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Get to know everything about professional services in the construction industry: key trends and strategies explained

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Construction Services Industry Trends

The construction services industry manages building projects, covering all aspects from conception to completion. These firms work in collaboration with developers, architects, facilities managers, and technical experts to manage and deliver projects for clients. These providers supply materials, labor, equipment and services; subcontract with trade and specialty contractors; assist with building permits; and monitor the project and cash flow. They also provide services for remodeling and repair construction.

Vinci SA, Actividades de Construcción y Servicios, S.A. and Bechtel Corporation are three of the largest providers of construction services worldwide.

Market Segments

Important services offered by the construction service companies to manage and operate projects include:

Design Services: These services are a critical part of construction and define the requirements of the project in collaboration with planners, consultants and engineers. With the increase in green construction, service providers in recent years are competing to provide cost effective sustainable construction designs.

Consulting services include claims management, dispute resolution and litigation support services. Additionally Certified Cost Engineers offer cost estimating and management expertise, providing estimates at various stages of the project development. Through consulting services they also help clients manage risk in construction projects.

Through engineering services the companies provide services such as site investigations, construction materials testing, detailed project designing and structural detailing, and sustainability and environmental impact assessment.

Construction service providers also help in the selection of local subcontractors and provide planned aftercare services to ensure quality and safety of the projects.

Regional Market Shares

The global construction services industry is expected to grow strongly, especially in rapidly-emerging Asia and the advanced economies.

China is a huge market for construction. Ongoing industrialization, expanding urban population, rising disposable income and government efforts to expand and upgrade physical infrastructure have increased spending on construction to more than $1.5 trillion annually. Against this strong demand, China State Construction Engineering Corporation, the largest construction service provider in China, generated annual revenues of RMB800 billion ($128 billion) in a recent year.

The USA market dominates as one of the largest national construction market worldwide. Spending on private construction has reached its highest level since 2008, with spending in this sector amounting to $687 billion annually.  Overall construction spending in this country is expected to grow to about $1.3 trillion in the near future. The construction services business is expected to continue to be strong as construction demand peaks.

Factors such as increasing investment in residential building and government spending on infrastructure are likely to drive and expand business for construction service providers in Japan. Construction spending there is more than $740 billion, making it one of the largest markets for construction services.

Market Outlook

Major developments shaping the construction industry include the following:

Construction companies are turning to prefabricated homes to meet the increasing demand for custom homes and unique building structures. Prefabrication (prefab) is also gaining traction due to the increasing focus on sustainability. In the USA, prefab homes are re-emerging as affordable and eco-friendly housing. Demand for these houses is expected to grow to more than 130,000 units in the near future. Japan is one of the largest markets worldwide for prefabricated homes, fuelled by consumer preference for modular homes.


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Parent industry: Construction
Related industries: Green Building, Heavy Construction, Construction Equipment, Civil Engineering, Building Materials, Residential Construction, Nonresidential Construction

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