Roads and Highways Infrastructure Construction - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2026-2031)

The roads and highways infrastructure construction market size is projected to be USD 1.97 trillion in 2025, USD 2.11 trillion in 2026, and reach USD 2.89 trillion by 2031, growing at a CAGR of 6.49% from 2026 to 2031. This report is Segmented by Component (Road, Bridges/Overpass, Tunnels, and Others), Construction Type (New Construction and Renovation), Investment Source (Public, Private, and More), Type (National, State, and Local), and Geography (North America, Europe, Asia-Pacific, South America, and Middle East and Africa). The Market Forecasts are Provided in Terms of Value (USD).

Global Roads and Highways Infrastructure Construction Market Trends and Insights

National Corridor Investment Programs

National corridor programs give contractors a clearer view of future work than isolated annual budgets. India planned 124 national highway projects worth INR 3.45 lakh crore (USD 41.1 billion) for FY2025-26 across the hybrid annuity model (HAM), engineering, procurement, and construction (EPC), and build-operate-transfer (BOT) delivery modes. The Ministry of Road Transport and Highways allocated INR 3.09 lakh crore (USD 36.89 billion) to the road sector for 2026-27. China completed RMB 330 billion (USD 48.11 billion) in major transport investments during the first quarter of 2026, and 1,845 highway and waterway projects valued at RMB 100 million (USD 13.9 million) or more were under acceleration. As mature networks turn toward rehabilitation, the roads and highways infrastructure construction market is likely to offer more stable packages for contractors with specialized renewal skills. The National Highways Authority of India (NHAI) also monetized INR 28,307 crore (USD 3.3 billion) through Infrastructure Investment Trust (InvIT) and Toll-Operate-Transfer (TOT) vehicles in FY2025-26, demonstrating how operating assets can generate capital for further corridor investment.

Bridge Rehabilitation Backlogs

Bridge repair backlogs create a visible future workload for civil contractors. The American Society of Civil Engineers identified more than 46,000 structurally deficient bridges in the United States in 2025, and 220,295 bridge spans needed repair or replacement. The Federal Highway Administration estimated that clearing the United States bridge backlog by 2038 would require USD 28.9 billion each year. The USD 27.5 billion formula bridge program under the Bipartisan Infrastructure Law has committed 55% of funds to more than 6,000 projects by 2025. This work supports the construction of roads and highway infrastructure because repair contracts require specialized staging, inspection, and traffic management capabilities. Similar maintenance gaps in other countries can translate into safety and fiscal concerns, driving contracted renovation work over the forecast period.

Land Acquisition and Community Opposition

Land acquisition can determine whether a road project moves from approval to construction. India reported in July 2025 that 489 national highway projects due by March 2025 were pending due to land acquisition, forest clearance, and railway approvals. The Thiruvananthapuram Outer Ring Road saw its land acquisition cost rise from INR 1,800 crore (USD 214.3 million) to INR 3,800 crore (USD 452.4 million). These delays can lead to revised schedules, increased claims exposure, and greater uncertainty for contractors. The roads and highways infrastructure construction market depends on governments securing land and core clearances before awarding major works. When owners leave those issues unresolved, they transfer risks that contractors have limited legal power to control. This can reduce the value created by public investment despite a strong announced pipeline.

Other drivers and restraints analyzed in the detailed report include:

• Urban Expressway Expansion
• Smart Road and Connected Traffic Systems
• Material and Equipment Cost Volatility

Segment Analysis

Road carriageway construction accounted for 69.80% of the roads and highways infrastructure construction market share by component in 2025. Its position reflects the scale of national and state highway programs in Asia, Africa, and South America, where baseline connectivity remains incomplete. Bridges/overpass is forecast to grow at a 7.30% CAGR from 2026 to 2031. Their growth is supported by aging structures in North America and Europe and by elevated corridor needs in dense Asia-Pacific cities. Tunnels are gaining interest in Alpine routes and Southeast Asian urban bypasses, where surface land is difficult to obtain. Other structures include interchanges, flyovers, and junction works that support complex freight and urban links. These projects often require grade separation as traffic volumes rise. The component mix, therefore, includes both long-distance road construction and concentrated engineering works. The roads and highways infrastructure construction market continues to be led by pavement volume, but specialized structures are gaining weight in project value.

Precast asphalt panels can use higher levels of reclaimed asphalt pavement in controlled plant conditions without compromising quality, according to a 2025 study in the International Journal of Pavement Engineering. This approach is relevant to bridge deck replacement, where shorter construction periods can reduce disruption. Skanska and its joint venture partner received a USD 534 million contract for the Vincent Thomas Bridge Deck Replacement in Los Angeles in April 2026. The project uses an accelerated 16-month full closure and is scheduled for completion in March 2029. Such packages reward contractors who can manage work in live urban networks. Smart surfaces and intelligent transportation systems are also becoming part of pavement work. This makes the boundary between roads and ancillary structures less clear in some contracts. Contractors must coordinate pavement, structures, communications, and traffic management more closely. The broad roads and highways infrastructure construction market, therefore, supports firms that can integrate these related scopes.

New construction accounted for 74.20% of the roads and highways infrastructure construction market by construction type in 2025. Greenfield work remains important in South and Southeast Asia, Sub-Saharan Africa, and parts of South America. These regions are still developing primary road networks that link cities, industrial areas, and ports. Renovation is forecast to grow at a 7.10% CAGR from 2026 to 2031. China is shifting from major network expansion toward upgrades under the 15th Five-Year Plan. The Ministry of Transport identified 80,000 km of facilities for renovation by 2030. As network density grows, maintenance and renewal can represent a larger share of contracting activity. This shift favors firms that can diagnose pavement condition and plan work with limited disruption. It also reduces the relative advantage of contractors focused only on high-volume earthworks.

Renovation projects often require more engineering work and less raw material than new corridors. This can change the cost structure and contractor selection process. India’s Central Road Research Institute and Bharat Petroleum Corporation Limited developed plastic-waste geocells for a structural base layer and validated the material on a 160-meter stretch near Delhi in 2025. A 2026 lifecycle assessment of a construction and demolition waste and reclaimed asphalt pavement mixture reported climate impacts of 129.81 kg carbon dioxide equivalent per functional unit. These examples show how renovation can combine lifecycle considerations with project delivery requirements. Public owners may increasingly specify recycled or lower-impact materials in renewal contracts. Contractors also need dependable material testing and quality assurance methods. New construction remains the largest part of the roads and highways infrastructure construction market, but renovation provides a larger opening for specialized methods. The change is gradual, yet it can shape long-term capability requirements.

Complete Report Scope:

• By Component
  • Road
  • Bridges/Overpass
  • Tunnels
  • Others
• By Construction Type
  • New Construction
  • Renovation
• By Investment Source
  • Public
  • Private
  • Public-Private Partnership
• By Type
  • National
  • State
  • Local
• By Geography
  • North America
    • United States
    • Canada
    • Mexico
  • Europe
    • United Kingdom
    • Germany
    • France
    • Italy
    • Spain
    • Russia
    • Rest of Europe
  • Asia-Pacific
    • China
    • India
    • Japan
    • Australia
    • South Korea
    • SouthEast Asia (Singapore, Malaysia, Thailand, Indonesia, Vietnam, and Philippines)
    • Rest of Asia-Pacific
  • South America
    • Brazil
    • Argentina
    • Rest of South America
  • Middle East and Africa
    • Saudi Arabia
    • United Arab Emirates
    • Turkey
    • South Africa
    • Nigeria
    • Rest of Middle East and Africa

Geography Analysis

Asia-Pacific accounted for 42.60% of the roads and highways infrastructure construction market share in 2025 and is projected to remain the fastest-growing region, expanding at a CAGR of 7.40% during 2026-2031. China’s transport fixed-asset investment totaled RMB 3.67 trillion (USD 550.5 billion) in 2025, while highway mileage in operation reached 199,000 km. China now prioritizes 80,000 km of facility upgrades and a 500,000 km rural road improvement program under its 15th Five-Year Plan. India complements that renovation focus with continued greenfield expansion. NHAI completed 5,313 km of national highways in FY2025-26 and recorded INR 2,44,362 crore, or USD 29.09 billion, in capital expenditure. India also deployed its first Cooperative Intelligent Transport Systems project near New Delhi, in partnership with Kapsch TrafficCom. Vietnam, Indonesia, and the Philippines add further demand through upgrades to national corridors. Urban growth in these countries supports both new roads and system upgrades. The region’s pipeline combines large-scale construction with growing digital and rehabilitation requirements.

North America and Europe are important sources of road value because they combine established networks with sustained rehabilitation needs. The United States Bipartisan Infrastructure Law projects are entering active construction after design and permitting stages. Labor availability is a practical constraint as construction volumes rise. Germany is deploying EUR 58 billion (USD 63.22 billion) from its special infrastructure fund in 2026, with transport among the intended investment areas. Italy’s Autostrade per l’Italia is modernizing a 3,000 km motorway network through a EUR 1.2 billion (USD 1.31 billion) program backed by the European Investment Bank. Smart Road certification is a core part of that program. TEN-T requirements also encourage cross-border planning across European member states. These conditions support longer-term renovation, safety, and the work of digital systems.

South America, the Middle East, and Africa have strong project pipelines, although their funding models differ. VINCI Highways holds a 30-year concession for 594 km of Brazil’s BR-040 and is committed to widening more than 300 km. Brazil’s Minas Gerais state committed BRL 100 billion (USD 19.0 billion) to infrastructure through 2032, with highways receiving the largest share. Saudi Arabia opened more than 900 km of roads across several regions in the first half of 2026. The United Arab Emirates’ AED 750 million (USD 204 million), Emirates Road Enhancement Project was 30% complete ahead of schedule in 2026. Kenya’s Rironi-Mau Summit PPP also reflects a wider shift toward user-pay structures in Africa. These regions offer work across new corridors, city links, and concession-based upgrades. Project execution depends on sound governance, affordable finance, and effective land access arrangements.

List of Companies Covered in this Report:

• China Communications Construction Company Limited (CCCC)
• China State Construction Engineering Corporation Limited (CSCEC)
• China Railway Group Limited (CREC)
• VINCI SA
• ACS, Actividades de Construcción y Servicios, S.A.
• Bechtel Corporation
• Bouygues Travaux Publics
• Skanska AB
• STRABAG SE
• Ferrovial SE
• HOCHTIEF Aktiengesellschaft
• Larsen & Toubro Limited
• Fluor Corporation
• Kiewit Corporation
• Eiffage SA
• Balfour Beatty plc
• Colas SA
• Acciona, S.A.
• Obayashi Corporation
• Royal BAM Group N.V.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support