Urban Infrastructure Market Report 2026

The urban infrastructure market size has grown rapidly in recent years. It will grow from $303 billion in 2025 to $337.28 billion in 2026 at a compound annual growth rate (CAGR) of 11.3%. The growth in the historic period can be attributed to rapid urbanization and city expansion, growth in public infrastructure spending, rising demand for efficient transport systems, increasing energy consumption and power grid expansion, development of water supply and sanitation facilities.

The urban infrastructure market size is expected to see rapid growth in the next few years. It will grow to $522.26 billion by 2030 at a compound annual growth rate (CAGR) of 11.6%. The growth in the forecast period can be attributed to increasing adoption of smart city initiatives, growing integration of renewable energy in urban infrastructure, rising deployment of IoT-enabled urban management systems, expansion of high-speed communication networks, focus on sustainable and climate-resilient urban planning. Major trends in the forecast period include increasing investment in public-private partnership infrastructure projects, rising adoption of smart urban transportation solutions, growing focus on water and wastewater management systems, expansion of communication and data center infrastructure, rising emphasis on resilient and disaster-ready social infrastructure.

The increasing smart city development initiatives are anticipated to propel the growth of the urban infrastructure market in the coming years. Smart city development initiatives refer to government-driven programs and investments that incorporate advanced digital technologies, including IoT, AI, and interconnected systems, into urban infrastructure to enhance efficiency, safety, and sustainability across city services. The rising momentum of smart city development initiatives, fueled by robust government policies and significant public investment, is accelerating the large-scale adoption of sophisticated smart community technologies. Urban infrastructure underpins smart city growth by facilitating efficient transportation, reliable utilities, and digital connectivity, supporting smart solutions that optimize resource management, enhance quality of life, and promote sustainability. For instance, in January 2024, the Institute of the Americas, a US-based non-profit organization, reported that global spending on smart city initiatives in 2023 exceeded $190 billion. Consequently, the increasing smart city development initiatives are driving the expansion of the urban infrastructure market.

Leading companies operating in the urban infrastructure market are focusing on developing advancements in smart city infrastructure technologies, such as living urban mobility testbeds, to enable real-time experimentation, data-driven traffic management, and integrated transportation solutions that enhance urban efficiency, sustainability, and commuter experience. Living urban mobility testbeds allow developers, researchers, and city planners to evaluate interactions among vehicles, infrastructure, and residents through connected data systems, advanced sensors, and coordinated traffic management technologies. For example, in September 2025, Toyota Motor Corporation, a Japan-based automotive and mobility technology company, introduced Woven City, a fully connected prototype urban environment designed as a real-world testing platform for future mobility and smart infrastructure. The city incorporates a three-type road network separating pedestrians, personal mobility devices, and vehicles, features an underground logistics corridor for autonomous delivery, and includes multifunctional smart poles equipped with sensors and cameras that support infrastructure monitoring and traffic coordination.

In February 2026, TomTom N.V., a Netherlands-based independent geolocation technology provider, entered into a partnership with AECOM to propel advancements in urban mobility and infrastructure planning solutions globally. Through this collaboration, the companies aim to integrate TomTom N.V.’s real-time and historical traffic data into AECOM’s transport planning and infrastructure advisory services, contributing to and supporting improvements in urban mobility modeling, infrastructure design, and smart city planning. AECOM is a US-based provider of urban infrastructure services.

Major companies operating in the urban infrastructure market are China State Construction Engineering Corporation Limited, China Communications Construction Company Limited, Power Construction Corporation of China Limited, Vinci S.A., Bouygues Construction S.A., Samsung C&T Corporation, HOCHTIEF Aktiengesellschaft, Larsen & Toubro Limited, Hyundai Engineering & Construction Co. Ltd., STRABAG SE, Kiewit Corporation, Bechtel Corporation, Skanska AB, Fluor Corporation, AECOM, Jacobs Solutions Inc., Balfour Beatty plc, Ferrovial SE, Acciona S.A., Webuild S.p.A., Hindustan Construction Company Limited, GMR Group, Ghella S.p.A., Gülermak Ağır Sanayi İnşaat ve Taahhüt A.Ş.

Asia-Pacific was the largest region in the urban infrastructure market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the urban infrastructure market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the urban infrastructure market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The urban infrastructure market consists of revenues earned by entities by providing services such as planning, development, construction, maintenance, and management of urban facilities. The market value includes the value of related goods sold by the service provider or included within the service offering. The urban infrastructure market also includes sales of precast concrete elements, asphalt (bitumen mix), structural steel (beams and columns), bricks and concrete blocks (CMU), and street lighting systems (LED lights and poles). 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.

This product will be delivered within 1-3 business days.