Road & Highway Infrastructure Market Size, Share & COVID-19 Impact Analysis, By Road Type (National/Interstate Highways, State Highways, and Other Roads), By Components (Road, Bridges/Tunnels/Culverts, Marking & Signage, Safety Equipment, Traffic Management System, and Others), By Process (Maintenance and Expansion), and Regional Forecast, 2023-2030

The global road & highway infrastructure market size was valued at USD 1134.28 billion in 2022. The market is projected to grow from USD 1156.33 billion in 2023 to USD 1333.67 billion by 2030, exhibiting a CAGR of 2.06% during the forecast period.

Roads and highways infrastructure refers to the network of interconnected roadways, highways, bridges, tunnels, and associated facilities that enable the transportation of people, goods, and services between different locations.

Roads are the transportation routes that connect various destinations, including urban areas, rural regions, industrial zones, and commercial centers. Highways, on the hand, typically refer to major arterial roads that provide long-distance connectivity between cities and regions.

The market has witnessed momentous growth in recent years, driven by increasing urbanization, population growth, and economic development. The market size and forecast is influenced by government initiatives, public-private partnerships, and infrastructure investments by various industries.

Although, environmental effects such as deforestation, habitat fragmentation, and increasing carbon emissions restrains the market growth. The increasing focus on adopting sustainable materials, energy-efficient designs, and environmentally friendly construction practices drives the road & highway infrastructure market share during the forecasted period.

COVID-19 IMPACT

Adoption of Digital Technologies and Automation Sustained the Market During the Pandemic

The pandemic disrupted construction market activities due to lockdowns, supply chain disruptions, labour shortages, and social distancing measures. Many construction activities, including road & highway infrastructure projects, experienced delays and interruptions, impacting timelines and project completion. In April 2020, The Public Works and Housing Ministry temporarily halted the construction of the Serang-Panimbang toll road in Banten due to the surveillance of COVID-19-affected workers. The project was suspended for 14 to 16 days. This hampers the timeline of the project completion, which affected the market during the COVID-19 pandemic.

However, the pandemic accelerated the adoption of digital technologies and automation in the road & highway infrastructure sector. Remote monitoring and management systems, data analytics, and contactless technologies gained prominence to enhance operational efficiency and reduce human interaction.

LATEST TRENDS

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The Trend of Smart Technology Integration Boost the Market Development In Road & Highway Infrastructure Market

One of the key trend ongoing in the market is the integration of smart technologies for the efficient operation of roads and highways. Smart technologies have several applications in the market, such as intelligent traffic management, connected infrastructure, smart road infrastructure, intelligent transportation systems, data-driven decision-making, sustainable infrastructure, and asset management & maintenance.

The integration of smart technologies in this market is aimed at improving effective transport, safety, and sustainability while meeting the evolving transportation needs of communities. These advancements are expected to continue shaping the future of road infrastructure development and management.

In January 2023, China expanded its smart highway network by developing new road infrastructure projects. The highway from Chengdu to Yibin, China, constructed as a smart highway, is 157 kilometers. The smart pillars installed every 800 meters are equipped with radar and cameras. This will help in collecting road information allowing drivers to be informed about any traffic or accidents and suggesting alternate routes.

DRIVING FACTORS

Need for Improved Transportation Network Fuels the Market Growth

Roads and highways are vital for economic development as they facilitate the movement of goods and services, connecting production centers, markets, and distribution networks. Governments and businesses recognize the importance of well-connected transportation infrastructure to attract investments stimulate trade, and drive economic growth.

Additionally, the global population is increasingly concentrated in urban areas, which leads to a higher demand for efficient transportation systems. Urbanization drives the need for better road networks to support commuting, logistics, and accessibility to employment centers, residential areas, and essential services. This helps the road & highway infrastructure market growth.

RESTRAINING FACTORS

Limited Funding with High Maintenance Cost Restrains the Market Growth

Limited public funding and budgetary constraints can restrain the development and maintenance of road & highway infrastructure. Governments may face competing priorities and resource limitations, leading to inadequate investment in infrastructure projects.

For instance, according to a report published by the ASCE, the investment funding gap from 2016 through 2025 was estimated at USD 1,101 billion.

Moreover, once the road is built, it requires regular maintenance and operational expenses to ensure its safe and efficient functioning. Funding constraints or inadequate maintenance planning can lead to the deterioration of infrastructure over time, impacting its lifespan and requiring costly repairs in the long run. This hampers the market growth over time.

SEGMENTATION

By Road Type Analysis

Rapid Expansion of Highways to Increase Connectivity Thrives the Road Type Market Development

Based on the road type, the market is classified into several sub-segments, such as national/interstate highways, state highways, and other roads. The national highways or interstate highways are considered to have fast growth during the forecasted period. National highways are often a focus of government policies and long-term development plans. Governments prioritize the construction of national highways to enhance connectivity, foster economic growth, and meet the transportation needs of the country. This drives segmental market growth.  

The other roads include urban roads, rural roads, service roads, and other types of connecting roads. The development of urban roads is driven by the need to alleviate congestion, optimize traffic flow, and improve mobility for residents, commuters, and businesses.

By Components Analysis

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Requirement for Efficient Operation of Roads Drives the Component Segment Growth

Based on the infrastructure components, the market is segmented into roads, bridges/tunnels/culverts, marking & signage, traffic management systems, safety equipment, and others.

Road is an essential component of any road or highway infrastructure. It plays a critical role in ensuring safe and efficient transportation by providing a stable and comfortable driving surface. This fuels the dominance of the segment in the market.

The traffic management system witnesses a high growth rate in the forecasted period. This is due to the increasing traffic congestion in urban areas and major highways. The growing number of vehicles on the roads, leading to increased congestion and environmental concerns, drives the need for an efficient traffic management system, thus propelling the market growth over the period.

By Process Analysis

Growing Urbanization Leads to Roads Expansion, Fuels the by Process Market Advancement

Based on process, the market is segmented into sub-segments; maintenance and expansion.

The expansion segment is dominated due to the increased demand for the transportation infrastructure market, fueled by the growth of population and urbanization. As cities expand and the population grows, there is a need to expand existing roads and highways to accommodate the growing number of vehicles and ensure efficient mobility within urban areas.

The maintenance of roads plays a vital role in the market, as the roads and highways need regular maintenance to offer efficient mobility and transportation. Thus, the demand for efficient transportation systems drives the need for existing road maintenance in the market for road & highway infrastructure.

REGIONAL ANALYSIS

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The market is analyzed across North America, Europe, Asia Pacific, and the Rest of the World.

Asia Pacific Dominates the Global Market Due to Increasing Urbanization

Asia Pacific dominates the market for road & highway infrastructure; the region is also considered to grow at a high CAGR. The region is experiencing rapid urbanization and population growth. The demographic shift drives the demand for enhanced transportation infrastructure to support the growing urban centers and the increasing movement of people within and between cities. This drives the market. For instance, according to a World Bank Report, urbanization in East Asia and the Pacific is rapidly increasing, with an average annual urbanization rate of 3%.

North America holds a significant road & highway infrastructure market share. Technology advancement plays a significant role in driving the market. Innovations such as intelligent transportation systems, connected and autonomous vehicles, advanced traffic management systems, and others are being implemented to enhance safety, efficiency, and sustainability. In March 2022, Electreon, an intelligent road startup, was awarded a contract by the Michigan government in the U.S. to develop and construct a 1-mile stretch of road featuring dynamic driving and stationary wireless charging for EVs in Detroit, Michigan, U.S.

Europe holds a sustainable share of the market. The region has a highly integrated economy with extensive cross-border trade. This market is driven by the need to support the movement of goods and services within European countries. This fuels the market growth in the region.

The Rest of the World market holds a considerable share of the market for road & highway infrastructure in 2022. Economic growth and regional integration initiatives drive the market in the region.

KEY INDUSTRY PLAYERS

Companies Focused on Advanced Innovative Technologies to Achieve Competitive Advantage

This market offers a highly competitive landscape comprising a mix of major global companies and regional players. The key market players include construction companies, engineering firms, infrastructure developers, and equipment manufacturers. Some of the prominent players considered include Vinci SA, China Communication Construction Company (CCCC), Bechtel Corporation, and Skanska AB. These companies heavily engage in the development, construction, and operation of roads and highways with projects in several countries. These companies also focus on innovative and sustainable solutions to cater to the future trend in the market for road & highway infrastructure.

List of Key Companies Profiled:

• Vinci SA (France)


• ACS Group (Spain)


• China Communications Construction Company (CCCC) (China)


• Bechtel Corporation (U.S.)


• Bouygues SA (France)


• Ferrovial (Spain)


• Skanska AB (Sweden)


• Strabag SE (Austria)


• L&T Infrastructure Development Projects Limited (India)


• Siemens AG (Germany)


• Hitachi, Ltd. (Japan)


• Hyundai Engineering & Construction Co., Ltd. (South Korea)

KEY INDUSTRY DEVELOPMENTS:

• March 2023- Bechtel Corp. signed a collaboration with Enka İnşaat ve Sanayi A.Ş., which is its Turkish joint venture partnership to build 68 miles of highways, to be completed in 2027. The project, valued at USD 1.4 Billion, is for the stretches of North Macedonia's section of Pan-European Corridor VIII.


• January 2023- Vinci SA was awarded a contract by the Nantes Metropolis. The contract includes the building design for the Anne-de-Bretagne Bridge over the Loire River. The bridge will reconnect the city of Nantes, located in the west of France.


• December 2022- China Communications Construction Company (CCCC) completed the construction and started the operation of the Renhuai-Zunyi Expressway in Guizhou and the Pingguo-Nanning Expressway in Guangxi. The two highways were co-built by the China Communications Construction Company (CCCC). The Renhuai-Zunyi Expressway is a 52.4-kilometer highway with six lanes operating and has a design speed of 100 kmph.


• August 2022- L&T’s 12.19 m dia Slurry TBM (Tunnel Boring Machine), which is named ‘Mavala,’ achieved a world record for monthly lengths. The machine excavated 456.72 m at the Mumbai Coastal Road Project, India.


• July 2022- L&T sold eight of its operational road assets to Edelweiss Infrastructure Yield Plus. The company also sold a power transmission project to Edelweiss, both valued at INR 7,000 Crore (USD 875.3 Million)

REPORT COVERAGE

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The report provides a detailed analysis of this market and focuses on key aspects such as leading companies, product/service types, and leading applications of the product. Besides, the report offers insights into the market trends and highlights key industry developments. In addition to the factors above, the report encompasses several factors that contributed to the growth of the market in recent years.

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