Global Construction Market Set for a US$ 17.1 Billion Boom by 2031 – What’s Driving the Surge? Key Role of Infrastructure Investments & Tech Advancements | Transparency Market Research

The booming global construction market is set to hit US$ 17.1 Billion by the end of 2031, driven by urbanization, infrastructure investments, and tech innovations. Asia-Pacific leads with large-scale projects, while key players expand through digital transformation and sustainability trends like green construction and smart cities.

/EIN News/ -- Wilmington, Delaware, Transparency Market Research Inc., Feb. 06, 2025 (GLOBE NEWSWIRE) -- The global construction industry (صناعة البناء والتشييد) is on a robust growth trajectory, with market was valued at US$ 12.1 Billion in 2022, representing a compound annual growth rate (CAGR) of 4.5%. It is estimated to reach US$ 17.1 Billion by the end of 2031. This substantial expansion is attributed to heightened infrastructure development, rapid urbanization, and the integration of innovative technologies across various regions.

The Asia-Pacific (APAC) region is the frontrunner in this growth, capturing a dominant 40% share of the global construction market. This region is benefiting from massive investments in infrastructure, residential projects, and the rapid development of emerging economies like China and India.

In tandem with these developments, the North American and European regions are also contributing robustly to the growth story. Specifically, the U.S. has seen a surge in demand for construction services, fueled by the $1.2 trillion infrastructure bill passed in 2021, which allocated substantial funds for public infrastructure projects.

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Key Companies-

Prominent companies in the global construction market include Actividades de Construcción y Servicios, Bechtel, Bouygues, ACO Industries k.s., China Communications Construction Company, Larsen & Toubro, PowerChina, Skanska, STRABAG, TechnipFMC, and Vinci.

These industry leaders are focusing on strategic initiatives such as mergers and acquisitions, technological advancements, sustainability-driven construction practices, and large-scale infrastructure projects to strengthen their market position.

Recent Developments -

1. Eiffage (2024): Reported a 4.6% increase in third-quarter revenue, reaching €5.89 billion, and secured major contracts, including the Lyon-Turin rail tunnel project. The company also highlighted the potential impact of a proposed tax surcharge, which could reduce net profit by €135 million if implemented.
2. JCB (2023): Distributed a £300 million dividend to the Bamford family, the largest in a decade, following a 44% rise in pre-tax profits to £805.8 million and a 12.3% turnover growth to £6.4 billion.

What’s Driving the Surge?

Several interconnected factors are catalyzing the surge in global construction market growth:

1. Increased Infrastructure Investments: Infrastructure development remains a critical driver of growth. Governments worldwide are allocating funds for roads, bridges, airports, and utilities, essential for stimulating economic activity and supporting long-term growth. A particular focus is placed on smart infrastructure, including smart grids, traffic management, and green building projects, which are reshaping urban landscapes.
   
   
2. Technological Advancements: The integration of new technologies such as Building Information Modeling (BIM), 3D printing, and artificial intelligence (AI) is driving innovation in construction. These technologies allow for cost-efficient project management, precision design, and reduced material wastage, enhancing overall project timelines and execution. For instance, AI algorithms and machine learning tools are enabling real-time data analysis, improving construction safety, and facilitating predictive maintenance.
   
   
3. Urbanization and Smart Cities: With more than half of the global population residing in urban areas, the push for urbanization has never been more critical. In regions like Asia and Africa, rapid urban migration is fueling the development of cities with more sustainable infrastructure. Smart city initiatives, integrating digital technologies into infrastructure to improve energy efficiency and quality of life, are gaining momentum globally.
   
   
4. Sustainability and Green Construction: There’s a growing emphasis on eco-friendly construction practices. As global awareness of climate change and resource scarcity rises, there’s an increased demand for green buildings. Sustainable practices, such as using eco-friendly materials, employing energy-efficient designs, and reducing carbon footprints, are now integral to the planning, design, and execution of construction projects.

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Prominent Industry Players Driving Growth

Several global companies are playing pivotal roles in driving the construction market's evolution. These industry leaders are actively participating in large-scale projects, leveraging new technologies, and pursuing strategies to expand their market share.

1. Bechtel: A global leader in engineering and construction, Bechtel has a strong presence in infrastructure projects such as energy, transportation, and public sector works. The company’s experience and use of digital tools position it well in the current growth phase.
   
   
2. Vinci: Based in France, Vinci is a major player in construction and concessions, managing large projects across transportation, energy, and building industries. The company has been making strides in smart city development and green construction, with innovative approaches to infrastructure.
   
   
3. China Communications Construction Company (CCCC): As one of China’s largest construction companies, CCCC is playing an instrumental role in both domestic and international infrastructure development, particularly in rail, ports, and large-scale civil engineering projects.
   
   
4. Larsen & Toubro: India’s largest infrastructure development company, Larsen & Toubro, is involved in multiple residential, commercial, and public infrastructure projects. The company is also expanding its footprint in the sustainable building domain.
   
   
5. Skanska: Known for its focus on green building, Skanska has positioned itself as a leader in sustainability, being at the forefront of LEED-certified construction projects worldwide.

Emerging Trends in the Global Construction Market

Several key trends are shaping the future of construction. These trends are not only helping the industry evolve but are also creating exciting growth opportunities.

1. Green Construction: Sustainability is becoming a central theme in construction, with a focus on eco-friendly materials, energy-efficient designs, and waste reduction. According to a report by Transparency Market Research, green construction is expected to dominate future projects, particularly in North America and Europe.
   
   
2. Technological Integration: The rise of automation and robotics in construction is revolutionizing the industry. Robots are being used for bricklaying, demolition, and 3D printing construction, which improves efficiency and reduces labor costs. The integration of AI and machine learning is also transforming the way projects are planned and managed, with predictive analytics ensuring better project outcomes.
   
   
3. Modular and Prefabricated Construction: In response to labor shortages and the increasing need for faster, cost-effective building solutions, modular and prefabricated construction is gaining traction. This technique is especially popular in the residential sector, where components are manufactured offsite and assembled on-site.
   
   
4. Smart Cities: Urbanization is a powerful trend driving the development of smart cities. These cities leverage IoT, big data, and advanced communication systems to optimize everything from traffic management to waste disposal, creating more efficient and livable urban environments.
   
   
5. 3D Printing: The use of 3D printing in construction is also on the rise, enabling the creation of complex structures with minimal waste and reduced construction time. 3D-printed houses are now a reality, providing an affordable alternative to traditional construction methods.

Regional Insights

• Asia-Pacific (APAC): As the largest region for construction market share, APAC continues to lead with its rapid urbanization and infrastructure development. Key players like China and India are heavily investing in transportation, energy, and residential projects, with the government of India focusing on creating 100 smart cities as part of its vision for sustainable urban growth.
  
  
• North America: With the passing of the $1.2 trillion infrastructure bill in the U.S., North America is expected to see significant growth. Investments in public infrastructure projects, alongside the growing demand for sustainable buildings, will propel the region’s growth in the coming years. Additionally, Canada is investing in green building initiatives, such as net-zero buildings and energy-efficient commercial spaces.
  
  
• Europe: Europe is undergoing a transition toward more sustainable and smart cities. The EU has set ambitious goals for carbon-neutral buildings, and countries like Germany and France are leading the way with government-backed initiatives to enhance green construction practices.

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Growth Projections and Market Scope

The global construction market’s future looks promising, with projections indicating continued growth across all regions. The Asia-Pacific region is set to remain the largest player, fueled by increasing urbanization, infrastructure projects, and large-scale residential developments. North America and Europe are also expected to grow steadily, with the U.S. driving growth through its infrastructure investment initiatives.

To provide deeper insights into the market landscape, here are some key questions and answers related to the growth, drivers, and leading segments of the construction industry.

Q: What is the projected size of the global construction market by 2022?

A: The global construction market is expected to reach US$ 12.1 Bn in 2022.

Q: Which region holds the largest share in the construction market?

A: The Asia-Pacific (APAC) region holds the largest share, accounting for approximately 40% of the global construction market. 

Q: What are the key factors driving growth in the construction industry?

A: Key drivers include increased infrastructure investments, rapid urbanization, technological advancements, and government initiatives promoting sustainable development.

Q: Who are the leading companies in the global construction market?

A: Leading companies include Bechtel, Bouygues, ACO Industries k.s., China Communications Construction Company, Larsen and Toubro, PowerChina, Skanska, STRABAG, TechnipFMC, and Vinci .

Q5: What are the emerging trends in the construction industry?

A5: Emerging trends in the construction industry include green building, smart cities, modular construction, AI and automation, 3D printing, BIM technology, and advanced construction materials.

Future Outlook

The global construction market is poised to reach new heights in the coming decade, with the continued focus on sustainability, technological advancements, and infrastructure development.

As regions like Asia-Pacific, North America, and Europe implement key projects, the industry will experience a paradigm shift, with smart cities, green construction, and technological integration shaping the future of urban living.

Companies that adapt to these trends by incorporating sustainability and advanced technologies will be the leaders in the market’s evolution.

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