Market Overview

The Canada construction market was valued at USD 266.7 Billion in 2024 and is projected to reach USD 417.3 Billion by 2033, growing at a CAGR of 5.10% during the forecast period from 2025 to 2033. Key drivers include large-scale transit and utilities projects, population growth fueled by immigration, and rising demand for housing and urban infrastructure. Green building and renewable energy initiatives are also transforming the sector with eco-friendly practices. For more detailed insights, visit the Canada Construction Market 

Study Assumption Years

• Base Year: 2024

• Historical Year/Period: 2019-2024

• Forecast Year/Period: 2025-2033

Canada Construction Market Key Takeaways

• Current Market Size: USD 266.7 Billion in 2024

• CAGR: 5.10%

• Forecast Period: 2025-2033

• Sustainable building practices, modular construction, and digital adoption such as BIM and automation are key growth enablers.

• Government infrastructure investments, housing initiatives, and clean energy projects are major growth drivers.

• Population growth and immigration are boosting housing demand and urban renewal programs.

• Opportunities exist in green construction, renewable energy, and smart city developments.

• Challenges include labor shortages, rising material costs, supply chain disruptions, and regulatory complexities.

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Market Growth Factors

Canada construction market Growth is being driven primarily by government investments in transport infrastructure projects and housing. In the 2024 budget, the government fast-tracked apartment construction with an allocation of $15 billion and tied housing infrastructure to public transit, green initiatives, and rural development through an additional $6 billion. Programs such as Canada Builds and the Canada Infrastructure Bank also channel investments into energy efficiency and smart city initiatives in partnership with the private sector, generating sustained construction demand across multiple sectors for the long term.

New immigration grew mostly in the major urban centers of Toronto, Vancouver, and Montreal. Entities developed multi-family residential buildings. Entities offered affordable housing through government-mediated programs. Entities redeveloped commercial and recreational space into mixed use. When schools, hospitals, roads, and public transport go into urban centers, urbanization may help improve infrastructure.

Growth drivers include the move toward sustainability initiatives in particular. The Canada Green Buildings Strategy seeks to cut emissions to 40% below 2005 levels by about 2030 then to net-zero close to 2050. Society finds renewable energy, energy-efficient technology, and materials appealing. Many new buildings feature solar panels energy-efficient heating ventilation and air conditioning HVAC and water-efficient fixtures. This can save money, raise the asset's value, and support national climate objectives for the nation.

Market Segmentation

Breakup By Sector:

• Residential: Fueled by population growth and immigration, this segment includes multi-family and single-family housing supported by government affordable housing programs and favorable interest rates. Mixed-use developments are also increasing in urban areas.

• Commercial: Driven by demand for office spaces, retail centers, hospitality projects, and warehouses due to e-commerce. Hybrid work models increase demand for flexible, energy-efficient office buildings and mixed-use properties.

• Industrial: Expansion of manufacturing, logistics, and technology sectors drives demand for distribution centers, warehouses, automotive and aerospace plants, and data centers using energy-efficient designs and automation.

• Infrastructure (Transportation): Government investments modernize roads, bridges, ports, and transit systems. Urbanization drives demand for efficient public transportation and sustainable infrastructure like electric vehicle charging stations.

• Energy and Utilities Construction: Growth in renewable energy projects such as wind farms, solar plants, and hydroelectric facilities. Upgrades to power grids and investments in natural gas infrastructure improve energy export capabilities.

Regional Insights

Ontario is the dominant market in Canada due to its high population density and economic activity, with cities like Toronto leading demand for residential, commercial, and infrastructure projects. Significant public transit investments, including the Ontario Line subway project, are reshaping transportation infrastructure. Industrial construction flourishes in Hamilton and Windsor. The province's strong immigration and urbanization trends fuel ongoing housing demand.

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Recent Developments & News

In March 2025, the Canadian Construction Association (CCA) launched the Construction for Canadians campaign during the federal election, emphasizing the sector's economic impact and urging investments in infrastructure and workforce development. In the same month, the Canadian Construction Safety Council (CCSC) was established by major contractors including Aecon, EllisDon, PCL, and Graham to enhance construction safety with new regulations mandating Type II safety helmets, reducing fall protection thresholds, and promoting cut-resistant gloves. These initiatives aim to improve safety and workforce resilience nationwide.

Key Players

• Aecon Group Inc.

• Kentel Construction Ltd

• PCL Construction

• EllisDon

• Graham Construction

• Kiewit Canada

• Ledcor Group

• Bird Construction

• Flynn Group of Companies

• Broccolini Construction

• Pomerleau

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