White Paper on Global Road and Bridge Construction Industry

Executive Summary

Market growth: The global road and bridge construction industry is in a critical period of transformation. Driven by the growth of infrastructure demand, technological innovation and the concept of sustainable development, it presents a complex but opportunity-filled situation. It is expected that from 2025 to 2030, the industry market size will grow at an average annual rate of 4%-6%, and emerging economies and developing countries will become the main driving force for growth.
Technological change: Digitalization, intelligence and green environmental protection technologies will reshape the industry landscape. The application of technologies such as building information modeling (BIM), artificial intelligence (AI), and the Internet of Things (IoT) will improve project management efficiency and optimize design and construction processes; green technologies such as high-performance concrete and recycled materials will be widely popularized in the context of climate change.
Competitive landscape: Head companies continue to expand with their capital, technology and brand advantages, and enhance their competitiveness through mergers and acquisitions, strategic cooperation and other means; emerging companies use innovative technologies and flexible business models to emerge in the sub-sectors. The links between various links in the industrial chain are becoming increasingly close, and collaborative innovation between upstream and downstream has become a trend.
Policy impact: The industry faces challenges such as fluctuations in raw material prices, labor shortages, insufficient technical talent, and difficulties in project financing. It needs to respond through strategies such as improving supply chain resilience, innovating talent training models, and expanding financing channels.

Overall, the global road and bridge construction industry is expected to maintain a steady growth in the next five years, benefiting from multiple driving factors such as policies, urbanization, market demand, and technological progress. However, it also faces some challenges, such as cost inflation, supply chain risks, financing costs, labor shortages, and regulatory complexity. Therefore, companies need to actively embrace change, grasp the direction of government investment, delve into innovative technologies, effectively manage costs and risks, and adapt to sustainable development requirements in order to gain an advantage in future market competition.

Industry Overview

According to data from MarketsandMarkets, Statista and ResearchAndMarkets, the global road and bridge construction market is valued at US$2.41 trillion by 2024 and is expected to reach US$3.79 trillion by 2030, with a compound annual growth rate (CAGR) of approximately 5.3%.

Market composition structure

Road construction

Road construction accounts for about 68%: it occupies an absolute dominant share and covers a wide range:

Types: expressways, national/provincial trunk roads, urban trunk roads/expressways, secondary roads, rural roads, public transportation, bicycle and other dedicated lanes.
Growth point: the expansion of road networks in emerging economies coexists with the intelligent renewal of developed countries
Investment characteristics: usually large-scale, significantly affected by public fiscal policies, and highly related to land development and urbanization.

Bridge construction

Bridge construction accounts for about 25%: Although the share is lower than that of roads, the technical complexity, unit cost and engineering risk are usually higher, which is a concentrated reflection of the industry’s technical strength:

Types: Bridges across rivers, lakes and seas, such as suspension bridges, cable-stayed bridges, arch bridges, beam bridges, highway/railway viaducts, and railway-specific bridges.
Growth points: Renewal/reinforcement projects for old bridges, cross-sea passages, large bridges supporting high-speed railway networks, and bridge-tunnel parts of complex interchange systems in super-large metropolitan areas.
Investment characteristics: The investment amount of a single project varies greatly, from small local bridges to cross-sea projects worth hundreds of billions of yuan, and technological progress (such as UHPC applications, deep-water foundations, and large prefabricated segment assembly) is the key driving force.

Interchanges and Tunnels

Interchanges and tunnels about 7%: although accounting for the smallest proportion, they are mostly key node projects with complex technology and great impact on urban traffic:

Types: multi-storey three-dimensional transportation hubs, underground expressways/channels, highway/railway tunnels crossing mountain ranges or bodies of water, and sunken roads in cities.
Growth points: mainly concentrated in large metropolitan areas with dense population and space constraints, as well as mountainous areas and cross-sea projects that need to traverse complex terrain.
Investment Characteristics: High single-project costs, high geological risks, and extremely high technical requirements, usually as a core component of large-scale transportation projects.

Analysis of core driving factors

Urbanization and the expansion of urban agglomerations have given rise to the rigid demand for three-dimensional transportation

The global urbanization rate has increased from 47% in 2000 to 56% in 2024. The population density of super-large urban agglomerations such as the Yangtze River Delta and the Tokyo metropolitan area has exceeded 3,000 people/square kilometer. The traditional road network is difficult to carry the daily average commuting volume of tens of millions, which has driven a surge in demand for transportation facilities such as viaducts and flyovers

Infrastructure aging and climate resilience force stock renewal and standard upgrades

More than 40% of highway bridges in developed countries have been in service for more than 50 years, such as 45% of bridges in the United States have been in use for more than 50 years, and the proportion of maintenance costs has increased from 25% in 2010 to 38% in 2024; extreme climates such as North American heat waves and Southeast Asian typhoons force the improvement of disaster resistance design standards, and construction costs increase by 15-20%, but can reduce the risk loss of the entire life cycle by more than 40%.

Technological innovation and green transformation reshape industry productivity

Digital technology improves construction efficiency by 30%, such as BIM reducing on-site changes by 60%; green technology responds to carbon neutrality goals, and EU carbon tariffs increase the cost of high-carbon projects by 10-15%, forcing the use of recycled asphalt to increase from 12% to 28%, and the penetration rate of intelligent equipment to reach 22%.

Policy-driven and economic recovery demand releases infrastructure dividends

Countries use infrastructure as an economic stimulus tool, such as China’s “New Infrastructure” and the United States’ “Bipartisan Act”. In 2023, global public infrastructure investment accounted for 3.2% of GDP; PPP models account for more than 45% of projects in Africa and Latin America, and strategies such as the “Belt and Road” promote the deep binding of cross-border projects with geo-economics.

Development trends in the next five years

Technological breakthroughs

BIM and digital twin technologies will be deeply integrated and applied throughout the entire project lifecycle. It is estimated that over 80% of large-scale projects will adopt these technologies by 2030, reducing on-site changes by 60%. The rapid development of intelligent equipment clusters, such as unmanned rollers and SPMT modular transport systems, will enhance construction efficiency by 30-50%. The application rate of 3D printing technology in emergency engineering and small-scale component production will reach 10-15%. In terms of environmental protection technology, mandatory standards for the use of recycled materials will be promoted in more countries, reducing costs by 10-15% and carbon emissions by 20-30%; ultra-high-performance concrete (UHPC) and photovoltaic road surfaces will achieve technical breakthroughs and a 20% adoption rate in regions with ample sunlight, such as the Middle East.

Market landscape reshaping

Emerging economies will become the main drivers of growth. Regions like Africa and Southeast Asia, which have significant infrastructure deficits, are expected to see market sizes grow at an annual rate of 7-9%, with a focus on advancing transportation projects connecting cities, ports, and resource-rich areas. Developed regions like North America and Europe will primarily focus on upgrading and renovating existing infrastructure, maintaining growth rates of 3-5%. The Asia-Pacific region will continue to hold over 40% of the global market share, driven by China’s technology exports and market expansion in India and Southeast Asia, with an annual growth rate of 6%-8%.

Competition and Industry Synergy Upgrades

Leading companies are integrating the entire industrial chain through EPC+F and PPP models to enhance market competitiveness. Tech giants are expanding into smart transportation solutions, posing challenges to traditional companies. Collaboration trends across the supply chain are strengthening, with upstream raw material companies transitioning toward green and high-performance directions, and downstream maintenance companies leveraging IoT and AI to achieve intelligent management

Policy-Driven Transformation

Infrastructure stimulus policies and ESG regulations are advancing in parallel globally. Policies such as the EU carbon border adjustment mechanism and the U.S. Infrastructure Investment and Jobs Act are driving the industry toward green and intelligent development while imposing higher requirements on corporate technological capabilities and compliance standards.

Regional market landscape

Asia-Pacific region: Growth engine and technology export hub

Market characteristics: In 2024, the road and bridge construction market in the Asia-Pacific region is expected to account for approximately 40% of the global market, with a total size of US$2.6 trillion. The annual urbanization rate increases by 1.2%, presenting a dual-track pattern of emerging market expansion and developed economy upgrading. Developed economies such as Japan and South Korea have relatively well-developed road and bridge infrastructure but face aging issues, requiring continuous investment in facility upgrades and maintenance; emerging market countries such as China, India, and Southeast Asian nations have strong infrastructure construction demand, driving market growth.
Growth Drivers:
- China’s “Transportation Powerhouse” strategy is driving the development of smart road networks and urban cluster expressways, with technical standards being exported to Southeast Asia and the Middle East. BIM application rates exceed 60%, leading the industry’s digital transformation.
- India and Southeast Asian countries are addressing infrastructure deficits, with road density at only one-third of China’s level. While investment demand is robust, challenges include low land acquisition efficiency (average approval cycle of 18 months) and weak domestic technical capabilities (reliance on Chinese EPC models).
Challenges: Cross-border project coordination is complex, such as the ASEAN highway network involving standard differences across 10 countries, and stricter environmental regulations (less than 50% of environmental impact assessments for projects in Indonesia’s rainforest areas are approved).

Europe: Pioneer of Green Intelligent Transformation

Market characteristics: In 2024, the European road and bridge construction market will be worth approximately US$1.95 trillion, accounting for about 30% of the global market. Transportation infrastructure is relatively well developed, but 40% of bridges have been in service for more than 50 years and are facing aging and renewal needs. Green standards are among the most advanced in the world, and the penetration rate of intelligent transportation systems (ITS) has reached 45%. Driven by sustainable development principles, Europe has high requirements for environmentally friendly materials, new energy applications, and energy conservation and emissions reduction in road and bridge construction.
Growth Drivers:
- EU Green Deal: The goal of reducing emissions in the transportation sector by 90% by 2030 is driving the adoption of electric construction equipment (penetration rate of 22%) and photovoltaic road surfaces (pilot mileage exceeding 1,000 kilometers).
- Cross-border integration: The Trans-European Transport Network (TEN-T) project integrates infrastructure plans across 28 countries, adopting unified intelligent transportation standards to reduce cross-border logistics costs by 10%.
Challenges: High public participation often leads to project delays (e.g., German highway expansions frequently halted due to environmental group protests), and fragmented construction standards (e.g., 12 technical differences exist between Eastern and Western Europe).

North America: Stock renewal and technological upgrades proceed in parallel

Market Characteristics: The North American road and bridge construction market is estimated to be worth approximately US$1.3 trillion in 2024, accounting for 20% of the global market. While the region boasts a well-developed transportation network, aging infrastructure is a significant issue, with some roads and bridges exceeding their designed service life. The United States leads the world in the research, development, and application of intelligent transportation systems (ITS), which are widely used in traffic management.
Growth Drivers:
- Policy-Driven: The U.S. Bipartisan Infrastructure Law allocates over 350 billion U.S. dollars over five years to repair aging infrastructure, with a focus on enhancing bridge disaster resilience and road intelligence levels, such as deploying vehicle-to-infrastructure (V2I) systems.
- Technology Premium: The penetration rate of Intelligent Transportation Systems (ITS) reaches 45%, commanding a 15-20% premium over traditional projects, attracting tech companies to enter the sector, such as Tesla participating in road design to accommodate autonomous driving.
Challenges: Long environmental approval cycles (average 24 months), high labor costs (skilled worker wages increase by 8% annually), and localization requirements in the supply chain, such as the “Buy American” clause, which increases material costs by 12%.

Latin America: A resource-driven market with potential

Market Characteristics: The Latin American road and bridge construction market is estimated to be worth approximately US$325 billion in 2024, accounting for about 5% of the global market. The region is rich in natural resources but lacks adequate transportation infrastructure, with low road density, which constrains economic development. In recent years, countries in the region have increasingly prioritized infrastructure development and increased investment in this area. However, economic development varies significantly across countries in the region, with some nations heavily reliant on resource exports for economic growth, creating urgent demand for road and bridge construction projects connecting resource-rich areas to ports and urban centers.
Growth Drivers: Countries such as Mexico and Brazil are promoting resource development and economic growth by planning and implementing a series of large-scale road and bridge projects. For example, Brazil plans to construct highways and railways connecting mining areas with ports to develop inland mineral resources.
Challenges: Political instability and lack of policy continuity may hinder project progress; local construction companies have limited technical and financial capabilities, resulting in high dependence on international contractors.

Africa: Emerging Markets with Infrastructure Deficits

Market Characteristics: In 2024, the African road and bridge construction market is estimated to be approximately USD 195 billion, accounting for about 3% of the global market. With rapid population growth and accelerated urbanization, there is an urgent demand for road and bridge infrastructure, but there is a significant infrastructure deficit, with road density only one-eighth that of North America. Most countries are in the early stages or rapid development phase of infrastructure construction, with inadequate transportation networks severely constraining economic development and social progress.
Growth Drivers: African governments are actively promoting infrastructure development to improve transportation conditions and stimulate economic growth. International aid and investment are increasing, such as under the Belt and Road Initiative, with numerous road and bridge projects being implemented in Africa. Additionally, the establishment of the African Continental Free Trade Area is stimulating intra-regional trade, further boosting demand for transportation infrastructure.
Challenges: Funding shortages are prominent, and project financing is challenging; technical and management capabilities are lagging, with a shortage of specialized technical talent and efficient project management experience; security issues in some regions impact project construction and operations.

Oceania: Resource Development and Tourism-Driven Growth

Market Characteristics: The market size of the road and bridge construction sector in Oceania is estimated to be approximately USD 130 billion in 2024, accounting for approximately 2% of the global market. Australia and New Zealand are the primary markets. Australia, with its vast territory and sparse population, continues to invest in transportation infrastructure to promote regional connectivity and resource development. New Zealand, with its thriving tourism industry, continuously improves its domestic transportation network to meet tourism demands. Although the market size is relatively small, there is stable demand for high-quality, environmentally integrated road and bridge facilities driven by resource development and the tourism industry.
Growth Drivers: Australia has sustained demand for road and bridge infrastructure connecting mining areas to ports and cities, driven by resource development projects; New Zealand is increasing efforts to build and renovate roads and bridges around tourist attractions to enhance the tourist experience.
Challenges: Complex geographical conditions make construction difficult in some areas; the relatively small labor market may lead to shortages of specialized construction personnel, potentially affecting project timelines.

Technology Trends

Key technological developments

Integration of BIM and Digital Twins

Technical principles: BIM constructs three-dimensional models containing information such as engineering geometry, materials, and progress.
Application Scenarios: Optimizing design solutions during the design phase, monitoring progress during the construction phase, and predicting structural risks such as bridge stress changes during the operations and maintenance phase.
Development Trends: It is projected that over 80% of large-scale projects will adopt BIM by 2030, reducing on-site changes by 60% and achieving fully digitalized management across the entire process.

Upgrading of intelligent equipment clusters

Core equipment: Unmanned road rollers, drone clusters for inspection, embedded sensor arrays, SPMT modular transport vehicles, intelligent concrete mixing plants
Efficiency improvements: Construction efficiency increased by 30–50%, with companies like Sany Heavy Industry achieving 24-hour continuous operation of equipment.
Future direction: Enhanced coordination between equipment, with AI algorithms adapting to complex construction environments.

Expansion of 3D printing technology

Current applications: The Netherlands has applied 3D printing technology to bridge construction, with initial success in emergency engineering (rapid construction of temporary passageways) and small component production (curbs, decorative elements).
Market expectations: By 2030, the application rate in emergency engineering and small components will reach 10-15%, with gradual attempts to print large bridge segments.

Breakthroughs in extremely cold regions

Graphene-modified asphalt: Graphene nanomaterials are used to modify asphalt, improving its low-temperature crack resistance to -60°C without cracking. This makes it suitable for road construction in extremely cold regions such as the Arctic Circle and Siberia.
Liquid nitrogen rapid soil freezing technology: Utilizing liquid nitrogen (-196°C) to rapidly freeze and solidify the soil in the construction area, forming a temporary frozen soil curtain, this technology addresses the issue of soil displacement during excavation in extremely cold regions. It has been successfully applied on a large scale in the Arctic Circle highway project in Russia.

Breakthroughs in deep-sea ultra-long-span bridge

Floating precast caisson foundation: Adopting the “factory prefabrication + floating transport and positioning” model, the traditional caisson foundation is prefabricated in a dry dock and then floated to the deep-sea bridge site. It is positioned by flooding with water, making it suitable for bridge construction in complex sea areas such as the Qiongzhou Strait. This method improves construction efficiency by 3 times compared to traditional caisson construction.
Carbon Fiber Composite Cable System: Replacing traditional steel cables with carbon fiber-reinforced polymers (CFRP) reduces self-weight by 65% while doubling tensile strength, enabling the construction of bridges with spans exceeding 2,000 meters. This technology has been validated in the expansion project of the Kurushima Strait Bridge in Japan.

Environmental protection and sustainable development technologies

Recycled materials become widespread

Technical approach: Recycle old asphalt pavement and waste concrete, crush them, add rejuvenators, and turn them into new aggregates or binders.
Policy promotion: The EU requires that at least 30% of road materials be recycled, which cuts costs by 10-15% and reduces carbon emissions by 20-30%.
Application expansion: Expand from major road repairs to areas like base layer paving and slope protection.

Promotion of Ultra-High Performance Concrete (UHPC)

Material advantages: Three times stronger than traditional concrete, with outstanding water resistance and durability.Typical case: The E18 highway bridge in Norway uses UHPC to halve the thickness of the structure and extend its service life.Development prospects:
From large bridges to conventional road and bridge projects, promoting lightweight structural design.

Breakthrough in photovoltaic road surface technology

Working principle: Combining translucent photovoltaic panels with road surfaces to generate electricity for road lighting and powering traffic equipment.
Pilot results: Over 1,000 kilometers of pilot projects in Europe, with a focus on promoting the technology in regions with abundant sunlight such as the Middle East.
Future goals: Achieve a 20% adoption rate in the Middle East by 2030 and explore integration with wireless charging technology for electric vehicles.

Green Technology Cluster (Driving Zero Carbon Transformation)

Carbon capture concrete: Conch Cement uses CCUS technology to absorb CO₂ and produce concrete, reducing CO₂ emissions by 600 kg per ton. This technology has been applied on a large scale in China.
Mycelium-based bio-materials: These are materials developed by Dutch company GreenBasalt using fungal-based aggregate consolidation technology. The production process has negative carbon emissions, with mass production expected by 2026.

Technology providers and R&D trends

Surveying, mapping, and positioning technology

High-precision GNSS: Enables real-time centimeter-level construction positioning. Key suppliers include Trimble, Topcon, Leica Geosystems, and Southern Surveying (South).
3D laser scanning technology: Used for terrain modeling and as-built inspection, primarily provided by suppliers such as Leica, Trimble, and Faro.
Unmanned Aerial Vehicle (UAV) Surveying: Enables terrain mapping, progress monitoring, and safety inspections. Core suppliers include DJI, Parrot, and senseFly.
BIM Geological Modeling: Integrates geological data to optimize design. Core suppliers include Bentley (OpenSite) and Autodesk (Civil 3D).

Structural Design and Simulation Technology

Bridge BIM Design: Optimizing bridge design processes through parametric modeling and collision detection. Key suppliers include Bentley (OpenBridge) and Autodesk (Revit+InfraWorks).
Finite Element Analysis (FEA): Used for structural stress calculations and seismic simulations, with primary suppliers including ANSYS, Dassault (SIMULIA), and Korean MIDAS.
Digital Twin Platform: Enables virtual mapping and real-time monitoring throughout the construction process, with representative suppliers including Siemens (Xcelerator) and Bentley (iTwin).

Construction Equipment and Automation Technology

3D mechanical control paving/compaction: Achieves millimeter-level precision road construction. Core suppliers include Trimble (Earthworks), Topcon (3D-MC), and MOBA.
Intelligent bridge erectors: Used for automated modular bridge erection, primarily supplied by XCMG, Zoomlion, and SANY.
Rotary Drilling Rig Intelligent Control System: Features rock and soil adaptive drilling and verticality correction functions. Core suppliers include Bauer, Soiltec, XCMG, and SANY.
Electric Construction Machinery: Enables zero-emission construction for excavators, loaders, and other equipment. Representative suppliers include Volvo CE, Caterpillar, XCMG, and SANY.

Advanced Materials Technology

UHPC (Ultra-High Performance Concrete): Features ultra-high strength and durability, suitable for critical components such as main beams and joints. Key suppliers include Sika, BASF, Sobute, and China Building Materials (CBM).
Carbon Fiber Reinforced Polymer (CFRP): Used for rapid repair and reinforcement of bridges, primarily supplied by companies such as Sika, Toray, and Mitsubishi Chemical.
Smart Concrete: Enables real-time monitoring of cracks and stress through embedded sensors, with representative suppliers including GCP Applied Technologies and Geokon.

Expansion of 3D printing technology

Current applications: The Netherlands has applied 3D printing technology to bridge construction, with initial success in emergency engineering (rapid construction of temporary passageways) and small component production (curbs, decorative elements).
Market expectations: By 2030, the application rate in emergency engineering and small components will reach 10-15%, with gradual attempts to print large bridge segments.

Inspection and maintenance technology

Bridge inspection robots: Capable of performing climbing-type crack scanning and underwater structure inspection. Key suppliers include Inuktun, Eddyfi, and Shenhao Technology.
Structural Health Monitoring (SHM): Used for long-term data collection of stress, deformation, and other parameters, primarily provided by Geokon, Campbell Scientific, and Donghua Testing.
LiDAR Deformation Monitoring: Enables millimeter-level bridge deformation analysis, with representative suppliers including Leica and Austrian RIEGL.

Focus areas of research and development

Deep Intelligence (AI + Data-Driven)

Design End

AI Generative Design: After inputting geological and load parameters, AI automatically generates bridge design schemes (e.g., Autodesk Refinery, Bentley Machine Learning Engine).
Risk Prediction Model: Trained using historical engineering data to predict construction risks (e.g., Siemens NX).

Construction End

Machine Vision Quality Inspection: Utilizing drones + AI to identify concrete cracks and rebar spacing (e.g., NVIDIA Metropolis combined with DJI Dock).
Real-Time Resource Scheduling Optimization: AI dynamically adjusts equipment and manpower allocation (e.g., Trimble ProjectSight).

Equipment electrification and energy transition

Whole-machine power: Increase battery capacity (>600kWh), such as the Volvo EC500 electric excavator with an 8-hour operating time.
Small equipment: Build a battery swapping network, such as XCMG’s battery swapping heavy-duty transport vehicles used in port and bridge projects.
Energy supply: Integrate on-site photovoltaic + energy storage systems, such as Caterpillar’s microgrid solution in collaboration with SunPower.
Industry standards: By 2025, leading suppliers will cease sales of pure fossil fuel-powered small equipment (<20 tons).

Robots replacing high-risk operations

Structural Construction Category

Bridge tower climbing welding robots (e.g., SANY Intelligent Bridge Builder, with a 200% increase in efficiency).
Underwater pile foundation inspection AUVs (e.g., Eddyfi Panther combined with sonar scanning).

Maintenance Category

Autonomous crack repair robot (e.g., FBR WALLABOT sprayed concrete), reducing risks associated with manual operations in high-altitude, deep-water, and confined spaces.

Digital twin penetration throughout the entire cycle

Planning and design phase: Integrate geological data, terrain scans (such as laser radar point clouds), and traffic flow simulations to construct 3D virtual models to assist in scheme selection. For example, use the Bentley iTwin platform to simulate flood inundation for bridge site selection and optimize pier layout.
Construction and Construction Phase: Real-time synchronization of BIM models with on-site data (e.g., drone aerial surveys, sensor monitoring) enables visual progress monitoring and conflict warnings. For example, Tencent Smart Manufacturing controlled the production progress of prefabricated components and on-site assembly errors within 2mm in the Shenzhen-Zhongshan Channel project using a digital twin platform.
Operations and maintenance phase: Integrating IoT sensor data (strain, vibration, temperature) to build dynamic simulation models and predict structural degradation trends. Siemens Xcelerator’s digital twin system for the Great Belt Bridge in Denmark can provide a six-month advance warning of bearing wear risks.

Competitive Landscape and Industry Chain Analysis

Evolution of the competitive landscape

Phase I: Construction Capacity Competition (2000-2010)

Competitive core: Focusing on low-cost bidding and construction efficiency, companies capture market share through economies of scale.
Typical companies: In its early days, China Railway Group Limited (CRCC) relied on a “human wave tactic + low-cost construction” approach to win domestic expressway projects. In 2005, overseas business accounted for less than 5% of its total business, and it depended on the benefits of domestic infrastructure investment.
Limitations: Profit margins generally below 8%, lacking technical premium capabilities, and vulnerable to fluctuations in raw material prices.

Phase II: Capital Operation Competition (2011-2020)

Competitive core: With the widespread adoption of EPC, PPP, and other models, companies are using their financing capabilities and full-chain integration to secure large-scale projects.
Typical companies: French company VINCI acquired Bechtel’s highway business and combined it with its own PPP project operation experience, increasing its overseas revenue share to 45% in 2015 and achieving a profit margin of over 12%.
Breakthrough: Transitioning from a “construction contractor” to an “infrastructure investor,” such as VINCI operating a Spanish highway under the BOT model, securing stable cash flow over a 20-year concession period.

Phase III: Ecological Competitiveness (2021– )

Competitive Core: Building an ecosystem of “technology + capital + localization” to create cross-industry synergies.
Typical Company: China Communications Construction Company (CCCC) has developed a “digital infrastructure ecosystem,” collaborating with Huawei to develop vehicle-road coordination systems and partnering with BASF on low-carbon materials. In 2023, its intelligent transportation business revenue grew by 35% year-over-year, with a gross margin of 18%.
Characteristics:
- Cross-industry integration: Construction companies form strategic alliances with technology firms and materials giants;
- Standardization: CCCC has increased the adoption rate of Chinese bridge and road standards in Belt and Road Initiative projects from 12% to 38%;
- Service expansion: Transitioning from project delivery to “infrastructure + operations + data services,” such as Wanxi managing a global network of 500,000 kilometers of roads via an IoT platform, with aftermarket revenue accounting for 28% of total revenue.

Leading companies

ACS Group (Spain)

Company overview: International operations, expanded into infrastructure and engineering since merging with Abertis in 2006, with total revenue reaching €49 billion in 2024.
Core strengths: Outstanding PPP project experience, strong capital raising capabilities; digital construction management platform (OCS) improves efficiency.

Bouygues Construction (France)

Company overview: A core subsidiary of France’s Bouygues Group, with revenue of approximately €12.1 billion in 2024 and operations in more than 70 countries.
Core strengths: Green construction technology (Low Carbon Road solution), modular bridge manufacturing, and mature solutions in the field of smart construction sites.

China Communications Construction Company (CCCC, China)

Company profile: The world’s largest port and highway bridge builder, with revenue exceeding RMB 600 billion in 2024; it occupies an important market share in countries along the “Belt and Road”.
Core advantages: complete industrial chain coverage (design, construction, operation, maintenance); low-cost engineering organization capabilities.

Ferrovial (Spain)

Company overview: A large Spanish infrastructure and transportation operator with revenues of nearly €6 billion in 2024; owns several international operating subsidiaries.
Core strengths: Strong asset management capabilities and close cooperation with financial institutions; extensive experience in lifecycle cost control.

Hochtief (Germany)

Company overview: Part of Australia’s CPB Group, with revenues of approximately €31 billion in 2024; highly globalized.
Core strengths: Extensive expertise in tunnel and bridge construction; leader in BIM and digital twin applications.

Skanska (Sweden)

Company overview: Strong presence in both European and American markets, with estimated revenue of approximately US$18 billion in 2024; leading market share in the US, Northern Europe, and the UK.
Core strengths: Leader in sustainable development, green bridge and road technology; excellent risk management system.

Vinci (France)

Company overview: One of the world’s largest engineering contractors, with revenue of approximately €61.4 billion in 2024; operations in more than 120 countries.
Core strengths: Integrated construction + franchise model; cross-border coordination and capital allocation capabilities.

New forces in the industry

In global road and bridge construction, emerging forces are mainly concentrated in the areas of digitalization, green and low-carbon development, and intelligentization. The innovative features of representative companies are as follows:

Autostrade Tech (Italy): AI-based road health monitoring and predictive maintenance solutions.
RoadBotics (United States): Automated identification and assessment of road cracks and potholes using computer vision.
Sichuan Chuanjiao Road & Bridge: Development of unmanned road construction machinery, combining Beidou positioning to achieve automated paving and compaction.
Geotab (Canada): Utilization of IoT technology for intelligent tracking and data-driven management of road and bridge construction equipment.
Stantec (Canada): Integration of sustainable principles into road and bridge design, incorporating eco-friendly materials and energy-efficient structures.
XCMG Intelligent Road and Bridge Division (China): Introducing modular bridge 3D printing and rapid assembly technology.

Cooperation model

Global road and bridge construction projects typically adopt the following main cooperation models:

EPC (Engineering-Procurement-Construction): A single contractor is responsible for the initial stages of the project’s entire lifecycle, suitable for large-scale infrastructure projects with adequate funding and controllable risks.
PPP (Public-Private Partnership): The government provides subsidies or guarantees, while private capital is responsible for design, construction, operation, and maintenance, sharing risks and improving efficiency.
BOT/BOO (Build-Operate-Transfer/Build-Operate-Own): Commonly used in toll road and bridge projects, where contractors construct and operate the project within a specified timeframe to recover their investment.
Strategic Alliance/Consortium: Multiple specialized companies form a consortium based on project requirements, leveraging complementary resources to jointly assume risks and share benefits, suitable for cross-regional, high-complexity international projects.

Value distribution in the industrial chain

The profit distribution of the road and bridge construction industry chain shows a gradient distribution of “high technical premiums upstream, competitive pressure compressing profits in the middle, and stable operating income downstream.” There are significant differences in gross profit margins between each link, which are primarily determined by technical barriers, market concentration, and service cycles.

Upstream: High value-added segments, with technological monopolies driving high profits

Raw Material Supply

Traditional Materials: Basic building materials such as steel and cement account for 20-25% of the market, but their gross margins are generally below 15%. Leading companies such as Conch Cement (which holds a 12% share of the Chinese cement market) have increased their gross margins to 20% through large-scale production, while small and medium-sized suppliers have seen their profit margins compressed to 8-10% due to fluctuations in raw material prices.
New Materials: UHPC (ultra-high-performance concrete), carbon fiber composites, and other new materials achieve gross margins of 30-50%. For example, Sika’s carbon fiber reinforcement materials are priced at three times that of traditional steel, with a gross margin exceeding 40%; Subo’s self-healing concrete commands a 25% premium in high-end bridge projects, with profit margins significantly higher than traditional materials.

Equipment Manufacturing

General-purpose equipment: The markets for excavators, cranes, and other equipment are mature, with a global CR5 exceeding 60%. Companies like Caterpillar and Sany Heavy Industry have increased their gross margins to 25-30% through intelligent upgrades (such as electric construction machinery), which is 5-10 percentage points higher than traditional equipment.
Specialized Equipment: SPMT modular transport vehicles, bridge cable tensioning equipment, etc., have extremely high technical barriers. German Scheuerle’s SPMT equipment sells for over 20 million yuan per unit, with a gross margin exceeding 45%. Swiss VSL’s cable manufacturing equipment monopolizes the global high-end market, with profit levels significantly higher than general-purpose equipment.

Midstream: Fierce competition, significant profit margin differentiation

Engineering Design

Planning and Design: Accounts for 10-15% of the total project value. International giants like AECOM charge a 50% premium on design fees for high-end projects, with a gross margin of up to 40%. Chinese domestic design institutes dominate 80% of the domestic market thanks to policy advantages, but homogenized competition has led to a gross margin of only 15-20%.
Technical Services: Emerging services like BIM modeling and digital twins are growing at over 30%, but the market is fragmented. Leading firms like Bentley have a 35% gross margin on BIM consulting services, while smaller companies face lower profit margins of 10-15% due to lower technical barriers.

Construction Engineering

General Contracting: Leading firms like China Communications Construction and France’s VINCI secure 60% of global large-scale projects. Under the EPC model, gross margins range from 8% to 12%, but advance funding pressures (accounting for 30% of project costs) reduce net profit margins to 3% to 5%. Small and medium-sized general contractors face intense competition in regional projects, with gross margins often below 8%.
Specialized Subcontracting: Margins in niche areas like road paving and bridge construction are below 5%. Small and medium-sized enterprises rely on low-price strategies to survive, with only specialized processes (such as subsea tunnel boring) yielding 10-15% profit margins.

Downstream: Long operating cycle, outstanding profit stability

Project Operations

Toll Operations: Toll revenues from highways and bridges are highly profitable. For example, the Hong Kong-Zhuhai-Macao Bridge generates annual toll revenues exceeding 3 billion yuan, with a payback period of 15–20 years and a gross margin of 40–50% for concession operators. Toll projects on ordinary highways are affected by traffic volume, with gross margins fluctuating between 20–30%.
Derivative Services: Additional businesses such as roadside advertising and service area commercial development have gross margins exceeding 60%. For example, Zhejiang Transportation Group achieved a 35% profit share from additional services through service area commercial operations.

Maintenance and Management

Routine Maintenance: Maintenance accounts for 30-40% of the total lifecycle cost. Regional maintenance companies secure stable gross margins of 15-20% through long-term agreements with government clients, but market fragmentation limits economies of scale.
Smart maintenance: Technical services such as IoT monitoring and AI inspections grow by 25% annually. Digital platform services provided by companies like Huawei and Alibaba Cloud adopt a subscription model (annual fees of 500,000–2 million yuan per project), with gross margins exceeding 30%, significantly higher than traditional maintenance services.

Summary of core features

High-profit segments: upstream new materials (20-40% gross margin), specialized equipment manufacturing (45%+), and downstream intelligent maintenance (50%+), which rely on technological monopolies and service value-added.
Low-profit segments: midstream specialized subcontracting (<5%) and traditional maintenance (15-20%), constrained by market competition and cost pressures.
Profit drivers: Technical barriers (e.g., UHPC, digital twins), market monopolies (specialized equipment), and service cycles (operational fees) are the core influencing factors. Policy guidance (e.g., green infrastructure subsidies) also significantly enhances profit margins in certain segments.

Policies and regulations

Industry-related policies and regulations

Investment Model Policy

Promotion of the PPP model: Many countries around the world encourage private capital to participate in road and bridge construction through the PPP model. For example, China’s Ministry of Finance, in collaboration with the Ministry of Transport, has issued guidelines to promote private capital participation in the entire process of toll road construction, shifting from “subsidizing construction” to “subsidizing operations,” and improving contract and toll adjustment mechanisms.
Application of the BOT Model: Some countries adopt the Build-Operate-Transfer (BOT) model. For instance, Thailand has utilized concession agreements in certain highway projects to attract international corporate investment for construction, with the infrastructure transferred to the government upon the expiration of the agreement.

Market Competition Policy

Breaking down barriers to entry: The National Development and Reform Commission and other departments require that unreasonable bidding restrictions not be imposed in the road and bridge construction sector, and prohibit the establishment of subsidiaries or excessive qualification requirements that hinder the participation of private enterprises.
Antitrust regulation: The European Commission strictly reviews mergers and acquisitions in the road and bridge construction sector to prevent monopolies and ensure full market competition.

Project Management Policy

Optimization of approval efficiency: The Ministry of Ecology and Environment proposes that highway and urban road projects in the same region and of the same type can be “bundled” for environmental impact assessment approval.
Full-process supervision: The US Federal Highway Administration has established a project life cycle supervision system to supervise the entire process from planning to completion to ensure engineering quality and compliance.

Environmental Regulations

Construction Pollution Prevention Regulations

Dust control: Suqian City issued the “Provisional Regulations on the Prevention and Control of Dust Pollution from Transportation Projects in Urban Areas,” clarifying the responsibilities of construction, supervision, and contracting companies, and regulating requirements for dust barriers, material coverage, and dust suppression spraying.
Noise restrictions: Japan introduced regulations strictly limiting the construction hours and noise levels of road and bridge construction projects to avoid disturbing the lives of nearby residents.

Environmental protection regulations

Protection of sensitive areas: Qinghai Province’s Implementation Measures for Environmental Protection Management of Transportation Construction Projects require that road and bridge projects involving nature reserves comply with special ecological protection requirements.
Biodiversity protection: Brazil mandates the construction of biological corridors in road and bridge construction projects around the Amazon rainforest to reduce the impact on animal and plant migration.

Industry Standards and Certifications

International Collaborative Standards

Technical Standard Mutual Recognition

BIM Standards: Promote mutual recognition of ISO 19650 and China’s GB/T 51235 standards in pilot projects for landmark engineering projects to achieve interoperability of model data.
Construction Technology: The International Road Federation (IRF) leads the development of cross-border road construction technical standards to reduce cost losses caused by technical differences.

Green Certification System

Building Material Certification: The United Nations Environment Programme (UNEP) integrates low-carbon building material standards from the EU EN, China GB, and the US ASTM to establish a “Global Green Building Materials Passport.”
Project Certification: The World Bank promotes “Green Infrastructure Certification,” providing financial and policy support for low-carbon and environmentally friendly road and bridge projects.

Labor Force Skills Certification and Capacity Building

Establish an international certification alliance: Propose that the International Labor Organization take the lead in establishing a “Global Infrastructure Skills Certification Alliance” to unify international assessment standards for 10 core occupations, such as road engineers, and eliminate barriers to cross-border employment qualifications through a dual-track model of “local certification + international additional certification.”
Establish Regional Conversion Centers: It is recommended to set up skill standard conversion centers in major regional areas across continents. These centers would adapt mature standards such as China’s disaster-resistant construction techniques and Europe’s smart equipment operation protocols into localized training systems, supported by World Bank special loans to fund certification infrastructure development.
Establish a cross-border talent pool: Propose the establishment of a “cross-border infrastructure talent pool” under the G20 framework, integrating the resources of 3,000 global technical experts to establish a remote guidance mechanism. This would facilitate pilot programs for mutual recognition of skill training standards between developed countries and emerging markets, addressing the issue of weak technical certification capabilities in developing countries.

Industry Opportunities and Challenges

Opportunity

Global infrastructure demand is surging: Accelerated urbanization in emerging economies, such as India and Southeast Asian countries, where road density is insufficient, is driving an annual investment demand exceeding US$1.2 trillion due to infrastructure gaps. In developed countries, aging infrastructure urgently needs to be updated; over 40% of bridges in the United States have been in service for over 50 years, stimulating the market for retrofitting existing infrastructure.
Technology innovation driving upgrades: BIM and digital twin technologies can reduce on-site changes by 60%, while smart equipment boosts construction efficiency by 30-50%. 3D printing holds significant potential for emergency engineering applications, and the adoption of new technologies creates premium value for projects.
Green finance policy benefits: The Global Infrastructure Climate Fund is projected to reach 50 billion USD by 2030, providing low-interest loans and subsidies for low-carbon projects. The EU carbon tariff is driving companies to adopt green technologies, creating emerging markets for recycled materials and photovoltaic road surfaces.
Deepening regional cooperation: Initiatives like the Belt and Road Initiative and the ASEAN Highway Network are driving the implementation of cross-border projects, promoting the export of technology and standards; the EU’s TEN-T plan is enhancing regional connectivity, unlocking cross-border infrastructure demand.

Challenges

Geopolitical and supply chain risks: Trade frictions and regional conflicts lead to fluctuations in raw material prices (e.g., the Russia-Ukraine conflict caused European steel prices to fluctuate by 35%), and some countries restrict exports of key equipment, threatening supply chain stability.
Technological Iteration and Competitive Pressure: Tech giants are entering new sectors (e.g., Huawei’s smart highway solutions), posing a risk of technological disintermediation for traditional companies; emerging companies are leveraging niche technologies such as 3D printing and AI monitoring to capture market share.
Rising ESG Compliance Costs: The EU’s Carbon Border Adjustment Mechanism (CBAM) requires traceability of building materials’ carbon footprints, increasing project certification costs by 40%; stricter environmental regulations in various countries have resulted in less than 50% of projects in rainforest areas passing environmental impact assessments, delaying construction progress.
Funding and financing challenges: Developing countries have limited fiscal capacity, and PPP projects are facing challenges due to long return cycles; developed countries are grappling with high local government debt, widening infrastructure funding gaps.

Green and Low-Carbon Transition in road and bridge construction

Technology integration and innovation in road and bridge construction

Countermeasures

Technology integration and innovation: Traditional enterprises and technology companies establish strategic alliances (such as China Communications Construction Company and Alibaba Cloud) to build “construction technology + IT” composite capabilities and accelerate the application of intelligent equipment and digital platforms.
Diversified supply chain layout: Establish regional material reserves (such as the ASEAN + 3 building material reserve) and sign long-term agreements with suppliers in multiple countries; set up localized production bases overseas to reduce transportation and policy risks.
Green and Low-Carbon Transition: Develop low-carbon materials (e.g., carbon dioxide-cured concrete) and optimize construction processes to reduce carbon emissions; apply for green finance certification to access low-cost funding support.
Localization and Risk Sharing: Adopt a “local procurement + labor training” model (e.g., ACS in Latin America) to enhance project social acceptance; use insurance and financial derivatives to hedge geopolitical and exchange rate risks.

Appendix

Data sources and references

Global Construction 2030: published by Global Construction Perspectives and Oxford Economics in 2023, with global infrastructure investment trend forecasts.
Global Infrastructure Outlook: launched by the G20 Global Infrastructure Hub in 2023, analyzing the global bridge and road investment gap.
World Road Statistics: released by the International Road Federation (IRF) in 2024, covering data on road bridge construction mileage and density in various countries.
Engineering News – Record Top 250: published by the ENR editorial department in 2024, presenting global contractor rankings and market distribution.
Bridge Engineering Handbook: published by CRC Press, 3rd edition (2023), author Wai – Fah Chen, Lian Duan, is a reference book on bridge engineering design and construction technology.
White Paper on Smart Construction Technology: jointly released by China Academy of Building Research and China Construction Technology in 2022, involving building information modeling (BIM) and digital twin applications.
Green Highway Construction Guide: jointly released by the World Bank and the Asian Development Bank in 2023, it stipulates the standards for green construction materials and energy-saving equipment.
Global Infrastructure Annual Review: released by McKinsey Global Institute (MGI) in 2024, including the return on investment and regional construction progress.
Urban Road and Bridge Engineering Construction Technology: edited by Zhang Jianzhong, published by China Construction Industry Press in 2023, focusing on urban road and bridge construction technology and construction management.
World Bridge Yearbook: compiled by the editorial board of the World Bridge Association in 2024, including cases and technical statistics of key bridge projects around the world.
Global Infrastructure Investment Report: released by the Oxford Economics Research Institute in 2023, analyzing the scale and distribution of global infrastructure investment.
Asian Infrastructure Investment Report: released by the Asian Infrastructure Investment Bank Research Center in 2024, explaining the current status of road and bridge investment in Asia.
Road and Bridge Engineering: published by Elsevier, written by Li Zhang and Meng Chu in 2023, discussing new materials and technologies in road and bridge construction.
“Blue Book on Intelligent Transportation and Infrastructure Development”: released by the Civil Engineering Department of the Chinese Academy of Engineering in 2023, involving intelligent construction and coordinated transportation management.
“Global Transportation Sustainability Index Report”: released by the Research Department of the International Transport Forum (ITF) in 2023, assessing the carbon footprint of transportation construction in various countries.

Explanation of industry terminology

BIM (Building Information Modeling): A digital modeling system used for the entire lifecycle management of construction and engineering projects, enabling collaboration and visualization across design, construction, and operations.
Digital Twin: A real-time digital model synchronized with physical entities, used for dynamic monitoring and predicting system status.
Structural Health Monitoring (SHM): Utilizes sensors and data analysis to continuously monitor and assess the operational status and safety of structures such as bridges.
SPMT Modular Transport System: A specialized transport system composed of multiple independently controllable modular vehicles. Each modular vehicle has its own power, steering, and suspension systems, and operates in coordination through a central control system.
RTK (Real-Time Kinematic): A high-precision positioning technology used for real-time navigation of unmanned devices.
Modular Prefabrication: A construction method where components are standardized and manufactured in a factory and quickly assembled on-site.
Accelerated Bridge Construction (ABC): A construction process that accelerates bridge construction by adopting prefabricated components, jacking, and other technologies.
CIM (City Information Modeling): A city-level extension of BIM technology, supporting integrated management across multiple projects and systems.
Edge Computing: Processing data on devices near the source of data generation to reduce latency and improve efficiency.
Green Construction: Applying environmentally friendly materials and energy-saving processes throughout the construction lifecycle to reduce carbon emissions and environmental impact.
PPP (Public-Private Partnership): A public-private partnership model where the government and private enterprises collaborate to develop and operate infrastructure projects, reducing fiscal pressure and improving efficiency.
EPC (Engineering, Procurement, Construction): A design, procurement, and construction turnkey contracting model where a single contractor assumes full responsibility for the project, shortening the timeline and ensuring risk control.
FIDIC Contracts: Engineering contract templates developed by the International Federation of Consulting Engineers, widely used in international infrastructure projects.
DB (Design-Build): An integrated design and construction model where the same entity is responsible for both design and construction, improving communication efficiency and shortening project timelines.
BOT (Build-Operate-Transfer): A model where private enterprises initially invest in construction and operate the project for a period before transferring it to the government.
Construction Information Management: Real-time monitoring of construction site progress, costs, and quality through project management software and digital platforms.
Smart Construction Site: Combining IoT, cloud computing, and AI technologies to achieve automated and transparent management of the construction process.