Infrastructure Construction Global Market Report 2025

The infrastructure construction market size has grown steadily in recent years. It will grow from $3.41 trillion in 2024 to $3.56 trillion in 2025 at a compound annual growth rate (CAGR) of 4.2%. The growth in the historic period can be attributed to rapid urbanization, increased government-led infrastructure initiatives, rising public investment, expanding population, and the need to upgrade and replace aging infrastructure systems.

The infrastructure construction market size is expected to see steady growth in the next few years. It will grow to $4.13 trillion in 2029 at a compound annual growth rate (CAGR) of 3.8%. The growth in the forecast period can be attributed to rising infrastructure investments, accelerated smart city initiatives, growing adoption of digital construction technologies, increasing emphasis on sustainable building practices, and expanding public-private partnerships. Major trends in the forecast period include the rise of modular and prefabricated construction, increasing attainment of green building certifications, integration of artificial intelligence in project management, heightened focus on resilient and climate-adaptive infrastructure, and expansion of renewable energy-related construction projects.

The increasing government investments in infrastructure development are expected to drive the growth of the infrastructure construction market in the coming years. These investments are primarily motivated by the need to upgrade and modernize aging infrastructure systems, as older facilities in developed countries require significant renovation and replacement to meet current safety standards and support economic expansion. Government funding facilitates infrastructure construction by providing financial backing, policy support, and strategic resources essential for planning, execution, and long-term maintenance. Additionally, such initiatives encourage private sector participation, fostering collaboration and innovation in infrastructure projects. For instance, in July 2025, according to the Office for National Statistics (ONS), a UK-based government department, total general government investment in infrastructure rose by 2.2% to $38.54 billion (£28.9 billion) at current prices in 2024 compared to 2023. Therefore, increasing government investment in infrastructure development is fueling the growth of the infrastructure construction market.

Leading companies in the infrastructure construction market are increasingly developing high-tech construction equipment to improve operational efficiency, safety, and sustainability. These advanced machines incorporate technologies such as automation, telematics, and intelligent engines to boost productivity, reduce fuel consumption, enhance safety, and enable real-time monitoring for better project management. For instance, in January 2025, CASE India, an India-based machinery manufacturing company, launched seven new construction equipment models at the Bharat Construction Equipment Expo, including two advanced vibratory compactors and five multi-functional machines. Equipped with the in-house F28 engine compliant with Bharat Stage CEV V emission norms, these machines deliver improved fuel efficiency and productivity. Integrated with the myCASE Construction smart telematics platform, they allow real-time monitoring, fuel tracking, usage analysis, and remote diagnostics to maximize performance and minimize downtime.

In November 2024, Parsons Corporation, a US-based technology and infrastructure company, acquired BCC Engineering, LLC for $230 million. This acquisition aims to strengthen Parsons’ infrastructure capabilities and expand its presence in the Southeastern United States. By integrating BCC Engineering’s expertise in transportation, civil, and structural engineering, Parsons enhances its ability to capitalize on federal infrastructure funding opportunities under the Infrastructure Investment and Jobs Act. BCC Engineering LLC is a US-based company specializing in providing infrastructure construction and engineering services.

Major players in the infrastructure construction market are China State Construction Engineering Corporation Ltd., China Communications Construction Company Limited, Power Construction Corporation of China, Vinci SA, Bouygues Construction SA, Hochtief AG, Hyundai Engineering & Construction Co. Ltd., Larsen & Toubro Limited, Kajima Corporation, Kiewit Corporation, Bechtel Corporation, Skanska AB, Obayashi Corporation, Fluor Corporation, Shimizu Corporation, Balfour Beatty plc, Ferrovial S.A., Laing O’Rourke Group Ltd., ACS Actividades de Construcción y Servicios S.A., and Technip Energies N.V.

North America was the largest region in the infrastructure construction market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in infrastructure construction report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.

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 rapid escalation of U.S. tariffs and the resulting trade tensions in spring 2025 are significantly impacting the construction sector, particularly in materials procurement and project costs. Higher duties on imported steel, aluminum, lumber, and machinery have driven up expenses for builders, contractors, and infrastructure developers, leading to increased project bids and delayed timelines. Construction equipment manufacturers face similar challenges, with tariffs on essential components and raw materials inflating production costs and squeezing margins. Additionally, retaliatory tariffs in international markets have curtailed exports of U.S.-made construction equipment and materials, further affecting profitability. The sector must now prioritize local sourcing, modular construction techniques, and supply chain diversification to control costs and ensure project viability amid ongoing trade uncertainties.

The infrastructure construction market research report is one of a series of new reports that provides infrastructure construction market statistics, including infrastructure construction industry global market size, regional shares, competitors with the infrastructure construction market share, infrastructure construction market segments, market trends, and opportunities, and any further data you may need to thrive in the infrastructure construction industry. This infrastructure 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.

Infrastructure construction encompasses the planning, design, and development of vital physical systems and structures that enable the smooth functioning of societies and organizations. It involves the creation of transportation networks such as roads, bridges, and railways, along with essential utilities including water supply systems, sewage networks, energy grids, and communication facilities. Beyond physical construction, the process emphasizes compliance with engineering standards, sustainability, safety, and long-term durability to ensure efficient, resilient, and future-ready infrastructure.

The major types of infrastructure construction include transportation infrastructure, energy and utilities infrastructure, and water and waste management infrastructure. Transportation infrastructure refers to interconnected physical systems built and maintained to facilitate the efficient movement of people and goods. Construction relies on materials such as concrete, steel, wood, and others, and employs various methods including traditional construction, design-build, construction management at risk (CMAR), integrated project delivery (IPD), and prefabrication. The sector’s technological landscape includes conventional methods, building information modeling (BIM), smart construction systems, green building innovations, and the use of drones and robotics. These projects cater to diverse end-user sectors such as public, private, industrial, commercial, and residential domains.

The countries covered in the infrastructure construction market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The infrastructure construction market includes revenues earned by providing services such as project management, surveying and geotechnical services, environmental and regulatory compliance, equipment and material supply, rehabilitation and maintenance, and operations management of completed infrastructure. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

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.

This product will be delivered within 3-5 business days.