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The road construction and maintenance market size is forecast to increase by USD 214 billion, at a CAGR of 4.36% between 2023 and 2028. The market's growth is influenced by several critical factors, including substantial investments in road and highway infrastructure projects, the surge in the number of automobiles on roads, and the escalating need for improved highway infrastructure. These investments are pivotal in addressing the wear and tear of existing roads and in constructing new highways to accommodate the growing traffic. As the number of vehicles increases, the demand for robust and efficient highway systems rises, necessitating advanced construction techniques and materials. Moreover, the emphasis on enhancing transportation networks to support economic activities and population expansion further drives the need for significant infrastructure development. Collectively, these factors underscore the importance of sustained investment and innovation in the market.
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The market is driven by various factors, including the need for road maintenance to enhance the lifespan of a road and improve vehicle operating conditions. Environmental sustainability and the use of recycled materials and sustainable materials are becoming increasingly important, driven by climate change and greenhouse gas reduction goals. Proactive strategies and preventative work are essential to avoid costly major repairs, especially with ageing infrastructure and funding gaps. Extreme weather exacerbates the need for durable roadways, and technological integration with sensor systems is vital for monitoring road conditions. Public funding and budgetary constraints impact the execution of projects, while environmental regulations and safety regulations guide the industry. Addressing these challenges requires innovative solutions and strategic investments to ensure economic stimulus and sustainable development.
The growth in the number of automobiles on the roads is notably driving the market growth. Automobiles have become a necessity as they act as bridges to connect people and enable the transportation of goods and services. Automobiles are mostly used for transporting people from one place to another. Population growth and rapid urbanization across the globe have positively impacted the expansion of road infrastructure and its development to cater to the needs of the transportation sector, which has encouraged automotive OEMs to produce more vehicles. Many automobile manufacturers are entering new geographic regions by launching attractive vehicle models.
For instance, Tesla, Citroen, and Great Wall Motor are planning to enter the Indian automotive market by launching their respective car models in the coming years. Thus, the expansion of the automobile sector will spur the demand for road construction. In the EU, in 2021, passenger car production grew by more than 18.7% over that in 2010. The region also witnessed substantial expansion in commercial vehicle production in the subsequent year. Therefore, growing automobile production volumes and the entry of players into new markets will spur demand, which will support the market during the forecast period.
The emergence of smart cities is the primary trend driving the market. Smart cities involve the integration of information and communication technology (ICT) and the adoption of the latest technologies for the effective management of all the operations within a city. The emergence of smart cities leads to developments in functional areas such as transportation, traffic management, energy efficiency and sustainability, and governance. An increase in the number of smart city projects across the world will give rise to the need for the installation of road safety equipment in advanced road network systems.
Further, such factors are expected to create growth opportunities for the companies operating in this market and will focus on expanding roadways to align with the vision of the smart city projects undertaken by governments worldwide. Efficient waste management, smart street lights, smart highways, parking sensors, and improved security are a few of the major objectives of smart cities. Thus, the increase in the number of smart cities across the globe can drive the market during the forecast period.
The rise in the cost of construction may impede the market. The cost of specialized services such as glazing work, metal construction work, plumbing work, insulation and fire protection work, ventilation, air conditioning, and heating has increased. This has added to the cost of construction, particularly for specialized construction work. Therefore, companies are passing on the increase in cost to the buyers. However, such high prices are not sustainable in the long run, particularly in the construction industry. For instance, in Europe, Germany is one of the countries with high purchase costs. These costs have been rising since 2009.
Moreover, the supply-demand imbalance in the construction sector implies that these prices will continue to register an upward trend during the forecast period. Considering this, if companies pass on the rise in operating costs to buyers, the demand for construction activities will decline. Therefore, the increased construction costs can hinder in the long run. It can also adversely affect the profit margins of companies. Such factors can hinder market growth and trends during the forecast period.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth and forecasting strategies.
Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
TATA Projects Ltd - The company offers all engineering, procurement, and construction solutions. The company's key offerings include services, such as a six-lane road project, namely the Chennai Peripheral Ring Road Project.
The research report also includes detailed analyses of the competitive landscape of the market and information about 19 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The new construction segment of the global market is expected to grow significantly during the forecast period as compared to other segments such as reconstruction and repair. This is due to an increase in the number of vehicles, including passenger cars and commercial vehicles, and an increase in investment in road infrastructure.
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The new construction segment was valued at USD 405.30 billion in 2018. The purpose of new construction projects is to expand road highway networks and reduce traffic congestion, travel time, and distances. Such initiatives will help boost the demand for new construction projects in the global market during the forecast period. Additionally, our report provides a brief analysis of the historical and projected market share and its segments, as well as the reasons for its expansion from 2017 to 2027. Moreover, the expansion of this segment is mainly due to the increasing acceptance of the market driven by the increasing global demand for the industry.
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APAC is estimated to contribute 51% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional market trends and analysis and drivers that shape the market during the forecast period. Another region offering significant growth opportunities to companies is North America. The market in North America is driven by the increased activities related to road expansion to counter traffic congestion and enhance road safety due to the increase in population size. In addition, an increase in government funding for the implementation of road safety measures and the focus by the government on overall infrastructural development supplement the expansion of the market. The continuous rise in the number of road accidents, especially in the US, Canada, and other North American countries, has driven the implementation of road safety rules, leading to an increased demand. Such factors will increase the market in this region during the forecast period.
The market research and growth report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.
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The market is vital for enhancing infrastructure and ensuring safety on rural roads and expressways. Increasing road collisions and extreme weather conditions necessitate the use of high-quality materials and advanced construction techniques. Road maintenance involves routine maintenance, major repairs, and reconstruction to extend the lifespan of a road. Proactive strategies and preventative work are crucial in addressing ageing infrastructure and funding gaps. The integration of drones, data analytics, and the Internet of Things enhances safety and environmental sustainability. Population expansion and economic activities drive demand for resilience infrastructure, utilizing rainwater capture and lifecycle costing to promote safety and durability. As transportation policies evolve, addressing climate change impacts and ensuring vehicle operating efficiency are paramount. The market leverages building materials from multiple sources to optimize the highway segment, while strategic promotions and a dedicated research team drive innovation and efficiency.
Market Scope |
|
Report Coverage |
Details |
Page number |
172 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 4.36% |
Market Growth 2024-2028 |
USD 214 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
4.12 |
Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
Performing market contribution |
APAC at 51% |
Key countries |
US, China, Russia, UK, and India |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks, Road Construction And Maintenance Market Industry Report |
Key companies profiled |
ACS Actividades de Construccion Y Servicios SA, Advantage North Services Ltd., Afcons Infrastructure Ltd., Balfour Beatty Plc, Blacklidge, Cat Works LLC, Dilip Buildcon Ltd., Ebenezer Commercial Works Ltd., Granite Construction Inc., Hunan Communication and Water Conservancy Group Ltd, Kiewit Corp., Ledcor IP Holdings Ltd., National Highways and Infrastructure Development Corp. Ltd., Strabag International GmbH, TATA projects, Tenmile, The Lane Construction Corp., United Materials, and Xenomatix |
Market dynamics |
Parent market growth analysis, Market Forecast, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period, Road Construction And Maintenance Market Growth Analysis |
Customization purview |
If our road construction and maintenance market worth report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
View Road Construction And Maintenance Market Forecast PDF Sample
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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