As global construction spend nears $14T, with the U.S. market alone approaching $2T, the pressure to modernize is intensifying. The construction industry continues to grapple with entrenched headwinds—rising material costs, persistent labor shortages, volatile tariffs, and increasingly complex project workflows. Yet against this backdrop, innovative construction technologies have emerged as powerful enablers of resilience, efficiency, and growth.
In 2025, the sector has rebounded. While M&A and private placement volumes dipped in 2024 amid macroeconomic uncertainty, this year is on track to set new records. M&A deal activity is being fueled by PE-backed platforms seeking vertical consolidation, particularly in construction management, BIM, specialty trade solutions, and compliance software. Meanwhile, late-stage private placements are increasingly channeling capital into AI-driven solutions, reflecting a broader market pivot toward automation.
The construction tech landscape remains fragmented, with over 500 private companies competing across diverse solution areas. Yet market demand is coalescing around platforms that unify critical workflows—spanning design, pre-construction, field operations, and compliance. The total addressable market for ConTech is now estimated at $12.4B-$21.3B globally, supported by a secular shift toward digital project delivery.
Several key trends are shaping the sector's trajectory. AI and automation are being rapidly adopted across project planning, safety, scheduling, and procurement, improving visibility and reducing rework. Public infrastructure investment is expanding, driving demand for scalable, cloud-native coordination tools. Labor shortages and rising costs are accelerating the adoption of technologies that reduce reliance on skilled labor and enhance back-office efficiency. ConTech stocks continue to outperform broader SaaS and construction indices, reflecting investor confidence in the sector's fundamentals and forward outlook.
At AGC Partners, we remain embedded within this dynamic market through strong relationships with the most active acquirers and investors in the space and relevant transactions across the built ecosystem. Below is a link to the full report. We hope you find it insightful and would welcome the opportunity to discuss any thoughts, questions, or partnership ideas.
© In the U.S., America’s Growth Capital, LLC dba AGC Partners, member FINRA/SIPC. In Europe, America’s Growth Capital Europe, LLP (Appointed Representative Alternatives St. James, LLP which is authorized and regulated by the Financial Conduct Authority). America’s Growth Capital Europe, LLP is a Limited Liability Partnership incorporated in England and Wales (OC368580). Its registered address is 6th Floor, 9 Appold Street, London EC2A 2AP. The testimonials contained herein may not be representative of the experience of other customers or clients. Testimonials are no guarantee of future performance or success. Deals marked with an “*” are non-AGC deals.
