The market trends in infrastructure construction are experiencing significant shifts driven by factors such as technological advancements, sustainability considerations, and the evolving needs of urbanization. One notable trend in this market is the increasing integration of advanced technologies in infrastructure projects. Building Information Modeling (BIM), drones, artificial intelligence, and smart sensors are becoming integral tools in the planning, design, and construction phases. These technologies enhance project efficiency, reduce costs, and improve overall infrastructure performance, marking a shift towards more innovative and data-driven construction practices.
Moreover, sustainability is a key influencer in the infrastructure construction market. With a heightened awareness of environmental concerns, there is a growing emphasis on green and sustainable infrastructure solutions. Projects are increasingly incorporating eco-friendly materials, energy-efficient designs, and renewable energy sources, aligning with global efforts to reduce the environmental impact of construction activities. This trend reflects the industry's commitment to creating resilient and environmentally responsible infrastructure for future generations.
Customization is emerging as another significant trend in the infrastructure construction market. Different regions and projects have unique requirements based on factors such as climate, geography, and demographic needs. Infrastructure developers and construction companies are adapting their approaches to provide tailor-made solutions that address the specific challenges and demands of each project. This trend allows for more effective and resilient infrastructure development, catering to the diverse needs of urban and rural communities.
Technological advancements in construction materials and methods are playing a pivotal role in reshaping the infrastructure construction market. Innovations such as 3D-printed structures, self-healing concrete, and advanced composite materials contribute to the durability, efficiency, and sustainability of infrastructure projects. These advancements also contribute to faster construction timelines and reduced environmental impact, marking a shift towards more resilient and technologically advanced infrastructure solutions.
Furthermore, the market is witnessing a surge in public-private partnerships (PPPs) and alternative project delivery methods. Governments and private entities are collaborating to fund and execute infrastructure projects, leveraging the strengths of both sectors. This trend allows for increased project efficiency, risk sharing, and accelerated infrastructure development, addressing the growing demand for critical infrastructure improvements.
In terms of market dynamics, competition in the infrastructure construction industry is intensifying. Companies are investing in technology, sustainability initiatives, and collaboration efforts to gain a competitive edge. Meeting regulatory standards, addressing environmental and social concerns, and ensuring the resilience of infrastructure projects are critical factors for success in this competitive market. The sector also faces challenges related to funding constraints, geopolitical factors, and the need for skilled labor in an evolving construction landscape.
Challenges in the infrastructure construction market include the need for increased investment in aging infrastructure, addressing the urban-rural infrastructure divide, and navigating regulatory complexities. Additionally, the industry must adapt to changing societal needs, such as the demand for smart cities, efficient transportation systems, and resilient infrastructure capable of withstanding natural disasters.
Infrastructure Construction Market Size was valued at USD 2.8 Billion in 2022. The Infrastructure Construction industry is projected to grow from USD 2.9 Billion in 2023 to USD 4.34 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 5.00% during the forecast period (2023 - 2032).The substantial increase in public investment in the infrastructure and energy and utilities construction sectors is expected to be a significant market driver for the Infrastructure Construction Market.Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Market CAGR for Infrastructure Construction is being driven by the Growing Investment in Transport Infrastructure and Government initiatives. According to research, an annual investment exceeding USD 2 trillion in transport infrastructure is anticipated until 2040 to foster economic growth. Stakeholders are facing pressure to expedite infrastructure development due to rapid urbanization, increasing demand for freight services, and stimulus programs in response to COVID-19 in various nations. The swift pace of development and ongoing urbanization significantly contribute to the expenditure on transport infrastructure. In 2021, the Federal Aviation Administration (FAA) of the US Department of Transportation allocated over USD 479 million for airport infrastructure, supporting 123 projects across all 50 states, Puerto Rico, and American Samoa. Despite a pandemic-related halt in aviation travel for the past two to three years, the CAAC (Civil Aviation Administration of China) reported 241 accredited transport airports in China by the end of 2020. During the pandemic, 114 airport construction projects were initiated or continued, resulting in 58 more airports compared to eight years earlier.
In 2021, the Philippine government prioritized infrastructure development as a key driver for significant economic recovery. The Department of Public Works and Highways secured USD 6.5 billion from the 2021 national budget, earmarked for bridge construction, flood management, asset preservation, and the development of the transportation network.
As a result, it is anticipated that throughout the projection period, demand for the Infrastructure Construction Market will increase due to the Growing Investment in Transport Infrastructure and Government initiatives. Thus, driving the Infrastructure Construction Market revenue.
On November, 2023, TechnipFMC plc made public a deal to vend the Measurement Solutions business of the company to One Equity Partners for an amount of $205 million in cash, subject to closing adjustments customary to this type of transaction. It covers terminal management systems and metering products and systems within the Surface Technologies segment and includes manufacturing sites in North America and Europe.
The Infrastructure Construction Market segmentation, based on Type includes Energy Construction and Utilities Infrastructure Construction. The energy construction segment dominated the market, accounting for 58% of market revenue (1.6 Billion). To enhance efficiency, reliability, and safety, the aging energy and utility infrastructure in various regions requires renovation and modernization. Both utilities and governments often allocate investments for system upgrades. The push towards greener and more sustainable energy sources, including wind, solar, and hydroelectric power projects, is propelled by stringent environmental regulations and agreements aimed at reducing carbon emissions.
Figure 1: Infrastructure Construction Market, by Type, 2022 & 2032 (USD Billion)Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
The Infrastructure Construction Market segmentation, based on Application includes Civil Use and Military Use. The civil use segment dominated the market, accounting for 58% of market revenue. Civil engineering services find substantial demand from key customers in the private sector, including construction contractors, individuals, and real estate developers. The growing investments made by private companies in various construction endeavors such as housing projects, as well as the establishment of healthcare centers and new schools, underscore the increasing need for civil engineering services within the private sector.
By region, the study provides market insights into North America, Europe, Asia-Pacific, and Rest of the World. The anticipated expansion of the Infrastructure Construction market in North America can be attributed to several key factors. Roadway construction stands as a primary component of transportation infrastructure, with public transit utilizing roadways contributing significantly to the economy. Mexico has invested approximately USD 4.6 billion in 16 projects, encompassing the construction of road infrastructure, highway projects, interchanges, and more. Notably, in Mexico, the commencement of projects like the Cuapiaxtla-Cuacnopalan highway (valued at USD 209 million) and the Altar-Sásabe highway (valued at USD 230 million) was scheduled for the first quarter of 2021.
Further, the major countries studied in the market report are the US, Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
In October 2023, STRABAG invested in safe, sustainable and affordable energy storage solutions development and production. STRABAG intends to accelerate specific large-scale energy storage projects with construction & infrastructure support by partnering with storage producer CMBlu Energy. The combination of best-in-class storage technology, on the one hand, and construction & infrastructure know-how, on the other hand, creates real opportunities for industrial companies, municipal utilities as well and grid operators who will be able to build large electricity warehouses equipped with Organic Solidflow batteries in years ahead.
Figure 2: INFRASTRUCTURE CONSTRUCTION MARKET SHARE BY REGION 2022 (USD Billion)Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Europe's Infrastructure Construction Market accounts for the second-largest market share as in 2018, the total number of newly initiated dwellings, permitted but not necessarily completed, reached 27,600, marking a 3.6% year-on-year growth, the highest figure since 2009. Additionally, there was a slight increase of 0.5% year-on-year in the number of dwellings initiated in multi-family buildings, totaling 7,300, which, although the highest since 2009, remains nearly 50% below the pre-crisis level of 2008. The construction output in 2018 experienced a significant 8.4% year-on-year increase in real terms, the highest rate since 2004. This growth was predominantly driven by building construction, which expanded at an 8.6% pace, contributing 6.3 percentage points. Civil engineering construction also demonstrated a robust performance with an 8.0% year-on-year increase. Further, the German Infrastructure Construction Market held the largest market share, and the UK Infrastructure Construction Market was the fastest-growing market in the European region
The Asia-Pacific Infrastructure Construction Market is expected to grow at the fastest CAGR from 2023 to 2032. Infrastructure plays a crucial role in fostering the growth and competitiveness of the Indian economy within the industrial sector, contributing to overall economic advancement. To expedite infrastructure projects, the current administration has committed to reducing delays, simplifying processes, and enhancing transparency. The government unveiled a comprehensive plan under the National Infrastructure Pipeline (NIP) for the fiscal years 2019-25, encompassing infrastructure projects valued at INR 111 lakh crore (USD 1.5 trillion). Initially allocated for 6,835 projects, the number increased to 7,400 by the end of 2021. The majority of these projects focus on areas such as roads, housing, urban development, railways, renewable energy, conventional power, and irrigation. Moreover, China’s Infrastructure Construction Market held the largest market share, and the Indian Infrastructure Construction Market was the fastest-growing market in the Asia-Pacific region.
Leading market players are investing heavily in research and development to expand their product lines, which will help the Infrastructure Construction market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, the Infrastructure Construction industry must offer cost-effective items.
Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the Infrastructure Construction industry to benefit clients and increase the market sector. In recent years, the Infrastructure Construction industry has offered some of the most significant advantages to the development and modernization of essential public facilities, enhancing overall economic growth, and fostering improved connectivity and accessibility for communities. Major players in the Infrastructure Construction Market, including China State Construction Engineering Corp. Ltd, VINCI, China Communications Construction Group Ltd, Balfour Beatty, Skanska AB, Kajima Corporation, Fluor Corporation, Kiewit Corporation, Laing O’Rourke, ACS Group, Hyundai Engineering & Construction Co. Ltd (HDEC), Bouygues Group, Larsen & Toubro, Royal BAM Group, Hochtief Aktiengesellschaft are attempting to increase market demand by investing in research and development operations.
VINCI is an integrated company specializing in construction and concessions, engaging in the design, construction, and management of infrastructure and facilities. The company provides a range of services, including infrastructure development, civil engineering, design coordination, consultancy, and maintenance for transport infrastructure and public facilities. Vinci's diverse portfolio covers projects in transport systems, public and private buildings, energy, airports, urban development, and water, energy, and communication networks. Additionally, Vinci is involved in transport infrastructure concession operations across various sectors. Headquartered in Nanterre, Paris, France, Vinci's subsidiary, HEB Construction, was awarded a contract for the Takitimu North Link road in Southeast Auckland, New Zealand, in January 2022. The project, undertaken in a joint venture with Fulton Hogan, aims to improve accessibility and support urban development while enhancing safety by diverting heavy freight traffic from neighboring towns.
China State Construction Engineering Corp Ltd (CSCEC) is a leading provider of construction contracting and real estate services, offering a comprehensive range of solutions. Its services encompass engineering, building construction, urban development, real estate investment, infrastructure construction and investment, project management, design and survey, and equipment manufacturing. CSCEC is actively involved in diverse projects including roads, municipal utilities, housing units, ports and waterways, airports, railways, bridges, water conservancy, hydropower, mining, metallurgy, and petrochemical plants. Additionally, the company extends construction financing services. With a presence spanning Asia-Pacific, the Middle East, Africa, Europe, and North America, CSCEC is headquartered in Beijing, China
China State Construction Engineering Corp. Ltd
VINCI
China Communications Construction Group Ltd
Skanska AB
Kajima Corporation
Fluor Corporation
Kiewit Corporation
Laing O’Rourke
ACS Group
Hyundai Engineering & Construction Co. Ltd (HDEC)
Bouygues Group
Larsen & Toubro
Royal BAM Group
Hochtief Aktiengesellschaft
March 2023: HOCHTIEF and infrastructure investor Palladio Partners joined forces for the construction and operation of a sustainable data center in Heiligenhaus, North Rhine-Westphalia. The collaboration involves the development of the innovative YEXIO facility in the Innovation Park of the university town
October 2022: China Communications Construction Company Limited and PipeChina, officially known as China Oil and Gas Pipeline Network, conducted a signing ceremony for a strategic framework cooperation agreement in Beijing.
March 2023: HOCHTIEF joined forces with infrastructure investor Palladio Partners in order to build & operate a sustainable data center in Heiligenhaus (North Rhine-Westphalia). They signed a contract for a new high-tech YEXIO facility, which will be located at the Innovation Park of a university town.
In 2024 Bechtel released new infrastructure construction technologies focused on sustainability and efficiency.
In 2023 AECOM introduced innovative solutions for infrastructure construction aimed at enhancing project delivery and management.
Energy Construction
Utilities Infrastructure Construction
Civil Use
Military Use
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