Press release
2025 Commercial Buildings Market Outlook: Key Indicators Shaping Growth Through 2034
Commercial Buildings Market
How Large Will the Commercial Buildings Market Size By 2025?
In the past few years, there has been a consistent growth in the market size for commercial buildings. It is projected to escalate from $1921.73 billion in 2024 to $1993.8 billion in 2025, with a compound annual growth rate (CAGR) of 3.8%. The growth witnessed in the historical period is due to various factors like economic development and stability, urbanization patterns, regulatory norms, changing consumer behavior and preferences, and significant global events and exigencies.
How Big Is the Commercial Buildings Market Size Expected to Grow by 2029?
In the coming years, a consistent growth trend is projected for the commercial buildings market, with an expected value of $2334.84 billion by 2029, growing at a compound annual growth rate (CAGR) of 4.0%. The anticipated growth within this period can be ascribed to factors like an increase in flexible work schemes, actions towards climate change control, swift urbanization patterns in developing economies, the influence of e-commerce on retail spaces, as well as governmental programs and incentives. Noteworthy trends for the forecast period encompass state-of-the-art security systems, modular construction methods, data-oriented decision processes, innovations in smart building technology, along with digital transformation.
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Which Key Market Drivers Powering Commercial Buildings Market Expansion and Growth?
The commercial buildings market is anticipated to be driven forward by the escalating construction of green buildings. Green buildings use a building technique that utilizes fewer resources, leading to more eco-friendly and healthier structures that are less costly to maintain. The full lifecycle of the building is considered in this sustainable construction approach. The year-over-year reduction in everyday costs due to the use of green buildings in commercial spaces will trigger market growth. For example, the Building and Construction Authority (BCA) of Singapore, a statutory entity within the Singaporean government's Ministry of National Development, established in the Green Building Masterplan an objective to make 80% of Singapore's buildings green (based on gross floor area, GFA) by 2030, as of July 2024. By the end of 2022, about 55% of these buildings had attained green certification. Therefore, the rise in green building construction is fueling the commercial buildings market.
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Which Fast-Growing Trends Are Poised to Disrupt the Commercial Buildings Market?
Leading firms in the commercial buildings market are concentrating on creating green commercial buildings through the incorporation of energy sources like rooftop solar installations. This focus aspires to both fulfill ecological obligations and gain a competitive advantage. A rooftop solar installation involves setting up solar panels on a building's rooftop to capture sunlight and produce electricity. In the context, in January 2023, the JEG Development Corporation (JDC) from the Philippines partnered with COREnergy Inc., an American real estate investment trust, to introduce a 37kWp rooftop solar installation at the 22-story JEG Tower, One Acacia. This move heralded the very first solar-powered commercial high-rise building in Cebu. The grid-connected solar initiative anticipates an annual energy production of 77 MWh, resulting in a reduction of 30 metric tons of carbon dioxide emissions per year. The JEG Tower, which received the highest Gold rating in Cebu City's LEED rating system for eco-friendly buildings, signifies COREnergy's fifth active distributed solar project in Cebu.
What Are the Emerging Segments in the Commercial Buildings Market?
The commercial buildings market covered in this report is segmented -
1) By Product: New Construction, Repair And Maintenance, Refurbishment And Demolition
2) By Application: Owned, Rental
3) By End User: Offices, Retail, Leisure, Other End Users
Subsegments:
1) By New Construction: Office Buildings, Retail Spaces, Warehouses And Distribution Centers, Hotels And Hospitality
2) By Repair And Maintenance: Routine Maintenance Services, Emergency Repairs, Facility Management Services
3) By Refurbishment And Demolition: Interior Renovations, Structural Upgrades, Demolition Services
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Who Are the Global Leaders in the Commercial Buildings Market?
Major companies operating in the commercial buildings market include Brookfield Business Partners LP, CBRE Group Inc., Bechtel Corporation, Turner Construction Company, Skanska AB, Jacobs Engineering Group Inc., Obayashi Corporation, Fluor Corporation, Kiewit Corporation, AECOM Technology Corporation, Lendlease Corporation, Prologis Inc., DPR Construction Inc., Clayco Inc., Suffolk Construction Company Inc., Boston Commercial Properties Inc., Walsh Group, Marcus & Millichap Inc., Segro plc, DLF Ltd., Mortenson Inc., Hunt Construction Group, RAK Properties PJSC, NAI Global, Link Asset Management Ltd., Nakheel PJSC, Onni Contracting Ltd.
Which are the Top Profitable Regional Markets for the Commercial Buildings Industry?
Asia-Pacific was the largest region in the commercial buildings market in 2024. The regions covered in the commercial buildings market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
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