Market Size in 2024 | Market Forecast in 2034 | CAGR (in %) | Base Year |
---|---|---|---|
USD 13.44 Billion | USD 29.56 Billion | 8.20% | 2024 |
The global commercial construction market size was worth around USD 13.44 billion in 2024 and is predicted to grow to around USD 29.56 billion by 2034, with a compound annual growth rate (CAGR) of roughly 8.20% between 2025 and 2034.
Commercial construction deals with building or redeveloping existing facilities for purposes other than residential. These buildings are equipped with facilities that cater to the business-related needs of companies and industries.
For instance, widely common forms of commercial construction include developing facilities for corporate horses or shopping malls. Hotels and healthcare buildings are also a part of commercial construction, among other types of non-residential spaces.
Commercial construction generally deals with the development of large-scale facilities built using higher investments compared to residential counterparts. Furthermore, the construction of commercial buildings also requires developers to adhere to stricter regional norms and guidelines.
During the forecast period, investments in commercial construction are likely to witness higher growth as businesses seek modern facilities to house their evolving business needs.
In addition, the healthcare and hospitality segments will emerge as some of the key contributors to increased focus on commercial construction in the coming years. The high cost of investment and changing regulatory framework, along with growing cases of corruption within the industry, will impact final revenue in the market.
Increasing construction of healthcare facilities across the world will drive market revenue
The global commercial construction market is expected to be driven by the increasing construction of healthcare facilities worldwide. The rising rate of patients suffering from mild to severe and rare conditions has put the existing healthcare infrastructure worldwide under tremendous pressure.
According to the World Health Organization (WHO), Africa is registering an extreme shortage of hospital beds and health facilities compared to the number of patients it deals with. The agency recommends two hospitals per 100,000 inhabitants. Similarly, other countries, including developed nations, continue to struggle to provide immediate access to advanced healthcare in case of emergencies. Following current trends, it is estimated that the African continent is witnessing around 5 major hospital construction projects.
One of them is a USD 750 million project located in Abuja, which is Nigeria’s capital. The African Medical Center for Excellence (AMCE), upon completion, will add 500 more beds to the existing healthcare infrastructure of the region.
Other countries, especially developing nations, are also recording higher scales in terms of the development of public and private hospitals with state-of-the-art facilities, paving the way for more commercial construction.
Rising development of energy-efficient buildings to create higher growth scope in the future
One of the latest and fastest-growing trends in the commercial construction sector includes the development of energy-efficient buildings. These facilities are developed keeping in view the changing climate conditions and energy demands of commercial spaces.
A widely popular commercial building worldwide is the Torre Reforma in Mexico, which was recognized with the LEED platinum certification in 2016. The certification is provided to buildings that have extremely high energy efficiency. The global commercial construction market can benefit from such trends.
Middle Eastern countries such as Saudi Arabia and the United Arab Emirates (UAE) have adopted several advantageous technologies and revolutionary trends to promote the construction of green buildings. For instance, the UAE has mandated several new green building mandates for all construction by 2025. The country will invest USD 19 billion for the development of urban projects such as Masdar City.
Higher cost of development acts as a growth barrier in the long run
The global commercial construction industry is expected to be limited by the high cost of development. Commercial projects are built on a large scale and take multiple years to come to reality. The design phase and eventual construction can sometimes take decades and be influenced by several external factors.
Furthermore, resources used in commercial facilities are also required in large quantities, which can be difficult to procure, especially in the backdrop of changing international trade relationships.
Surge in the development of new fulfillment centers and warehouses to create expansion possibilities
The global commercial construction market is expected to generate more growth opportunities due to the surging development of new fulfillment centers worldwide. In October 2024, Stadler Group, a leading Switzerland-based producer of railway rolling stock, announced the development of a new office complex and warehouse in the US as the company is witnessing an increased consumer base in the North American market.
In August 2024, Origis Energy, one of the leading producers of renewable energy platforms in the US, announced an investment of USD 750 million toward the construction of a new warehouse facility. The unit will promote the development of large-scale energy storage and solar projects offering 2 gigawatts (GW) of energy in the next three years. The unprecedented growth in the global e-commerce industry has created a growing demand for warehouses and distribution centers equipped with modern tools to ensure a smooth supply chain of products. As the e-commerce sector grows, the demand for more efficient commercial warehouses will continue to rise.
Challenging regulatory environment and lack of skilled labor to limit market growth
The global commercial construction industry is projected to be challenged by the presence of a complex and changing regulatory environment. Construction codes and guidelines for commercial complexes are more strict, dynamic, and complicated compared to the development of residential facilities. Furthermore, the lack of labor skilled in modern construction trends may further inhibit the growth rate in the industry.
Report Attributes | Report Details |
---|---|
Report Name | Commercial Construction Market |
Market Size in 2024 | USD 13.44 Billion |
Market Forecast in 2034 | USD 29.56 Billion |
Growth Rate | CAGR of 8.20% |
Number of Pages | 214 |
Key Companies Covered | Kier Construction, VINCI, Kraus-Anderson Construction, Morgan Sindall Group, The Whiting-Turner Contracting Company, Clark Construction Group, Turner Construction Company, Grupo ACS, Skanska, Bechtel, Balfour Beatty, Hensel Phelps Construction, ISG Ltd., Bouygues Construction, Laing O'Rourke, and others. |
Segments Covered | By Type, By End-User Industry, and By Region |
Regions Covered | North America, Europe, Asia Pacific (APAC), Latin America, Middle East, and Africa (MEA) |
Base Year | 2024 |
Historical Year | 2019 to 2023 |
Forecast Year | 2025 - 2034 |
Customization Scope | Avail customized purchase options to meet your exact research needs. Request For Customization |
The global commercial construction market is segmented based on type, end-user industry, and region.
Based on the type, the global market segments are hotels, retail spaces, warehouses, office buildings, sports & entertainment centers, and healthcare facilities. In 2024, the highest growth was listed in the warehouses segment. They are some of the fastest-growing types of buildings as the demand for warehousing products continues to grow. The segmental growth will be fueled by climate-resistant and modernized warehouses equipped to handle all types of products. Walmart is estimated to own over 368 fulfillment centers worldwide.
Based on the end-user industry, the commercial construction industry divisions are hospitality, healthcare, industrial units, e-commerce, retail, and corporate houses. In 2024, the largest portion of the market share was owned by the e-commerce industry fueled by the rising development of new warehousing facilities by e-commerce giants such as Amazon. The retail sector is expected to emerge with considerable CAGR during the forecast period. Zara, a popular fast fashion brand, owns more than 3000 stores globally.
Asia-Pacific to continue dominating the market during the forecast period
The global commercial construction market will be led by Asia-Pacific during the forecast period. Countries such as South Korea, China, and India will lead the regional market expansion. China is one of the largest commercial complex developers in the regional and international markets. It is home to some of the most prominent construction companies in the world operating at an extensive scale.
In May 2024, China’s Power Construction Corporation of China broke ground for the construction of the National Stadium in Belgrade, Serbia, thus strengthening its foothold in the international markets. Furthermore, increased expenditure on infrastructure development projects across Asia-Pacific will further ignite the regional market revenue.
The Middle East is a thriving market with extensive growth potential. Major countries across the Middle East are investing heavily in world-class commercial sites as the nations seek new opportunities for economic diversification.
Additionally, Middle Eastern nations are leading in terms of construction-oriented technologies, including programming software and heavy construction machinery. They are also diversifying toward cutting-edge, sustainable commercial buildings to attain carbon neutrality in the near future.
The increasing rate of foreign companies opening new offices and headquarters across the Middle East, along with the rising e-commerce industry, further facilitate regional market expansion.
The global commercial construction market is led by players like:
The global commercial construction market is segmented as follows:
By Type
By End-User Industry
By Region
FrequentlyAsked Questions
Commercial construction deals with building or redeveloping existing facilities for purposes other than residential.
The global commercial construction market is expected to be driven by the increasing construction of healthcare facilities worldwide.
According to study, the global commercial construction market size was worth around USD 13.44 billion in 2024 and is predicted to grow to around USD 29.56 billion by 2034.
The CAGR value of the commercial construction market is expected to be around 8.20% during 2025-2034.
The global commercial construction market will be led by Asia-Pacific during the forecast period.
The global commercial construction market is led by players like Kier Construction, VINCI, Kraus-Anderson Construction, Morgan Sindall Group, The Whiting-Turner Contracting Company, Clark Construction Group, Turner Construction Company, Grupo ACS, Skanska, Bechtel, Balfour Beatty, Hensel Phelps Construction, ISG Ltd., Bouygues Construction, and Laing O'Rourke.
The report explores crucial aspects of the commercial construction market, including a detailed discussion of existing growth factors and restraints while browsing future growth opportunities and challenges that impact the market.
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