Government Buildings Market Anticipated to Grow at 2.5% CAGR Through 2029: Industry Report

The Business Research Company

The Business Research Company’s Government Buildings Global Market Report 2025 – Market Size, Trends, And Forecast 2025-2034

LONDON, GREATER LONDON, UNITED KINGDOM, September 22, 2025 /EINPresswire.com/ -- How Big Is The Government Buildings Market In 2025?
In recent times, there has been a slight increase in the market size of government buildings. The market is set to expand from $52.86 billion in 2024 to $53.36 billion in 2025, marking a compound annual growth rate (CAGR) of 0.9%. This growth during the historical period can be traced back to factors such as government investments in infrastructure, a surge in population and urbanization, alterations in policies and regulatory obligations, modernization and refurbishment, as well as concerns regarding safety and security.

Advancements in the government buildings market are projected to result in steady expansion in the coming years. This growth is expected to step up to $58.94 billion by 2029, reflecting a compound annual growth rate (CAGR) of 2.5%. The predicted growth during the forecast span can be credited to the implementation of sustainable and eco-friendly construction methods, integration of smart infrastructure, public-private collaborations, evolving workplace dynamics, demographic changes, and community services. The forecast period would also see significant trends such as increased focus on accessibility and inclusiveness, refurbishment and upgradation of existing establishments, digital revolution in governmental services, collaborative and shared workspaces, and the introduction of biophilic designs.

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What Are The Major Factors Driving The Government Buildings Global Market Growth?
The growth of the government buildings market is projected to be fueled by rising government spending. The term government expenditure implies the funds that the government directs towards acquiring a range of goods and services. Infrastructural developments such as government-run hospitals and schools fall under this expenditure, contributing significantly to the market's expansion. As per the Office for National Statistics, a government body in the UK, the central government's total spending in July 2024 was reported as £107.4 billion. This is an increase of £3.5 billion from the spending of July 2023. Thus, the surge of £3.5 billion in spending has contributed to an overall increase, indicating that a growing government spending is propelling the growth of the government buildings market.

Who Are The Key Players In The Government Buildings Industry?
Major players in the Government Buildings 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 Holding Corp. Ltd.
• Obayashi Corporation
• Daiwa House Industry Co. Ltd.
• HOCHTIEF Aktiengesellschaft

What Are The Upcoming Trends Of Government Buildings Market In The Globe?
Key players in the government buildings market are prioritizing the creation of inventive technologies like net-zero buildings, with the aim to decrease energy use, slash carbon output, and achieve sustainability objectives. The term Net Zero Buildings refers to constructions that generate the same amount of energy that they utilize annually. For example, the India-based automaker Mahindra Group joined forces with Johnson Controls, a business based in Ireland, in July 2024 to kick off the Net Zero Buildings Initiative. The project intends to reduce carbon emissions for India's commercial buildings, urban residential properties, and public structures. The initiative's objective is to deliver a holistic, cost-effective toolkit and training to proprietors and managers of facilities, aiding in their shift towards practices that align with net-zero emissions. Commencing March 2024, the project will encompass workshops devised to endow interested parties with crucial know-how and tools. By partnering with governmental bodies and industry groups, the initiative aims to heighten awareness on building-related data for climate advancement, addressing India's considerable emissions and high energy use linked to the country's building sector.

What Segments Are Covered In The Government Buildings Market Report?
The government buildings market covered in this report is segmented –

1) By Type: Institutional Buildings, Commercial Buildings
2) By Building Type: Non-Residential Smart Buildings, Traditional Buildings
3) By End-User: Private, Public

Subsegments:
1) By Institutional Buildings: Educational Institutions, Healthcare Facilities, Public Administration Buildings
2) By Commercial Buildings: Government Offices, Public Libraries, Community Centers, Recreational Facilities

View the full government buildings market report:
https://www.thebusinessresearchcompany.com/report/government-buildings-global-market-report

Which Region Is Expected To Lead The Government Buildings Market By 2025?
In 2024, the Government Buildings market was dominated by the Asia-Pacific region. The market report includes the following regions: Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, and Africa.

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