United States of America (USA) Construction Market Size, Trend Analysis by Sector (Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential) and Forecast, 2023-2027

United States of America (USA) Construction Market Size, Trend Analysis by Sector (Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential) and Forecast, 2023-2027

Summary

The US construction industry contracted sharply in 2022 in real terms (at constant prices), dropping by 8.2%, as output in the residential sector fell back from the high levels recorded in 2021. Conversely, in nominal terms, the industry rose by 6.0% reflecting the surge in prices in recent quarters. GlobalData expects the US construction industry to fall further in 2023 in real terms, albeit marginally by 0.9%, owing to mainly to the continued decline in the residential sector, which is expected to contract by 9.8% this year, combined with headwinds such as rising interest rates, increased construction material costs, a lack of skilled workers, and supply chain disruptions, resulting in higher project financing costs and project delays. Having slumped in 2020-2021 amid the disruption caused by the COVID-19 pandemic, non-residential buildings construction has been recovering and this trend will continue in 2023. Infrastructure and energy and utilities works are also expected to gain growth momentum buoyed by the government's stimulus programs, notably the $1.2 trillion Infrastructure Investment and Jobs Act (IIJA), which will significantly increase the construction spending across the transportation, energy, water resources, and broadband sectors over the next ten years. As of February 2023, a total of $193.4 billion had been released under IIJA, $81 billion more than had been reported in July 2022.

The industry's output is expected to grow at a 4.5% annual average growth rate during the remainder of the forecast period (2024-27), supported by investment in the energy, transportation, housing, and manufacturing sectors. As part of the Inflation Reduction Act (IRA), the government allocated $369 billion to energy security and climate change mitigation programs, with the goal of increasing the US's efforts to reduce emissions by 40% below 2005 levels by 2030. In line with the government's focus on reducing carbon emissions, the Biden-Harris Administration set a goal of deploying 30GW of offshore wind capacity by 2030, enough to power 10 million homes with clean energy, and aims to advance lease areas in deep waters in order to deploy 15GW of floating offshore wind capacity by 2035. Furthermore, residential construction will pick up again in the latter part of the forecast period, particularly if the government goes ahead with its planned budget to invest $175 billion to increase housing supply and alleviate the affordability crisis.

This report provides detailed market analysis, information and insights into the US construction industry, including -

• The US 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 US construction industry
• Analysis of the mega-project pipeline, focusing on development stages and participants, in addition to listings of major projects in the pipeline.

Scope

This report provides a comprehensive analysis of the construction industry in the US. It provides -

• Historical (2018–2022) and forecast (2023–2027) valuations of the construction industry in the US, 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

Reasons to Buy

• 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.