Press release
Commercial Buildings Market Landscape 2025: Forecast Data and Growth Strategy Insights
Commercial Buildings
What Is the Expected CAGR for the Commercial Buildings Market Through 2025?
In recent years, the market size of commercial buildings has displayed consistent growth. It's anticipated to increase from $1877.12 billion in 2024 to $1924.25 billion in 2025, showcasing a compound annual growth rate (CAGR) of 2.5%. Contributing factors to this upward trend during the historic period encompass economic development and stability, urbanization patterns, regulatory provisions, consumer behavior and preferences, as well as worldwide incidents and crises.
What's the Projected Size of the Global Commercial Buildings Market by 2029?
The market size of commercial buildings is projected to steadily increase in the coming years, ballooning to $2248.79 billion in 2029 with a compound annual growth rate (CAGR) of 4.0%. Factors contributing to this growth during the forecast period include flexible work set-ups, efforts towards mitigating climate change, fast-paced urbanization in developing markets, the impact of e-commerce on retail spaces, and government incentives and ventures. Anticipated trends in the forecast period comprise of sophisticated security systems, modular building and design, data-driven research for decision-making, smart building innovations, and digital transformation.
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Top Growth Drivers in the Commercial Buildings Industry: What's Accelerating the Market?
The surge in the construction of green buildings is set to stimulate the growth of the commercial buildings market. Essentially, green buildings utilize lesser resources and result in more sustainable, ecologically-friendly, and relatively cost-effective structures. This sustainable construction approach takes into consideration the entire lifecycle of a building. Given their ability to lower daily expenses over the decades, green buildings are increasingly popular in the commercial sector, contributing to market growth. As an example, The Building and Construction Authority (BCA) of Singapore, a statutory organization within the Singaporean government's Ministry of National Development, revealed in July 2024 that prior versions of the Green Building Masterplan aimed to make 80% of Singapore's buildings (measured by gross floor area, GFA) eco-friendly by 2030. As of the close of 2022, approximately 55% of these buildings had secured green certification. Hence, the rising trend in the construction of green buildings is a significant factor propelling the commercial buildings market.
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Which Emerging Trends Are Transforming the Commercial Buildings Market in 2025?
Major corporations in the commercial buildings market are turning their attention towards environmentally friendly commercial buildings, taking advantage of renewable energy sources like rooftop solar installations. This not only fulfills their environmental responsibilities but also offers a competitive advantage in the market. Rooftop solar installations involve fitting solar panels on the roofs of buildings to absorb sunlight and convert it into electricity. For instance, in January 2023, the JEG Development Corporation (JDC) from the Philippines, in collaboration with the US-based real estate investment trust, COREnergy Inc., inaugurated a 37kWp rooftop solar installation on the 22-story JEG Tower, One Acacia. This marked the first ever commercial high-rise building in Cebu to be powered by solar energy. This grid-connected solar project is anticipated to yield 77 MWh of energy per year, preventing the emission of 30 metric tons of carbon dioxide annually. The JEG Tower has been awarded the highest Gold rating in Cebu City's LEED evaluation system for eco-friendly buildings, becoming COREnergy's fifth operational distributed solar project in Cebu.
What Are the Main 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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Which Top Companies are Driving Growth 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 Regions Will Dominate the Commercial Buildings Market Through 2029?
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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