Global Highway and Road Construction Market 2023-2030

Global Highway and Road Construction Market 2023-2030

Global Highway and Road Construction Market Size, Share & Trends Analysis Report by Type (Highway, Street, Bridge, and Others), By Construction Type (New Construction, Reconstruction, Pavement Construction, and Others), Forecast Period (2023-2030)

The global highway and road construction market is anticipated to grow at a CAGR of 7.9% during the forecast period (2023-2030). The key driving factor for this growth is the focus on enhancing transportation efficiency and safety. Governments and transportation authorities globally are making substantial investments in constructing new highways and roads that incorporate modern technologies, aiming to reduce traffic congestion and improve safety for commuters. For instance, in April 2020, Bharat Petroleum Corp. Ltd. and Noida Authority collaborated on a pioneering project in India. They constructed a 500-meter-long road parallel to the Noida-Greater Expressway in Sector 129, utilizing 35 metric tons of plastic waste as part of the construction material. This initiative demonstrated the adoption of environmentally-friendly practices in road construction.

Moreover, various other countries are also following suit by incorporating advanced technologies into their highway and road construction projects. In January 2022, Blue Climate Deutschland GmbH, a German-based infrastructure development company, played a crucial role in addressing road challenges, particularly in rural areas. Their innovative technology, UNDERBOLD-POD30, involves mixing the existing soil, cement, and a manufactured organic liquid, which is then compressed using a machine to create a stable and durable road surface.

Segmental Outlook

The global highway and road construction market is segmented by type and construction. Based on the type, the market is sub-segmented into highways, streets, bridges, and others. Based on the construction type, the market is sub-segmented into new construction, reconstruction, pavement construction, and others. Among the construction type, the new construction sub-segment is anticipated to hold a considerable share of the market. Owing to the rise in the development of engaging and innovative technologies, the construction industry is constantly evolving, which has a significant impact on the way construction projects are planned, designed, and executed.

The Highway Sub-Segment is Anticipated to Hold a Considerable Share of the Global Highway and Road Construction Market

Among the construction type, the highway sub-segment is expected to hold a considerable share of the global highway and road construction market. As the population continues to grow, and urbanization increases, the demand for an efficient transportation system, including highways, remains high. Several other factors contribute to the market's growth includes upgraded infrastructure, government initiatives, connectivity, and regional integration through the development of highways. For instance, in July 2021, United E&P Pte Ltd (UE&P) and Shell Singapore signed a non-binding memorandum of understanding (MOU) to establish a strategic partnership. This collaboration aims to advance their shared goals of decarbonization and environmentally friendly highways in Singapore. Notably, this partnership between Shell and Singapore focuses on the decarbonization of the road-building industry and represents the first of its kind.

Regional Outlook

The global highway and road construction market is further segmented based on geography including North America (the US, and Canada), Europe (UK, Italy, Spain, Germany, France, and the Rest of Europe), Asia-Pacific (India, China, Japan, South Korea, and Rest of Asia), and the Rest of the World (the Middle East & Africa, and Latin America). Among these, the Asia-Pacific region is anticipated to hold a prominent share of the market across the globe, owing to the high concentration of the market solution vendors including Larsen & Toubro Ltd, TTA Projects, China Communications Construction Company, Ltd., Hyundai Engineering and Construction Co., Ltd., Power Construction Corp. and others.

Global Highway and Road Construction Market Growth by Region 2023-2030

Source: OMR Analysis

The North America Region is Expected to Grow at a Significant CAGR in the Global Highway and Road Construction Market

Among all the regions, the North American region is anticipated to grow at a significant CAGR over the forecast period. The US comprises the largest road systems across the globe. According to the Verdict Traffic, the country has 68,03,479 km long road network, of which 37% is unpaved and 63% is paved. Road upgrades reduces the cost of moving people and commodities, provides market access, promotes economic integration, encourages competition, creates mass economies, and provides many other economic benefits. Thus, there is a considerable increase in the introduction of several road construction and development projects. For Instance, in April 2023, UDOT declares a brand-new highway, new interchanges, enlarged freeways and highways, additional walkways for pedestrians and cyclists, maintenance to keep roads and bridges in good shape, and enhanced access to a new state park are among the projects are already under construction in 2023.

Moreover, collaboration in North America allows companies to pool their expertise, resources, and equipment, enabling them to undertake larger and more complex projects. For instance, in March 2023, the Government of North Macedonia selected Bechtel and their joint venture partner ENKA to construct two new motorways in the nation.

Market Players Outlook

The major companies serving the highway and road construction market include Advantage North Services Ltd., Caterpillar Inc, Ebenezer Commercial Works (ECW) Ltd., Granite Construction Inc., National Highways, and Infrastructure Development Corp., Ltd., and others. The market players are considerably contributing to the market growth by the adoption of various strategies including mergers and acquisitions, partnerships, collaborations, funding, and new product launches, to stay competitive in the market. For instance, in January 2022, Project Yojak is launched by Borden Road Organizations (BRO) to improve road infrastructure. The project's primary objective is to construct tunnels similar to the Atal Tunnel and maintain the auxiliary roads. On the Manali-Ladakh axis, Yojak will be in charge of building high-altitude traffic tunnels and acquiring important roadways for up to 500 km of road maintenance.

The Report Covers

Market value data analysis of 2022 and forecast to 2030.

Annualized market revenues ($ million) for each market segment.

Country-wise analysis of major geographical regions.

Key companies operating in the global highway and road construction market. Based on the availability of data, information related to new product launches, and relevant news is also available in the report.

Analysis of business strategies by identifying the key market segments positioned for strong growth in the future.

Analysis of market-entry and market expansion strategies.

Competitive strategies by identifying ‘who-stands-where’ in the market.