$28.5bn
$XXX.Xm
37,526
1,993
$X.Xbn
The industry has encountered challenging conditions, with revenue falling at a CAGR of 1.2% to $28.5 billion over the past five years, despite a bump of 4.9% in 2023 alone. Hospitals have met a high degree of fiscal uncertainty via to the whittling down of the Patient Protection and Affordable Care Act (PPACA) from the prior administration, while a renewed focus on it by the Biden administration has already boosted the number of health-insured consumers, bolstering demand for hospital construction. From legislative hurdles to the global pandemic outbreak causing construction stoppages amid a surge in demand for hospital capacity, the industry has endured significant volatility.The industry includes private and public hospital construction, though private hospital construction makes up nearly 80.0% of the total. Growth in the value of both private and public hospital construction has been insufficient to keep up with inflation. This inconsistency in private and public markets helps to explain the halt in industry revenue growth, while at a broader level, hospitals have opted to shift acute care services to off-campus locations to reduce costs and reach a larger patient pool. The move has helped hospitals mitigate lower admission and inpatient days, but these facilities are smaller and generate less revenue for enterprises. As demand for hospital space in 2020 skyrocketed amid the pandemic, the industry couldn't respond rapidly due to local and state work stoppages.Going forward, revenue growth for the industry will resume as total health expenditure remains strong and the value of private nonresidential construction fully recovers and accelerates ahead of declines exhibited during the pandemic. As the population ages, a rising senior demographic will embolden demand for hospital services. In the post-pandemic world, government support for hospital capacity will also rise, benefiting industry performance. Overall, industry revenue is slated to grow at a CAGR of 3.0% to an estimated $33.0 billion in 2028 as profit recovers to 3.3%.
Industry revenue has declined at a CAGR of 1.2 % over the past five years, to reach an estimated $28.5bn in 2023.
Market size is projected to grow over the next five years.
Company | Market Share (%)
2023 | Revenue ($m)
2023 | Profit ($m)
2023 | Profit Margin (%)
2023 |
---|---|---|---|---|
Turner Construction Company | 570.2 | 15.5 | 2.7 |
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Hospital Construction in the US
Industry revenue is measured across several distinct product and services lines, including New construction contracting, Remodeling contracting and Hospital maintenance and repair. New construction contracting is the largest segment of the Hospital Construction in the US.
Remodeling contracting gains in popularity due to regulatory uncertainty
This industry includes operators that engage in new work, additions and reconstruction projects for both private and public hospital construction projects. This industry excludes the construction of nonhospital medical buildings and special-care buildings.
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NAICS 23622 - Hospital Construction in the US
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
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Including values and annual change:
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Key data sources in the US include:
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The market size of the Hospital Construction in the US industry in United States is $28.5bn in 2024.
There are 1,993 businesses in the Hospital Construction in the US industry in United States, which has declined at a CAGR of 1.2 % between 2018 and 2023.
The market size of the Hospital Construction in the US industry in United States has been declining at a CAGR of 1.2 % between 2018 and 2023.
Over the next five years, the Hospital Construction in the US industry in United States is expected to grow.
The biggest company operating in the Hospital Construction market in United States is Turner Construction Company
New construction contracting and Remodeling construction are part of the Hospital Construction in the US industry.
The company holding the most market share in United States is Turner Construction Company.
The level of competition is moderate and steady in the Hospital Construction in the US industry in United States.