Studies & Reports
Construction is one of the largest and most important industries in the world - responsible for the homes, roads, bridges and infrastructure that cities depend on, and for millions of jobs. This report collects key statistics on market size, employment, wages, the pandemic's impact, material costs and the technologies reshaping the sector.
Key takeaways
- The global construction industry reached $8.2 trillion in 2022 and is projected to grow to around $17 trillion by 2029, a compound annual growth rate (CAGR) of roughly 7.3%.
- The US construction market was about $1.36 trillion in 2020, employing around 7.5 million workers (about 4.8% of the US workforce) in early 2022.
- Labor shortages, supply-chain disruption and the COVID-19 pandemic have been the dominant challenges in recent years.
- Technology adoption - IoT, augmented reality, robotics and 3D printing - is transforming how construction is planned and delivered.
US construction industry statistics
- US construction projects in 2021 were valued at approximately $1.6 trillion.
- The industry accounts for about 4.3% of US GDP.
- In 2021, 1,337,800 housing units were built - a 4% increase over 2020.
- A three-year study found only about 31% of projects stayed within 10% of their budget.
- Bechtel is the largest US construction company, with revenue of $21.8 billion in 2019.
Employment and wages
About 4.8% of the US workforce - roughly 7.5 million people - worked in construction in early 2022. Around 10.9% of construction workers are women. Average wages vary widely by role:
| Role | Median (hourly) | Mean (hourly) | Mean (annual) |
|---|---|---|---|
| Carpenters | $23.91 | $26.19 | $54,470 |
| Construction labourers | $18.38 | $20.92 | $43,520 |
| Construction managers | $46.09 | $51.02 | $106,120 |
| Electricians | $26.62 | $29.23 | $60,800 |
| Equipment operators | $25.04 | $28.11 | $58,470 |
The pandemic's impact
- Construction spending rose 4.8% between 2019 and 2020, reaching $1.43 trillion in 2020.
- 1.1 million jobs were lost in March and April 2020 due to lockdowns; 931,000 were added back from May 2020 onward.
- Residential construction surged as homeowners renovated - fence installation rates rose 144% and demand for landscapers jumped 238%.
Global construction industry outlook
The industry faces ongoing headwinds - inflation, supply-chain problems and labor shortages - but also strong growth opportunities:
- Infrastructure investment (transport, roads, sewage, water) was expected to drive growth rates of around 20.1% in 2022 and 10.9% in 2023, and tends to be more resilient to inflation than residential and non-residential building.
- Manufacturing, communication, commercial and healthcare construction have stayed largely robust, while education, lodging and office construction recover more slowly.
Labor and material costs
- 88% of contractors report difficulty finding skilled workers; about 50% struggle to find plumbers, electricians, carpenters, HVAC technicians and masons.
- Material prices spiked sharply post-2020 - plywood and lumber rose 85.7% between 2020 and 2021, copper and brass mill shapes 49%, and steel pipe and tube 24.4% - driven largely by supply-chain disruption.
Technology trends reshaping construction
The biggest long-term shift is digital. IoT sensors, augmented reality, robotics and 3D printing are moving from pilots to mainstream use, improving safety, reducing waste and tightening project control. Connected asset and equipment management - tracking machine location, runtime and condition in real time - is increasingly central to running profitable, on-schedule construction operations.
FAQ
How big is the construction industry?
The global construction industry reached approximately $8.2 trillion in 2022 and is projected to grow to around $17 trillion by 2029, at a compound annual growth rate of roughly 7.3%.
What are the biggest challenges facing construction?
Labor shortages, rising material costs and supply-chain disruption are the dominant challenges, compounded by the lingering effects of the COVID-19 pandemic.
How is technology changing construction?
IoT, augmented reality, robotics and 3D printing are improving safety, reducing waste and improving project control. Real-time equipment and asset tracking is becoming a core part of running efficient construction operations.
