Canada Construction Market Size, Trend Analysis by Sector, Competitive Landscape and Forecast, 2023-2027
Summary
After standing at relatively high levels in 2021-2022, Canada’s construction sector is set to decline sharply by 3.4% this year and 1.5% next year, owing to a drop in residential demand and economic expansion due to monetary tightening, along with high construction prices, and a skilled labour shortage. The residential construction sector is expected to decline by 15% this year and 4.7% next year, reflecting a severe year-on-year (Y-o-Y) decline of 20.1% in new residential construction investments and 18.7% YoY drop in the number of building permits issued in the first seven months of 2023. The slowdown in the coming quarters is also attributed to the suspension of all 118 renewable energy projects until February 2024 in Alberta Province amid a review of renewable energy policies.
Over the remainder of the forecast period, the industry’s output is expected to register an annual average rate of 2.7% between 2025 and 2027, supported by the developments in the energy, commercial, residential and education sectors. For instance, as part of the CAD33 billion ($25.6 billion) Investing in Canada Infrastructure Program (ICIP), the government approved more than CAD24 billion ($18.6 billion) for 5,400 projects as announced by the Ministry of Intergovernmental Affairs, Infrastructure and Communities in April 2023. Growth over the forecast period will also be supported by investment as part of the Canada’s Energy and Natural Resources Minister’s Plan, Powering Canada Forward. As part of this Plan, Canada Infrastructure Bank’s (CIB) commitment of CAD12.9 billion (10 billion) in clean power projects and another CAD12.9 billion ($10 billion) in green infrastructure projects will foster the advancement of clean building retrofits and zero-emission vehicle charging infrastructure. In line with this Plan, the government has proposed an Investment Tax Credit for Clean Technology Manufacturing and an Investment Tax Credit for Clean Electricity in its 2023 Budget. Investment Tax Credit for Clean Technology Manufacturing includes a refundable tax credit of 30% of the cost of investments in new machinery and equipment used to manufacture or process key clean technologies, as well as extract, process, or recycle key critical minerals. Investment Tax Credit for Clean Electricity includes refundable tax credit of 15% of the cost of investments in technologies required for the generation, storage, and transmission of clean electricity between provinces and territories.
The report provides detailed market analysis, information and insights into Canada’s construction industry, including -
- Canada’s construction industry's growth prospects by market, project type and construction activity
- Critical insight into the impact of industry trends and issues, as well as an analysis of key risks and opportunities in Canada’s construction industry
- Analysis of the mega-project pipeline, focusing on development stages and participants, in addition to listings of major projects in the pipeline.
This report provides a comprehensive analysis of the construction industry in Canada. It provides -
- Historical (2018-2022) and forecast (2023-2027) valuations of the construction industry in Canada, featuring details of key growth drivers.
- Segmentation by sector (commercial, industrial, infrastructure, energy and utilities, institutional and residential) and by sub-sector
- Analysis of the mega-project pipeline, including breakdowns by development stage across all sectors, and projected spending on projects in the existing pipeline.
- Listings of major projects, in addition to details of leading contractors and consultants
- Identify and evaluate market opportunities using GlobalData's standardized valuation and forecasting methodologies.
- Assess market growth potential at a micro-level with over 600 time-series data forecasts.
- Understand the latest industry and market trends.
- Formulate and validate strategy using GlobalData's critical and actionable insight.
- Assess business risks, including cost, regulatory and competitive pressures.
- Evaluate competitive risk and success factors.
- 1 Executive Summary
- 2 Construction Industry: At-a-Glance
- 3 Context
- 3.1 Economic Performance
- 3.2 Political Environment and Policy
- 3.3 Demographics
- 3.4 Risk Profile
- 4 Construction Outlook
- 4.1 All Construction
- Outlook
- Latest news and developments
- Construction Projects Momentum Index
- 4.2 Commercial Construction
- Outlook
- Project analytics
- Latest news and developments
- 4.3 Industrial Construction
- Outlook
- Project analytics
- Latest news and developments
- 4.4 Infrastructure Construction
- Outlook
- Project analytics
- Latest news and developments
- 4.5 Energy and Utilities Construction
- Outlook
- Project analytics
- Latest news and developments
- 4.6 Institutional Construction
- Outlook
- Project analytics
- Latest news and developments
- 4.7 Residential Construction
- Outlook
- Project analytics
- Latest news and developments
- 5 Key Industry Participants
- 5.1 Contractors
- 5.2 Consultants
- 6 Construction Market Data
- 7 Appendix
- 7.1 What is this Report About?
- 7.2 Definitions
- 7.3 CRI Methodology
- 8 About GlobalData
- 9 Contact Us
- List of Tables
- Table 1: Construction Industry Key Data
- Table 2: Canada, Key Economic Indicators
- Table 3: Canada, Commercial Construction Output by Project Type (Real % Change), 2018–27
- Table 4: Canada, Top Commercial Construction Projects by Value
- Table 5: Canada, Industrial Construction Output by Project Type (Real % Change), 2018–27
- Table 6: Canada, Top Industrial Construction Projects by Value
- Table 7: Canada, Infrastructure Construction Output by Project Type (Real % Change), 2018–27
- Table 8: Canada, Top Infrastructure Construction Projects by Value
- Table 9: Canada, Energy and Utilities Construction Output by Project Type (Real % Change), 2018–27
- Table 10: Canada, Top Energy and Utilities Construction Projects by Value
- Table 11: Canada, Institutional Construction Output by Project Type (Real % Change), 2018–27
- Table 12: Canada, Top Institutional Construction Projects by Value
- Table 13: Canada, Residential Construction Output by Project Type (Real % Change), 2018–27
- Table 14: Canada, Top Residential Construction Projects by Value
- Table 15: Canada, Key Contractors
- Table 16: Canada, Key Consultants
- Table 17: Canada, Construction Output Value (Real, $ Million)
- Table 18: Canada, Construction Output Value (Nominal, CAD Million)
- Table 19: GlobalData Construction Market Definitions
- Table 20: Risk Dimensions
- Table 21: Ratings, Scores and Definitions
- List of Figures
- Figure 1: North America, Construction Output (Real % Change), 2021–27
- Figure 2: Canada, Construction Output by Sector (Real % Change), 2021–23 and 2024–27
- Figure 3: Canada, Risk Summary
- Figure 4: Canada, Risk Regional Comparison
- Figure 5: Canada, Construction Output Value (Real, $ Billion, 2017 Prices and Exchange Rate), 2018–27
- Figure 6: Canada, Construction Output Value, by Sector (Real, $ Million), 2018–27
- Figure 7: Canada, Construction Value-Add (CAD Million, 2012 Constant Prices), Quarterly Average, Seasonally Adjusted at Annual Rates
- Figure 8: Canada, Investment in Building Construction (CAD Million, Seasonally Adjusted Constant Prices)
- Figure 9: Canada, Value of Building Permits Issued, in Seasonally Adjusted Constant Prices, % Change YoY
- Figure 10: Canada, Construction Employment, In Thousands, In Seasonally Adjusted Terms
- Figure 11: Canada, Building Construction Prices Indices, 2017=100, % Change YoY)
- Figure 12: Canada, Construction Projects Momentum Index
- Figure 13: North America, Construction Projects Momentum Index
- Figure 14: Canada, Commercial Construction Output by Project Type (Real, $ Million), 2018–27
- Figure 15: Canada, Commercial Construction Projects Pipeline, Value by Stage ($ Million)
- Figure 16: Canada, Investment on Commercial Building Construction (CAD Million, Seasonally Adjusted Constant Prices)
- Figure 17: Canada, Value of Building Permits Issued for Commercial Buildings (CAD Million, Seasonally Adjusted Terms)
- Figure 18: Canada, Number of Non-Resident Visitors Entering the Country, In Thousands
- Figure 19: Canada, Tourism Expenditure, in CAD Million, 2012 Constant Prices, Seasonally Adjusted
- Figure 20: Canada, Retail Trade Sales (CAD Million)
- Figure 21: Canada, Industrial Construction Output by Project Type (Real, $ Million), 2018–27
- Figure 22: Canada, Industrial Construction Projects Pipeline, Value by Stage ($ Million)
- Figure 23: Canada, Manufacturing Value add, Quarterly Average Seasonally Adjusted at Annual Rates (CAD Million, 2012 Constant Prices)
- Figure 24: Canada, Investment on Industrial Building Construction (CAD Million, Seasonally Adjusted Constant Prices)
- Figure 25: Canada, Value of Building Permits Issued for Industrial Buildings (CAD Million, Seasonally Adjusted Terms)
- Figure 26: Canada, Sales Value of Goods Manufactured and New Orders of Manufacturing (CAD Million)
- Figure 27: Canada, Merchandise Exports (CAD Million)
- Figure 28: Canada, Infrastructure Construction Output by Project Type (Real, $ Million), 2018–27
- Figure 29: Canada, Infrastructure Construction Projects Pipeline, Value by Stage ($ Million)
- Figure 30: Canada, Value-add of Civil Engineering and Other Construction Activities, Quarterly Average, Seasonally Adjusted at Annual Rates (CAD Million, 2012 Constant Prices)
- Figure 31: Canada, Energy and Utilities Construction Output by Project Type (Real, $ Million), 2018–27
- Figure 32: Canada, Energy and Utilities Construction Projects Pipeline, Value by Stage ($ Million)
- Figure 33: Canada, Capital Expenditure in the Oil and Gas Extraction Industries (CAD Million, In Seasonally Adjusted Terms)
- Figure 34: Canada, Electric Power Generation, In GWh
- Figure 35: Canada, Production of Crude Oil and Other Equivalent Products, YoY % Change
- Figure 36: Canada, Institutional Construction Output by Project Type (Real, $ Million), 2018–27
- Figure 37: Canada, Institutional Construction Projects Pipeline, Value by Stage ($ Million)
- Figure 38: Canada, Investment on Institutional Building Construction (CAD Million, In Seasonally Adjusted Terms)
- Figure 39: Canada, Institutional Building Permits Issued (CAD Million, Seasonally Adjusted Terms)
- Figure 40: Canada, Residential Construction Output by Project Type (Real, $ Million), 2018–27
- Figure 41: Canada, Residential Construction Projects Pipeline, Value by Stage ($ Million)
- Figure 42: Canada, Value-add of Residential Building, Quarterly Average, Seasonally Adjusted at Annual Rates (CAD Million, 2012 Constant Prices)
- Figure 43: Canada, Investment on Residential Building Construction (CAD Million, Seasonally Adjusted Terms)
- Figure 44: Canada, Residential Building Permits Issued (CAD Million, Seasonally Adjusted Terms)
- Figure 45: Canada, New Housing Price Index, 2016=100
- Figure 46: Canada, Housing Construction Started in Census Metropolitan Areas
- Figure 47: Canada, Headquarters of Key Contractors (% of Total Project Pipeline)
- Figure 48: Canada, Headquarters of Key Consultants (% of Total Project Pipeline)
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