Canada Construction Market By Type (Renovation, and New Construction), By Sector (Real Estate (Residential (Affordable, and Luxury), and Commercial (Retail Buildings, Hospitality and Others), Infrastructure (Transportation (Airport, Port and Others), Ener

Canada Construction Market is estimated to be worth USD 283.63 billion in 2024 and is anticipated to rise to USD 296.44 billion by 2025. Looking ahead, the market is projected to maintain a steady growth trajectory, reaching USD 349.78 billion by 2030, driven by a CAGR of 3.36% between 2025 and 2030.

Rapid urbanization, coupled with demographic projections that forecast a 15% increase in Canada’s urban population by 2030, is significantly intensifying the need for expansive residential, commercial, and mixed-use infrastructure in key metropolitan hubs such as Toronto, Vancouver, and Montreal. This urban concentration is fueling demand for high-density housing, modern office spaces, and integrated community developments. Concurrently, the federal government’s Investing in Canada Plan, allocating over USD 131.4 billion through 2028, is actively stimulating construction activity in essential public infrastructure, including transit systems, healthcare networks, and educational facilities. This synchronized push from both population-driven demand and policy-backed capital injection is transforming the construction sector’s dynamics. Companies that align themselves with urban intensification strategies, prioritize transit-oriented development, and build capabilities in bidding for public infrastructure projects are well-positioned to benefit from this long-term structural growth in Canada’s built environment.

At the same time, Canada’s construction sector is undergoing a transformative shift through the adoption of advanced digital technologies that streamline project execution and boost productivity. Building Information Modeling (BIM), when integrated with AI-powered scheduling platforms and drone-assisted site monitoring, is reshaping how projects are planned, managed, and delivered. These tools not only reduce human error and rework, resulting in cost savings of up to 20%, but also accelerate timelines, with some projects completing up to 12 weeks earlier than traditional approaches. Drone-enabled inspections significantly cut down progress tracking time by up to 50%, while AI algorithms enhance real-time decision-making by forecasting potential risks and optimizing resource use. As construction becomes more complex and time-sensitive, companies investing in in-house digital expertise and forming strategic alliances with construction tech innovators can gain a competitive edge. Standardizing these technologies across operations not only improves project consistency and client satisfaction but also supports long-term scalability and resilience in an increasingly digitized market.

However, Canada’s construction industry is facing a dual constraint of labor shortages and escalating material costs, both of which threaten to slow project delivery and inflate overall costs. According to BuildForce Canada, approximately 270,000 workers are expected to retire by 2034, while project demand continues to rise, creating a demand for 380,500 new workers. Even with an estimated 272,200 new entrants, the industry could face a skilled labor deficit of over 108,000 positions. This shortfall is especially critical for trades like electricians, heavy equipment operators, and welders, which are vital for infrastructure and large-scale developments. At the same time, material price volatility is straining project budgets. For instance, Lumber prices have risen nearly 25% year-over-year, while steel and aluminum costs have surged due to imposed tariffs, raising input costs significantly. These rising expenses are tightening profit margins and delaying construction timelines.

On the other hand, Canada’s transition toward a net-zero economy is unlocking significant investment potential in green building practices and sustainable construction materials such as mass timber. With over 11 million existing homes still in need of energy-efficient upgrades, the residential retrofit market stands as a massive, under-tapped opportunity. While only a fraction, around 29,000 deep retrofits have been completed as of late 2024, as noted by Green Communities Canada, the momentum is building, supported by growing policy incentives and public awareness. Simultaneously, mass timber is emerging as a high-impact alternative to conventional steel and concrete. According to RBC’s Climate Action Institute, this innovative material can reduce a building’s embodied carbon footprint by 12–25%, shorten construction timelines by up to 25%, and minimize on-site vehicle traffic by as much as 90%. These benefits not only align with climate goals but also enhance operational efficiency.

Segment Overview

Canada Construction Market is segmented on the basis of type, sector, construction method, and contractor type.

 By Type, the market is divided into renovation, and new construction.

 By Sector, the market is divided into real estate, infrastructure and industrial. the real estate is further divided into residential and commercial. Residential is further divided into affordable and luxury. Moreover, Commercial is further segmented into retail buildings, office buildings, hospitality, healthcare facilities, educational institutes, and entertainment venues. infrastructure is further classified into transportation, water and wastewater, energy and telecommunication. industrial is further divided into manufacturing plant warehouses, power plants, oil refineries and chemical plants.

 By Construction Method, the market is divided into traditional construction, prefabricated/modular construction, 3d printed construction and green/sustainable construction.

 By Contractor Type, the market is divided into small contractor, medium contractor and large contractor.

Strategic Analysis of Companies of Canada Construction Industry

Between 2024 and mid 2025, Canada’s construction market has seen intensifying competition among global incumbents, PCL Construction, EllisDon, and Graham Construction, each executing distinct strategies to bolster market share, brand visibility, and long-term growth. Between 2024 and 2025, leading Canadian construction firms have made strategic moves to expand capabilities, embrace digital transformation, and strengthen their competitive positioning.
• In May 2025, the Nuclear Waste Management Organization awarded Kiewit and WSP a USD 2.3 billion contract to construct the above-ground facilities for Canada’s deep geological repository in northwestern Ontario.
• In March 2025, PCL Construction launched its cloud-based Digital Twin Services, integrating real-time data with 3D BIM models to reduce field rework by 15%, a move reinforcing its role as a digital-first contractor.
• On December, 2024, Aecon Group Inc. completed its acquisition of U.S.-based United Engineers & Constructors, incorporating advanced nuclear and power-generation expertise into its service portfolio. This acquisition enhances Aecon’s capabilities in the North American energy infrastructure sector and strategically positions the company to pursue larger, cross-border industrial and power project opportunities.
• In June 2024, Bird Construction announced its USD 100 million acquisition of Jacob Bros Construction, a move that expands Bird’s presence in Western Canada’s civil infrastructure sector.
• In February 2024, EllisDon partnered with The Link and Provision, winners of its first ConTech Accelerator program to integrate AI-powered tools for contract analysis and project-specification insights into its construction processes. Together, these developments highlight a broader trend of digital adoption, regional expansion, and portfolio diversification among top industry players.

Key Benefits
• The report provides quantitative analysis and estimations of Canada Construction market from 2024 to 2030. This analysis assists in identifying the prevailing market opportunities to capitalize on.
• The study comprises a detailed analysis of Canada Construction market trends, including the current and future trends to depict the prevalent investment pockets in the market.
• The information related to key drivers, restraints and opportunities and their impact on Canada Construction market is provided in the report.
• The competitive analysis of the market players along with their market share in Canada Construction market is provided in the report.
• The SWOT analysis and Porter’s Five Forces model are elaborated in the study.
• The value chain analysis in the market study provides a clear picture of the roles of stakeholders. Show more