CONSTRUCTION MATERIALS MARKET Size and trends

Construction Materials Market Size and Trends

The global construction materials market is estimated to be valued at USD 1.57 Tn in 2025 and is expected to reach USD 2.47 Tn by 2032, exhibiting a compound annual growth rate (CAGR) of 6.7% from 2025 to 2032.

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Increasing urbanization and infrastructure development projects across both developed and developing countries will drive the demand for construction materials. Additionally, growing investments towards non-residential construction such as commercial buildings, hospitals, and transport infrastructure are also expected to fuel the market growth. For instance, according to data from Statistics Canada released in July 2025, investment in non-residential construction in Canada increased by 0.6% in May 2025 compared to April 2025, reaching a total of US$ 6,376.4 million. Notably, the province of Newfoundland and Labrador experienced an 11.1% surge in investment, underscoring the regional variations in investment growth across Canada. These figures indicate a positive trend in non-residential construction investment, which can drive economic development, job creation, and infrastructure improvements in the affected regions. Furthermore, rapid industrialization and economic development in emerging nations of Asia Pacific and Middle East and Africa will continue to provide opportunities for construction material manufacturers globally. Meanwhile, rapid advancements in construction technologies and adoption of green building solutions will help counter certain challenges and further accelerate the market expansion. However, volatility in raw material prices may hind the construction materials market growth during the forecast period.

Rapid urbanization and infrastructure development globally

The global construction industry is witnessing rapid urbanization at an unprecedented rate. For instance, according to data by Invest India in 2022, The construction Industry in India is expected to reach US$ 1.4 Tn by 2025. As more and more people are moving to urban areas from rural regions in search of better live ability and employment opportunities, cities need to develop infrastructure at a similar pace to accommodate growing population. It is estimated that around 68% of the world population will be living in urban areas by 2050 which is a massive jump from 55% in 2018. Developing economies in Asia Pacific, Africa and Latin America are expected to drive this urbanization trend. This explosion of urban population coupled with lack of adequate housing and logistic infrastructure is compelling governments across the world to focus on construction of new townships, smart cities, roads, metros, airports, etc.

Countries like India and China having huge rural population migrating to cities are investing multi-billion dollars on rapid development of urban centers. India alone is developing 100 smart cities under its flagship smart city mission to equip its rising middle class with modern lifestyle. In last few years, Indian government's focus on infrastructure has resulted in major construction of new highways, ports, power generation plants etc. which is enhancing connectivity and catering rising demands. Similarly, Chinese government's continued thrust on infrastructure through initiatives like 'Belt and Road' is reshaping global construction industry landscape. Speedy implementation of infrastructure projects is necessary to keep pace with fast tracking industrialization.

While advanced nations already have well developed infrastructure, they are also witnessing constant upgradation and expansion drive to support aging population and evolving transportation needs. For example, developed economies in Europe and America are investing heavily on developing high-speed rail corridors, modernizing airports and boosting renewable energy infrastructure. Construction of new tunnels, bridges and buildings are regularly commissioned to stay ahead of competition.