US Contractor Market US Contractor Market Research Report: By Product (DC Contractors, AC Contractors) and By End User (Electric Vehicles, Renewable Energy & Storage, Aerospace & Defense, Industrial Machinery, Others) - Forecast to 2035

US Contractor Market

US Contractor Market Research Report: By Product (DC Contractors, AC Contractors) and By End User (Electric Vehicles, Renewable Energy & Storage, Aerospace & Defense, Industrial Machinery, Others) - Forecast to 2035.

US Contractor Market Overview:

As per MRFR analysis, the US Contractor Market Size was estimated at 50.6 (USD Million) in 2023. The US Contractor Market Industry is expected to grow from 77.2(USD Million) in 2024 to 141.4 (USD Million) by 2035. The US Contractor Market CAGR (growth rate) is expected to be around 5.656% during the forecast period (2025 - 2035).

Key US Contractor Market Trends Highlighted

The US Contractor Market has been witnessing several key market trends which are shaping its landscape significantly. One of the most notable trends is the increasing demand for skilled labor, driven by an overall construction boom across various sectors including residential, commercial, and infrastructure. This demand is fueled by government initiatives aimed at strengthening infrastructure, which has led to substantial investment in public works projects. Furthermore, the rise in renovation and remodeling activities is another significant aspect, as homeowners seek to enhance their living conditions, contributing to the steady demand for contractors.Opportunities in the US Contractor Market are broad, particularly in the field of sustainable building practices. The push for green construction practices is shifting focus to energy-efficient and environmentally friendly materials. This trend not only supports governmental sustainability goals but also resonates with consumers who are increasingly conscious about their environmental impact. Contractors who can align their services with these eco-friendly practices might find a lucrative niche in the market. In recent times, there has also been a digital transformation within the industry. Many contractors are adopting technologies such as Building Information Modeling (BIM) and project management software to streamline operations and enhance productivity.This digital shift enables better project planning and execution, which is critical given the complexity of modern construction projects. Additionally, the growing emphasis on safety and compliance, particularly in the wake of the COVID-19 pandemic, has spurred contractors to invest in better safety protocols and training programs, ensuring that they meet regulatory standards. These trends collectively illustrate a dynamic market, ripe with opportunities and challenges for contractors in the US.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

US Contractor Market Drivers

Increasing Infrastructure Spending

The US Contractor Market Industry is expected to see significant growth driven by the rising infrastructure spending at both federal and state levels. According to the American Society of Civil Engineers, the US is facing a $2.59 trillion investment gap to maintain and improve its infrastructure over the next decade. This gap presents a substantial opportunity for contractors as federal initiatives push for upgraded transportation systems, bridges, and public utilities.In 2021, the Infrastructure Investment and Jobs Act introduced $1.2 trillion in funding aimed at improving infrastructure, which is set to impact contractor operations positively. Established organizations like the Associated General Contractors of America also report that increased funding leads to more bidding opportunities in the construction sector, contributing to the rapid growth of the US Contractor Market Industry. As roadways, airports, and water systems require maintenance and upgrading, contractors are poised to respond to a surge in demand, reinforcing the industry's expansion.

Expansion in Residential Construction

The US Contractor Market Industry is strongly influenced by the expansion in residential construction, driven by population growth and urbanization trends. The US Census Bureau indicated that for the first quarter of 2023, new residential construction was at a seasonally adjusted rate that exceeded 1.7 million units, a clear signal of a robust housing market. The National Association of Home Builders indicated that this trend was supported by low-interest rates and a growing desire for larger living spaces prompted by the remote work movement.Established construction firms are capitalizing on these trends, investing in capabilities to meet the demand for affordable housing and luxury developments alike. This focus on residential projects underscores the importance of contractors in addressing the housing shortage and meeting consumer needs.

Technological Advancements in Construction

The adoption of advanced technologies in the construction sector is acting as a substantial driver for the US Contractor Market Industry. Technologies such as Building Information Modeling (BIM), drones, and artificial intelligence are revolutionizing how contractors plan and execute their projects. Reports from the Construction Industry Institute indicate that firms utilizing technology effectively can see an increase in productivity by 20% to 30%.Industry giants like Bechtel and Turner Construction are already leveraging these technologies to streamline their operations, enhance safety, and minimize delays. The integration of these technologies not only leads to higher efficiency but also attracts new investment in the US Contractor Market Industry as more firms seek to modernize their operations and improve project outcomes.

US Contractor Market Segment Insights:

Contractor Market Product Insights

The Product segment of the US Contractor Market holds a crucial position in the overall industry dynamics, showcasing diverse applications and a variety of operational methodologies. Within this landscape, DC Contractors and AC Contractors represent significant facets focusing on distinct electrical systems and requirements which are pivotal in various construction applications. The breadth of the US Contractor Market revenue reflects a growing dependency on these contractors, primarily driven by the escalating demand for energy-efficient solutions, the rise of smart buildings, and the ongoing advancements in renewable energy technologies.This growth is further supported by government initiatives aimed at bolstering infrastructure and energy sustainability. As consumers increasingly prefer energy-efficient systems, the role of AC Contractors has expanded, catering to both commercial and residential needs by optimizing air conditioning systems amidst rising temperatures in many US regions. On the other hand, DC Contractors cater predominantly to renewable energy projects, capitalizing on the increasing shift towards solar and wind energy implementations, thus catering to the burgeoning market for sustainable construction practices.The US Contractor Market segmentation highlights the significant role these contractors play in meeting energy demands, facilitating innovations, and adhering to regulatory standards, which is crucial for facilitating growth in emerging smart city projects. The development of advanced technologies such as Building Information Modeling (BIM) and automation in installation processes has led to enhanced productivity and efficiency, positioning contractors as essential contributors to on-time project completions and budget adherence. Despite the growth potential, challenges such as fluctuating raw material costs, supply chain disruptions, and skilled labor shortages persist, impacting contractor operations.Nevertheless, there exists ample opportunity for DC and AC Contractors to leverage the growing trend of urbanization, which is leading to a higher demand for residential, commercial, and industrial construction. The resilience and adaptability observed in the contractor segment are critical, with many players investing in training and development to address labor shortages, thereby ensuring skill enhancement and workforce readiness for future projects. As the market continues to evolve, tracking US Contractor Market statistics will be imperative in understanding how these segments adapt to changing regulations, economic conditions, and technological advancements in their operations.Overall, the Product segment underlines a dynamically evolving facet of the US Contractor Market, shaped by emerging trends and driven by the inherent need for modern construction methodologies.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Contractor Market End User Insights

The End User segment of the US Contractor Market encompasses a range of critical industries that are driving substantial growth and innovation. Electric Vehicles are becoming increasingly vital as the country shifts towards sustainable energy solutions, supported by government initiatives aimed at reducing carbon emissions and promoting clean transportation. Renewable Energy and Storage technologies are also gaining traction, with investments focusing on solar, wind, and battery storage systems, which align with national goals for energy independence and sustainability.The Aerospace and Defense sector plays a significant role, supported by government funding and advancing technologies, ensuring that the US remains competitive in global markets. Industrial Machinery, integral to various production processes, is witnessing enhancements through automation and smart technologies, thereby increasing efficiency and productivity. Other sectors within this market also contribute to its diversity and resilience, each presenting unique challenges and opportunities for contractors to innovate. Overall, the US Contractor Market segmentation reflects a dynamic and evolving landscape, underpinned by continuous advancements and shifting priorities towards a more sustainable and technologically driven economy.

US Contractor Market Key Players and Competitive Insights:

The US Contractor Market is characterized by a dynamic environment where numerous players compete for market share across various sectors including commercial, residential, and infrastructure projects. This market is influenced by factors such as technological advancements, regulatory changes, labor dynamics, and evolving customer preferences. Contractors are increasingly focusing on differentiating their services through quality, safety, and sustainability, leading to a competitive landscape where innovation and efficient project delivery can determine success. As a result, understanding the competitive insights of this market is critical for stakeholders aiming to navigate and thrive in this rapidly changing environment.PCL Construction stands out in the US Contractor Market due to its robust market presence and commitment to quality and customer satisfaction. The company has established a reputation for delivering large-scale projects across various sectors, including commercial, healthcare, and hospitality. Its strengths lie in its ability to leverage a skilled workforce combined with modern construction technologies that enhance efficiency and reduce project timelines. Moreover, PCL Construction emphasizes strong relationships with clients and stakeholders, contributing to its ongoing success and sustainability in this competitive landscape. The company’s diverse portfolio and local expertise allow it to adapt to the unique requirements of various geographic markets across the United States, ensuring it remains a formidable competitor within the industry.WhitingTurner Contracting Company also holds a significant position in the US Contractor Market, known for its comprehensive range of construction services and expertise across multiple sectors such as commercial, institutional, and residential markets. The company prioritizes innovation through the implementation of advanced construction methodologies, which helps to optimize project costs and timelines. WhitingTurner’s strengths include its strong project management capabilities and a commitment to safety and quality standards, which have solidified its reputation among clients. The company has also engaged in various mergers and acquisitions to expand its service offerings and regional presence, reinforcing its competitive edge in the marketplace. With a focus on sustainable construction practices and a portfolio that includes a variety of high-profile projects, WhitingTurner Contracting Company continues to strengthen its footprint in the US contractor landscape.

Key Companies in the US Contractor Market Include:

PCL Construction

WhitingTurner Contracting Company

Tishman Realty and Construction

Jacobs Engineering Group

Fluor Corporation

Balfour Beatty US

Skanska USA

McCarthy Building Companies

Burns and McDonnell

HDR, Inc.

Kiewit Corporation

Bechtel

Gilbane Building Company

Turner Construction

Clark Construction Group

US Contractor Market Industry Developments

The US Contractor Market has experienced considerable activity in recent months, driven by an increasing demand for infrastructure development and construction services. Noteworthy developments include a collaboration in June 2023 between Tishman Realty and Construction and Jacobs Engineering Group aimed at enhancing sustainable building practices, reflecting a growing trend towards green construction methodologies. Additionally, Fluor Corporation reported a significant infrastructure contract awarded in August 2023, bolstering its market positioning amid rising project values across various sectors. In terms of mergers and acquisitions, Balfour Beatty US acquired a regional contractor in July 2023, expanding its operational capabilities and market presence. The market has also been influenced by the growth of established players such as Turner Construction and Skanska USA, which have reported increased project backlogs, indicating future revenue potential. Over the last two years, significant contracts have been secured by companies such as Bechtel, enhancing their project pipelines and fiscal health. The contractor market continues to evolve, showcasing resilience against economic uncertainties and positioning itself for future expansion, with robust investment anticipated in the coming quarters.

US Contractor Market Segmentation Insights

Contractor Market Product Outlook

DC Contractors

AC Contractors

Contractor Market End User Outlook

Electric Vehicles

Renewable Energy & Storage

Aerospace & Defense

Industrial Machinery

Others

Report Scope:

Report Attribute/Metric Source:	Details
MARKET SIZE 2018	50.6(USD Million)
MARKET SIZE 2024	77.2(USD Million)
MARKET SIZE 2035	141.4(USD Million)
COMPOUND ANNUAL GROWTH RATE (CAGR)	5.656% (2025 - 2035)
REPORT COVERAGE	Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
BASE YEAR	2024
MARKET FORECAST PERIOD	2025 - 2035
HISTORICAL DATA	2019 - 2024
MARKET FORECAST UNITS	USD Million
KEY COMPANIES PROFILED	PCL Construction, WhitingTurner Contracting Company, Tishman Realty and Construction, Jacobs Engineering Group, Fluor Corporation, Balfour Beatty US, Skanska USA, McCarthy Building Companies, Burns and McDonnell, HDR, Inc., Kiewit Corporation, Bechtel, Gilbane Building Company, Turner Construction, Clark Construction Group
SEGMENTS COVERED	Product, End User
KEY MARKET OPPORTUNITIES	Residential remodeling trends, Sustainable construction materials demand, Technology integration in contracting, Workforce development initiatives, Energy-efficient building solutions
KEY MARKET DYNAMICS	skilled labor shortage, rising material costs, regulatory compliance challenges, increasing technology adoption, project delivery speed
COUNTRIES COVERED	US