North America Construction Market Size

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).

• The COVID-19 pandemic enormously impacted the construction industry in North America. 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.
• Industrial real estate has shown its strength, especially since the outbreak of the COVID-19 pandemic. This rapidly accelerated the growth of e-commerce and drove the demand for distribution space to new heights. As reported in June 2021, the US needed 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 was 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. While the larger construction sector in the United States is projected to remain under macroeconomic pressure, increased government expenditure on infrastructure projects will likely continue to benefit the industry in the near to medium term. The Federal Highway Administration (FHWA) announced an expenditure of USD 2.1 billion in bridge infrastructure upgrades in January 2023. The USD 2.1 billion initiative is part of the national government's substantial committed investment for repairing highway bridges across the country.
• 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.