Civil Engineering Market

Civil Engineering Market Outlook 2031

The global civil engineering market size was USD 7.95 Trillion in 2022 and is likely to reach USD 13.2 Trillion by 2031, expanding at a CAGR of 5.7% during 2023–2031. The market is driven by increasing infrastructure development in worldwide economies, and growing urbanization.

Rising need to replace the aged infrastructure with new and enhanced construction is propelling the civil engineering market. Exponential increase in the worldwide population has fueled the necessity to build residential and commercial properties, to address the rise of consumer demand.

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Various governments across the world are undertaking several initiatives to ensure the development of nations in accord with the needs of modern times. All of these factors are leading to increasing opportunities for players in the market.

• According to the study published by the US Department of the Treasury on June 27, 2023, the country has witnessed a tremendous surge in spending on the construction of manufacturing facilities. Spends on real manufacturing construction have doubled since the end of 2021. This growth is boosted by supportive policy frameworks such as the Inflation Reduction Act (IRA), Infrastructure Investment and Jobs Act (IIJA), and CHIPS Act.

The research report finds that the COVID-19 pandemic severely affected the civil engineering market. The infection concerns and consequent lockdowns imposed by different governments across the globe stagnated numerous construction projects, causing significant losses to the market.

Issues such as supply chain hindrances, shortage of workforce, and reduced demand for real estate, due to financial losses, caused a major impact on the trade activities in the market. Nonetheless, the rise in digitization in the industry during and post the normalization of COVID-19 is playing a significant role in the recovery of the market.

Impact of Artificial Intelligence (AI) on the Civil Engineering Market

Advances in AI are anticipated to play a considerable role in the growth of the market. The technology is making a significant transformation, in terms of how infrastructure projects are designed, built, and operated.

For instance, sustainability, one of the major demands in the infrastructure industry is being addressed with AI tools. The AI-powered solutions allow for optimizing projects, to make them energy-efficient and nature-friendly.

• In July 2023, IBM, one of the leading technology companies globally, introduced a tool that aids enterprises in tracking greenhouse gas (GHG) emissions with cloud services. IBM Cloud Carbon Calculator is an AI-powered informed dashboard, which allows clients to access emission data across IBM’s cloud workloads.

• According to the recent study published by IBM, 42% of the participant CEOs pointed out that ensuring environmental sustainability is their major challenge over the next three-years.

Civil Engineering Market Dynamics

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Key Trends

Smart city construction, integrated transport systems, and sustainability are some of the key trends in the civil engineering market. Various governments across the globe are focusing on building and improving infrastructure and road connectivity across urban and rural parts, to make them smarter, optimized, and nature-friendly.

However, unnecessary use or overuse of resources needs to be prevented in order to reduce harm to the natural ecosystem. The advancements in technology, material, and equipment are allowing civil engineers to implement smart approaches to get maximum from lesser resource use. Smart cities are proving to be effective in preventing resource losses and allowing to creation of new business potentials in the market.

Major Drivers

Rising urbanization and increasing disposable income are major boosting factors of the market. The global population, especially the millennials and Gen-Z individuals, are seeking smart homes, utilities, and technology-driven public infrastructure to suit their rapid lifestyle.

Taking steps toward this, worldwide, civil construction is being planned and developed to accommodate evolving needs by the local the national government authorities. As the urban population is growing, owing to professional opportunities and convenient lifestyles, public infrastructure development is speeding to fulfill these rising needs.

• As per the recent study published by the United Nations Conference on Trade and Development (UNCTAD), urbanization is a growing trend worldwide. The share of the urban population in 2021 was 56.5%; however, it was 52% in 2011.

• According to the data published in January 2023 by Eurostat, the European Union’s (EU’s) statistical office, during the third quarter of 2022, the gross disposable income of households grew by 2.4% in the Euro area, and 1.9% in the EU. This growth was driven by large positive contributions from employee compensations, gross mixed income, and gross operating surplus.

Rising industrialization and commercialization are anticipated to boost the market in the coming years. Demand for various consumer products is rising across the world, owing to population growth and improvements in the standard of living.

This has fueled the development of industrial facilities across various regions to raise production operations. Additionally, growing working population has driven real estate and commercial space development, owing to surging expenditure on leisure activities from the young generations.

Existing Restraints

Limited availability of professionals with specialized expertise and the slow-paced acquisition of new civil engineers in the industry are anticipated to hinder the market. The growing population and resource limitations have raised complexions in modern infrastructure.

Handling these requirements needs experienced personnel, as they possess deep insights into key intricacies occurring at different stages of the projects. Furthermore, the slow pace of hiring of new professionals, owing to global economic factors and dependence on the construction industry hampers the market.

Emerging Opportunities

Increasing old infrastructure redevelopment activities across the globe is likely to create opportunities in the market. Aging constructions including civil, commercial, and residential are failing to meet the convenience needs of the modern population.

This, as a result, has increased various government’s focus on redeveloping age-old projects such as rail infrastructure, with consideration to existing and future needs. Consequently, growing investment in renewable energy projects, smart technologies, and sustainable building is anticipated to further growth scopes for the players in the market.

Scope of the Civil Engineering Market Report

The global market research report includes an assessment of the market trends, market segments, and regional markets. Overview and dynamics have also been included in the report.

Civil Engineering Market Segment Insights

Service Type Analysis

Based on service type, the civil engineering market is divided into planning & design, construction, maintenance, and others. The construction segment is expected to lead the market in terms of revenue generation during the projection period.

The segment is driven by increasing investments in the development of civil infrastructure such as highways, bridges, tunnels, utilities, and transport facilities. Issues including fire incidents, traffic, building collapse, bad drainage management, and several such, are raising concerns for nations around the world. This, as a result, increased development and redevelopment activities, which fuels the segment.

• A report published by the World Bank in April 2023 reveals that investment in infrastructure projects in low and middle-income countries continued to grow in 2022. Commitments from private participation in infrastructure (PPI) surged to USD 91.7 billion across 263 projects. This marked a 23% growth over the 2021’s PPI.

The planning & design segment is projected to expand at a considerable CAGR, owing to the growing presence of reputed civil engineering companies worldwide. The availability of several firms offering these solutions has driven competition in the market while ensuring smart and sustainable development of the infrastructure.

Planning & design need to be carried out with utmost attention to variables that can occur during the development stage and in the future. The availability of smart tools is likely to aid civil engineers in addressing several challenges in construction projects, during the planning and design stages.

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Customer Analysis

On the basis of customer, the global market is bifurcated into government and private. The government segment is projected to expand at a robust CAGR during the forecast period, owing to the growing focus on developing civil infrastructure, to create smart and sustainable constructions that address modern challenges.

Increasing approval of civil projects is taking place globally by various governments, to improve transportation, meet growing consumer demands, and enhance living standards.

The private segment is expected to witness rapid growth in the coming years, owing to increasing demand for residential and commercial real estate. Globally, the civil engineering industry is observing significant demand from construction contractors, individuals, and real estate developers, for planning and developing projects with innovative approaches. Furthermore, the rising private and public partnership for civil infrastructure development is likely to fuel the segment growth in the years ahead.

Application Analysis

On the basis of application, the civil engineering market is segmented into transport, industrial infrastructure, real estate, energy, and others. The real estate segment is projected to register a robust growth rate during the forecast period, owing to increasing consumer purchase power with a rise in disposable income.

The housing construction across urban to semi-urban areas has been boosted due to increasing urbanization and the upsurge of the working population. The urbanization trend is propelling the construction of commercial spaces such as malls, multiplexes, supermarkets, and parks. In addition, growth in the renovation of aging real estate in urban areas is anticipated to further fuel the segment.

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Regional Outlook

In terms of region, the global civil engineering market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. Asia Pacific is expected to dominate the market during the projection period, owing to the presence of a large population pool in major economies such as India and China. Consumer demands in this region are steeply increasing, owing to changing lifestyles and rising expenditure on improving the standard of living.

In Asia Pacific, civil engineering and construction industries are rapidly digitizing to provide flexibility and ease of accessibility to government and private customers. Increasing investment from government and private players, along with the rise in foreign direct investment (FDI) are further boosting the regional market.

• A survey published in August 2023 revealed that India with 1,944 construction projects, has the most infrastructure development projects as of May 2022, with execution value surpassing USD 25 million. The neighboring country China accounted for 1,175 construction projects in development in the same time period.

The market in North America is anticipated to witness rapid growth over the assessment period, owing to increasing investment in modernizing infrastructure by the government and private sector. Growing focus on enhancing sustainability and power facilities is accelerating the development of new projects as well as the renovation of old infrastructure.

The adoption of emerging innovative technology tools such as AI, Machine Learning (ML), structural health monitoring solutions, and computer vision, further expands growth opportunities in this region.

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Segments

The global Civil Engineering Market has been segmented on the basis of

Service Type

• Planning & Design
• Construction
• Maintenance
• Others

Customer

• Government
• Private

Application

• Transport
• Industrial Infrastructure
• Real Estate
• Energy
• Others

Region

• Asia Pacific
• North America
• Latin America
• Europe
• Middle East & Africa

Key Players

• AECOM
• AtkinsRéalis
• Balfour Beatty
• Fluor Corporation
• Galfar Engineering & Contracting SAOG
• HDR, Inc.
• HYUNDAI E&C
• Jacobs
• John Wood Group PLC
• Royal BAM Group NV
• Skanska
• Stantec
• TechnipFMC plc
• Tetra Tech, Inc.
• United States Army Corps of Engineers
• Vinci Construction

Competitive Landscape

Key players competing in the civil engineering market are AECOM; AtkinsRéalis; Balfour Beatty; Fluor Corporation; Galfar Engineering & Contracting SAOG; HDR, Inc.; HYUNDAI E&C; Jacobs; John Wood Group PLC; Royal BAM Group NV; Skanska; Stantec; TechnipFMC plc; Tetra Tech, Inc.; United States Army Corps of Engineers; and Vinci Construction.

These companies adopted development strategies including mergers, acquisitions, partnerships, collaboration, product launches, and production expansion to expand their consumer base worldwide. The competitive landscape covers key insights into growth strategies adopted by major market players.

• In October 2023, Royal BAM Group NV, a major Dutch construction and civil engineering business, received a green signal for overhaul operations at Darlington Station, UK. The company is expected to provide a EUR 150 million overhaul of the station, in the next two years with the modernization of various facilities.

• In June 2023, Hyundai E&C signed a tripartite strategic memorandum of understanding (MoU) with Thermo Fisher Scientific, a globally leading biotech firm, and Macrogen, a major genetic analysis & testing service provider in Korea, to develop futuristic health homes on the basis of genetic analysis. This is a first-of-its-kind project, where Thermo Fisher is presenting the innovative concept of residential culture through its technological convergence with major firms in precision medicine and biotechnology.