Energy & Utilities Construction Market is expected to grow at a CAGR of 7.8% through 2030F
The global Energy & Utilities
Construction Market is expected to be led by North America, driven by Digitalization
and Smart Grid Implementation and Infrastructure Modernization and Resilience during
the forecast period 2026-2030F
According to TechSci Research
report, “Energy &
Utilities Construction Market - Global Industry Size, Share, Trends, Competition
Forecast & Opportunities, 2030F, The Global Energy & Utilities
Construction Market was valued at USD 134.6 billion in 2024 and is expected to
reach USD 213.1 billion by 2030 with a CAGR of 7.8% through 2030, One major driver is the increasing emphasis
on grid resilience and modernization to withstand natural disasters and cyber
threats. As extreme weather events become more frequent, utilities are
investing heavily in strengthening infrastructure to prevent outages and ensure
continuous service, driving construction and upgrade projects. Additionally,
advancements in construction technologies such as Building Information Modeling
(BIM), drones, and automation are improving project efficiency, safety, and
cost-effectiveness, encouraging greater investment in large-scale
infrastructure developments.
Another
significant driver is the growing electrification of transportation and
industrial sectors, which demands expansion and reinforcement of electrical
grids and charging infrastructure. As electric vehicles (EVs) gain popularity, utilities
need to construct new substations and transmission lines capable of handling
increased loads. Furthermore, the shift toward decentralized energy systems,
including microgrids and distributed generation, is creating new opportunities
for localized utility construction projects. Lastly, increasing international
collaboration and financing for sustainable energy projects, particularly in
developing regions, are fueling market expansion by enabling large
infrastructure projects that were previously financially unviable. Together,
these factors are accelerating the pace and scale of energy and utilities
construction worldwide.
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Based on Type, Utilities Infrastructure
Construction segment dominated the Energy & Utilities Construction Market in
2024 and maintain its leadership throughout the forecast period, driven by the
critical need to develop, upgrade, and maintain essential infrastructure that
supports energy generation, transmission, and distribution. This segment
encompasses the construction of vital components such as power generation
plants (including thermal, hydroelectric, nuclear, and increasingly renewable
energy facilities), electrical transmission lines, substations, distribution
networks, and water and wastewater treatment plants. The expanding global
demand for reliable and sustainable energy supplies is the primary factor
propelling growth within this segment.
Governments and private stakeholders
worldwide are investing heavily in modernizing aging utility infrastructure to
enhance grid reliability, reduce energy losses, and accommodate increasing
penetration of renewable energy sources like solar and wind. For instance, the
rise of decentralized energy systems and smart grids necessitates upgrading
traditional transmission and distribution networks with advanced technologies
that enable real-time monitoring and management of energy flows. These
advancements not only improve operational efficiency but also help integrate
intermittent renewable sources while ensuring energy security and resilience.
Additionally, rapid urbanization and
industrialization in developing economies are significantly driving the
expansion of utilities infrastructure. Growing urban populations demand greater
access to electricity, clean water, and sanitation services, requiring
extensive infrastructure projects. Investments in expanding electrical grids,
water supply networks, and wastewater treatment facilities are crucial to
supporting economic growth and improving living standards in these regions.
The push for sustainability and
stringent environmental regulations are further accelerating the development of
utilities infrastructure projects that align with green energy and resource
conservation goals. The construction of renewable energy plants, smart
substations, and energy storage facilities forms a vital part of this
transformation. The sector is also witnessing increasing adoption of innovative
construction techniques, such as modular construction and digital project
management tools, which enhance project delivery speed and cost-effectiveness.
The Utilities Infrastructure
Construction segment leads the Energy & Utilities Construction Market due
to its essential role in enabling energy transition, meeting rising demand, and
supporting sustainable development worldwide. Its significance is amplified by
ongoing technological advancements and government policies focused on
infrastructure modernization and decarbonization. As countries continue to
invest in upgrading and expanding their utilities infrastructure, this segment
is expected to maintain its dominance and drive substantial market growth in
the foreseeable future.
Based on region, Asia Pacific is emerging as the
fastest-growing region for the Energy & Utilities Construction Market, driven
by rapid economic development, urbanization, and increasing energy demand
across countries like China, India, Japan, and Southeast Asian nations. The
region’s growing population and expanding industrial base have created a
pressing need for reliable and modern energy infrastructure to support both
residential and commercial sectors. Governments are prioritizing large-scale
investments in power generation, transmission, and distribution projects to
improve energy access and security.
Significant emphasis is being placed on
renewable energy development, with countries like China and India leading the
way in solar, wind, and hydropower installations. These nations are
aggressively pursuing clean energy targets to reduce carbon emissions and
comply with global climate commitments. Consequently, substantial construction
activity is underway for new renewable power plants, grid upgrades, and energy
storage facilities to integrate these variable energy sources efficiently. Furthermore,
Asia Pacific is witnessing rapid deployment of smart grid technologies and
digital infrastructure to enhance the resilience and flexibility of energy
networks. Urbanization trends also boost demand for improved water and
wastewater utilities, prompting extensive infrastructure projects in these
areas.
The presence of a large pool of skilled
labor and comparatively lower construction costs further attract investments in
the region. Moreover, public-private partnerships and government incentives are
facilitating the financing and execution of complex utility projects. In
conclusion, Asia Pacific’s dynamic economic landscape, policy support, and
focus on sustainable energy development as the fastest-growing region in the
Energy & Utilities Construction Market, with strong growth prospects
continuing over the coming decade.
Key market players in the Energy &
Utilities Construction Market are: -
- NPL Construction Co
- Lyles Utility Construction, LLC
- Lime Energy
- Skanska UK Plc
- Denbow Company
- Alexander Hughes
- Dassault Systemes
- BlackEagle Energy Services
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“The Global Energy & Utilities
Construction Market offers significant opportunities driven by the urgent need
to upgrade aging infrastructure and integrate renewable energy sources. Growing
investments in smart grid technologies, energy storage solutions, and
digitalization create avenues for innovation and efficiency improvements. Rapid
urbanization in emerging economies demands expanded electricity and water
utilities, boosting construction activities. Additionally, government
incentives and public-private partnerships worldwide encourage sustainable
infrastructure projects, including solar, wind, and hydroelectric power plants.
The increasing focus on climate change mitigation and energy security further
propels demand, making this market a dynamic landscape for growth and new
business ventures.” said Mr. Karan Chechi, Research Director of TechSci
Research, a research-based global management consulting firm.
“Energy & Utilities
Construction Market – Global Industry Size, Share, Trends, Opportunity, and
Forecast, Segmented By Type (Energy Construction, Utilities Infrastructure
Construction), By Application (Civil Use, Military Use), By Region & Competition, 2020-2030F” has
evaluated the future growth potential of Energy & Utilities Construction
Market and provides statistics & information on market size,
structure, and future market growth. The report intends to provide cutting-edge
market intelligence and help decision makers take sound investment decisions.
Besides the report also identifies and analyzes the emerging trends along with
essential drivers, challenges, and opportunities in Energy & Utilities
Construction Market.
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