The global civil engineering market size is expected to reach USD 13.35 trillion by 2027, according to a new report by Grand View Research Inc. It is projected to exhibit a CAGR of 5.4% during the forecast period. Rising public-private partnership to aid the investment in infrastructure development in emerging economies is expected to bolster the growth.
Increasing adoption of advanced technologies and digitalization is expected to have positive impact on sustainable development of civil engineering value chain across the globe. These trends are expected to strengthen the network of players in the construction value chain and facilitate the digital transformation process, thereby driving the market for civil engineering.
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Numerous market players are focusing on the use of green building products owing to the rising significance of eco-friendly products and energy efficiency. Thus, the shift of construction sector from the use conventional construction materials, is expected to heighten of importance of civil engineering for the successful execution of construction projects.
The government, private contractors, and public-private partnerships are the major buyers of civil engineering services for the development of residential and commercial projects, infrastructure projects, and industrial facilities. Rapid rise in service standardization and establishment of regulatory norms among major economies is anticipated to positively influence the market growth.
Further key findings from the report suggest:
- Planning & Design service segment is expected to expand at a CAGR of 6.1% over the estimation period owing to its rising significance in mega construction projects involving enormous capital investment for efficient and cost-effective operations
- In 2019, real estate applications held the dominant market share of 41.9% on account of burgeoning demand for single family dwellings and multistoried apartments for rapidly rising population
- The revenue from government sector stood at USD 3.63 trillion in 2019 and is projected to expand at a CAGR of 5.3% over the forecast period on account of rising government investments in infrastructure building in emerging economies
- Asia Pacific accounted for a revenue share of 32.5% in 2019 and is anticipated to continue this trend over the forecast period, owing to rapid expansion of real estate sector along with infrastructure development in emerging economies, such as India and China
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The implication of stringent emission standards during construction activities in Europe and North America is expected to boost the demand for civil engineering services for the successful execution of projects as per the required standards. In addition, the rapid shift of the construction sector from conventional construction materials to green building materials is also expected to positively influence the market growth in the forthcoming years.
Players operating in the market for the civil engineering services market are increasingly focusing on the use of green building materials owing to the emerging concept of sustainable building structures and energy efficiency. In addition, the continuous introduction of new and innovative building materials and technologies is also expected to create lucrative opportunities for the market players in near future.
The market is highly reliant on the growth of the construction industry, which in turn depends on the microeconomic and macroeconomic factors. Thus, the market is extremely vulnerable to cyclic fluctuations in the construction industry caused due to factors such as economic downturns.
The rising adoption of digitalization and innovative technologies is expected to positively influence the growth of the civil engineering value chain across the globe. Thus, the development of advanced tools and software are expected to lead the timely and cost-efficient execution of construction projects, thereby offering lucrative growth opportunities to the market.
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The planning and design segment is expected to register the fastest CAGR of 6.1% during the forecast period, as it is one of the initial stages and prominent components of civil engineering services and thus widely in demand. In addition, the rising significance of cost efficiency and in-time completion of projects is further expected to drive the segment growth. Rising use of unconventional and innovative construction materials such as glue-laminated timber, cross-laminated timber, and other such materials has increased the significance of planning and design segment since it plays a major role in successful erection of the building and improves its structural integrity.
The construction segment held the dominated market share of 27.7% in 2019. In addition, recent advancements in the construction equipment and materials have enhanced the construction efficiency of the industry players, thereby improving their profit margins, which in turn is expected to positively influence the demand for services over the forecast period.
Construction services include the building of various structures such as residential and commercial buildings, public infrastructure including recreational parks, healthcare facilities, community centers, bus stations, and railway stations. Thus, the rising demand for housing and government initiatives for infrastructure development is expected to drive the segment growth.