Groowe Groowe BETA / Newsroom
⏱ News is delayed by 15 minutes. Sign in for real-time access. Sign in

North America Construction Market: Size, Share, Trends, and Growth Forecasts (2026-2031) | Infrastructure and Data Centers Propel Market to USD 5.06 Trillion

globenewswire.com
DHI Mentioned as a key player in the single-family housing market, which is expected to see a modest recovery. The company's performance is tied to housing starts and pricing power in land-constrained areas. LEN Mentioned as a key player in the single-family housing market, which is expected to see a modest recovery. The company's performance is tied to housing starts and pricing power in land-constrained areas. TOL Mentioned as a key player in the single-family housing market, which is expected to see a modest recovery. The company's performance is tied to housing starts and pricing power in land-constrained areas. NVR Mentioned as a key player in the single-family housing market, which is expected to see a modest recovery. The company's performance is tied to housing starts and pricing power in land-constrained areas. GVA Mentioned as a key player in the construction market, particularly in heavy civil projects benefiting from infrastructure stimulus. The company's performance is linked to project backlogs and material demand.

North America Construction Market: Size, Share, Trends, and Growth Forecasts (2026-2031) | Infrastructure and Data Centers Propel Market to USD 5.06 Trillion Dublin, Nov. 02, 2026 (GLOBE NEWSWIRE) -- "North America Construction - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2026-2031)" has been added to ResearchAndMarkets.com's offering.

The North America construction market size is estimated at USD 3.89 trillion in 2026, up from USD 3.69 trillion in 2025. The market is forecast to reach USD 5.06 trillion by 2031, expanding at a 5.42% CAGR during 2026-2031. Growth across the United States, Canada, and Mexico is being supported by infrastructure stimulus, recovering single-family housing activity, data-center development, grid modernization, and demand for sustainable renovation.

Infrastructure Stimulus Strengthens Construction Demand

Federal programs in the United States, including the IIJA, CHIPS and Science Act, and Inflation Reduction Act, are directing substantial funding toward transportation networks, semiconductor facilities, and clean-energy assets. More than 40,000 projects have already been awarded under the IIJA, creating multi-year backlogs for heavy civil contractors and increasing demand for advanced materials, engineering expertise, and digital project controls.

Canada is experiencing a similar expansion, with provinces planning approximately USD 231 billion in major projects, including USD 58 billion supported by public-private partnerships. These investments are expected to maintain pressure on regional construction capacity. Federal spending is also attracting private capital, particularly in semiconductor manufacturing and other strategic industries. Contractors with EPC capabilities and strong compliance reporting systems are positioned to benefit from this sustained project pipeline.

Single-Family Housing Begins a Gradual Recovery

Lower mortgage rates anticipated in 2026 are expected to support a modest recovery in single-family housing starts, which are projected to reach 1.01 million units. A structural housing deficit of approximately 1.5 million units continues to drive demand for new homes as resale inventory remains constrained.

Builders operating in land-constrained metropolitan areas are likely to retain pricing power, while over-supplied markets may experience discounting and margin pressure. Regulatory expenses account for about 24% of closing prices, but improved credit conditions could partially offset these costs. The resilience of single-family construction should provide contractors with stable project volumes as office development remains subdued.

Skilled-Labor Shortages Increase Costs and Project Timelines

Labor availability remains a major constraint for the North America construction market. A projected deficit of 501,000 workers in 2024 contributed to higher overtime expenses, recruitment costs, and subcontractor pricing, particularly across mechanical, electrical, and plumbing trades. More than 20% of the construction workforce is aged 55 or older, increasing the risk of additional labor losses through retirement.

Canada is expected to require another 231,000 craft workers by 2034. Limited crew availability is causing some contractors to decline projects or extend delivery schedules, leading to higher bids and reduced owner contingencies. Apprenticeship incentives may improve labor supply after 2027, but near-term shortages are expected to remain significant.

Infrastructure and Renovation Lead Market Growth

Infrastructure is projected to be the fastest-growing construction sector, registering a 7.67% CAGR, while Residential held the largest market share in 2025. IIJA-funded roads, bridges, and transit projects are creating predictable workstreams for civil contractors. Energy and utility construction is also benefiting from USD 2 billion in grid-hardening spending, battery storage requirements, and USD 2.89 billion in fiscal 2025 federal grants for airport terminals.

Residential construction will continue to depend on the single-family recovery and persistent inventory shortages. The market associated with single-family housing is forecast to grow by 4% in 2026. Commercial construction presents a mixed outlook, with rapid data-center expansion contrasting with delayed office projects caused by elevated vacancy rates. Semiconductor plants, logistics hubs, and near-shoring investments are helping offset weakness in traditional commercial development.

New construction represented 69.35% of market revenue in 2025, but renovation is expected to grow faster through 2031. Aging buildings, carbon-pricing requirements, electrification, smart controls, and resilience upgrades are encouraging owners to improve existing assets. Insurer-mandated wildfire hardening alone represents more than USD 4 billion in annual retrofit opportunities.

Although semiconductor fabs, logistics facilities, and infrastructure projects will keep new construction pipelines elevated, skilled-labor shortages and material price volatility may continue to delay schedules. Integrated design-build capabilities can help larger contractors protect margins, while smaller firms may face cash-flow challenges. Adaptive reuse, vertical extensions, grid-hardening, and micro-grid retrofits are expected to play an increasingly important role in the North America construction market through 2031.

Key Topics Covered

1 Introduction

1.1 Study Assumptions & Market Definition

1.2 Scope of the Study

2 Research Methodology

3 Executive Summary

4 Market Landscape

4.1 Market Overview

4.2 Market Drivers

4.2.1 Expansionary US & Canadian infrastructure stimulus (IIJA, CHIPS, IRA)

4.2.2 Rebound in single-family housing starts on falling mortgage rates

4.2.3 Surging data-center builds powering industrial & utility demand

4.2.4 Grid-hardening & micro-grid retrofits mandated by insurers

4.2.5 Mass-timber & modular methods shortening schedules & lowering CO?

4.2.6 Near-shoring-led industrial corridors along US-CAN-MEX gateways

4.3 Market Restraints

4.3.1 Skilled-labor shortages inflating bid prices

4.3.2 High financing costs for multifamily & office developments

4.3.3 Climate-risk insurance premium volatility

4.3.4 Municipal e-permitting backlogs delaying starts

4.4 Value / Supply-Chain Analysis

4.4.1 Overview

4.4.2 Real Estate Developers and Contractors - Key Quantitative and Qualitative Insights

4.4.3 Architectural and Engineering Companies - Key Quantitative and Qualitative Insights

4.4.4 Building Material and Equipment Companies - Key Quantitative and Qualitative Insights

4.5 Government Initiatives & Vision

4.6 Regulatory Landscape

4.7 Technological Outlook

4.8 Industry Attractiveness - Porter's Five Force Analysis

4.8.1 Bargaining Power of Suppliers

4.8.2 Bargaining Power of Consumers

4.8.3 Threat of New Entrants

4.8.4 Threat of Substitutes

4.8.5 Intensity of Competitive Rivalry

4.9 Pricing (Construction Materials) and Construction Cost (Materials, Labour, Equipment) Analysis

4.10 Comparison of Key Industry Metrics of the United Kingdom with Other Countries

4.11 Key Upcoming/Ongoing Projects (with a focus on Mega Projects)

5 Market Size & Growth Forecasts(Value, In USD Billion)

5.1 By Sector

5.1.1 Residential

5.1.1.1 Apartments/Condominiums

5.1.1.2 Villas/Landed Houses

5.1.2 Commercial

5.1.2.1 Office

5.1.2.2 Retail

5.1.2.3 Industrial and Logistics

5.1.2.4 Others

5.1.3 Infrastructure

5.1.3.1 Transportation Infrastructure (Roadways, Railways, Airways, others)

5.1.3.2 Energy & Utilities

5.1.3.3 Others

5.2 By Construction Type

5.2.1 New Construction

5.2.2 Renovation

5.3 By Construction Method

5.3.1 Conventional On-Site

5.3.2 Modern Methods of Construction (Prefabricated, Modular, etc)

5.4 By Investment Source

5.4.1 Public

5.4.2 Private

5.5 By Geography

5.5.1 United States

5.5.2 Canada

5.5.3 Mexico

6 Competitive Landscape

6.1 Market Concentration

6.2 Strategic Moves

6.3 Market Share Analysis

6.4 Company Profiles (includes Global level Overview, Market level overview, Core Segments, Financials as available, Strategic Information, Products & Services, and Recent Developments)

6.4.1 Bechtel Corporation

6.4.2 Turner Construction Co.

6.4.3 D.R. Horton Inc.

6.4.4 Lennar Corporation

6.4.5 PCL Construction Group Inc.

6.4.6 Kiewit Corporation

6.4.7 Hochtief USA Inc.

6.4.8 The Whiting-Turner Contracting Co.

6.4.9 Hensel Phelps Construction Co.

6.4.10 Tutor Perini Corp.

6.4.11 Toll Brothers Inc.

6.4.12 NVR Inc.

6.4.13 Graham Construction (Canada)

6.4.14 SNC-Lavalin Group Inc.

6.4.15 Aecon Group Inc.

6.4.16 Fluor Corporation

6.4.17 Skanska USA

6.4.18 Clark Construction Group

6.4.19 EllisDon Corp.

6.4.20 Granite Construction Inc.

7 Market Opportunities & Future Outlook

For more information about this report visit https://www.researchandmarkets.com/r/bpb6r1

About ResearchAndMarkets.com

ResearchAndMarkets.com is the world's leading source for international market research reports and market data. We provide you with the latest data on international and regional markets, key industries, the top companies, new products and the latest trends.