Energy and Utilities Construction Market Report 2025

The energy and utilities construction market size has grown strongly in recent years. It will grow from $121.67 billion in 2024 to $132.37 billion in 2025 at a compound annual growth rate (CAGR) of 8.8%. The growth during the historic period can be attributed to the increasing demand for electricity, a rise in the construction of natural gas pipelines, expansion in solar power plant construction, progress in hydrogen infrastructure development, and the growing installation of floating solar power plants.

The energy and utilities construction market size is expected to see strong growth in the next few years. It will grow to $182.79 billion in 2029 at a compound annual growth rate (CAGR) of 8.4%. The growth in the forecast period can be attributed to the rising demand for sustainable and clean energy alternatives, increasing adoption of smart grid systems, growing need for disaster-resilient infrastructure, rapid urbanization, and expanding government investments. Major trends expected during this period include the formation of strategic partnerships, advancement in smart grid technologies, increased use of energy storage systems, integration of digital twin technologies, and the adoption of Internet of Things (IoT) solutions.

The increasing demand for sustainable and clean energy alternatives is expected to propel the growth of the energy and utilities construction market going forward. Sustainable and clean energy alternatives are environmentally friendly energy sources that utilize natural processes and produce minimal or no harmful emissions. The demand for these alternatives is rising as fossil fuel reserves continue to deplete, creating a stronger shift toward long-term renewable energy solutions. Energy and utility construction supports this shift by developing and upgrading infrastructure that efficiently harnesses renewable energy sources. For example, in January 2024, the International Energy Agency (IEA), a France-based intergovernmental organization, reported that global renewable energy capacity increased by 50% in 2023 compared to 2022, reaching nearly 510 gigawatts (GW), with solar PV accounting for approximately 75% of the new capacity. Therefore, the increasing demand for sustainable and clean energy alternatives is driving the growth of the energy and utilities construction market.

Major companies operating in the energy and utilities construction market are forming strategic partnerships to deliver essential energy and construction services to individuals, businesses, and governments. Strategic partnerships involve companies combining their strengths and resources to achieve shared goals and benefits. For example, in July 2022, Matterport, Inc., a US-based spatial data company, partnered with Burns & McDonnell, a US-based construction firm, to provide digital twin technology for the energy, utilities, and manufacturing sectors. Through Matterport’s platform, Burns & McDonnell clients can generate 3D digital models of their facilities to enhance construction, maintenance, and documentation efforts. This collaboration improves efficiency, safety, and collaboration while reducing the need for site visits, lowering travel expenses, and shortening project timelines. Notable results include Central Lincoln People's Utility District eliminating 250 site visits and completing projects under budget, and other clients reducing timelines by 30% and facility travel by up to 80%.

In March 2025, Willdan Group Inc., a US-based consulting services firm, acquired Alternative Power Generation, Inc. for an undisclosed amount. This acquisition is intended to expand Willdan Group Inc.’s electrical engineering and construction management capabilities, helping it better support the evolving energy landscape and the rising demand for resilient power solutions. Alternative Power Generation, Inc. is a US-based company specializing in engineering and construction services.

Major players in the energy and utilities construction market are BASF SE, Fluor Corporation, AECOM, Sika AG, TechnipFMC plc, McDermott International Ltd., KBR Inc., Dassault Systèmes SE, Huntsman Corporation, NPL Construction Co., Ashland Inc., GCP Applied Technologies Inc., Master Builders Solutions Deutschland GmbH, BlackEagle Energy Services LLC, Denbow Company Inc., Mapei SpA, PAC Technologies LLC, Skanska UK Plc, Jacobs Engineering Group Inc., Larsen & Toubro Limited, John Wood Group PLC, Bechtel Corporation.

North America was the largest region in the energy and utilities construction market in 2024. The regions covered in energy and utilities construction report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the energy and utilities construction market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

The swift increase in U.S. tariffs and the ensuing trade tensions in spring 2025 are significantly affecting the machinery sector by increasing costs for steel, hydraulic systems, and precision bearings critical components often imported from tariff-affected regions. Manufacturers of construction, agricultural, and industrial machinery now face squeezed margins, as many long-term contracts prevent immediate price adjustments. The uncertainty has also delayed investment in automation and smart machinery technologies, slowing productivity gains. To adapt, firms are accelerating local supplier development, redesigning products to use alternative materials, and leveraging predictive maintenance to extend equipment lifespans amid higher replacement costs.

Energy and utilities construction involves the development and construction of infrastructure necessary for the generation, transmission, and distribution of key services such as electricity, water, gas, sewage, and telecommunications. This type of construction is essential for ensuring the consistent and efficient supply of these services to residential, commercial, and industrial users. It frequently incorporates both conventional and renewable energy sources to promote sustainability and support economic development.

The primary categories of energy and utilities construction are energy construction and utilities infrastructure construction. Energy construction focuses on building facilities that produce and deliver energy, including power plants, refineries, and transmission lines. This sector uses a range of technologies, including conventional systems, renewable energy solutions, smart grid systems, and advanced metering infrastructure. These technologies are applied to projects of various sizes, including small, medium, and large, depending on the infrastructure’s scale and capacity. Applications include both civilian and military use, with end users spanning the residential, commercial, industrial, public, and infrastructure sectors.

The energy and utilities construction market research report is one of a series of new reports that provides energy and utilities construction market statistics, including energy and utilities construction industry global market size, regional shares, competitors with a energy and utilities construction market share, detailed energy and utilities construction market segments, market trends and opportunities, and any further data you may need to thrive in the energy and utilities construction industry. This energy and utilities construction market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The energy and utilities construction market consists of revenues earned by entities providing services such as modernization of aging infrastructure, grid planning, and performance monitoring. The market value includes the value of related goods sold by the service provider or included within the service offering. The energy and utilities construction market also includes sales of wind turbines, grid modernization equipment, and water distribution pipelines. Values in this market are ‘factory gate’ values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values and are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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