North America Transportation Infrastructure Market Set to Surpass Valuation of USD 288.6 Billion By 2032, at 3.5% CAGR: Astute Analytica

Significant federal investments, including the IIJA and Canada Growth Fund, fuel a surge in North American transportation infrastructure, particularly in public transit, clean energy, and new construction. While funding gaps persist, the market exhibits strong growth potential driven by government initiatives and a focus on sustainability.

New Delhi, April 09, 2024 (GLOBE NEWSWIRE) — According to the latest research by Astute Analytica, the North America transportation infrastructure market is projected to reach US$ 288.6 billion by 2032, up from US$ 211.8 billion in 2023, at a CAGR of 3.5% during the forecast period 2024–2032.

In the US, there are a staggering 4.4 million lane miles of roads. Unfortunately, a significant 11.2% of US bridges are rated deficient or functionally obsolete, while traffic congestion costs each driver an average of $1,348 annually. Canada also places heavy reliance on roads, though their network is in slightly better condition, with 68% of paved roads being in good condition. However, just like in the US, vehicle theft remains an issue, with a rate of 2.24 thefts per 1,000 vehicles. Public transit in the US transportation infrastructure market sees a daily ridership of 10.7 million trips. Comparatively, 31% of Canadians regularly commute via public transit. Some of the most iconic public transport systems are found in North America, including New York City’s sprawling subway with 472 stations and the Toronto subway system spanning 76.9 kilometers. However, the average age of US light rail vehicles is 20.4 years, highlighting an area for potential modernization.

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Freight and Trade Highlights the Interconnectedness of US and Canadian Economies

A considerable 72.5% of freight within the US is moved by trucks. The value of goods traded between these two neighbors sits at a substantial $690.4 billion annually. Maritime transport also remains crucial with 160 Great Lakes ports in the US and Canadian ports collectively handling 700 million tonnes of cargo each year. Both countries also benefit from a network of international airports, 15 of which are located throughout the US.

The US transportation infrastructure market  has an estimated annual infrastructure investment gap of $2.58 trillion, with transportation being a major sector in need. The federal government allocates approximately 2.0% of US GDP towards transportation infrastructure, while Canada fares lower with 0.7%. The private sector’s role in the US is increasing, though its contribution varies project by project. A specific area of concern is the $125 billion price tag for repairing US bridges. The US records 1.33 traffic fatalities per 100 million miles driven, a figure exceeding Canada’s 5.1 fatalities per 100,000 population. Both countries have opportunities for improvement and are actively looking into ways to enhance safety on their roadways and implement more sustainable transportation practices in the face of growing environmental concerns.

Key Findings in North America Transportation Infrastructure Market

Market Forecast (2032) US$ 288.6 Billion
CAGR 3.5%
By Type Roads & Highways (37.9%)
By Construction Type New Construction (73.3%)
By Mode of Transportation   Road transportation (51.2%)
By Infrastructure Purpose Public (63.3%)
By Application Rural (55.1%)
Top Trends
  • Focus on public transit expansion and modernization
  • Prioritization of clean energy infrastructure development
  • Increased adoption of technology-driven solutions for efficiency and safety
Top Drivers
  • Historic levels of federal investment (e.g., IIJA, Canada Growth Fund)
  • Rising demand for sustainable and accessible transportation options
  • Aging infrastructure necessitating repair and replacement
Top Challenges
  • Persistent funding shortfalls despite significant investments
  • Navigating the complexities of large-scale project implementation
  • Addressing the skilled labor shortage within the construction industry

Road & Highway Transportation Infrastructure Control Over 37% Revenue Share of Market

US infrastructure spending in 2022 experienced a 21% decrease compared to the COVID-19 fueled highs of 2021. However, spending levels remain 21% above where they were pre-pandemic in 2019. The federal government played a role with $36.6 billion in direct infrastructure investment and a further $94.5 billion transferred to states, giving a much needed boost to the transportation infrastructure market. State and local governments continue to be the primary source of highway and road infrastructure funding. They contributed $154 billion (or about three-quarters of the total) in 2020, with federal transfers making up the remaining $51 billion (25%). The Infrastructure Investment and Jobs Act is set to significantly alter this funding landscape, dedicating $110 billion specifically for roads and bridges, supporting major transformative projects over the next few years.

This landmark legislation commits a total of $550 billion in new spending across various infrastructure sectors in the transportation infrastructure market, revitalizing roads, bridges, railways, airports, internet access, and climate resilience. Importantly, the investment is projected to generate 1.5 million jobs throughout the U.S. workforce over the next decade. Road safety is a key beneficiary of the Act, with states receiving $886 million in highway safety formula grants in Fiscal Year 2023. These funds support initiatives tackling risky driving, protecting vulnerable road users, and bolstering safety programs. Reports from the National Highway Traffic Safety Administration (NHTSA) suggest a continued decline in traffic fatalities in the first half of 2023.

While significant investments are being made, infrastructure remains a prominent theme in political campaigns, tied to promises of improved roads, robust funding, and employment generated by infrastructure projects.  The reality is that current taxpayer-funded highway capital is inadequate to cover the full scope of necessary repairs in the US. The Federal Highway Administration’s Every Day Counts (EDC) program plays a crucial role by promoting the rapid adoption of innovations to enhance safety for all users, build sustainable infrastructure, and nurture an inclusive workforce within the sector.

North America’s Infrastructure Overhaul: New Construction Dominates the Landscape with Over 73.3% Market Share

The passage of the Infrastructure Investment and Jobs Act in November 2021 marked a significant milestone for the North American transportation infrastructure market. This legislation allocates a total of $550 billion in new spending, addressing the modernization of roads, bridges, railways, airports, internet access, and climate resilience initiatives. The substantial $110 billion dedicated specifically to roads and bridges will translate into transformative transportation projects and an estimated 1.5 million jobs added to the U.S. workforce over the next decade. Despite a 21% drop in spending in 2022 (attributed to the tapering of COVID-19 support measures), infrastructure and transportation expenditures remain 21% above 2019 pre-pandemic levels. The federal government remains a key player, investing $36.6 billion directly in infrastructure and disbursing an additional $94.5 billion in state transfers in 2022.

These unprecedented federal investments fuel a projected CAGR of more than 4.5% in the US Transportation Infrastructure Construction Market through 2027. The impact of the Infrastructure Investment and Jobs Act will become more prominent in 2024, with approximately $58.8 million allocated to transportation, broadband, climate, and energy construction projects. State and local governments also play a crucial role, with their substantial infrastructure investments significantly boosting the construction industry.

Furthermore, the Inflation Reduction Act opens up additional avenues for the construction sector in the transportation infrastructure market across North America. Tax credits and energy incentives aimed at expanding clean energy infrastructure will create new opportunities, with funding options available through late 2024. These legislative initiatives have already translated into tangible results – transportation infrastructure construction spending saw a 9.4% year-over-year increase in August 2023. While a significant portion of the Infrastructure Investment and Jobs Act funding is directed towards public utility projects (around 66%), Invest.gov tracks over $350 billion in announced funding through October 2023, with half of that centered on major road and bridge projects. This signifies a surge in new construction activities set to reshape the North American transportation and infrastructure landscape.

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Public Projects to Dominate the North America Transportation Infrastructure Market, Contribute Over 63.3% Revenue

The Infrastructure Investment and Jobs Act (IIJA) is a catalyst for significant changes in the North American infrastructure landscape, with an estimated $550 billion in federal investment over the next five years. Focus areas like broadband, public transportation, water infrastructure, and clean energy are seeing an influx of funding tracked by Invest.gov. With $58.8 million allocated to transportation, broadband, climate, and energy construction projects, 2024 could see further growth driven by IIJA funds. This trend is bolstered by substantial investments from state and local governments. These factors contribute to a projected CAGR exceeding 4.5% for the US Transportation Infrastructure Construction Market through 2027.

The IIJA earmarks $39 billion to enhance public transit and accessibility, along with an additional $66 billion to address Amtrak’s maintenance backlog, modernize northeast corridors, and expand rail service. The Federal Transit Administration (FTA) in the transportation infrastructure market has announced $1.7 billion in IIJA grants for bus fleet and facility upgrades. Canada is also making infrastructure strides with the Canada Growth Fund, proposing $40 billion in investment over the next decade to bolster new technologies and large-scale projects.

Despite these positive developments in the transportation infrastructure market, challenges remain. The FTA estimates a $105 billion backlog for transit repairs, a $43 billion need for bus rapid transit routes, and a $37 billion need for light rail transit. The COVID-19 pandemic caused a $39.3 billion shortfall for U.S. transit agencies through 2023. Canada faces its own challenges, but initiatives like the Active Transportation Fund ($400 million over five years) and the Permanent Public Transit Fund ($3 billion per year starting in 2026-27) indicate a commitment to sustainable and accessible transportation infrastructure.

North America Transportation Infrastructure Market Key Players

  • ACS Group
  • AECOM
  • Bechtel Corporation
  • CK Hutchison Holdings Limited
  • Fluor Corporation
  • HDR, Inc.
  • Jacobs Engineering Group
  • Kiewit Corporation
  • Kraemer North America
  • Larsen & Toubro Limited
  • OHLA USA
  • Parsons Corporation
  • Skanska USA Inc.
  • The Bouygues Group
  • VINCI Construction
  • Other Prominent Players

Key Segmentation:

By Type

  • Roads and Highways
  • Bridges and Tunnels
  • Rail and Trams
  • Waterways
  • Ports and Harbors
  • Airports
  • Bike Paths and Walkways
  • Others

By Construction Type

  • New Construction
  • Renovation

By Mode of Transportation

  • Road Transportation
  • Rail Transportation
  • Air Transportation
  • Maritime Transportation

By Infrastructure Purpose

  • Public
  • Commercial
    • Freight
    • Passenger

By Application

  • Urban
  • Rural

By Country

  • The US
  • Canada
  • Mexico

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About Astute Analytica

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