PUBLISHER: The Business Research Company | PRODUCT CODE: 1664424
PUBLISHER: The Business Research Company | PRODUCT CODE: 1664424
An institutional building is a structure created to fulfill public or community functions, such as those related to education, healthcare, government, or cultural activities. Examples of these buildings include schools, hospitals, libraries, and government offices. They are generally large, practical spaces designed to meet specific institutional requirements.
The main categories of institutional buildings are residential and non-residential. Residential buildings involve the construction of structures intended for sleeping accommodations, with or without dining and cooking facilities. Construction activities can encompass both new construction and renovation projects. Buildings within this context can be classified as either smart buildings or traditional buildings. These structures find various applications, including ownership, rental, and utilization by both private and public end users.
The institutional buildings market research report is one of a series of new reports from The Business Research Company that provides institutional buildings market statistics, including institutional buildings industry global market size, regional shares, competitors with an institutional buildings market share, detailed institutional buildings market segments, market trends, and opportunities, and any further data you may need to thrive in the institutional buildings industry. The institutional buildings market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
The institutional buildings market size has grown steadily in recent years. It will grow from $1165.73 billion in 2024 to $1204.64 billion in 2025 at a compound annual growth rate (CAGR) of 3.3%. The growth in the historic period can be attributed to government initiatives, population growth, education and healthcare needs, urbanization, cultural and social factors.
The institutional buildings market size is expected to see steady growth in the next few years. It will grow to $1391.82 billion in 2029 at a compound annual growth rate (CAGR) of 3.7%. The growth in the forecast period can be attributed to sustainability and green building, technological integration, aging infrastructure renewal, health and wellness focus, flexible space design. Major trends in the forecast period include energy-efficient and sustainable construction, technological integration, accessibility and inclusivity, adoption of prefabrication and modular construction, biophilic design elements.
The anticipated growth in the institutional buildings market is attributed to the increasing government expenditure. This expenditure, denoting the capital invested by governments in various goods and services, particularly benefits government buildings such as hospitals and schools, fostering infrastructural development, including institutional buildings. Eurostat's February 2023 report highlights a significant rise in EU general government spending as a percentage of GDP, reaching 51.5% in 2021 from 2019. Notably, countries such as France, Greece, Austria, Finland, Belgium, and Italy recorded the highest levels of government spending as a percentage of GDP. Consequently, the upswing in government expenditure is a driving force for the institutional buildings market.
The growing population is expected to drive the expansion of the institutional building market in the coming years. Population refers to the total number of individuals, organisms, or residents within a given geographic area, community, or group, often measured in terms of people. The construction of institutional buildings, such as schools and healthcare facilities, plays a vital role in meeting the needs of a rising population and delivering essential services. For example, in November 2022, the United Nations (UN), a US-based intergovernmental organization, projected that the global population would reach 8.5 billion by 2030 and rise further to 9.7 billion by 2050. As a result, the growing population is fueling the demand for institutional buildings.
A key trend in the institutional buildings market is technological advancement, with major companies introducing innovative technologies to maintain their market standing. For example, in February 2022, Black Buffalo 3D Corporation launched NEXCON 3D printers, leveraging 3D printing technology to address challenges in the construction industry. The modular gantry design optimizes structure efficiency without compromising print quality, enabling on-site versatility and the production of accurate prints for diverse 3D-modeled designs.
Leading companies in the institutional buildings market are prioritizing the development of advanced modules, such as AI-enabled suites, to gain a competitive advantage. An AI-enabled suite is a set of software tools or applications integrated with artificial intelligence to improve functionality and automate processes. For instance, in June 2022, Siemens AG, a technology company based in Germany, introduced Building X, an innovative open AI-enabled suite aimed at supporting the creation of net-zero buildings. This launch highlights Siemens Smart Infrastructure's dedication to digital transformation and sustainability. The suite is fully cloud-based and interoperable, enabling users to digitize and manage building data from various sources on a unified platform. It offers a seamless experience by integrating existing software and third-party applications through vendor-neutral connectivity and open APIs.
In October 2022, Pike Construction Services' acquisition of Charles A. Gaetano Construction Corporation and C2C Construction Solutions, LLC is anticipated to strengthen Pike's position in Utica and the entire Northeast region, enhancing its value proposition for clients. Charles A. Gaetano Construction Corporation and C2C Construction Solutions LLC are recognized providers of construction services in the United States.
Major companies operating in the institutional buildings market include China State Construction Engineering Co. Ltd., Shanghai Construction Group Co. Ltd., Clark Construction Group LLC, The Whiting-Turner Contracting Company, Turner Construction Company, Balfour Beatty plc, Greenland Holdings Corp. Ltd., Obayashi Corporation, Daiwa Real Estate Co. Ltd., HOCHTIEF Aktiengesellschaft, Vinci S.A., Bouygues SA, Kajima U.S.A. Inc., Bechtel Corporation, Skanska AB, The Metallurgical Corp of China, Actividades de Construccion y Servicios SA, Tutor Perini Corp., Parsons Corp., AECOM Inc., Jacobs Solutions Inc., WSP Global Inc., HNTB Corp., STV Group Inc., Fluor Corporation, Kiewit Corporation, PCL Construction Enterprises Inc., McCarthy Holdings Inc., The Boldt Company, The Weitz Company, Mortenson Construction, Gilbane Building Company, JE Dunn Construction Group Inc., Hensel Phelps Construction Co., Barton Malow Company, Ryan Companies US Inc., Skender Construction, The Beck Group, Sundt Construction Inc., Brasfield & Gorrie LLC, DPR Construction, Gray Construction, Hoffman Construction Company, Holder Construction Company, Messer Construction Co., Pepper Construction Group LLC, Robins & Morton LLC
Asia-Pacific was the largest region in the institutional buildings market in 2024. The regions covered in the institutional buildings market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa
The countries covered in the institutional buildings market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The institutional buildings market includes revenues earned by entities by constructing convents, hospitals, and school dormitories. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Institutional Buildings Global Market Report 2025 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on institutional buildings market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for institutional buildings ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The institutional buildings market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The forecasts are made after considering the major factors currently impacting the market. These include the Russia-Ukraine war, rising inflation, higher interest rates, and the legacy of the COVID-19 pandemic.