increased by 9.3% to CAD 53.1 billion (USD 41.67 billion), owing to ongoing strength in the residential sector (+12.4%). Increased spending on single units in Ontario (+21.8%) and Quebec (+24.9%) boosted residential building investment to CAD 39.5 billion (USD 30 billion).
Following a 6.0% drop in the previous quarter, non-residential investment increased by 1.1% to CAD 13.6 billion (USD 10.2 billion) in the first quarter of 2021.
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North America Construction Industry Overview
The North American construction market is less competitive, with major international players occupying a significant market share and leaving less scope for other small and medium-scale players. The North American construction market presents opportunities for growth during the forecast period, which is expected to drive market competition further. The growing infrastructure and construction investments in the region's large economies create ample opportunities for the other players. With a few players holding a significant share, the North American construction market has a detectable level of consolidation.
North America Construction Market Leaders
D. R. Horton Inc.
Hochteif USA Inc.
Hensel Phelps Construction Co.
*Disclaimer: Major Players sorted in no particular order
North America Construction Market News
- October 2022 - Skanska signed a contract with the Wake County Public School System to build a new middle school in Fuquay-Varina, North Carolina, United States. The contract value is USD 78 million, approximately SEK 770 million (USD 74.83 million), and will be included in the US order for the third quarter of 2022. The final phase of the multi-phase deal provides for the construction of a 74,000-square-foot middle school with an outdoor exercise facility, two full-scale gymnasiums, classrooms including science and art rooms, a theater, and a media center and dining room.
- September 2022 - Toll Brothers, a leading US luxury real estate developer, announced its newest luxury single-family residential development, Enclave at Baxley, in the Charlotte area. Located in charming Weddington, Enclave at Baxley comprises just 35 luxury properties with spacious floor plans and a range of customization options from Toll Brothers Design Studio. The house design has 4-5 bedrooms, 3.5-5.5 bathrooms, and a 2-3 car garage. Homebuyers can choose from five brand-new home designs ranging from 3,811 square feet to over 5,175 square feet, each built with the exceptional quality, craftsmanship, and value that Toll Brothers is known for.
North America Construction Market Report - Table of Contents
1.1 Study Assumptions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Current Economic and Construction Market Scenario
4.2 Technological Innovations in the Construction Sector
4.3 Impact of Government Regulations and Initiatives on the Industry
4.4 Review and Commentary on the Impact of Heavy Equipment Prices on the Construction Industry
4.5 Comparison of the Key Industry Metrics of North American Countries (Analyst View)
4.6 Comparison of Construction Cost Metrics of North American Countries (Analyst View)
4.7 Impact of COVID-19 on the Market
5. MARKET DYNAMICS
5.1 Market Drivers
5.2 Market Restraints
5.3 Market Opportunities
5.4 Industry Attractiveness- Porter's Five Forces Analysis
5.4.1 Threat of New Entrants
5.4.2 Bargaining Power of Buyers/Consumers
5.4.3 Bargaining Power of Suppliers
5.4.4 Threat of Substitute Products
5.4.5 Intensity of Competitive Rivalry
6. MARKET SEGMENTATION
6.1 By Country
6.1.2 United States
6.2 By Sector
6.2.1 Commercial Construction
6.2.2 Residential Construction
6.2.3 Industrial Construction
6.2.4 Infrastructure (Transportation) Construction
6.2.5 Energy and Utilities Construction
6.3 By Construction Type
6.3.2 Demolition and New Constructions
7. COMPETITIVE LANDSCAPE
*List Not Exhaustive
7.1 Market Concentration Overview
7.2 Company Profiles
7.2.1 Lennar Corporation
7.2.2 D. R. Horton Inc.
7.2.3 Kiewit Corporation
7.2.4 Hochteif USA Inc.
7.2.5 Hensel Phelps Construction Co.
7.2.6 Tutor Perini Corporation
7.2.7 PulteGroup Inc.
7.2.8 The Whiting-Turner Contracting Company
7.2.9 Toll Brothers Inc.
7.2.10 NVR Inc.
7.2.11 Graham Income Trust
7.2.12 PCL Construction Group Inc.
7.2.13 SNC-Lavalin Construction Inc.
7.2.14 Aecon Group Inc.
7.2.15 Kajima U.S.A. Inc.*
8. INVESTMENT ANALYSIS
9. FUTURE OF THE MARKET
North America Construction Market Research FAQs
What is the study period of this market?
The North America Construction Market is studied from 2019 - 2028.
What is the growth rate of North America Construction Market?
The North America Construction Market is growing at a CAGR of >4.75% over the next 5 years.
Who are the key players in North America Construction Market?
Lennar Corporation, D. R. Horton Inc., Kiewit Corporation, Hochteif USA Inc., Hensel Phelps Construction Co. are the major companies operating in North America Construction Market.
North America Construction Industry Report
Statistics for the 2023 North America Construction market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. North America Construction analysis includes a market forecast outlook to 2028 and historical overview. Get a sample of this industry analysis as a free report PDF download.