Construction Industry Forecast

Strategic Investment Outlook and Market Opportunities Through 2035

Executive Summary

The global construction industry is entering a period of sustained expansion driven by long term infrastructure investment, urban population growth, and rising demand for residential and commercial development. Governments and private investors are allocating significant capital to transportation, energy, housing, and public works projects to support economic growth and modernization.

This report provides a forward looking assessment of the construction industry through 2035, highlighting key growth drivers, investment priorities, regional dynamics, and strategic implications for decision makers seeking to allocate capital efficiently in a complex and evolving market.

Global Construction Market Overview

The construction industry represents one of the largest sectors of the global economy. In 2024, the global construction market was valued at approximately $12.66 trillion, reflecting activity across infrastructure, residential, industrial, and commercial segments.

Market expansion is expected to continue over the next decade, supported by population growth, urbanization, and increased public spending on infrastructure renewal. Emerging economies are accelerating construction activity to meet basic infrastructure needs, while developed markets focus on modernization, sustainability, and resilience.

By 2035, the global construction market is projected to reach $20.67 trillion, indicating steady growth supported by both public and private sector investment.

Key Market Drivers

Infrastructure Investment

Public infrastructure spending remains a primary driver of construction demand. Governments worldwide are prioritizing transportation networks, energy systems, water infrastructure, and digital connectivity to support economic competitiveness and long term development goals.

Large scale infrastructure programs in Asia Pacific, North America, and parts of Europe are expected to sustain construction activity across multiple segments through the next decade.

Urbanization and Housing Demand

Rapid urbanization continues to increase demand for residential construction, particularly in emerging markets. Population growth in metropolitan areas is driving the need for affordable housing, mixed use developments, and supporting infrastructure.

In developed economies, housing demand is supported by demographic shifts, replacement of aging housing stock, and increased focus on energy efficient and sustainable building practices.

Commercial and Industrial Development

Growth in logistics, manufacturing, and data driven industries is supporting demand for industrial and commercial construction. Warehousing, distribution centers, and advanced manufacturing facilities are expanding as global supply chains evolve.

Office and commercial construction is becoming more selective, with demand focused on high quality, flexible, and energy efficient spaces.

Technology and Productivity Improvements

Digital tools are reshaping construction planning and execution. Building information modeling, digital project management platforms, and automation technologies are improving cost control, scheduling accuracy, and risk management.

Companies that adopt technology driven workflows are better positioned to manage complex projects and maintain margins in competitive markets.

Strategic Investment Priorities

Infrastructure and Public Works

Infrastructure projects offer long term revenue visibility and stable demand. Investors and construction firms that participate in public private partnerships and government funded programs can benefit from predictable project pipelines and lower demand volatility.

Sustainable and Green Construction

Environmental regulations and corporate sustainability goals are accelerating demand for green construction solutions. Energy efficient buildings, low carbon materials, and resilient infrastructure are becoming standard requirements rather than optional features.

Investment in sustainable construction capabilities can improve competitiveness and compliance in regulated markets.

Modular and Prefabricated Construction

Modular and prefabricated construction methods are gaining traction due to their ability to reduce build time, control costs, and improve quality consistency. These approaches are particularly attractive for residential, healthcare, and infrastructure projects.

Companies that scale modular capabilities may achieve efficiency advantages in labor constrained environments.

Emerging Market Expansion

Emerging markets present strong long term growth potential driven by infrastructure gaps, population growth, and rising income levels. Strategic investments in local partnerships, supply chains, and workforce development can support successful market entry.

Regional Market Insights

Asia Pacific

Asia Pacific represents the largest and fastest growing construction market globally. Urban expansion, infrastructure development, and industrial growth in China, India, and Southeast Asia continue to drive demand across all construction segments.

North America

North America maintains a strong construction market supported by infrastructure renewal programs, residential demand, and industrial expansion. Investment priorities include transportation infrastructure, energy projects, and technology enabled facilities.

Europe

European construction activity remains stable, supported by public infrastructure spending and sustainability focused development. Regulatory complexity requires careful project planning and compliance, particularly for cross border investments.

Middle East and Africa

Large scale infrastructure and commercial developments continue to drive construction demand in select Middle Eastern markets. In Africa, long term growth potential is supported by infrastructure development and urban population growth.

Risk Considerations

Construction industry participants face several risks that require active management. These include material price volatility, labor shortages, regulatory changes, and geopolitical uncertainty. Effective risk mitigation depends on supply chain diversification, contract management, and accurate market intelligence.

Strategic Implications for Decision Makers

Construction industry growth through 2035 presents significant opportunities for investors, developers, and service providers. Success depends on aligning capital allocation with long term demand drivers, regional dynamics, and evolving project requirements.

Organizations that combine market forecasting with operational efficiency and regional expertise are better positioned to capture value while managing risk in an increasingly complex construction environment.

How SIS International Supports Construction Industry Strategy

SIS International provides construction market research, forecasting, and competitive intelligence to support strategic planning and investment decisions. Our global research teams deliver region specific insights, market forecasts, and risk assessments that help clients navigate complex construction markets with confidence.