Canada Construction Market

Canada Construction Market Size and Share:

The Canada construction market size was valued at USD 266.7 Billion in 2024. Looking forward, IMARC Group estimates the market to reach USD 417.30 Billion by 2033, exhibiting a CAGR of 5.10% from 2025-2033. The market is driven by large-scale projects in transit and utilities. Population growth, fueled by immigration, and increased demand for housing and urban infrastructure in major cities. Besides this, Canada construction market share is influenced by rising green building and renewable energy projects, which are reshaping the construction with eco-friendly practices and energy-efficient technologies.

The growing housing demand is stimulating the construction market in Canada. High immigration levels and population growth are intensifying the need for residential developments across urban centers. Cities like Toronto, Vancouver, and Montreal face increasing demand for affordable and multi-family housing solutions. Mixed-use developments including commercial, residential, and recreational spaces are gaining popularity in urban areas. Government-led initiatives, support affordable housing projects to meet growing population needs. High-density housing projects, including condominiums and rental apartments, are transforming urban landscapes in Canadian cities. Urbanization has also catalyzed the demand for supporting infrastructure, such as schools, hospitals, and transit systems. These projects aim to enhance connectivity, accessibility, and quality of life in densely populated areas. The trend toward sustainable urban planning encourages green building practices and energy-efficient housing solutions, which are further bolstering the market growth.

Proactive urban planning and development policies are major contributor of the market in the country. Municipal governments implement strategic initiatives to address housing shortages and enhance urban infrastructure. Policies promoting mixed-use developments combine residential, commercial, and recreational spaces, optimizing land use and urban efficiency. Transit-oriented development projects prioritize housing and infrastructure near public transportation hubs, reducing urban congestion. Smart city initiatives emphasize integrating technology and sustainability into urban planning, attracting investments and innovation. Incentives for green construction practices encourage developers to adopt eco-friendly materials and energy-efficient building designs. Inclusionary zoning regulations require new developments to incorporate affordable housing, promoting equitable access to housing options. Infrastructure investments focus on enhancing transportation networks, utilities, and community facilities in urban areas, thereby strengthening the market growth.

Canada Construction Market Trends:

Green building and sustainability trends

The Canada Green Buildings Strategy, included in the 2030 Emissions Reduction Plan, seeks to cut emissions by 40% from 2005 levels by the year 2030, according to official reports. This strategy employs a sector-wise method to assist Canada's climate objectives and establishes the foundation for reaching net-zero emissions by 2050. Sustainable practices and green building trends are revolutionizing Canada's construction industry by promoting environmentally friendly methods and innovation. Increasing environmental consciousness among people and decision-makers has made sustainable development a priority in construction initiatives. Government initiatives and energy-saving renovation programs motivate developers to embrace more sustainable construction technologies. These methods lower carbon footprints, improve energy efficiency, and are in harmony with international climate objectives such as net-zero emissions. The growing need for sustainable structures is fueling investments in renewable energy solutions and green materials. Developers are integrating solar panels, energy-saving HVAC systems, and water-saving technologies into their projects. City planners and architects are creating eco-friendly infrastructure such as vertical gardens and rainwater collection systems for intelligent urban areas. Sustainable practices reduce operational expenses while enhancing the long-term asset value for property owners.

Government infrastructure investments

In April 2024, Budget introduced measures to accelerate housing construction in Canada, including a $15 billion top-up to the Apartment Construction Loan Program. This initiative aims to build at least 30,000 new apartments, with reforms to simplify access for builders. It also launched Canada Builds, partnering with provinces and territories to expedite housing development. Additionally, a $6 billion Housing Infrastructure Fund is established to support essential infrastructure and further housing projects. Canada construction market analysis show, that these investments target critical sectors like public transit, green infrastructure, and rural community projects. They provide consistent funding for modernizing transportation networks, enhancing connectivity, and creating sustainable urban spaces. The emphasis on large-scale projects ensures steady demand for construction services across residential and non-residential sectors. Moreover, the Canada Infrastructure Bank facilitates private-sector participation by financing transformative projects through innovative funding models. Public-private partnerships are expanding opportunities for developing energy-efficient buildings, clean energy, and smart city initiatives. Local economies benefit through job creation, increased investments, and enhanced productivity from improved infrastructure systems. The government’s focus on regional equity ensures projects address the needs of underserved communities and areas.

Growing demand in commercial sectors

The growth of construction industry in Canada is fueled by the expansion of industries like e-commerce, logistics, and technology, stemming from the rising demand for contemporary infrastructure. Warehouses, distribution hubs, and data centers are being constructed to address the increase in demand. Retail construction is evolving, emphasizing mixed-use environments that integrate shopping, dining, and entertainment options. The increase in hybrid working models is influencing the need for adaptable office spaces in city locations. Developers are incorporating smart building technologies to improve energy efficiency, productivity, and tenant happiness. Hotels and hospitality initiatives are expanding as a result of rising domestic and international tourism activities. This tendency is particularly pronounced in large cities including Toronto, Vancouver, and Calgary. Government and regional incentives, like tax benefits, promote private investment in commercial real estate. The housing sector serves as a key pillar of Canada’s construction market, propelled by strong population increases and urban development. Elevated immigration rates combined with a rising need for low-cost housing have resulted in a spike in residential building initiatives. To meet this demand, in August 2024, IBG Designs introduced an online platform providing low-rise building designs intended to tackle Canada's affordable housing issue. The flexible plans cater to smaller communities, assisting in overcoming financial and resource challenges while speeding up housing developments.

Canada Construction Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the Canada construction market, along with forecasts at the country and regional levels from 2025-2033. The market has been categorized based on sector.

• Residential
• Commercial
• Industrial
• Infrastructure (Transportation)
• Energy and Utilities Construction

Residential construction is a key segment of the construction market, driven by population growth and urbanization. High immigration levels in Canada are increasing the demand for housing, including multi-family units and single-family homes. Government initiatives, such as affordable housing programs, further fuel the market’s growth. Favorable interest rates are driving increased investments in residential real estate. Moreover, the trend of mixed-use development like integrating living, commercial, and recreational space, is rising in urban areas.

The commercial construction segment is fueled by the growing demand for office spaces, retail centers, and hospitality projects. The rise of e-commerce has necessitated the construction of warehouses and logistics hubs across the country. Hybrid work models are growing demand for modern, flexible office spaces with energy-efficient and smart building features. Mixed-use developments that integrate commercial and residential spaces are gaining momentum in urban areas.

Industrial construction is primarily driven by the expansion of manufacturing, logistics, and technology-related industries in Canada. The e-commerce boom has increased the need for state-of-the-art distribution centers and warehouses. Investments in advanced manufacturing facilities, such as automotive and aerospace plants, are also expanding. Additionally, data centers are in high demand due to the increasing reliance on digital infrastructure and cloud computing. Energy-efficient designs and automation technologies are being incorporated to enhance operational efficiency in industrial facilities.

Transportation infrastructure is a cornerstone of Canada’s construction market, driven by government investments and urban growth. Programs like the Investing in Canada Plan focus on modernizing roads, bridges, ports, and transit systems. Urbanization has increased the need for efficient public transportation networks in cities like Toronto and Vancouver. Sustainable infrastructure, such as electric vehicle charging stations, is being integrated into transportation projects.

Energy construction is expanding due to Canada’s focus on renewable energy and clean technology development. Projects include the construction of wind farms, solar power plants, and hydroelectric facilities to meet sustainability goals. The demand for energy-efficient upgrades to existing power grids and facilities is also growing. Investments in natural gas pipelines and storage facilities support Canada’s energy export capabilities.

Utilities construction focuses on developing water supply systems, wastewater treatment facilities, and telecommunications infrastructure. Population growth and urbanization are increasing the need for modern, efficient utility services. Investments in smart grids and digital infrastructure support Canada’s technological and economic competitiveness. Water conservation and renewable energy integration are priorities in new utility projects. Aging infrastructure necessitates upgrades and replacements, ensuring reliability and sustainability in utility services.

Regional Analysis:

• Ontario
• Quebec
• Alberta
• British Columbia
• Others
   

Ontario is Canada’s largest market due to its high population density and economic activity. Major urban centers like Toronto drive demand for residential, commercial, and infrastructure projects. Investments in public transit, such as the Ontario Line subway project, are transforming transportation infrastructure. The province’s housing demand is fueled by significant immigration and urbanization trends. Industrial construction is also strong, with developments in manufacturing and logistics hubs in cities like Hamilton and Windsor.

Quebec’s market is driven by infrastructure investments and the province’s strong focus on sustainability. The government is prioritizing projects like highway expansions and public transit systems. Quebec’s growing population and housing demand fuel residential construction, particularly in urban areas. Industrial development, such as aerospace manufacturing facilities, also contributes to construction activities in the province. Energy construction is significant, with ongoing investments in hydroelectric projects to meet domestic and export demands.

Alberta’s market is heavily influenced by its natural resource-driven economy. The oil and gas industry drives industrial construction, including pipelines and storage facilities. However, diversification efforts are leading to the growth in renewable energy projects, such as wind and solar farms. Urban centers like Calgary and Edmonton are seeing increased demand for residential and commercial developments. Transportation infrastructure projects, including road expansions and transit systems, are also on the rise.

British Columbia’s market benefits from its strategic location and strong economic growth. Major cities like Vancouver drive residential and commercial construction due to high demand for housing and office spaces. Infrastructure projects, such as the Broadway Subway Extension, enhance transportation networks in urban areas. The province’s focus on sustainability is improving green building projects and renewable energy developments. Industrial construction, including ports and logistics hubs, supports the province’s role in international trade.

Competitive Landscape:

Major participants in the market consist of construction companies, developers, contractors, architects, and suppliers that play a role in project success. Major corporations lead the market through varied portfolios and skills. The use of cutting-edge technologies like Building Information Modeling (BIM) and prefabrication improves project efficiency. Major stakeholders prioritize sustainability by using environmentally friendly materials and adopting energy-efficient construction methods. The analysis of Canada’s construction market underscores the influence of these participants in defining the industry’s dynamic and sustainable future. Collaborations with government entities and private investors facilitate the execution of extensive infrastructure and urban development initiatives. Suppliers and manufacturers are essential for delivering top-notch materials and creative construction solutions. Cooperation among stakeholders enables smooth project execution, guaranteeing on-time delivery and compliance with financial plans. Skilled labor and workforce training programs led by key players address industry talent shortages effectively. These key players also facilitate the construction of large-scale project ensuring safety, quality, and compliance with Canadian building codes and standards. For instance, Canada’s Wonderland is constructing AlpenFury, a record-breaking launch coaster set to open in 2025. It will be Canada’s longest, tallest, and fastest, featuring nine inversions and speeds of 115 km/h. With unique components like Fire Serpent Roll and Skyflyer Loop, the ride promises thrilling experiences.

The report provides a comprehensive analysis of the competitive landscape in the Canada construction market with detailed profiles of all major companies, including:

• Aecon Group Inc.
• Kentel Construction Ltd
• PCL Construction
• EllisDon
• Graham Construction
• Kiewit Canada
• Ledcor Group
• Bird Construction
• Flynn Group of Companies
• Broccolini Construction
• Pomerleau

Latest News and Developments:

• October 2024: Local government launched the Building Material Exchange (BMEx) program on Vancouver Island to promote sustainable construction. It connects businesses with surplus or salvaged building materials to those needing them, reducing landfill waste and material costs.
• October 2024: The City of Toronto, University Health Network, and Fred Victor launched Canada's first social medicine supportive housing development at 90 Dunn Avenue. This project provides 51 rent-geared-to-income homes for homeless individuals, offering both housing and healthcare services. The initiative integrates health and social support to improve residents' well-being and reduce pressure on emergency services. Funded by various levels of government, it contributes to the city’s HousingTO 2020-2030 Action Plan.
• September 2024: Anthem Properties launched Canada’s first Real Estate Development Trust IPO to support its mixed-use Citizen project in Burnaby, BC. The $82 million initiative will fund residential, rental, and affordable housing units, alongside retail and hospitality spaces. This innovative approach addresses housing availability challenges while supporting sustainable urban growth.

Canada construction Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, Canada construction market outlook, and dynamics of the market from 2019-2033.
• The research study provides the latest information on the market drivers, challenges, and opportunities in the Canada construction market.
• Porter's Five Forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the Canada construction industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.