The global construction industry is poised for unprecedented expansion over the remainder of the decade, with worldwide construction output forecast to approach US$22 trillion by 2030 as investment accelerates across digital infrastructure, renewable energy, transportation and climate-resilient projects.
According to the Global Construction Insurance and Surety Market Report 2026, global construction activity is expected to increase from approximately US$16 trillion in 2025 to US$17 trillion in 2026, before reaching nearly US$22 trillion by 2030.
The report strikes an optimistic tone despite acknowledging the industry’s ongoing challenges.
“As we approach the second half of 2026, there are meaningful opportunities and cause for optimism in the global construction industry — despite operating in an environment of persistent complexity,” the report states.
While inflation, supply chain disruptions and labour shortages continue to affect projects worldwide, strong investment in critical infrastructure is expected to sustain growth for years to come.
AI boom is transforming construction demand
Artificial intelligence has emerged as one of the most significant drivers of new construction activity globally.
The rapid expansion of AI applications is fueling unprecedented demand for hyperscale data centres, power generation facilities and digital infrastructure capable of supporting next-generation computing technologies.
According to the report, digital infrastructure, power infrastructure and other critical assets have become the primary engines of global construction growth.
“Digital infrastructure, power infrastructure and other critical assets are the main engines of construction growth worldwide,” the report says, adding that demand across these sectors is expected to remain strong as economies pursue the energy transition, expand the digital economy and modernize aging infrastructure.
The report also highlights the scale of the opportunity, noting that research indicates data centre construction could generate US$3 trillion in global spending through 2030.
For contractors, equipment manufacturers and engineering firms, the rapid expansion of AI infrastructure represents one of the largest emerging construction markets of the decade.
Energy transition continues to fuel investment
Alongside AI, the global energy transition is reshaping construction priorities.
Countries are investing heavily in renewable energy generation, electricity transmission, battery storage, grid modernization and associated infrastructure to improve energy security while supporting economic growth.
These investments are creating a substantial pipeline of projects across both developed and emerging markets.
As demand for electricity rises alongside digital infrastructure, many large projects are increasingly incorporating dedicated power-generation assets and more sophisticated engineering solutions.
Climate resilience becomes a global priority
Climate change is also reshaping infrastructure investment strategies around the world.
Governments are increasingly allocating funding toward infrastructure capable of withstanding floods, wildfires, hurricanes, severe storms and other extreme weather events.
The report identifies resilient infrastructure as one of the strongest long-term growth drivers for the construction industry.
“Rising demand for resilient infrastructure will increase investment in the global construction industry,” the report states, noting that increased spending on sustainable transportation, energy, housing and other infrastructure projects is expected to expand the market in the years ahead.
At the same time, insurers are placing greater emphasis on catastrophe modelling, climate scenario analysis and flood-risk projections as they evaluate major construction projects.
Construction remains central to the global economy
Construction already ranks among the world’s largest industries.
According to the report, the sector accounts for roughly 13% of global GDP and supports around 220 million jobs worldwide, highlighting its critical contribution to economic development and employment.
The report also notes that continued expansion of AI technologies will depend heavily on the construction sector’s ability to deliver the infrastructure and power needed to support future demand.
Technology is changing how projects are built and managed
Technology is becoming increasingly important across every stage of construction, from project planning to risk management.
The report highlights the growing adoption of Building Information Modelling (BIM), digital twins, advanced analytics and project-monitoring technologies.
“Advanced technologies continue to reshape risk assessment and mitigation,” the report says, explaining that greater use of data analytics, digital twins and project monitoring is allowing insurers to evaluate and price risk more accurately while contributing to improved loss prevention and more innovative insurance products.
These technologies are expected to play an increasingly important role as projects become larger and more technically complex.
Cybersecurity emerges as a major construction risk
As construction sites become more connected through digital technologies, cybersecurity is rapidly becoming a boardroom issue for contractors and developers.
The report notes that insurers are placing greater emphasis on cyber risk as project management systems, connected equipment and digital platforms become more widespread.
“Cyber exposures are commanding closer attention,” the report warns, adding that construction companies are increasingly elevating cyber risk management to a project-level priority while insurers sharpen their focus on cyber exposures across construction portfolios.
Challenges remain despite positive outlook
Despite strong long-term fundamentals, the industry continues to face several significant obstacles.
The report points to persistent inflation, volatile commodity prices, supply chain disruptions, labour shortages and increasingly complex regulatory requirements as ongoing pressures affecting project delivery worldwide.
“Inflationary pressures on material and labor costs continue to intensify, compressing project margins while enlarging and complicating budgets,” the report states.
It adds that supply chain disruptions, shortages in specialised trades and growing compliance requirements continue to increase project complexity.
Even so, the report suggests that well-managed projects remain attractive to insurers, with market conditions generally improving across many regions.
Regional investment continues to expand
Construction growth is being supported by different sectors across major regions.
North America continues to see robust investment in data centres, pharmaceutical manufacturing and public infrastructure.
Europe is benefiting from infrastructure renewal and energy-transition projects, while Middle Eastern countries are increasingly investing in AI infrastructure, digital technology and critical national assets.
Across Asia-Pacific, construction pipelines remain strong thanks to expanding semiconductor manufacturing, battery plants, renewable energy developments and digital infrastructure.
Meanwhile, Latin America continues to attract investment in transport infrastructure, mining, renewable energy and public-private partnership projects.
Although global contractors must continue navigating inflationary pressures, labour shortages and geopolitical uncertainty, the long-term outlook for construction remains highly positive.
The report concludes that investment in AI infrastructure, clean energy, resilient infrastructure and digital transformation will continue driving demand throughout the decade.
“Insurers and regions remain well-capitalized and growth oriented, and market conditions, while varying by region and risk class, remain favorable for well-managed risks,” the report concludes.
With worldwide construction output projected to approach US$22 trillion by 2030, the industry is entering a new era in which technological innovation, energy transformation and infrastructure resilience are expected to shape the next generation of global development.
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