PUBLISHER: The Business Research Company | PRODUCT CODE: 1435600
PUBLISHER: The Business Research Company | PRODUCT CODE: 1435600
Utility system construction involves the process of constructing, modifying, repairing, enhancing, or demolishing structures that encompass utility systems such as water, sewer, and gas lines based on a detailed design and plan.
The construction of water and sewer lines, along with related structures such as oil and gas pipelines, is a prevalent focus in utility system construction. This includes the construction of power and communication lines and their associated structures. The primary activities within the Water and Sewer Line and Related Structures sector encompass the building of water and sewer lines, mains, pumping stations, treatment plants, and storage facilities. This work involves new construction, reconstruction, rehabilitation, and repairs. Utility system construction is applicable in various sectors, both private and public, and is undertaken by contractors ranging from large companies to smaller entities.
The utility system construction market research report is one of a series of new reports from The Business Research Company that provides utility system construction market statistics, including utility system construction industry global market size, regional shares, competitors with a utility system construction market share, detailed utility system construction market segments, market trends and opportunities, and any further data you may need to thrive in the utility system construction industry. This utility system construction market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
The utility system construction market size has grown steadily in recent years. It will grow from $756.48 billion in 2023 to $779.73 billion in 2024 at a compound annual growth rate (CAGR) of 3.1%. The growth observed in the historic period can be ascribed to factors such as infrastructure development, government initiatives, population growth, environmental concerns, and the utilization of public-private partnerships (PPPs).
The utility system construction market size is expected to see steady growth in the next few years. It will grow to $893.44 billion in 2028 at a compound annual growth rate (CAGR) of 3.5%. The anticipated growth in the forecast period can be linked to the integration of smart infrastructure, expansion of renewable energy, emphasis on resilience and disaster preparedness, replacement of aging infrastructure, and increasing concerns about cybersecurity. Key trends expected in the forecast period involve the implementation of smart grids, the replacement of aging infrastructure, the development of energy storage facilities, integration of digitalization and IoT, and the electrification of transportation.
The utility construction market is projected to experience growth in emerging markets during the forecast period. This growth is facilitated by factors such as increased disposable income, political stability, and growing foreign investments in these markets. As an illustration, in September 2023, the Bureau of Economic Analysis reported a 2.1% annual increase in the real gross domestic product (GDP) during the second quarter of 2023 in the United States. Developed economies are expected to maintain steady growth, while emerging markets, including China, India, Brazil, Saudi Arabia, and Indonesia, are anticipated to grow slightly faster than their developed counterparts. This robust economic growth has stimulated construction demand in emerging markets, contributing to the overall growth of the utility construction market in the forecast period.
The expansion of the construction industry is poised to drive further growth in the utility system construction market. The construction industry encompasses activities related to the planning, design, development, renovation, and maintenance of physical structures and infrastructure. Utility system construction is integral to this industry, providing essential infrastructure for water supply, sewage disposal, electrical distribution, and telecommunications. This ensures that buildings and projects have access to vital services, meeting functionality and occupant needs. For example, in June 2023, the U.S. Census Bureau and the U.S. Department of Housing and Urban Development reported a seasonally adjusted annual rate of 1,631,000 for privately owned housing starts in May 2023. This represents a 21.7% increase from the revised April 2023 estimate and a 5.7% rise from the May 2022 rate. Moreover, the number of privately owned home completions in May 2023 was 1,518,000, indicating a 5.0% increase from May 2022 and a 9.5% rise from the revised April 2023 estimate. Hence, the expanding construction industry is a driving force behind the utility system construction market's growth.
Health and safety concerns have consistently been significant within the utility construction industry. Worker safety issues, such as working at height, in confined spaces, underground, and in proximity to falling materials, as well as manual handling of loads, exposure to hazardous substances, operation of plant and equipment, fire risks, and contact with live cables, are prevalent in construction activities. In the United States, although the construction industry comprises only 6% of the workforce, it accounts for approximately 20% of fatalities, the highest fatality rate compared to other industries. Insufficient safety and health measures have adverse effects on both the construction and built environments, leading to fatalities, injuries, and diseases.
Utility system construction companies are increasingly utilizing advanced technologies, such as drones, to enhance project management efficiency. Drones, which are unmanned aerial vehicles (UAVs) equipped with communication technologies and remotely controlled, find various applications in utility system construction. These applications include earthwork volume calculations, elevation mapping, and environmental analysis. Given the dynamic nature of construction terrain, which can change daily, project managers utilize drones to monitor these changes. Drones also play a crucial role in tracking project progress and aiding managers in decision-making processes.
Leading companies in the utility system construction market are intensifying their efforts to introduce innovative products such as hybrid power systems, aiming to establish a competitive advantage. A hybrid power system integrates two or more diverse sources of power or energy to deliver a more dependable and efficient energy supply. Notably, in April 2023, Petra, a robotics company based in the United States, launched the Petra Platform. This trenchless multi-tool, powered by a hybrid system, addresses the varied requirements of different projects by consolidating multiple tools into one, resulting in time and cost savings. The Petra Platform stands out as the world's first hybrid-powered all-geology trenchless multi-tool, capable of boring through the toughest and most abrasive rocks. Additionally, it exhibits versatility by being able to bore through flowing sands, presenting a comprehensive solution for trenchless tunneling.
Major companies operating in the utility system construction market report are China State Construction Engineering Corporation Limited, China Railway Construction Corporation Limited, PowerChina, Power Construction Corporation of China, Vinci SA, China Energy Engineering Group Limited, Mitsubishi Electric Corporation, Quanta Services Inc., KONE Corporation, Balfour Beatty PLC, ABM Industries Inc., Fletcher Building Limited, Morgan Sindall Group PLC, Primoris Services Corporation, Comfort Systems USA Inc., Dycom Industries Inc., MYR Group Inc., Michels Corporation, Integrated Electrical Services Inc., Henkels & McCoy Group Inc., Pike Corporation, PLH Group Inc., Charter Oak Utility Constructors Inc., Powerteam Services, InfraSource Services Inc., MasTec Inc., Willbros Group Inc., Astaldi S.p.A., Paraflex wires and cables
Asia-Pacific was the largest region in the utility system construction market in 2023. North America was the second-largest region in the utility system construction market. The regions covered in the utility system construction market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
The countries covered in the utility system construction market report are Australia; China; India; Indonesia; Japan; South Korea; Bangladesh; Thailand; Vietnam; Malaysia; Singapore; Philippines; Hong Kong; New Zealand; USA; Canada; Mexico; Brazil; Chile; Argentina; Colombia; Peru; France; Germany; UK; Austria; Belgium; Denmark; Finland; Ireland; Italy; Netherlands; Norway; Portugal; Spain; Sweden; Switzerland; Russia; Czech Republic; Poland; Romania; Ukraine; Saudi Arabia; Israel; Iran; Turkey; UAE; Egypt; Nigeria; South Africa.
The utility system construction market includes revenues earned by entities by constructing distribution lines, buildings and structures for utilities. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Utility System Construction Global Market Report 2024 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on utility system construction market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for utility system construction ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The utility system construction market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The impact of sanctions, supply chain disruptions, and altered demand for goods and services due to the Russian Ukraine war, impacting various macro-economic factors and parameters in the Eastern European region and its subsequent effect on global markets.
The impact of higher inflation in many countries and the resulting spike in interest rates.
The continued but declining impact of covid 19 on supply chains and consumption patterns.