Demand for new housing and commercial real estate has generally kept growing in recent years, but supply struggles to keep up. Not only can construction space be scarce in the largest cities, but during the past years there have also been material and staff shortages, while inflation has kept construction costs high. The increasing global awareness of climate change has fostered some change in the industry, including the growth of the green building construction segment. Nevertheless, those new trends and challenges have not hampered the growth of the construction industry.
All those challenges affect the industry’s ability to complete buildings. Contractors also react to market trends, such as the price of residential and commercial real estate. Nevertheless, it takes time for construction companies to adjust their number of construction starts.
Value of new private residential construction put in place in the United States from 1964 to 2023 (in billion U.S. dollars)
Further details: Visit original statistic Value of new private residential construction put in place in the United States from 1964 to 2023 (in billion U.S. dollars)
The United States, as one of the largest economies in the world, has an equivalently large building construction industry. Its private residential segment alone reached a value of over 862 billion U.S. dollars in 2023. On the supply side, high construction costs have had a negative impact on the profitability of construction activities. However, the development of this industry also depends heavily on the real estate market, which signals demand for housing and other buildings.
Non-residential construction in AustraliaAverage industrial buildings construction cost in the United Kingdom (UK) as of 2023, by selected cities (in GBP per square meter)
The construction cost of an industrial building can vary significantly from city to city. These differences depend on several factors, like the price of land, the availability and price of materials, or the average salary. However, other developments can also affect these costs. During the early years of the COVID-19 pandemic, there was an increased demand for logistics which brought more attention to warehouse construction. More recently, inflation increased the cost of materials.
Industrial construction costs in the PhilippinesRevenue of the building efficiency market worldwide from 2011 to 2022 (in billion U.S. dollars)
Further details: Visit original statistic Revenue of the building efficiency market worldwide from 2011 to 2022 (in billion U.S. dollars)
The demand for structures with low greenhouse gas emissions – ideally both during as well as after its construction – has increased as climate change concerns have kept growing. Whilst there is no unified global approach to how to best construct this type of building, its market size has been growing, with the building efficiency market being valued at roughly 391 billion U.S. dollars in 2022. In addition to having a smaller carbon footprint, green buildings also help reduce operational costs.
Housing energy efficiency in England and WalesLeading home builders in the United States in 2023, by gross revenue (in billion U.S. dollars)
Further details: Visit original statistic Leading home builders in the United States in 2023, by gross revenue (in billion U.S. dollars)
The home construction segment plays a big role in most countries, but its structure can vary from region to region. In the U.S., for instance, construction companies like Lennar Corp. and D.R. Horton are specialized in the construction of residential property. This is unlike Europe, where residential is just one of the segments that major players are focused on. France’s Vinci –Europe’s largest construction company– is active in several branches of the industry, not just residential.
Biggest housing construction companies in JapanAnnual sales of heat pumps in Europe from 1990 to 2022 (in millions)
Further details: Visit original statistic Annual sales of heat pumps in Europe from 1990 to 2022 (in millions)
The heating, ventilation, and air conditioning (HVAC) market has become increasingly relevant in the past years. Increasing global temperatures with more extreme weather patterns are a driver of this development. Some countries, such as the U.S. use these systems quite extensively, while others could follow soon. The German HVAC market, for example, has grown significantly in the last decade.
HVAC revenue in Germany
This section provides insight into the construction of commercial and residential buildings. Therefore, Statista offers data on all stages of the construction process, from the number of building permits issued to the spending on activities to complete buildings, such as painting and glazing. We also have general information about the employees and companies involved in this segment of the construction industry, as well as other topics such as green buildings, demolition activities, and HVAC&R –heating, ventilation, air conditioning and refrigeration.
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