Infrastructure Construction Market Analysis

Growing investment in transport infrastructure and government initiatives is driving market growth

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 Global Infrastructure Construction Market Industry is experiencing a surge in demand driven by rapid urbanization. As populations migrate to urban areas, the need for housing, transportation, and public utilities intensifies. For instance, cities are projected to house 68 percent of the global population by 2050, necessitating substantial investments in infrastructure. This urban expansion is expected to contribute significantly to the market, with projections indicating a market value of 3.05 USD Billion in 2024. The focus on sustainable urban development further emphasizes the importance of infrastructure projects that accommodate growing urban populations.

Government investments play a pivotal role in the Global Infrastructure Construction Market Industry. Many nations are prioritizing infrastructure development as a means to stimulate economic growth and improve public services. For example, the United States has proposed significant funding for infrastructure projects, aiming to modernize roads, bridges, and public transit systems. Such initiatives are expected to drive the market's growth, with estimates suggesting a market value of 5.21 USD Billion by 2035. These investments not only enhance infrastructure quality but also create jobs, thereby contributing to overall economic stability.

The Global Infrastructure Construction Market Industry is projected to witness substantial growth, with forecasts indicating a market value of 3.05 USD Billion in 2024 and an anticipated increase to 5.21 USD Billion by 2035. This growth trajectory suggests a compound annual growth rate of 4.98 percent from 2025 to 2035. Such projections highlight the increasing demand for infrastructure development globally, driven by urbanization, government investments, and technological advancements. As the industry evolves, stakeholders must remain adaptable to capitalize on emerging opportunities and navigate potential challenges.

Sustainability initiatives are increasingly influencing the Global Infrastructure Construction Market Industry. Governments and organizations are recognizing the importance of environmentally friendly construction practices. This includes the use of sustainable materials, energy-efficient designs, and waste reduction strategies. For example, the European Union has set ambitious targets for reducing carbon emissions in construction, prompting a shift towards greener infrastructure projects. Such initiatives not only address environmental concerns but also attract investments, as stakeholders seek to align with sustainability goals. This trend is expected to drive market growth as more projects incorporate sustainable practices.

Technological advancements are reshaping the Global Infrastructure Construction Market Industry, leading to increased efficiency and reduced costs. Innovations such as Building Information Modeling (BIM), drones, and 3D printing are revolutionizing construction processes. For instance, the use of BIM allows for better project visualization and management, minimizing errors and delays. As these technologies become more integrated into construction practices, they are likely to enhance productivity and project delivery timelines. The adoption of such technologies is anticipated to support a compound annual growth rate of 4.98 percent from 2025 to 2035, indicating a robust future for the industry.

Public-private partnerships (PPPs) are becoming a vital driver in the Global Infrastructure Construction Market Industry. These collaborations between government entities and private companies facilitate the financing and execution of large-scale infrastructure projects. By leveraging private sector efficiency and innovation, PPPs can expedite project delivery and reduce public expenditure. Countries like Australia and Canada have successfully implemented PPP models for transportation and energy projects, showcasing their effectiveness. As governments increasingly turn to PPPs to meet infrastructure demands, this trend is likely to bolster market growth and enhance project outcomes.

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