Heavy And Civil Engineering Construction Global Market Opportunities And Strategies To 2031

This report describes and evaluates the global heavy and civil engineering construction market. It covers 2016-2021, termed the historic period, and 2021-2026 termed the forecast period, along with further forecasts for the period 2026-2031.

The global heavy and civil engineering construction market reached a value of nearly $1,742.92 billion in 2021, having increased at a compound annual growth rate (CAGR) of 2.5% since 2016. The market is expected to grow from $1,742.92 billion in 2021 to $2,466.61 billion in 2026 at a rate of 7.2%. The market is then expected to grow at a CAGR of 5.6% from 2026 and reach $3,246.44 billion in 2031.

Growth in the historic period resulted from strong economic growth in emerging markets, low interest rate environment, technological developments and strategic collaborations. Factors that negatively affected growth in the historic period were high material prices and geo-political tensions.

Going forward, increasing population growth, rising urbanization, increasing infrastructure development, rapid industrialization and rising government initiatives will drive the market growth. Factors that could hinder the growth of the heavy and civil engineering construction market in the future include health and safety measures, reduction in free trade and the coronavirus pandemic.

The heavy and civil engineering construction market is segmented by type into utility system construction, highway, street, and bridge construction, and other heavy and civil engineering construction. The highway, street, and bridge construction was the largest segment of the heavy and civil engineering construction market by type, accounting for $781.49 billion or 44.8% of the total market in 2021. Highway, street, and bridge construction is expected to be the fastest-growing segment going forward at a CAGR of 8.2%.

The utility system construction market is further segmented by type into water and sewer line and related structures construction, oil and gas pipeline and related structures construction and power and communication line and related structures construction. The power and communication line and related structures construction was the largest segment of the utility system construction market by type, accounting for $320.90 billion or 45.4% of the total market in 2021. Power and communication line and related structures construction is expected to be the fastest-growing segment going forward at a CAGR of 9.6%.

The highway, street, and bridge construction market is further segmented by type into roads and highways, bridges and tunnels and other highway, street, and bridge construction. The roads and highways was the largest segment of the highway, street, and bridge construction market by type, accounting for $619.56 billion or 87.7% of the total market in 2021. Bridges and tunnels is expected to be the fastest-growing segment going forward at a CAGR of 9.7%.

The other heavy and civil engineering construction market is further segmented by type into marine and ports construction, rail road construction, sea wall construction and all other heavy and civil engineering construction. The rail road construction was the largest segment of the other heavy and civil engineering construction market by type, accounting for $181.3 billion or 71.0% of the total market in 2021. Rail road construction is expected to be the fastest-growing segment going forward at a CAGR of 6.9%.

The heavy and civil engineering construction market is also segmented by organization size into large enterprises, small and medium enterprises. The small and medium enterprises market was the largest segment of the heavy and civil engineering construction market by organization size, accounting for $902.56 billion or 51.8% of the total market in 2021. Large enterprises is expected to be the fastest-growing segment going forward at a CAGR of 7.3%.

Asia Pacific was the largest region in the heavy and civil engineering construction market, accounting for 39.6% of the global market in 2021. It was followed by North America, Western Europe and the other regions. Going forward, the fastest growing regions in the heavy and civil engineering construction market will be Africa and Eastern Europe, where growth will be at CAGRs of 16.6% and 7.7% respectively from 2021-2026.

The COVID-19 outbreak had a significant impact on the supply chain of the construction industry as governments globally imposed lockdowns and suspended domestic and international transportation services to contain the virus. The severity of the impact on the industry was dependent on government measures to contain the spread of the virus and stimulus packages to support the highly effected business and others. Manufacturing and supply of construction materials was affected as facilities were shut down and the movement of people and goods were restricted. For instance, the US depends on China for 30% of its construction materials imports and around 20% each from Canada and Mexico. As Canada and Mexico announced lockdown restrictions and closed their borders, the import of construction materials into the US was affected. Ports in the US witnessed a 20% decline in cargo volumes in the first quarter of 2020.

The global heavy and civil engineering construction market is concentrated, with a large number of players. The top ten competitors in the market made up to 26.89% of the total market in 2021. This is mainly due to the presence of a large number of players who cater to the local population as the majority of customers use construction services which are closer to their locations. However large companies play a leading role in major infrastructure construction projects. Major players in the market are The China Railway Construction Corporation Limited, China Railway Group Ltd., China Communications Construction Co. Ltd., China State Construction Engineering Co., Ltd., Power Construction Corporation of China, Vinci S.A., Bouygues S.A., Strabag SE, Skanska Group, Bechtel Corporation and others.

The top opportunities in the heavy and civil engineering construction market by type will arise in the highway, street, and bridge construction market, which will gain $375.4 billion of global annual sales by 2026. The top opportunities in the utility system construction market by type will arise in the power and communication line and related structures construction market, which will gain $186.9 billion of global annual sales by 2026. The top opportunities in the highway, street, and bridge construction market by type will arise in the roads and highways market, which will gain $283.3 billion of global annual sales by 2026. The top opportunities in the other heavy and civil engineering construction market by type will arise in the rail road construction market, which will gain $72.3 billion of global annual sales by 2026. The top opportunities in the heavy and civil engineering construction market by organization size will arise in large enterprises market, which will gain $377.8 billion of global annual sales by 2026. The heavy and civil engineering construction market size will gain the most in the China at $139.6 billion.

Market-trend-based strategies for the heavy and civil engineering construction market include consider using 3D printing technologies to reduce costs and improve efficiencies, focus on use drones technology with the potential to rapidly map large areas over long distances, producing valuable aerial heat maps and thermal images, consider using prefabrication techniques to enhance construction efficiencies and reduce costs, invest in building information modeling (BIM) technology to enhance construction quality and labor productivity, consider using construction management software to make construction business processes a lot easier through automation, invest in artificial intelligence to improve safety of the workers in the construction site to track real time interactions and potential safety issues, use new applications to manage their construction activities, and invest in smart highways for providing real time information to the drivers about the traffic information and road conditions, making driving safer.

Player-adopted strategies in the heavy and civil engineering construction industry include expanding business in other countries through strategic partnerships and agreements, reinforce position in different regions through contracts and strengthen business by acquiring or merging with companies having same business.

To take advantage of the opportunities, the publisher recommends the heavy and civil engineering construction companies to increase use of 3D printing, focus on prefabrication techniques, increase investments in building information modeling (BIM), use construction management software, use artificial intelligence, invest in smart highways, expand in emerging markets, continue to focus on developed countries, offer competitive pricing, continue to participate in trade shows and events and target governments.