Highway and road construction market is anticipated to grow at a CAGR of 7.9% during the forecast period (2023-2030). Improving transportation efficiency and safety is a key driving factor for highway and road construction. Government and transportation authority’s invest in constructing new highways and roads equipped with modern technologies to enhance traffic flow congestion and increase safety for commuters. For instance, in April 2020, Bharat Petroleum Corp. Ltd. and Noida Authority launched the pilot project for the first road construction in India using the plastic waste module. A 500-meter-long road parallel to Noida-Greater Expressway was constructed in Sector 129, using 35 metric tons of plastic waste. Various other countries are also adopting advanced technologies for highway and road construction. For Instance, in January 2022, Blue Climate Deutschland GmbH, a German-based infrastructure development Company assisted it in addressing some of these crucial road situations with a specific focus on rural counties. Blue Climate Deutschland is credited for using its new technology, UNDERBOLD-POD30 which is the mixture of the existing soil, cement, and a manufactured organic liquid with the machine used to compress the mixture.

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’s constantly evolving due to advancements in technology have 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 efficient transportation system, including highway remain high. Several other factors increasing the market growth includes upgraded infrastructure, government initiatives, connectivity, and regional integration via the development of highways. For instance, in July 2021, A non-binding memorandum of understanding (MOU) was signed by United E&P Pte Ltd (UE&P) and Shell Singapore to establish a strategic partnership to advance their shared goals of decarbonization and environmentally friendly highway in Singapore. The partnership between Shell and Singapore, which will concentrate on the decarbonization of the road-building industry, is the first of its type.

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

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 agglomeration economies, and provides many other 'wider' 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.

North American collaboration allows companies to pool their expertise, resources, and equipment and enables them to undertake larger and more complex projects. For instance, in March 2023, The Government of North Macedonia chose Bechtel and 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.