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New Urbanization Construction Market on Track for Strong Growth, Estimated to Grow at 8.6% CAGR Through 2029

09-01-2025 01:57 PM CET | Industry, Real Estate & Construction

Press release from: The Business Research Company

New Urbanization Construction Market

New Urbanization Construction Market

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What Is the Expected CAGR for the New Urbanization Construction Market Through 2025?
The market size of the new urbanization construction has seen a significant escalation in the recent past. It's projected to surge from a market value of $2,544.82 billion in 2024 to $2,771.73 billion in 2025, at a compound annual growth rate (CAGR) of 8.9%. The historic period growth is due to factors such as an increase in rural to urban migration, industrialization expansion, heightened government spending on infrastructure, burgeoning demand for cost-effective housing, and the rise of economic policies aimed at urban regions.

What's the Projected Size of the Global New Urbanization Construction Market by 2029?
Expectations are high for robust expansion in the new urbanization construction market in the coming years, with its size predicted to reach $3,849.44 billion in 2029, propelled by a compound annual growth rate (CAGR) of 8.6%. The anticipated growth within this period can be associated with a surge in attention towards smart city technologies, mounting environment and climate resilience standards, a proliferation in infrastructure suited to remote work, the expansion of urban middle classes in developing economies, and an escalated focus on transit-oriented development. The primary trends expected throughout this forecasting period encompass urban redevelopment and densification, the incorporation of green infrastructure, focus on pedestrian-friendly and 15-minute cities, the adoption of modular and prefabricated construction methods, as well as increased involvement of public-private partnerships in urban planning.

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Top Growth Drivers in the New Urbanization Construction Industry: What's Accelerating the Market?
Predictions indicate that the new urbanization construction market will experience growth due to a rise in governmental spending on infrastructure. This money, allocated by a combination of local, regional, and national governments, is employed for the betterment, enhancement, and upkeep of physical utilities and infrastructure like transportation, water supply, public buildings, energy, and telecommunications. This increase in infrastructure spending is rooted mainly in the motives of starring economic development, job generation, and the refurbishment of vital public belongings. It also enables urban growth and expansion by financing essential facilities such as roads, utilities, and transportation networks, thus supporting new urbanization construction. For example, in June 2025, the Parliament of the United Kingdom, a government body in the UK, reported that in 2022, $35.7 billion (£26.0 billion), equating to 1% of GDP and 34% of total government investment, was spent on fundamental economic infrastructure. Furthermore, in July 2024, according to UK-based government department, the Office for National Statistics, central government provided for 74.2% of the general government's total spending on infrastructure in 2022, exhibiting a 1.1 percentage point increase from 2021. Therefore, the rise in governmental expenditure on infrastructure is a key factor propelling the growth of the new urbanization construction market.

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What Trends Will Shape the New Urbanization Construction Market Through 2029 and Beyond?
Leading corporations in the new urbanization construction market are shifting their focus to developing groundbreaking solutions such as circular technology platforms, to substantially lower the environmental footprint of the building sector. A circular technology platform aids in recycling, reusing, repairing, and sharing materials and resources. This process helps to diminish waste and prolong the lifecycle of products. Take for example, Holcim, a construction materials company based in Switzerland, which in April 2023, initiated ECOCycle, their own circular platform that recycles as much as 100% of construction and demolition waste into fresh building materials. This progressive solution preserves high-performance standards while significantly cutting down the utilization of virgin raw materials and consequently, minimizing environmental harm. It promotes the growth of low-carbon, resource-efficient cities, aligning itself with worldwide sustainability targets and new urbanization tactics.

What Are the Main Segments in the New Urbanization Construction Market?
The new urbanization construction market covered in this report is segmented -

1) By Component: Materials, Services, Technology
2) By Construction Type: New Construction, Renovation, Retrofit
3) By Infrastructure Development: Roads And Highways, Bridges And Tunnels, Railways, Airports And Seaports, Utility Infrastructure
4) By Application: Residential, Commercial, Industrial, Infrastructure
5) By End-User: Government, Private Sector, Public-Private Partnerships

Subsegments:
1) By Materials: Concrete, Steel, Asphalt, Glass, Wood, Composites, Recycled Materials, Insulation Materials, Bricks And Blocks, Plastics And Polymers
2) By Services: Urban Planning And Design, Construction Management, Engineering Services, Project Financing, Sustainability Consulting, Permitting And Regulatory Services, Facility Management, Renovation And Retrofitting, Demolition Services, Smart Infrastructure Deployment
3) By Technology: Building Information Modeling (BIM), Smart Grid Integration, IoT For Smart Cities, AI And Machine Learning In Construction, Drones And Robotics, 3D Printing, Modular And Prefabricated Construction, Augmented Reality (AR) Or Virtual Reality (VR), Energy Management Systems, Digital Twin Technology

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Which Top Companies are Driving Growth in the New Urbanization Construction Market?
Major companies operating in the new urbanization construction market are China State Construction Engineering Corporation Ltd., China Railway Group Limited, China Railway Construction Corporation Limited, China Communications Construction Company Limited, Power Construction Corporation of China, China Metallurgical Group Corporation, China Vanke Co. Ltd., Poly Developments and Holdings Group Co. Ltd., Shanghai Construction Group Co. Ltd., Longfor Group Holdings Limited, China Resources Land Limited, China Overseas Land & Investment Ltd., China National Chemical Engineering Group Corporation Ltd., Sunac China Holdings Limited, Shimao Group Holdings Limited, China Fortune Land Development Co. Ltd., Beijing Urban Construction Group Co. Ltd., Sinohydro Corporation Limited, Country Garden Holdings Company Limited, Greenland Holdings Corporation Limited

Which Regions Will Dominate the New Urbanization Construction Market Through 2029?
North America was the largest region in the new urbanization construction market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the new urbanization construction market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

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3.Policy Makers & Regulators - To track industry developments and align regulatory frameworks.
4.Consultants & Analysts - To support market entry, expansion strategies, and client advisory work.

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Learn More About The Business Research Company
With over 15,000+ reports from 27 industries covering 60+ geographies, The Business Research Company has built a reputation for offering comprehensive, data-rich research and insights. Our flagship product, the Global Market Model delivers comprehensive and updated forecasts to support informed decision-making.

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