Market Overview – Infrastructure Services
- Global infrastructure investment needs are estimated to exceed $106 trillion through 2040, yet public budgets continue to lag, creating a financing gap that private equity and infrastructure funds are eager to fill. Recent volatility in energy markets, coupled with mounting geopolitical tensions, has reinforced the importance of resilient, domestically anchored infrastructure systems.
- Renewables, storage, and EV charging infrastructure are drawing significant CapEx. U.S. publicly traded utilities are forecasting record capital expenditures of over $212.1B in 2025, focused on grid reliability, transmission upgrades, and distributed energy resources. Demand is outpacing regulatory approvals, leading to consolidation among engineering, procurement, and construction service providers.
- Explosive AI adoption has created unprecedented demand for power, fiber, and cooling infrastructure. U.S. data center capacity is projected to more than double by 2028. However, energy intensity is pushing utilities to modernize grids and expand renewable capacity, tying digital infrastructure growth directly to power grid investment.
- Persistent labor shortages continue to be one of the most significant constraints on infrastructure delivery in 2025. The construction industry entered the year with more than ~439,000 open positions in the U.S and demographic headwinds suggest the gap will widen as older skilled tradesmen retire faster than replacements enter the field.
- Private equity dry powder remains elevated at ~$2.5 trillion globally, with infrastructure a top allocation target. 2025 has already seen a strong pace of platform acquisitions in engineering services, data center operators, and maintenance providers.
Market Overview – Heavy and Civil Infrastructure
- Over the forecasted period from 2025 to 2031, the global heavy and civil infrastructure market size is expected to grow at a CAGR of 6.8% from $9.8 trillion in 2025 to $14.5 trillion by 2031.
- The U.S. heavy and civil construction industry entered 2025 in a mixed but stable position, with revenue reaching roughly $49.2 billion and a modest growth outlook of 1.7% annually through 2030. The industry’s performance is driven heavily by public funding, which accounts for more than two-thirds of total revenue.
- Mass transit and railroad construction dominates the industry, generating over 40% of total revenue. Growth in this segment is being supported by increasing urbanization, environmental awareness, and demand for sustainable transportation systems. Other key areas include conservation and development projects, hydroelectric power plants, and port construction, each benefiting from climate adaptation and trade-related infrastructure upgrades.
- The industry remains mature and moderately concentrated, with large players such as Bechtel Corporation and AECOM capturing a combined 6% of market share while thousands of small firms operate regionally. Looking forward, growth will depend on balancing public funding stability with expanding private participation through public-private partnerships.
- Companies like Weeks Marine and Manson Construction have secured large-scale contracts tied to port expansion and coastal protection, including projects such as the Staten Island Living Breakwaters and new dredging initiatives in the Gulf Coast. As global trade volumes rebound and larger cargo ships require deeper channels, this marine-focused segment is positioned for sustained growth over the next several years.
As of mid-2025, public-sector project bids are up 3.4% year-over-year
Large-scale “megaprojects” valued at $1 billion or more have become a key growth driver, with approximately $120 billion in projects planned across the U.S. and Canada.
Falling interest rates and anticipated rate cuts through 2025 are expected to further strengthen the market.
Market Overview – Public Infrastructure
- While private infrastructure spending has moderated in recent years, public infrastructure investment in the U.S. has accelerated significantly, fueled by unprecedented federal funding and supportive monetary policy since late 2024.
- Enacted in 2021, the Infrastructure Investment and Jobs Act (IIJA), a landmark $1.2 trillion bipartisan package, has been a primary catalyst for this expansion. The legislation provides $550+ billion in new federal funding over five years to modernize transportation, water, power, and broadband systems, driving tens of thousands of projects nationwide. As of late 2024, more than 66,000 projects had been announced across all 50 states, spanning highways, bridges, transit systems, ports, and pipelines.
