Active construction sites and digital technology overlays illustrate market growth, equipment electrification, and smart building trends in the US.
United States, September 2, 2025
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.
Key takeaway: The United States construction market was valued at approximately USD 1.90 trillion in 2024 and is projected to grow at a 4.40% compound annual growth rate from 2025 to 2034, reaching about USD 2.92 trillion by 2034. This outlook reflects a mix of large-scale infrastructure investment, rising commercial building activity, and accelerated technology adoption across the sector.
Primary growth is being driven by a surge in public and private infrastructure projects and a government push to upgrade ageing transportation, energy, and digital networks. Investment is targeting roads, bridges, freight rail, ports, electrical grids, and broadband expansion. At the same time, expansions in manufacturing facilities for electronics and components and rising private-sector commercial development are supporting demand for new and upgraded facilities.
The sector is adopting digital and automated solutions at pace. Key technologies gaining traction include artificial intelligence (AI), building information modeling (BIM), 3D printing, augmented reality, telematics and machine controls for heavy equipment, and IoT systems that enable smart buildings. These technologies aim to improve schedule reliability, reduce costly errors, enhance safety, and boost collaboration between stakeholders.
Digital trends are supported by strong industry indicators: a large share of firms now report AI strategies, VDC/BIM adoption is widespread, and construction management software usage continues to rise. Modular and prefabrication approaches are expanding, notably in healthcare, multifamily, and hospitality applications.
Additions — expansions and upgrades to existing structures — are expected to command a substantial portion of market share in coming years as governments and owners modernize assets. Commercial construction, which covers offices, manufacturing plants, medical centers and shopping centers, is forecast to show significant growth, driven by new private firms and retail expansion in developing states and an increasing share of green buildings.
The North America construction equipment market was valued at USD 22.11 billion in 2024 and is expected to reach USD 26.92 billion by 2030, supported by capital spending on infrastructure and housing. Equipment trends include wider use of telematics, machine control, and electric or hybrid powertrains as sustainability rules and operating-cost pressures push fleets toward lower emissions. Equipment rental revenues are rising, and predictive maintenance is becoming common to cut downtime.
A major constraint is the skilled labor shortage. The industry needs roughly 439,000 net new workers in 2025 to meet demand, and surveys report widespread hiring difficulty. Labor gaps are contributing to project delays and rising costs. Enrollment in trades and training programs is improving, but the demographic trend of an aging workforce remains a medium-term challenge.
Safety technology adoption — from drones and wearables to automated monitoring — is rising, driven by a persistent share of workplace fatalities and the costs of rework. Innovations in low-carbon and bio-based materials, along with attention to embodied carbon, are increasingly important as owners and regulators push for sustainability and lifecycle savings.
A detailed market analysis provides company profiles, competitive dynamics, Porter’s Five Forces and SWOT evaluations, and regional and segment forecasts. Large firms analyzed include longstanding contractors and developers active across residential, commercial and heavy civil markets. The full report covers historical data (2018–2024), a 2025–2034 forecast, and regional breakdowns across U.S. census regions.
Challenges include skilled labor shortages, volatile commodity prices (notably steel and fuel), regulatory compliance costs for low-emission equipment, and supply chain pressures for specialized materials and electronics. Market growth depends on steady public funding, private investment trends, and continued uptake of productivity-enhancing technologies to offset labor constraints.
The market study and related equipment analysis are available for purchase through the report provider’s listing. The research package includes extensive appendices on market drivers, company strategies, regional forecasts, and scenario analysis for industry stakeholders and investors.
The U.S. construction market was about USD 1.90 trillion in 2024 and is forecast to reach roughly USD 2.92 trillion by 2034, growing at an estimated 4.40% CAGR from 2025–2034.
Major drivers include federal and state infrastructure spending, upgrades to ageing networks, new commercial and manufacturing development, green building demand, and the adoption of digital and automated construction technologies.
Additions (expansions and upgrades) and commercial construction are expected to account for significant growth, supported by public upgrades and private-sector expansion, as well as stronger demand for energy-efficient buildings.
Technologies including AI, BIM, 3D printing, drones, and telematics are improving planning, reducing on-site errors, shortening schedules, and supporting safety and equipment efficiency, though adoption levels vary across firms.
Key risks include a persistent skilled labor shortage, commodity price volatility, supply-chain disruptions, and regulatory costs tied to emissions and sustainability standards.
| Feature | Detail |
|---|---|
| Market size (2024) | USD 1.90 trillion |
| Forecast (2034) | USD 2.92 trillion at 4.40% CAGR (2025–2034) |
| Primary growth drivers | Infrastructure upgrades, commercial development, manufacturing expansion, and green building demand |
| Major trends | AI, BIM, 3D printing, AR, IoT-enabled smart buildings, electrification of equipment |
| Equipment market (North America) | USD 22.11 billion (2024); projected USD 26.92 billion by 2030 |
| Workforce challenge | Need for ~439,000 net new workers in 2025; widespread hiring difficulty |
| Segment focus | Additions and Commercial construction expected to hold strong shares |
Source material: market analyses and industry data compiled from a 2025–2025 research package covering U.S. construction market size, segments, trends, and related North America equipment market analysis.
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