Canada Construction Market Size, Trend Analysis by Sector, Competitive Landscape and Forecast to 2028
Summary
Executive summary from the report: The construction industry in Canada is expected to decline by 3.1% in real terms in 2024, amid high construction prices, a shortage of skilled labour, monetary tightening, and a fall in building permits. According to Statistics Canada, the total value of building permits issued in the country declined by 8.8% in 2023, with the number for residential buildings falling by 15.4% during that period. The negative growth is also attributed to the cessation and delays of construction activity of various projects. For instance, in December 2023, the local energy company World Energy GH2, reported that its CAD16 billion ($12 billion) hydrogen plant – which was originally scheduled to be completed by 2025 – is now facing delays due to construction and financing contingencies. The project is now expected to be completed by 2026.
GlobalData expects the Canadian construction industry to rebound at an annual average rate of 2.3% during 2025-28, supported by developments in the energy, transport, industrial, and residential sectors. Growth will also be supported by the government’s plan to achieve 100% zero-emission vehicle sales by 2035, including interim targets of at least 20% by 2026 and at least 60% by 2030. In January 2024, the Japanese automobile manufacturer, Honda, reported that it is planning to build an electric vehicle (EV) plant in Ontario, costing a total of CAD18.4 billion ($13.8 billion) by 2028. In another boost to the industry’s output, in November 2023, the government launched the CAD2 billion ($1.5 billion) Critical Minerals Infrastructure Fund, aimed at supporting mineral extraction and production in the country and providing funding until 2031. Additionally, in February 2024, the Minister of Energy and Natural Resources announced plans to boost mining activities in the country by slashing the permit time from 12-15 years to 5 years.
The industry’s growth over the forecast period will also be supported by investments in public housing projects, in line with the government’s target to build 5.8 million houses by 2030. Among the recent developments, in February 2024, the government announced funding of CAD2 billion ($1.5 billion) for financing and accelerating the housing construction. Previously in December 2023, the Royal Bank of Canada announced CAD9.3 billion ($7 billion) for financing affordable housing construction across Canada. Furthermore, in February 2024, the British Colombia government announced CAD3.9 billion ($2.9 billion) of financing support for boosting the construction of houses throughout the state.
GlobalData’s Construction in Canada – Key Trends and Opportunities to 2028 (Q1 2024) report provides detailed market analysis, information, and insights into the Canadian construction industry, including -
- The Canadian 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 the Canadian 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 (2019-2023) and forecast (2024-2028) 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), 2019–28
- Table 4: Canada, Top Commercial Construction Projects by Value
- Table 5: Canada, Industrial Construction Output by Project Type (Real % Change), 2019–28
- Table 6: Canada, Top Industrial Construction Projects by Value
- Table 7: Canada, Infrastructure Construction Output by Project Type (Real % Change), 2019–28
- Table 8: Canada, Top Infrastructure Construction Projects by Value
- Table 9: Canada, Energy and Utilities Construction Output by Project Type (Real % Change), 2019–28
- Table 10: Canada, Top Energy and Utilities Construction Projects by Value
- Table 11: Canada, Institutional Construction Output by Project Type (Real % Change), 2019–28
- Table 12: Canada, Top Institutional Construction Projects by Value
- Table 13: Canada, Residential Construction Output by Project Type (Real % Change), 2019–28
- 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), 2022–28
- Figure 2: Canada, Construction Output by Sector (Real % Change), 2022–24 and 2025–28
- Figure 3: Canada, Risk Summary
- Figure 4: Canada, Risk Regional Comparison
- Figure 5: Canada, Construction Output Value (Real, $ Million, 2022 Prices and Exchange Rate), 2019–28
- Figure 6: Canada, Construction Output Value, by Sector (Real, $ Million), 2019–28
- 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), 2019–28
- 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, Retail Trade Sales (CAD Million)
- Figure 20: Canada, Industrial Construction Output by Project Type (Real, $ Million), 2019–28
- Figure 21: Canada, Industrial Construction Projects Pipeline, Value by Stage ($ Million)
- Figure 22: Canada, Manufacturing Value add, Quarterly Average Seasonally Adjusted at Annual Rates (CAD Million, 2012 Constant Prices)
- Figure 23: Canada, Investment on Industrial Building Construction (CAD Million, Seasonally Adjusted Constant Prices)
- Figure 24: Canada, Value of Building Permits Issued for Industrial Buildings (CAD Million, Seasonally Adjusted Terms)
- Figure 25: Canada, Sales Value of Goods Manufactured and New Orders of Manufacturing (CAD Million)
- Figure 26: Canada, Merchandise Exports (CAD Million)
- Figure 27: Canada, Infrastructure Construction Output by Project Type (Real, $ Million), 2019–28
- Figure 28: Canada, Infrastructure Construction Projects Pipeline, Value by Stage ($ Million)
- Figure 29: Canada, Value-add of Civil Engineering and Other Construction Activities, Quarterly Average, Seasonally Adjusted at Annual Rates (CAD Million, 2012 Constant Prices)
- Figure 30: Canada, Energy and Utilities Construction Output by Project Type (Real, $ Million), 2019–28
- Figure 31: Canada, Energy and Utilities Construction Projects Pipeline, Value by Stage ($ Million)
- Figure 32: Canada, Capital Expenditure in the Oil and Gas Extraction Industries (CAD Million, In Seasonally Adjusted Terms)
- Figure 33: Canada, Electric Power Generation, In GWh
- Figure 34: Canada, Production of Crude Oil and Other Equivalent Products, YoY % Change
- Figure 35: Canada, Institutional Construction Output by Project Type (Real, $ Million), 2019–28
- Figure 36: Canada, Institutional Construction Projects Pipeline, Value by Stage ($ Million)
- Figure 37: Canada, Investment on Institutional Building Construction (CAD Million, In Seasonally Adjusted Terms)
- Figure 38: Canada, Institutional Building Permits Issued (CAD Million, Seasonally Adjusted Terms)
- Figure 39: Canada, Residential Construction Output by Project Type (Real, $ Million), 2019–28
- Figure 40: Canada, Residential Construction Projects Pipeline, Value by Stage ($ Million)
- Figure 41: Canada, Value-add of Residential Building, Quarterly Average, Seasonally Adjusted at Annual Rates (CAD Million, 2012 Constant Prices)
- Figure 42: Canada, Investment on Residential Building Construction (CAD Million, Seasonally Adjusted Terms)
- Figure 43: Canada, Residential Building Permits Issued (CAD Million, Seasonally Adjusted Terms)
- Figure 44: Canada, New Housing Price Index, 2016=100
- Figure 45: Canada, Housing Construction Started in Census Metropolitan Areas
- Figure 46: Canada, Headquarters of Key Contractors (% of Total Project Pipeline)
- Figure 47: Canada, Headquarters of Key Consultants (% of Total Project Pipeline)
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