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The road construction and maintenance market size is forecast to increase by USD 259.95 billion, at a CAGR of 5.42% between 2023 and 2028.
The growth of the market depends on several factors, including investments in road and highway infrastructure projects, the growth in the number of automobiles on roads, and the increasing need for highway infrastructure. It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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The growth in the number of automobiles on the roads is notably driving the , although factors such as the rise in the cost of construction may impede. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The growth in the number of automobiles on the roads is notably driving . 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 the 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.
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.
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 the market during the forecast period.
The 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 expansion strategies.
Global 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.
TATA Projects Ltd - The company operates under multiple segments including a high focus on engineering, procurement, and construction (EPC). 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 report also includes detailed analyses of the competitive landscape of the and information about 15 companies, including:
Qualitative and quantitative market growth 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 market share growth by the new construction segment will be significant during the forecast period. The new construction segment of the global market is expected to grow significantly share 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. Such factors are anticipated to drive the development of the new construction segment of during the forecast period.
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The new construction segment was valued at USD 385.75 billion in 2017 and continued to grow by 2021. 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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North America is estimated to contribute 41% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. 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 report forecasts market growth by revenue at global, regional & country levels and provides a market research and growth analysis of the latest market trends and analysis and growth opportunities from 2017 to 2027.
The market is a critical sector that significantly influences economic development and connectivity. Controlled-access highways, regulated by stringent guidelines, form an essential component of modern transportation infrastructure. This market involves major players like Fluor Corporation and Hochtief, often operating through subsidiaries, bringing their expertise to global projects.
Incorporating advanced multiuser software, these projects enhance coordination, efficiency, and project management. The integration of email communication tools further streamlines collaboration among stakeholders, fostering transparency and ensuring the smooth execution of projects.Regulations play a crucial role in shaping the landscape, ensuring adherence to safety standards and environmental considerations. The economic impact is substantial, with this industry supporting tourism and driving overall economic expansion. In this dynamic market, stakeholders navigate complex regulations and leverage innovative technologies to meet the evolving demands of modern transportation infrastructure.
Road Construction And Maintenance Market Scope |
|
Report Coverage |
Details |
Page number |
165 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 5.42% |
Market growth 2023-2027 |
USD 259.95 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
4.35 |
Regional analysis |
North America, APAC, Europe, South America, and Middle East and Africa |
Performing market contribution |
North America at 41% |
Key countries |
US, China, India, Russia, and UK |
Competitive landscape |
Leading companies, Market Positioning of companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Advantage North Services Ltd., Afcons Infrastructure Ltd., Balfour Beatty Plc, Blacklidge, Cat Works LLC, Dilip Buildcon Ltd., Dragados, Ebenezer Commercial Works Ltd., Granite Construction Inc., Hunan Communication and Water Conservancy Group Ltd, Kiewit Corp., Ledcor Group, 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 analysis, Market forecasting, 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 forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements. Get in touch
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 Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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