Roads Market Report 2025

The roads market size has grown steadily in recent years. It will grow from $271.53 billion in 2024 to $280.82 billion in 2025 at a compound annual growth rate (CAGR) of 3.4%. The growth in the historic period can be attributed to population growth and urbanization, economic development, industrialization and trade, government infrastructure investments, changing mobility patterns.

The roads market size is expected to see steady growth in the next few years. It will grow to $329.77 billion in 2029 at a compound annual growth rate (CAGR) of 4.1%. The growth in the forecast period can be attributed to renewable energy integration, urban mobility solutions, smart city initiatives, resilience planning, sustainable transportation. Major trends in the forecast period include adoption of advanced materials, integration of autonomous vehicles, public-private partnerships, multimodal transportation integration, resilience and climate adaptation.

The increasing number of vehicles is expected to drive growth in the roads market moving forward. Vehicles, which are machines used to transport people or goods, typically operate on land and are equipped with wheels and engines, such as motor vehicles. Roads are essential for the transportation of these vehicles, making road infrastructure critical for moving people and goods. This growing reliance on vehicles will boost demand for road construction. For instance, a report from the National Association of Insurance Commissioners, a U.S.-based non-profit organization, indicated that by 2025, there are expected to be 3.5 million self-driving vehicles on U.S. roads, with that number rising to 4.5 million by 2030. Thus, the increasing number of vehicles is propelling the growth of the roads market.

The growing transportation sector is expected to contribute significantly to the expansion of the road market. The transportation industry, comprising various groups, infrastructure, and operations involved in the movement of people, goods, and services, relies heavily on roads. Roads provide essential infrastructure for diverse forms of transportation and support various economic and social activities. The United States Bureau of Transportation Statistics reported in August 2022 that the Freight Transportation Services Index (TSI) reached a record high in June, rising 1.7% from May and increasing by 4.6% from June 2021 to June 2022. This underscores the crucial role of roads in supporting the transportation sector and, consequently, propelling the road market.

A notable trend in the roads market is technological advancement, with major companies integrating advanced technologies into road construction operations. In February 2023, the Ministry of Road Transport and Highways in India introduced Skye UTM, an unmanned traffic management system designed to accelerate highway construction, monitor traffic incidents, and oversee real-time traffic conditions. Skye UTM, a sophisticated cloud-based system for managing air traffic, connects manned and unmanned flights, providing situational awareness, autonomous navigation, risk assessment, and traffic management for drone and aerial mobility operators. This technological trend reflects the commitment of key market players to enhance efficiency and innovation in road construction.

Strategic partnerships are becoming increasingly prevalent among major companies operating in the roads market. By forming strategic partnerships, companies aim to address employment shortages in highway construction and optimize their focus on core competencies. For instance, the Federal Highway Administration (FHWA) in the United States announced a partnership with national highway organizations and the Federal Employment and Training Administration in February 2022, establishing the Highway Construction Workforce Partnership (HCWP). This collaborative initiative involves working groups to assess workforce requirements and allocate funds, showcasing the importance of strategic partnerships in addressing workforce challenges in the road construction industry.

In September 2024, Construction Partners, Inc., a U.S.-based civil infrastructure company specializing in the construction and maintenance of roads, bridges, airports, and commercial and residential sites, acquired John G. Walton Construction Company, Inc. for an undisclosed amount. This acquisition is intended to enhance Construction Partners, Inc.'s operational capacity, expand its market share in Alabama, and support its strategic growth initiatives in the southeastern U.S. infrastructure sector. John G. Walton Construction Company is a U.S.-based paving and heavy civil contractor that focuses on infrastructure construction services.

Major companies operating in the roads market include Afcons Infrastructure Limited, Dilip Buildcon Limited, Tata Projects Limited, China Communications Construction Company Ltd., Granite Construction Inc., Hunan Road and Bridge Construction Group Co. Ltd., Kiewit Corporation, Lane Construction Corporation, Sichuan Railway Investment Group Co. Ltd., Larsen & Toubro Limited, IRB Infrastructure Developers Limited, H.G. Infra Engineering Limited, NCC Infrastructure Holdings Limited, Muscat Road Construction & Civil Works LLC, PNC Infratech Limited, Caterpillar Inc., Komatsu Ltd., Volvo Construction Equipment, Wirtgen GmbH, Dynapac Road Construction Equipment India Pvt. Ltd., The Lane Construction Corporation, JMC Projects Ltd., Gayatri Projects Limited, Hindustan Construction Company Limited, Nagarjuna Construction Company Limited, Bhartia Infra Projects Ltd., Sany Heavy Industry Co. Ltd., Palfinger AG, Terex Corporation, Liebherr-International AG, Deere & Company, Zoomlion Heavy Industry Science and Technology Co. Ltd., Fayat Group, Wacker Construction Equipment AG, Ammann Group Holding AG, CNH Industrial, Hitachi Sumitomo Heavy Industries Construction Cranes Co. Ltd.

Asia-Pacific was the largest region in the roads market in 2024. The regions covered in the roads market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the roads market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Roads are defined as elongated, narrow paved or smoothed surfaces intended for the use of motor vehicles. They serve the crucial purpose of connecting cities, towns, and villages, facilitating the transportation of cars and people between different locations. The concept of roads encompasses both their design and construction.

The primary categories of roads include highways, streets, and bridges. A highway is a substantial country thoroughfare, employed to delineate a route, whether in a rural or urban environment, where the entry and exit points for vehicles are regulated and restricted. This involves several components, including hardware, software, and services. Various types of construction encompass new construction, reconstruction, and repair.

The roads market research report is one of a series of new reports that provides roads market statistics, including roads industry global market size, regional shares, competitors with a roads market share, detailed roads market segments, market trends and opportunities, and any further data you may need to thrive in the roads industry. This roads 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 roads market consists of revenues earned by entities by constructing earthen roads, murrum roads, bituminous roads, concrete roads, highway roads, and gravel roads. The market includes new work, additions, alterations, maintenance, and repairs. The market value includes the value of related goods sold by the service provider or included within the service offering. The roads market also includes sales of motor grader, asphalt plant, asphalt paver, and road roller machine which are used in constructing roads. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

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.

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