Energy and Utilities Construction Market Report 2026

The energy and utilities construction market size has grown strongly in recent years. It will grow from $139.64 billion in 2025 to $151.68 billion in 2026 at a compound annual growth rate (CAGR) of 8.6%. The growth in the historic period can be attributed to urbanization growth, expansion of power generation capacity, government infrastructure spending, aging utility replacement needs, industrial energy demand.

The energy and utilities construction market size is expected to see strong growth in the next few years. It will grow to $208.73 billion in 2030 at a compound annual growth rate (CAGR) of 8.3%. The growth in the forecast period can be attributed to renewable energy transition, grid digitization initiatives, electric vehicle charging infrastructure expansion, public private infrastructure investments, climate resilience projects. Major trends in the forecast period include expansion of renewable energy infrastructure, growth in smart grid development, rising investment in utility modernization, increase in large scale infrastructure projects, adoption of advanced metering systems.

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 focusing on developing innovative solutions, such as large-scale solar and wind power projects, to address the increasing demand for renewable energy integration and sustainable infrastructure development. Large-scale solar and wind projects involve deploying photovoltaic panels, solar thermal systems, or wind turbines at utility-scale capacities, enabling cleaner energy production compared with conventional fossil fuel-based power plants that rely on combustion and emit higher levels of greenhouse gases. For example, in October 2025, ACWA Power, a Saudi Arabia-based developer, investor, and operator of power and desalinated water plants, launched a series of clean energy projects valued at USD 10 billion to expand renewable energy generation and finance innovative infrastructure solutions post-2022. These initiatives include solar and wind power installations designed to optimize energy output, lower carbon emissions, and offer scalable, cost-effective alternatives to traditional energy sources. The projects leverage advanced technologies for grid integration, energy storage readiness, and enhanced operational efficiency, providing reliable and sustainable electricity supply to utility operators, governments, and communities.

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 companies operating in the energy and utilities construction market are BASF SE, Fluor Corporation, AECOM, Sika AG, TechnipFMC plc, McDermott International Ltd., KBR Inc., 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, 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 2025. The regions covered in the energy and utilities construction market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the energy and utilities construction market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

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 that 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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