United States Construction Industry Report 2023: Market was Projected to Grow by 6.3% to Reach $1,424 Billion by the End of 2023 - Forecasts to 2027 - ResearchAndMarkets.com

The "United States Construction Industry Databook Series - Market Size & Forecast by Value and Volume (area and units), Q2 2023 Update" report has been added to ResearchAndMarkets.com's offering.

Construction industry in United States was expected to grow by 6.3% to reach USD 1,424,474 million in 2023.

Despite near-term challenges in certain construction sectors, medium to long term growth story in United States remains intact. The construction industry in United States is expected to grow steadily over the next four quarters. The growth momentum is expected to continue over the forecast period, recording a CAGR of 5.3% during 2023-2027. The construction output in the country is expected to reach USD 1,749,898.1 million by 2027.

The construction market is expected to grow at a steady pace over the next few quarters, as manufacturing returns to the United States. The government has announced a multi-billion-dollar investment, under the CHIPS and Science Act, to boost domestic manufacturing capabilities in 2022. Construction companies, in turn, will continue to benefit majorly from these initiatives in H2 2023 and Q1 2024.

The market growth will be also supported by increasing infrastructure investment. Private firms have also announced significant investments in the commercial construction segment over the next five to seven years. All of these factors combined are expected to support the growth trajectory of the United States construction industry from the short to medium-term perspective.

The United States government earmarks US$500 million in CHIPS funds for smaller projects

The Department of Commerce, in September 2023, announced a new round of funding from the CHIPS and Science Act. The funding, totaling US$500 million, is allocated for small-scale supply chain projects and businesses. The funding will be specifically directed toward the construction, expansion, and modernization of facilities related to semiconductor materials and manufacturing equipment.

The funding opportunity for small-scale projects builds upon the initiative announced in June for funding larger supply chain projects. Intel and Taiwan Semiconductor Manufacturing Company are among the many major players that have shown their interest in earlier funding rounds. These firms have also announced their plans to set up new manufacturing facilities across the United States, which in turn is expected to aid the growth of the broader construction market over the next five years.

Going forward, the publisher expects more such funding initiatives to be undertaken by the United States government, as it focuses on bringing manufacturing back from China to its shores from the short to medium-term perspective.

Infrastructure and commercial investments are expected to lead other construction sectors in H2 2023 and Q1 2024

Over the next few quarters, investment in infrastructure and commercial segments is expected to rise at a rapid rate, and is, therefore, projected to lead other sectors like residential construction in the United States.

Amtrak, for instance, is planning to triple its infrastructure investment over the next two years in the United States. With funding from the 2021 infrastructure law, Amtrak plans to invest significantly in the construction of bridges, tunnels, and other projects. By fiscal year 2025, Amtrak aims to invest US$6 billion towards the construction of these projects.

Amazon, in September 2023, also announced an investment of US$3.5 billion for the Ohio data centers project. The investment is part of its bigger commitment of US$7.8 billion for the expansion of data center capacity in the United States. Alongside Amazon, Disney has also announced its plans to invest US$60 billion in parks and cruises over the next ten years.

These infrastructure and commercial construction projects are, therefore, expected to aid the growth of the broader construction market in the United States over the next few years. The residential market outlook, in the short term, remains bleak due to the rising interest rate environment.

Construction material and commodity prices are expected to remain under pressure in H2 2023 and Q1 2024

The bleak macroeconomic environment, including rising interest rates and inflation, is expected to have a short-term impact on construction material and commodity prices in the United States. The impact of weak demand in the residential construction space can be seen in the prices of construction prices in H1 2023 and the trend is projected to further continue in H2 2023.

Despite the softening of some of the construction material prices in 2023, prices have remained elevated compared to 2020. Going forward, the publisher does not expect the falling trajectory of construction material prices to sustain. The interest rate downcycle in the United States will also support the rise in construction material prices in H2 2024. The increased construction spending in sectors like infrastructure and commercial segment will also support the prices of construction materials and commodities from the medium to long-term perspective.

Scope

Market Data and Insights

• Market size by value
• Market size by volume of construction
• Number of units

United States Economic Indicators

United States Top Cities Construction Data

United States Residential Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by

• Housing type (multi family, single family)
• Key cities (Tier - 1, Tier - 2, Tier - 3 segmentation)
• Price point/income level (luxury, mid-tier, affordable)
• Construction stage (new construction, re-development & maintenance)

United States Residential Green Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by

• Green building by Housing type (multi family, single family)
• Green building by Key cities (Tier - 1, Tier - 2, Tier - 3 segmentation)
• Green building by Price point/income level (luxury, mid-tier, affordable)

United States Commercial Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by

• Office (further broken down by Grade A, Grade B, and Grade C)
• Retail (further broken down by Grade A, Grade B, and Grade C)
• Hospitality (further broken down by Grade A, Grade B, and Grade C)
• Restaurant (further broken down by Grade A, Grade B, and Grade C)
• Entertainment
• Sports facility
• Other commercial building construction
• Construction stage (new construction, re-development & maintenance)

United States Commercial Green Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by

• Office green building construction
• Retail green building construction
• Hospitality green building construction
• Restaurant green building construction
• Entertainment green building construction
• Sports facility green building construction
• Other commercial green building construction

United States Industrial Green Building Construction Coverage: 10-year market size & forecast in value and volume (area and units)

• Manufacturing Plants building construction
• Chemical & Pharmaceutical building construction
• Metal & Material Processing building construction
• Construction stage (new construction, re-development & maintenance)

United States Institutional Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by

• Healthcare construction
• Educational construction
• Other building construction
• Construction stage (new construction, re-development & maintenance)

United States Institutional Green Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by

• Healthcare green building construction
• Educational green building construction

United States Infrastructure Construction Sectors: 10- year market size & forecast in value terms by

• Marine and inland water infrastructure
• Utility system construction (oil and gas infrastructure, communication infrastructure, power infrastructure, water and sewer infrastructure)
• Transportation infrastructure (highway, street and bridge construction, railway construction, airport construction, and tunnel construction)
• Construction stage (new construction, re-development & maintenance)

United States Green Infrastructure Construction: 10- year market size & forecast in value terms

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