Construction and Engineering Market in the US – Size, Forecast, and Competitive Landscape: Explore FBS Global’s US Potential

Market Outlook: Construction and Engineering Market in the US 2025-2029

The US construction and engineering market is a dynamic sector driven by infrastructure development, residential and commercial building projects, and ongoing advancements in sustainable construction practices, with significant investments in modernization, smart cities, and green technologies. The market is expected to grow at a CAGR of 4%-8% between 2025 and 2029. Exact values for this market can be accessed upon purchasing the report. Key companies in the US construction and engineering market include:

• Bechtel Corporation
• Fluor Corporation
• HDR, Inc.
• Kiewit Corporation
• Others

IPO Company Overview: FBS Global in the US construction and engineering market

FBS Global Ltd. is set to launch its IPO on the NASDAQ Capital Market in January 2025 under the ticker symbol FBGL, creating a new opportunity for investors. FBS Global is a provider of construction and engineering services, specializing in delivering innovative solutions across a wide range of industries. The company leverages advanced technology and a skilled workforce to complete complex projects while ensuring compliance with safety and environmental standards.

Market Segmentation: How is the US construction and engineering market segmented?

Construction Type

• Residential Construction
• Commercial Construction
• Industrial Construction
• Infrastructure & Heavy Civil Construction

End-User Industry

• Commercial
• Institutional
• Industrial
• Infrastructure
• Energy

Residential construction is the leading type, driven by growing demand for housing, urbanization, and low interest rates that make homeownership attractive. The rise of multifamily housing projects and single-family homes in suburban and urban areas contributes to the growth of this sector.

Investment Opportunities: Why explore the US construction and engineering market with Technavio?

Recent developments in the US construction and engineering market reflect the industry's adaptability to emerging trends, technological advancements, and growing demand for sustainability. A significant development has been the increasing adoption of building information modeling (BIM) and automation technologies in construction projects.

The use of robotics, drones, and AI is revolutionizing construction sites, improving productivity and safety while reducing costs. These innovations are enhancing project timelines and making the construction process more accurate and efficient. The market is also seeing a surge in smart cities and green building initiatives, with a focus on creating energy-efficient, sustainable structures and communities that incorporate advanced technologies for better resource management.

The US construction industry has witnessed an increased push for infrastructure modernization following federal infrastructure bills, such as the Infrastructure Investment and Jobs Act (IIJA), which has allocated billions of dollars to improve roads, bridges, public transit, and water systems. This has led to substantial growth in public sector projects, with engineering firms and construction companies focusing on upgrading aging infrastructure and investing in sustainable solutions. Alongside this, there is growing demand for modular and prefabricated construction, which allows for faster building timelines, cost reductions, and waste minimization.

Market Dynamics: What factors are influencing the construction and engineering market in the US?

Drivers

The construction and engineering market in the U.S. is driven by several key factors, including increasing demand for infrastructure modernization, residential and commercial development, and the growth of smart cities. The U.S. government’s substantial investments in infrastructure projects, such as the Infrastructure Investment and Jobs Act (IIJA), have provided a significant boost to public sector construction, particularly in areas like transportation, utilities, and clean energy. Additionally, rising urbanization and population growth continue to fuel demand for new housing, commercial spaces, and sustainable building practices. Technological advancements in construction methods, such as Building Information Modeling (BIM) and automation, are also driving efficiency and improving project outcomes across the industry.

Trends

In the US construction and engineering market, key trends include the adoption of sustainable construction practices and green building technologies, with a growing emphasis on energy-efficient, eco-friendly, and climate-resilient infrastructure. The rise of smart cities is pushing the integration of technology into urban planning, such as the use of IoT devices, sensor networks, and data analytics to enhance urban infrastructure and improve resource management. Additionally, the use of modular construction and prefabricated building techniques is gaining momentum due to their ability to shorten construction timelines, reduce costs, and improve project quality and safety. The digitalization of construction through AI, drones, and robotics is transforming how projects are managed and executed, leading to more precise, efficient, and automated processes.

Opportunities

The US construction and engineering market offers several opportunities, particularly in infrastructure development, with ongoing public investment in roadways, bridges, public transit, and energy systems. The growing emphasis on sustainability presents opportunities for companies involved in green construction, renewable energy, and carbon-neutral projects. Additionally, the rise of smart cities and urbanization opens up new business avenues for firms focused on the development of intelligent infrastructure, energy-efficient buildings, and high-tech transportation systems. The increasing demand for modular construction and off-site fabrication also presents growth opportunities for companies to expand in the prefabrication and assembly sector, offering quicker turnaround times and greater cost efficiency.

Challenges

Despite the growth prospects, the US construction and engineering market faces several challenges, including labor shortages, particularly in skilled trades, which are hindering project timelines and escalating costs. Additionally, rising material costs, driven by supply chain disruptions and inflation, are putting pressure on profitability and project budgets. The industry is also grappling with regulatory complexities around sustainability standards and building codes, which can delay project approvals and increase compliance costs. Moreover, the increasing demand for advanced technologies such as AI, robotics, and BIM requires significant upfront investment and skilled workforce training, which can be a barrier for smaller companies to remain competitive. Lastly, climate change poses challenges in terms of designing and building infrastructure that is resilient to extreme weather events, requiring new innovations and ongoing adaptation.

Investment Questions: Topics to consider when investing in the construction and engineering market in the US

How does the company manage risks related to labor shortages and material costs?
Given the industry's challenges with skilled labor availability and fluctuating material prices, consider how well the company mitigates these risks through strategic planning, procurement, and workforce management.

What is the company's exposure to government infrastructure projects?
Consider how dependent the company is on government contracts, and how it navigates the complexities of government regulations, procurement processes, and funding cycles.

How well-positioned is the company to capitalize on emerging trends like sustainability and smart cities?
Investigate whether the company has the expertise and resources to leverage new technologies such as green construction, modular building, and smart city development, which are becoming increasingly important in the market.

How diversified is the company's project portfolio?
Evaluate whether the company has a balanced mix of public and private sector projects, as well as exposure to various sub-sectors such as commercial, residential, and industrial construction, to reduce dependency on any one market segment.

What is the company's approach to risk management, especially in light of economic fluctuations and regulatory changes?
Consider how the company manages the risks of economic downturns, fluctuating interest rates, and changes in regulations, such as new sustainability laws or building codes, that may impact its operations and profitability.

For a detailed analysis of the construction and engineering market in the US, buy the full report

Technavio Report Insights: How Can Technavio Reports Help Investors Make Better Business Decisions?

Key Features of a Technavio Report: 

• Comprehensive Market Analysis: Provides a detailed overview of the construction and engineering market in the US, including market size, growth rate, segmentation, and regional analysis. 

• In-Depth

  Competitive Landscape:

  Offers insights into the competitive dynamics, market share and positioning, and product offerings of key players. 

• Future Market Trends: Identifies emerging trends and opportunities that can shape the future of the market. 

• Detailed Segmentation: Breaks down the market into various segments to help investors identify specific niches and target markets. 

• Expert Analysis: Provides expert insights and forecasts from industry analysts

FAQ

1. What types of projects are most in demand in the US construction market?
Demand is strong in infrastructure projects such as roads, bridges, water systems, and public transit, driven by government funding. Residential and commercial construction are also in high demand due to population growth and urbanization. Additionally, there is a growing focus on sustainable buildings, energy-efficient technologies, and smart city projects.

2. How is technology transforming the construction and engineering industry?
Technological advancements like building information modeling (BIM), AI-powered analytics, drones, and robotics are streamlining project planning, improving safety, and enhancing efficiency. 3D printing and modular construction are also revolutionizing how buildings are constructed, offering faster build times and cost savings.

3. How are sustainability and green building practices impacting the construction market?
Sustainability is a major focus, with growing demand for energy-efficient buildings, solar power integration, LEED certification, and carbon-neutral designs. Green building practices are not only driven by regulatory pressures but also by consumer preferences for eco-friendly buildings and the long-term cost savings associated with sustainable construction.

4. How does government policy influence the construction and engineering market?
Government policy plays a significant role through funding for large-scale infrastructure projects, incentives for green building practices, and regulations that guide safety standards, environmental protection, and sustainability. Key policies like the Infrastructure Investment and Jobs Act (IIJA) are providing financial support to modernize critical infrastructure across the US.

5. What is the outlook for the US construction and engineering market?
The market is expected to experience steady growth, driven by continued demand for infrastructure upgrades, green building initiatives, and residential construction. However, challenges such as labor shortages and rising material costs may pose hurdles. Long-term growth will be fueled by technological innovations, increasing urbanization, and a push for sustainability.

Table of Contents

1 Executive Summary

• 1.1 Market overview
  • Executive Summary - Chart on Market Overview
  • Executive Summary - Data Table on Market Overview
  • Executive Summary - Chart on Global Market Characteristics
  • Executive Summary - Chart on Market by Geography
  • Executive Summary - Chart on Market Segmentation
  • Executive Summary - Chart on Incremental Growth
  • Executive Summary - Data Table on Incremental Growth
  • Executive Summary - Chart on Company Market Positioning

2 Technavio Analysis

• 2.1 Analysis of price sensitivity, lifecycle, customer purchase basket, adoption rates, and purchase criteria
  • Analysis of price sensitivity, lifecycle, customer purchase basket, adoption rates, and purchase criteria

• 2.2 Criticality of inputs and factors of differentiation
  • Overview on criticality of inputs and factors of differentiation

• 2.3 Factors of disruption
  • Overview on factors of disruption

• 2.4 Impact of drivers and challenges
  • Impact of drivers and challenges in 2024 and 2029

3 Market Landscape

• 3.1 Market ecosystem
  • Parent Market
  • Data Table on - Parent Market

• 3.2 Market characteristics
  • Market characteristics analysis

• 3.3 Value chain analysis
  • Value chain analysis

4 Market Sizing

• 4.1 Market definition
  • Offerings of companies included in the market definition

• 4.2 Market segment analysis
  • Market segments

• 4.3 Market size 2024

• 4.4 Market outlook: Forecast for 2024-2029
  • Chart on Global Market - Market size and forecast 2024-2029 ($ billion)
  • Data Table on Global Market - Market size and forecast 2024-2029 ($ billion)
  • Chart on Global Market: Year-over-year growth 2024-2029 (%)
  • Data Table on Global Market: Year-over-year growth 2024-2029 (%)

5 Historic Market Size

• 5.1 Global Market 2019 - 2023
  • Historic Market Size - Data Table on Global Market 2019 - 2023 ($ billion)

• 5.2 Segment Analysis 2019 - 2023
  • Historic Market Size – Segment Analysis 2019 - 2023 ($ billion)

• 5.4 Geography segment analysis 2019 - 2023
  • Historic Market Size - Geography Segment 2019 - 2023 ($ billion)

6 Qualitative Analysis

• 6.1 Impact of AI on the Global Market

7 Five Forces Analysis

• 7.1 Five forces summary
  • Five forces analysis - Comparison between 2024 and 2029

• 7.2 Bargaining power of buyers
  • Bargaining power of buyers - Impact of key factors 2024 and 2029

• 7.3 Bargaining power of suppliers
  • Bargaining power of suppliers - Impact of key factors in 2024 and 2029

• 7.4 Threat of new entrants
  • Threat of new entrants - Impact of key factors in 2024 and 2029

• 7.5 Threat of substitutes
  • Threat of substitutes - Impact of key factors in 2024 and 2029

• 7.6 Threat of rivalry
  • Threat of rivalry - Impact of key factors in 2024 and 2029

• 7.7 Market condition
  • Chart on market condition - Five forces 2024 and 2029

8 Market Segmentation

• 8.1 Market segments
  • Chart on Segmentation - Market share 2024-2029 (%)
  • Data Table on Segmentation - Market share 2024-2029 (%)

• 8.2 Segment Comparison
  • Chart on Comparison
  • Data Table on Comparison

• 8.3 Segment Market Opportunity
  • Market opportunity ($ billion)
  • Data Table on Market Opportunity ($ billion)

9 Customer Landscape

• 9.1 Customer landscape overview
  • Analysis of price sensitivity, lifecycle, customer purchase basket, adoption rates, and purchase criteria

10 Geographic Landscape

• 10.1 Geographic segmentation
  • Chart on market share by geography 2024-2029 (%)
  • Data Table on market share by geography 2024-2029 (%)

• 10.2 Geographic comparison
  • Chart on Geographic comparison
  • Data Table on Geographic comparison

• 10.3 Market opportunity by geography
  • Market opportunity by geography ($ billion)
  • Data Tables on Market opportunity by geography ($ billion)

11 Drivers, Challenges, and Opportunity/Restraints

• 11.1 Market drivers

• 11.2 Market challenges

• 11.3 Impact of drivers and challenges
  • Impact of drivers and challenges in 2024 and 2029

• 11.4 Market opportunities/restraints

12 Competitive Landscape

• 12.1 Overview

• 12.2 Competitive Landscape
  • Overview on criticality of inputs and factors of differentiation

• 12.3 Landscape disruption
  • Overview on factors of disruption

• 12.4 Industry risks
  • Impact of key risks on business

13 Competitive Analysis

• 13.1 Companies profiled
  • Companies covered

• 13.2 Company ranking index
  • Company ranking index

• 13.3 Market positioning of companies
  • Matrix on companies position and classification

14 Appendix

• 14.1 Scope of the report

• 14.2 Inclusions and exclusions checklist
  • Inclusions checklist
  • Exclusions checklist

• 14.3 Currency conversion rates for US$
  • Currency conversion rates for US$

• 14.4 Research methodology
  • Research methodology

• 14.5 Data procurement
  • Information sources

• 14.6 Data validation
  • Data validation

• 14.7 Validation techniques employed for market sizing
  • Validation techniques employed for market sizing

• 14.8 Data synthesis
  • Data synthesis

• 14.9 360 degree market analysis
  • 360 degree market analysis

• 14.10 List of abbreviations
  • List of abbreviations