Global construction market trends

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Trends, growth drivers, challenges, economic forecasts and selected analysis for the global construction market come under the spotlight in the December 2025/January 2026 issue of ISMR.

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“The global building construction market is undergoing a significant transformation, with a shift in focus to sustainability and green building practices that prioritise eco-friendly approaches and energy efficiency throughout the value chain. Several new and advanced buildings now incorporate renewable energy and adopt sustainable strategies, such as using green insulation and environmentally friendly materials as part of the building design. Moreover, green building certifications are in place to promote green technologies, while smart building platforms enable better energy monitoring and control systems,” said analyst, Frost and Sullivan.

“However, the U.S.-China geopolitical tension presents a key challenge with trade wars likely to create supply chain disruptions, which could drive up costs and impact the development of construction projects. Nevertheless, as the building construction value chain continues to evolve, emerging start-ups are providing digital solutions that facilitate more efficient and sustainable project execution, thereby reducing project durations and costs,” it continued.

“Digital solutions are helping construction companies to streamline their processes by integrating design work with procurement activities and construction execution. Data analytics tools are enabling businesses in the construction sector to better manage their building material consumption, potentially supporting their goal of reducing their carbon footprint in the market,” it added.

Long-term market forecast

The global construction market size has grown steadily in recent years. According to a recent report by analyst ResearchandMarkets.com, the market will grow from US$ 15.78 trillion in 2024 to US$ 16.45 trillion in 2025 at a compound annual growth rate (CAGR) of 4.3%.

“Growth in the historic period can be attributed to increasing infrastructure development, the increase in renovation activities, rapid growth in the elderly population and the rise in domestic manufacturing. Asia-Pacific was the largest region in the construction market in 2024. North America was the second-largest region in the construction market,” said the analyst.

It expects the global construction market to see strong growth in the next few years, citing growth to US$ 20.44 trillion in 2029 at a compound annual growth rate (CAGR) of 5.6%. The growth in the forecast period can be attributed to rising urbanisation, population growth, increasing government support, rising industrialisation and an increase in smart cities.

To read the rest of this article in the December 2025/January 2026 issue of ISMR, see https://joom.ag/X3Ed/p24