According to the latest market research study published by P&S Intelligence, the U.S. building finishing market reached a size of USD 22.1 billion in 2024 and is set to grow at a 3.7% CAGR from 2025 to 2032, ultimately hitting USD 29.2 billion by 2032. This growth is fueled by rising demand for home improvements, remodeling projects, and new construction. Aging housing stock across the country requires upgrades such as flooring, painting, and drywall work, while government investment in infrastructure continues to boost construction activity.
According to the U.S. Census Bureau, total construction spending touched USD 2,192.5 billion in January 2025, reflecting strong sectoral momentum. Homeowners are allocating more funds to renovations, particularly after the COVID-19 pandemic, when remote work trends encouraged them to enhance their living environments. Technological innovations are streamlining installation processes, improving speed and efficiency, while eco-friendly and sustainable materials are gaining popularity in response to environmental concerns and stricter building codes.
Key Insights
- The flooring segment held the largest product type share in 2024, at 25%, due to its universal application in all types of spaces and the broad variety of materials available, including tiles, wood, stone, and carpet.
- Insulation will record the highest growth rate, at 4% CAGR, driven by stricter federal and state energy codes and incentive programs under initiatives such as the Inflation Reduction Act.
- Stone & concrete materials accounted for the largest share of the market, at 30%, in 2024, as granite, marble, and concrete remain preferred choices for their durability, moisture resistance, and aesthetic appeal.
- The vinyl & laminate category will expand the fastest, at a 4.2% CAGR, due to its cost-effectiveness and suitability for both new builds and remodeling projects.
- The residential sector represented 50% of the market in 2024, driven by demand for single-family homes, townhouses, and apartment complexes, particularly in states like Texas, Florida, and North Carolina.
- Commercial applications will see the fastest growth, at 3.7% CAGR, fueled by office redesigns for hybrid work models and the growing adoption of ESG-focused upgrades.
- New construction projects captured 60% of market share in 2024, with large-scale developments benefiting from bulk sourcing of finishing materials.
- Renovation & remodeling will grow faster, at 5% CAGR, as many older structures are modernized to meet current standards amid slower home sales.
- Geographically, the Western region led the market with 30% share in 2024, supported by extensive urban development, tech sector growth, and leadership in green building adoption.
- The Northeast region will grow at the fastest rate, 5.1% CAGR, owing to urban redevelopment and major public infrastructure investments in states like New York and Massachusetts.
- Sustainability is a defining trend, with low-VOC paints, recycled flooring, and bamboo materials gaining traction due to environmental awareness and incentives like the 179D Energy Efficiency Tax Deduction.
- Leading companies in the sector include Turner Construction Company, Skanska USA, Clark Construction Group LLC, Bechtel Corporation, and Lennar Corporation, alongside specialized suppliers and installers catering to niche material needs.
- The market remains fragmented due to diverse product categories, varying regional requirements, and the ease of entering the business with localized offerings.
- Recent developments include Turner Construction’s April 2025 opening of the USD 337-million Cedar Hill Regional Medical Center and Sika AG’s March 2025 acquisition of HPS North America Inc., boosting its U.S. finishing materials portfolio.
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