Utility System Construction Market Growth, Demand, Trends, Size and Share Analysis 2030

Utility System Construction Industry Perspective:

The global utility system construction market size was valued at USD 724.58 million in 2022 and is anticipated to reach USD 1074.57 million during the forecast period. The market is likely to grow with a CAGR of 5.04% between 2023 and 2030.

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The utility system construction industry report analyzes the market's growth drivers, restraints, opportunities, and challenges. Also, it offers detailed insights into the regional and competitive landscape in the utility system construction market.

Utility System Construction Market: Overview

Utility system construction refers to the sale of myriad services associated with goods that aid in developing the distribution lines and associated structure for the delivery of utilities, including communication, power, gas, petroleum, sewer, water, etc. It helps to enhance and build various other utility systems. Primarily, the utility construction system consists of installing sewer lines, power lines, water lines, and other related infrastructures. It is important because it offers basic and essential services to different end users like businesses, industries, residential, etc.

Key Insights

• As per the analysis shared by our research analyst, the global utility system construction market size is estimated to grow annually at a CAGR of around 5.04% over the forecast period (2023-2030).
• In terms of revenue, the global utility system construction market size was valued at around 724.58 million in 2022 and is projected to reach 1074.57 million by 2030.
• The high demand for electricity is likely to drive the growth of the global utility system construction market.
• Based on the end-user, the industrial segment is the largest segment of the global market.
• Based on the product type, the power and communication line segment dominates the global market.
• Based on type of contractors, the large contractor segment is likely to dominate the global market.
• Based on region, Asia Pacific is expected to dominate the market during the forecast period.      

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Utility System Construction Market: Growth Drivers

High demand for electricity is likely to propel the growth of the global market.

The demand for electricity is constantly growing due to the high industrialization rate along with the rising population all across the globe. Advancements in technology are further expected to support the growth tragedy of the global utility system construction market during the predicted period. For instance, switching to drones for managing heavy projects has boosted the demand for utility systems. The drone is integrated with communication tech, which further poses a huge demand for utility construction systems in the market. However, various other applications of drones include environmental analysis, elevation mapping, earthwork volume calculation, and several others. Additionally, the rise in the disposable income of the people further fosters growth prospects in the global utility system construction market. Nowadays, people demand a well-established living environment in countries that pose a huge demand for utility system construction to cater to their high requirements.

Utility System Construction Market: Restraints

Health and safety issues are likely to hamper the growth of the global market.

The primary concern in the utility construction sector is the health and safety of the people. Construction involves working underground at heights, working nearby falling materials, working in confined spaces, handling hazardous substances, and several other life-threatening tasks. Therefore, there is always a risk of loss of life and property which is expected to slow down the growth of the global utility system construction industry.

Utility System Construction Market: Opportunities

High investment rates and the development of smart tech are likely to offer lucrative growth opportunities in the global market.

The government and other big market players are increasing investment in the utility system construction segment owing to their high scope in the forthcoming years. Also, the rise in the trend of adopting renewable energy sources is further propelling the investment rates in the segment. Also, the emergence of smart grid technology is expected to widen the scope of the global utility system construction market. The deployment of smart grid technology required different kinds of utility system construction.

Utility System Construction Market: Challenges

Heavy initial investments are a big challenge in the global market.

The development and deployment of the latest technology require heavy investment, which is expected to be a big challenge in the global utility system construction industry. Also, the initial investments to set up a utility system construction business is likely to be an obstruction to the growth of the market.

Utility System Construction Market: Segmentation

The global utility system construction market can be segmented into end-user, product type, type of contractors, and region.

By end-user, the market can be segmented into public infrastructure, business, industrial, services, residential, and others. The industrial segment is the largest segment of the global market due to its high flourishing rate. People all across the globe are coming up with startups and small businesses in different sectors, which is likely to accentuate the demand for utility system construction in the segment. The fast-growing tech developments are further expected to complement the growth of this segment during the predicted period.

The public infrastructure segment will exponentially grow in the forthcoming years due to the growing efforts of governments of different economies to revolutionize public infrastructure. Moreover, the growing trend of smart infrastructure and advanced working systems will further accentuate the demand for the segment in the forthcoming years.

By product type, the market can be segmented into power and communication lines, oil & gas pipelines, water sewer lines, infrastructure construction, and others. The power and communication line segment dominates the global utility system construction industry. The growth of the segment is majorly due to the growing demand for constant power supply and communication in each aspect. Growing urbanization and industrialization is posing a huge demand for power supply. Additionally, the government is trying hard to maintain the continuous power supply because of the high commercial activities in every city. Furthermore, the growing trend of digitizing and automating the working processes is another major reason for the high demand for power and communication lines in the forthcoming years. Communication and power supply has now become a basic necessity for today's human being. The core function of the communication utility system is to offer the data, video, and voice signals across the network lines without any delay or disruption and thereby establish a stable network connection between the two servers.

The oil and gas pipeline segment is also anticipated to witness a steady growth rate in the forthcoming years due to the growing demand for fuel in different end-user sectors. The fast-growing automobile sector is expected to widen the scope of the segment. Also, the segment is likely to help power and communication line segments in maintaining and offering smooth operations. Moreover, the water sewer line and structure construction segments are also expected to grow parallelly due to the growing requirements of people all across the globe.

The infrastructure segment is also likely to grow heavily during the forecast period because it is the main service assisting all other activities and operations in any business. It includes supply and waste removal services, energy supply services, transportation services, communication services, and several others. Particularly, the infrastructure in the utility system is the equipment and other physical plants that are important for performing the service of gas, water, electric and other utilities.

By type of contractors, the market can be segmented into large and small contractors. The large contractor segment is likely to dominate the utility system construction industry in the forthcoming years due to the requirement for heavy delivery of utility systems. The need for power, communication, oil, gas, and other utilities can only be served through large contractors. The large contractors have enough workforce and machinery to handle and manage the bulk delivery smoothly. The small contractor segment is expected to grow steadily because of the growing efforts of the government to encourage the small contractor segment. Also, the changing market landscape is likely to open lucrative growth opportunities for the segment in the forthcoming years.

Recent Developments:

• Powerteam International partners with the Mentors Studio to host the Ultimate Wealth Camp event to bring together business owners from around the world. The event is happening on June 25th - 27th, 2023, at the Powerteam Barrington Retreat Center in Hoffman Estates.
• American Tower Corporation, according to Ugandan mobile operator Smile, has apologized to its consumers for the outage happening since January 31, 2022. The company has caused a 15-month service outage by illegally disconnecting its network.

Utility System Construction Market: Report Scope

Utility System Construction Market: Regional Analysis

Asia Pacific to witness substantial growth during the coming period

Asia Pacific accounts for the largest share of the global utility system construction market due to growing domestic and foreign investments. The high investment rates in the region is due to the presence of a skilled workforce and an abundance of raw material. Additionally, the government in the region is making efforts to encourage small and large business owners to expand the market worldwide and strengthen their national economy. The government is coming up with favorable policies to support utility service providers. The high rates of urbanization and industrialization are another major reason for the exponential growth of the regional market during the predicted period. The first developing end uses sectors like power, telecom, transportation, etc., are further expected to positively impact the growth trajectory of the regional market in the forthcoming years.

North America is also expected to witness a significant growth rate in the forthcoming years due to the ongoing technological advancements in the region. Also, the fast adoption rate of modern technology in the region will further accentuate the growth of the market. Big market players are investing heavily in infrastructure projects that focus on renewable energy, which in turn will also support the growth trajectory of the regional market. The government is increasing the spending on renovating the infrastructure, which will further pose a heavy demand for the utility system in the region.

Europe and Latin America are further expected to grow parallelly because of the rising demand for telecom systems across the region. The fast expansion of end-user sectors, more than ever in recent times, will further develop the regional market during the predicted period.

Utility System Construction Market: Competitive Analysis

The key leaders in the global utility system construction market include:

• American Tower Corporation
• Systems Inc.
• Keene
• Powerteam Services
• Michels Corporation
• Mastec Inc.
• Charter Oak Utility Constructors Inc.
• Paraflex
• China Energy Engineering Group
• Qwest Communications International Inc

The global utility system construction market is segmented as follows:

By End-User

• Public Infrastructure
• Business
• Industrial
• Services
• Residential
• Others

By Product Type

• Power And Communication Line
• Oil & Gas Pipeline
• Water Sewer Line
• Infrastructure Construction
• Others

By Type Of Contractors

• Large Contractors
• Small Contractors
• Online

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa