The U.S. construction industry is projected to experience steady growth over the next several years, with forecasts placing the market at $1.59 trillion by 2029. According to a new report from Research and Markets, the sector is expected to grow at a compound annual growth rate (CAGR) of 4.4% between 2025 and 2029. In the near term, the market is set to reach $1.27 trillion by 2025, following a 5.6% annual growth rate.

The “United States Construction Industry Databook Series” offers a deep dive into over 100 key performance indicators (KPIs), capturing trends across residential, commercial, industrial, and institutional segments. While the industry is ripe with opportunity, it must also contend with challenges like inflation, labor shortages, and regulatory obstacles.

Residential construction is positioned for significant expansion, fueled by ongoing housing demand and a shift toward more sustainable, technology-integrated building practices. Major metro areas like New York and Los Angeles are driving growth through large-scale mixed-use projects designed to address housing shortages and diversify the urban landscape.

Government policies, including the HOME Investment Partnerships Program, are playing a pivotal role in bolstering residential construction. As the report notes, “Robust risk management is crucial as market players navigate potential interest rate hikes.”

On the commercial side, flexible design and digital transformation are shaping the next generation of office and retail environments. Despite economic headwinds, urban centers such as Chicago and San Francisco are witnessing a wave of modernization, with developers increasingly focused on integrating community-focused retail into multi-use developments. “Public-private partnerships and municipal support are pivotal in urban revitalization efforts,” the report highlights.

The industrial sector is undergoing a transformation, driven by the reshoring of manufacturing and the rise of e-commerce. Automation, supply chain optimization, and strategic investments in logistics hubs are at the forefront of this growth. However, inflation and ongoing global supply chain disruptions continue to present risks.

Infrastructure construction, a backbone of national economic activity, is gaining renewed momentum thanks to initiatives such as the Infrastructure Investment and Jobs Act. The report points out that “strategic investments in transportation, energy, and water systems are crucial,” especially in urban areas seeking to modernize outdated systems and boost efficiency. Despite high capital requirements and regulatory complexities, government incentives and private investment are helping push these projects forward.

Digital innovation and sustainability are two major drivers shaping the industry’s future. Technologies like Building Information Modeling (BIM), AI-powered project monitoring, and smart infrastructure systems are helping companies cut costs, improve safety, and enhance delivery timelines. “The construction market across the U.S. is leveraging new technologies... to improve efficiency and reduce costs,” the report notes.

With a growing investment pipeline and the convergence of public and private funding, the U.S. construction sector is poised for resilient growth. Covering over 40 market segments with insights spanning from economic indicators to city-level data, the report serves as a vital resource for industry stakeholders looking to adapt to changing market dynamics.

For more details, visit Research and Markets.

Originally Reported By Global News Wire.