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Civil Engineering Market size is estimated to register 4% CAGR from 2023 to 2032, owing to the ongoing efforts to replace and upgrade the aging infrastructure across major countries worldwide.
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The intensifying rate of urbanization and the surging inclination of communities on dependable infrastructure has led to the surging demand for skilled civil engineers to address the rising construction activities. Lately, civil engineers are leveraging their expertise to assess the condition of existing structures and design innovative replacements for overseeing construction. The rising replacement of aging infrastructure not only enhances safety and functionality but also offers an opportunity to integrate sustainable practices for incorporating modern materials and technologies to extend the lifespan of the new structures. The growing government support to allocate resources to address these challenges will also add to the market growth.
Report Coverage | Details |
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Base Year: | 2022 |
Forecast Period: | 2023 to 2032 |
Forecast Period 2023 to 2032 CAGR: | 4% |
Historical Data for: | 2018 to 2022 |
No. of Pages: | 300 |
Tables, Charts & Figures: | 295 |
Segments covered: | Civil Engineering Market Customer Group, Application and Region |
Growth Drivers: |
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Pitfalls & Challenges: |
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The rapid rate of urbanization across major developing countries has fueled the demand for construction and modernization of infrastructure, further driving the market growth. The increasing focus on eco-friendly construction practices has propelled the adoption of sustainable materials and designs, leading to the growth of civil engineering projects. Furthermore, the need for specialized expertise to match the complexity of modern infrastructure demands along with the lagging new talent acquisition and retirement of experienced personnel may lead to sluggish industry expansion.
The COVID-19 pandemic negatively impacted the civil engineering market, causing disruptions in various aspects. Lockdowns and supply chain interruptions delayed projects, while safety protocols added operational complexities. The rising diversion of funds to healthcare by various governments gave rise to budget constraints. However, the surged digital adoption and higher prominence of Building Information Modeling (BIM) and virtual tools during the pandemic combined with the rising infrastructure investments due to the recovering economies contributed to the industry growth.
The civil engineering market is set to observe substantial growth attributed to the ongoing development of smart cities and the proliferation of IoT technology. With intensifying urbanization, the demand for efficient, connected urban environments is witnessing significant rise. Civil engineers play pivotal role in designing and implementing smart infrastructure, including smart transportation systems, energy-efficient buildings, and real-time data networks. IoT integration enhances resource utilization, traffic management, and public services, resulting in improved quality of life for urban dwellers. The synergy between civil engineering expertise and technological innovation in smart cities will also foster the market expansion.
The government purchase segment capture approximately 50% share of the civil engineering market and is anticipated to expand at notable CAGR from 2023 to 2032. The segment growth is attributed to the stable political environment along with the improved regulations and norms for construction activities. In May 2023, the Biden-Harris administration announced more than $220 billion in funding under the Bipartisan Infrastructure Law, for funding more than 32,000 individual projects and awards in 4,500 American cities. Such large-scale investments for the improvement of various public infrastructures in conjunction with most of the asset and capital possession by government bodies will support the segment growth.
Civil engineering market from the transport application segment is poised to attain nearly 3.5% gains through 2032, owing to the rising demand for efficient transportation networks, encompassing roads, bridges, railways, and airports. Rapid urbanization and increasing mobility requirements have necessitated modern, well-designed transport infrastructure to enhance connectivity and reduce congestion. Moreover, massive investments from governments and private entities for upgrading and expanding transportation systems will contribute to the segment expansion.
North America civil engineering market will exhibit a growth rate of 5% up to 2032, driven by increasing urbanization coupled with the higher need for infrastructure modernization. Numerous governmental initiatives to invest in transportation networks, renewable energy projects, and smart city solutions are creating ample opportunities for industry players, further propelling the market outlook.
Some of the leading companies operating in the civil engineering market are Technip, AECOM, Vinci Construction, Hyundai Engineering & Construction Co., Ltd., Royal BAM Group NV. Other notable participants include ACS Actividades de Construcción y Servicios, Jacobs, Skanska, Bouygues Construction SA, Balfour Beatty PLC., and Fluor Corporation.
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