The "Canada Construction Industry Databook Series - Market Size & Forecast by Value & Volume, 40+ Market Segments Across Residential, Commercial, Industrial, Institutional, Infrastructure, City-Level Construction by Value and Cost Structure, Q4 2025 Update" report has been added to ResearchAndMarkets.com's offering.

Construction market in Canada is expected to grow by 3.9% on annual basis to reach CAD 222.11 billion in 2025.

The construction market in the country experienced robust growth during 2020-2024, achieving a CAGR of 5.8%. This upward trajectory is expected to continue, with the market forecast to grow at a CAGR of 3.2% during 2025-2029. By the end of 2029, the construction sector is projected to expand from its 2024 value of CAD 213.78 billion to approximately CAD 261.30 billion.

This report provides a detailed data-centric analysis of the construction sector in Canada, offering a comprehensive view of market opportunities in the building and infrastructure construction industry at the country level. With over 100+ KPIs covering growth dynamics in building and infrastructure construction, construction cost structure analysis, and analysis by key cities in the country, this databook provides a wealth of data-centric analysis with charts and tables, ensuring stakeholders are fully informed.

It offers a comprehensive analysis of market dynamics in the construction sector through a range of KPIs such as value, volume, and number of units. The building construction covers detailed segmentation over 30+ segments in residential, commercial, industrial, and institutional sectors. The analyst's research methodology is based on industry best practices. Its unbiased analysis leverages a proprietary analytics platform to offer a detailed view of emerging business and investment market opportunities.

Key Insights

Canada Residential Construction

Economic pressures, evolving housing trends, and government interventions are transforming the Canadian residential construction industry. Rising construction costs and labor shortages continue challenging developers, while higher mortgage rates have slowed homebuyer demand. However, the sector adapts through increased investment in multi-family housing, modular construction, and purpose-built rental developments, particularly in high-demand urban areas. Large-scale government initiatives, such as the National Housing Strategy and Housing Accelerator Fund, are critical in supporting new projects, easing regulatory barriers, and encouraging innovation in affordable and sustainable housing.

Despite these efforts, challenges remain, including supply chain disruptions, stringent zoning laws, and ongoing labor shortages that may delay project completion and impact affordability. Developers and investors must navigate interest rate fluctuations and rising compliance costs for green building initiatives while capitalizing on government incentives and public-private partnerships. Leveraging advanced construction technologies and streamlining approval processes will be crucial for maintaining growth and ensuring the industry meets Canada's long-term housing needs.

Canada Commercial Construction

The Canadian commercial construction industry is undergoing significant changes, driven by rising costs, shifting market demands, and government incentives. While inflation and high interest rates continue challenging developers, the growth of mixed-use projects and logistics infrastructure presents new opportunities. Government policies, such as tax incentives for office-to-residential conversions and green building initiatives, reshape urban development and encourage sustainable and adaptable commercial spaces.

Despite these opportunities, the sector faces persistent challenges, including high office vacancy rates, ESG compliance costs, and labor shortages that impact project timelines. Developers and investors must navigate these hurdles while leveraging public-private partnerships (PPPs) and technological advancements to enhance efficiency. Moving forward, prioritizing logistics hubs, mixed-use developments, and sustainable commercial projects will be crucial for maximizing long-term returns and ensuring resilience in a rapidly evolving market.

Canada Institutional Construction

The Canadian institutional construction sector remains a stable and essential investment area, driven by strong public healthcare and education infrastructure funding. However, rising labor and material costs, combined with budget constraints, continue to challenge project timelines and overall affordability. The increasing reliance on modular and prefabricated construction is helping mitigate some cost pressures, while smart and energy-efficient public buildings are becoming more prominent, supported by government-backed sustainability initiatives.

Despite these opportunities, skilled labor shortages pose a significant risk, particularly in specialized sectors such as healthcare and education construction. Public-private partnerships (PPPs) are growing in long-term infrastructure funding, allowing greater investment in hospitals, schools, and research centers. Moving forward, leveraging technology, green building practices, and innovative construction methods will ensure the sector remains efficient, cost-effective, and resilient to evolving economic conditions.

Canada Industrial Construction

The industrial construction sector in Canada continues to experience strong growth, driven by increasing demand for logistics, warehousing, and advanced manufacturing facilities. Government incentives for clean energy and EV battery production fuel investment in sustainable industrial developments, while automation and modular construction are helping improve efficiency and reduce costs. However, rising material and energy costs and labor shortages in skilled trades pose challenges that may impact project timelines and overall investment confidence.

Despite these challenges, government-backed industrial projects remain a key driver of economic expansion, particularly in EV manufacturing, semiconductor production, and renewable energy infrastructure. Developers and investors should focus on high-growth sectors supported by federal and provincial policies, such as clean energy, automation-driven logistics hubs, and modular factory construction. Addressing labor shortages through upskilling programs and workforce development initiatives will ensure long-term sustainability and continued industrial growth in Canada.

Canada Infrastructure Construction

The Canadian infrastructure construction sector is set for continued expansion, driven by strong government investment in transit, energy, and climate-resilient infrastructure. Major projects, such as the Ontario Line Subway, Champlain Bridge Corridor, and Site C Dam, highlight the priority placed on urban mobility, renewable energy, and economic connectivity. However, rising construction costs, labor shortages, and regulatory approval delays remain key challenges that could impact project timelines and overall efficiency.

Despite these hurdles, public-private partnerships (PPPs) create new investment opportunities, particularly in smart cities, digital infrastructure, and sustainable energy projects. Government-backed incentives for low-carbon materials, EV charging networks, and climate-adaptive infrastructure will further drive growth. Moving forward, leveraging technology, automation, and workforce training programs will be crucial for improving efficiency and ensuring Canada's infrastructure sector meets long-term economic and environmental demands.

Report Scope: This report provides market size and forecast across 40+ construction segments for ten years from 2020-2029 in Canada

• KPIs covered include the following: Market size by value, Market size by volume of construction, Number of units
• Canada Economic Indicators
• Canada Top Cities Construction Data
• Canada Residential Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms
• Canada Residential Green Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms
• Canada Commercial Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms
• Canada Commercial Green Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms
• Canada Industrial Green Building Construction Coverage: 10-year market size & forecast in value and volume (area and units)
• Canada Institutional Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms
• Canada Institutional Green Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms
• Canada Infrastructure Construction Sectors: 10-year market size & forecast in value terms
• Canada Green Infrastructure Construction: 10-year market size & forecast in value terms
• Canada Construction Cost Structure Analysis: 10-year market size & forecast in value terms

For more information about this report visit https://www.researchandmarkets.com/r/2nf8c8

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