U.S. Construction Market Projected to Reach $2.92 Trillion by 2034 Amid Tech and Infrastructure Boom

DUBLIN – The United States construction market continues its strong growth trajectory, with a new industry report projecting the sector will expand from USD 1.90 trillion in 2024 to USD 2.92 trillion by 2034, reflecting a steady compound annual growth rate (CAGR) of 4.4%.

The report, United States Construction Market Size Analysis Report – Market Share, Forecast Trends and Outlook (2025–2034), highlights that this momentum is being driven by a combination of technological adoption, infrastructure upgrades, and rising demand for sustainable building practices.

“Construction is the term that refers to the whole process of building or assembling physical structures, such as buildings, bridges, roads, and other infrastructure. It involves a series of activities, including planning, design, procurement of materials and labour, and the actual physical construction,” the study explains, noting that the industry encompasses a wide network of professionals ranging from architects and engineers to contractors and skilled tradespeople.

Growth Drivers: Infrastructure and Technology

A key factor behind this expansion is the government’s investment in upgrading decades-old infrastructure. Major projects include modernizing transportation networks, ports, freight systems, energy grids, and broadband access. “The primary factor responsible for the United States construction market growth is the rising infrastructural development projects in the country,” the report notes, emphasizing that such investments are critical to long-term economic competitiveness.

At the same time, technology integration is reshaping how construction projects are planned and executed. Artificial intelligence (AI), building information modeling (BIM), augmented reality, and 3D printing are streamlining workflows, reducing design errors, and enabling more collaborative approaches to project delivery. The adoption of Internet of Things (IoT)-enabled smart building systems is also accelerating, making it easier to manage HVAC, lighting, and security systems while improving energy efficiency.

Market Segments: Additions and Commercial Construction Lead

The study reveals that construction additions—expansions and upgrades of existing facilities—are expected to capture a significant market share. With the U.S. housing stock and infrastructure aging, demand for upgrades and expansions is expected to outpace entirely new builds.

Meanwhile, commercial construction is poised for strong growth, with office spaces, manufacturing plants, medical centers, and retail developments seeing a resurgence. Demand for green buildings is a central driver, as corporations and developers pursue environmentally responsible projects to meet both regulatory requirements and consumer expectations.

Competitive Landscape: Industry Leaders

The report also profiles key market players shaping the U.S. construction industry.

• Hensel Phelps Construction Company – Founded in 1937, Hensel Phelps is recognized for its diverse project portfolio spanning government, healthcare, education, hospitality, and industrial markets. The company is noted for prioritizing advanced construction technologies.
• Lennar Corporation – Established in 1954, Lennar is among the largest residential builders in the U.S., delivering single-family homes, condominiums, townhomes, and active adult communities that have significantly influenced the American housing market.
• Kiewit Corporation – Founded in 1884, Kiewit has grown into one of North America’s largest and most respected firms, with expertise in highways, bridges, airports, and large-scale energy projects.

Other significant players include D.R. Horton, Tutor Perini, PCL Constructors, Kajima Corporation, Hochtief AG, PulteGroup, and NVR (Ryan Homes), all of whom are investing in new technologies, partnerships, and expansion initiatives.

Outlook: Smart, Green, and Tech-Driven Growth

Looking ahead, the U.S. construction industry is expected to be defined by smart infrastructure, sustainable design, and digital innovation. The continued push for climate-conscious construction, combined with federal incentives for clean energy and resilient infrastructure, positions the industry for sustained expansion well into the next decade.

Originally reported by Research and Markets in Yahoo Finance.