Heavy And Civil Engineering Construction Market Definition
Heavy and civil engineering construction refers to a branch of civil engineering that focuses on the design, construction and maintenance of large-scale infrastructure projects. These projects often involve significant use of heavy equipment and materials.
The heavy and civil engineering construction market consists of sales of heavy and civil engineering construction services by entities (organizations, sole traders and partnerships) that undertake heavy and civil engineering construction projects (for example, highways, airports, tunnels and dams). The work performed may include new work, additions, alterations or maintenance and repairs.
Heavy And Civil Engineering Construction Market Size
The global heavy and civil engineering construction market reached a value of nearly $1,991.38 billion in 2023, having grown at a compound annual growth rate (CAGR) of 4.30% since 2018. The market is expected to grow from $1,991.38 billion in 2023 to $2,519.42 billion in 2028 at a rate of 4.82%. The market is then expected to grow at a CAGR of 4.91% from 2028 and reach $3,201.75 billion in 2033.
Growth in the historic period resulted from the investment in renewable power generation capabilities, growing investments in infrastructure, rapid industrialization, increasing public-private partnerships and increased focus on urban planning and development policies. Factors that negatively affected growth in the historic period include high material prices.
Going forward, the increasing electricity demand, increasing population, development of transportation infrastructure, increasing government support, urban redevelopment will drive the market. Factors that could hinder the growth of the heavy and civil engineering construction market in the future include a lack of skilled workers.
Heavy And Civil Engineering Construction Market Drivers
The key drivers of the heavy and civil engineering construction market include:
Increasing Electricity Demand
The increasing demand for electricity is projected to drive the growth of the heavy and civil engineering construction market. Utilities managing electricity include power generation, distribution and billing services provided by electric companies to ensure a stable and reliable energy supply for homes and businesses. For instance, in March 2024, according to the International Energy Agency, a France-based autonomous intergovernmental organization, total net electricity production in the Organization for Economic Cooperation and Development (OECD) member countries reached 883.7 TWh, a 2.5% increase year-to-date in the first quarter of 2024. Renewable electricity generation increased by 6.7% year over year during this period. Therefore, the increasing demand for electricity will drive the growth of the heavy and civil engineering construction market.
Heavy And Civil Engineering Construction Market Restraints
The key restraints on the heavy and civil engineering construction market include:
Lack Of Skilled Workers
The shortage of suitably trained employees in the construction industry will contribute to a labor deficit during the forecast period. This industry suffers from a lack of a technologically proficient workforce, which impedes operational efficiency, raises costs and restricts the sector's capacity to innovate and adapt to new technologies. For example, in 2022, according to a report by Associated Builders and Contractors, a US-based trade association representing the non-union construction industry, the construction industry will need to hire an additional almost 650,000 people on top of the regular hiring rate. According to a report by Korn Ferry, a California-based management consulting firm, by 2030, the global talent shortage is expected to reach 85.2 million people. Knowledge-intensive industries such as heavy and civil engineering construction market will be hit strongly due to a lack of skilled workers.
Heavy And Civil Engineering Construction Market Trends
Major trends shaping the heavy and civil engineering construction market include:
Use Of Advanced Imaging Technology In Utility Infrastructure Monitoring
Major companies operating in the heavy and civil engineering construction market are focusing on using imaging technology in the utility industry to gain a competitive edge in the market. Imaging plays a crucial role in utility services for assessing infrastructure and detecting faults, ensuring efficient and reliable electricity operations. For instance, in April 2023, according to the Dubai Electricity and Water Authority (DEWA), a Dubai-based utility firm, launched the DEWA SAT-2, a 6U nanosatellite that boasts a 4.7-meter high-resolution camera for Earth observation in seven spectral bands from a 500-km orbit, complemented by infrared tools for greenhouse gas measurement. These devices are primarily designed for use in energy and water networks and will be deployed to detect thermal patterns in high-voltage transmission lines, substations, homes and solar power stations.
Strategic Partnerships And Collaborations Among Major Players
Strategic partnerships and collaborations among major companies in the heavy and civil engineering construction market aim to leverage each partner's strengths and resources to enhance their competitive edge and expand their market reach. Strategic partnerships enable companies to navigate regulatory complexities, improve operational efficiency and innovate more effectively in response to evolving customer needs and market dynamics. For example, in March 2024, SK Ecoplant Co., a South Korean civil construction engineering and waste management company, agreed with BCG Energy, a holding company for renewable energy and a wholly owned subsidiary of Vietnam's Bamboo Capital Group, to jointly pursue solar and wind power projects in Vietnam. SK and BCGE will jointly develop 700 megawatts (MW) of renewable energy projects in Vietnam: 300 MW of land wind power, 300 MW of rooftop solar power and 100 MW of land solar power. The projects include wind power generation in Gia Lai, a highland province in central Vietnam with abundant wind. Additionally, in April 2023, Schroders Greencoat LLP, a UK-based Investment service company in the renewable energy infrastructure sector, announced a strategic partnership with Innova Renewables Limited, a UK-based private equity firm that specializes in renewable energy, to build and manage solar energy generation and battery storage projects across the UK. Schroders Greencoat and Innova created ISG Renewables, a new platform to finance and develop 5 GW of renewable energy capacity in the next three to five years, building on the 1.5 GW of solar and storage projects that are currently connected to Innova distribution.
Opportunities And Recommendations In The Heavy And Civil Engineering Construction Market
Opportunities – The top opportunities in the heavy and civil engineering construction market segmented by type will arise in the highway, street, and bridge construction segment, which will gain $269.95 billion of global annual sales by 2028. The top opportunities in the heavy and civil engineering construction market by organization size will arise in the large contractors segment, which will gain $215.87 billion of global annual sales by 2028. The top opportunities in the heavy and civil engineering construction market by end user will arise in the private segment, which will gain $363.64 billion of global annual sales by 2028. The heavy and civil engineering construction market size will gain the most in Turkey at $79.34 billion.
Recommendations- To take advantage of the opportunities, The Business Research Company recommends the heavy and civil engineering construction companies to focus on leveraging imaging technology for utility services, focus on software transformations for enhanced project efficiency, focus on integrating wind-solar hybrid systems, focus on highway, street and bridge construction segment, expand in emerging markets, continue to focus on developed markets, focus on strategic partnerships, focus on competitive pricing strategies, participate in trade shows and events, continue to use B2B promotions and focus on targeting private market end-users.
Heavy And Civil Engineering Construction Market Segmentation
The heavy and civil engineering construction market is segmented by type, by organization size and by end user.
By Type –
The heavy and civil engineering construction market is segmented by type into:
- a) Utility System Construction
- b) Highway
- c) Street And Bridge Construction
- d) Other Heavy
- e) Civil Engineering Construction
The highway, street and bridge construction market was the largest segment of the heavy and civil engineering construction market segmented by type, accounting for 43.60% or $868.22 billion of the total in 2023. Going forward, the heavy and civil engineering construction segment is expected to be the fastest growing segment in the heavy and civil engineering construction market segmented by type, at a CAGR of 5.56% during 2023-2028.
By Organization Size –
The heavy and civil engineering construction market is segmented by organization size into:
- a) Large Contractors
- b) Medium Contractors
- c) Small Contractors
The large contractors market was the largest segment of the heavy and civil engineering construction market segmented by organization size, accounting for 41.83% or $833.04 billion of the total in 2023. Going forward, the medium contractors segment is expected to be the fastest growing segment in the heavy and civil engineering construction market segmented by organization size, at a CAGR of 5.34% during 2023-2028.
By End-User –
The heavy and civil engineering construction market is segmented by end-user into:
The private market was the largest segment of the heavy and civil engineering construction market segmented by end user, accounting for 68.88% or $1,371.74 billion of the total in 2023. Going forward, the private segment is expected to be the fastest growing segment in the heavy and civil engineering construction market segmented by end user, at a CAGR of 4.82% during 2023-2028.
By Geography - The heavy and civil engineering construction market is segmented by geography into:
o Asia Pacific
- • Australia
- • China
- • India
- • Indonesia
- • Japan
- • South Korea
- • Bangladesh
- • Thailand
- • Vietnam
- • Malaysia
- • Singapore
- • Philippines
- • Hong Kong
- • New Zealand
o North America
o South America
- • Brazil
- • Chile
- • Argentina
- • Colombia
- • Peru
o Western Europe
- • France
- • Germany
- • UK
- • Austria
- • Belgium
- • Denmark
- • Finland
- • Ireland
- • Italy
- • Netherlands
- • Norway
- • Portugal
- • Spain
- • Sweden
- • Switzerland
o Eastern Europe
- • Russia
- • Czech Republic
- • Poland
- • Romania
- • Ukraine
• Middle East
- • Saudi Arabia
- • Israel
- • Iran
- • Turkey
- • UAE
• Africa
- • Egypt
- • Nigeria
- • South Africa
Asia-Pacific was the largest region in the heavy and civil engineering construction market, accounting for 39.23% or $781.14 billion of the total in 2023. It was followed by North America, Western Europe and then the other regions. Going forward, the fastest-growing regions in the heavy and civil engineering construction market will be the Middle East and Africa, where growth will be at CAGRs of 16.76% and 14.52% respectively. These will be followed by South America and Asia-Pacific, where the markets are expected to grow at CAGRs of 9.40% and 4.40% respectively.
Heavy And Civil Engineering Construction Market Competitive Landscape
Major Competitors are:
China Railway Construction Corporation Limited
China Railway Group Ltd.
China State Construction Engineering Corporation Ltd.
China Communications Construction Company Limited
Power Construction Corporation of China (PowerChina Corp.)
Other Competitors Include:
Skanska AB
Bouygues SA
Hochtief AG
STRABAG Group AG
Kiewit Corporation
Doosan Group
Terex Corporation
Larsen & Toubro Ltd
Hindustan Construction Company (HCC)
Gammon India Limited
IRCON International Limited
Tata Projects Ltd
Reliance Infrastructure
DLF
Vinci SA
Koninklijke BAM Groep
Volker Wessels Group Zeppelin GmbH
SGS
Interconstruct
Anker Hansen & Co. A/S
Christiansen & Essenbæk A/S
C.C. Contractor A/S
EKE-Construction Ltd
Colas Group
Eiffage Construction
Bauer Group
Bennett Construction Limited
Collen Construction Limited
Casais Group
Balfour Beatty
Laing O’ Rourke
Interserve
Morgan Sindall
Kier
Budimex
PORR Group
Bechtel Corporation
Fluor Corporation
Granite Construction
The Walsh Group Ltd
Conestoga-Rovers & Associates (CRA)
MTC Canada Inc
Oderbrecht
Camargo Corrêa
Andrade Gutierrez
Queiroz Galvão
MRV Engenharia
SalfaCorp
Mourik General Contractors
Gilbane Building Company
McCrory Construction Company
Redcon Construction Company
Alex Group
Amer Group
Palm Hills Developments
Al-Ahly Developmental Habtoor Group Llc
Al-Naboodah Constructing
Arabian Construction Company
Dutco Balfour Beatty Llc
Electra Ltd
Shikun & Binui Ltd
Mekorot Water Company Ltd
Danya Cebus Ltd
Ashtrom Group Ltd
Saudi Bin Ladin Group.
Al-Rashid Trading & Contracting Co
Al Ayuni Investment & Contracting Co.
Al Harbi Trading & Contracting Co
ALEC Group
GAMA Industry
Arabian Bemco Contracting Co.
Al Jaber Group LLC
Landmark Holdings Ltd
Epco Builders Limited
Laxmanbhai Construction Ltd
Parbatsiyani Construction Ltd
Put Sarajevo
Intex Construction
Berger Nigeria Plc
Reynolds Construction Company
Thabimndeni Construction & Projects CC
Orascom Contstruction
Lubrik Construction Company