Road & Highway Infrastructure Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented, By Road Type (National Highways, State Highways, and Others), By Components (Bridges/Tunnels/Culverts, Marking & Signage, Safety Equipment, Traffic Management System, and Others), By Process (Maintenance and Expansion), By Region, By Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 1.88 Trillion
CAGR (2026-2031)	11.02%
Fastest Growing Segment	Traffic Management System
Largest Market	North America
Market Size (2031)	USD 3.52 Trillion

Market Overview

The Global Road & Highway Infrastructure Market will grow from USD 1.88 Trillion in 2025 to USD 3.52 Trillion by 2031 at a 11.02% CAGR. Road and highway infrastructure encompasses the essential physical assets and engineering systems required for surface transportation, including paved roadways, bridges, tunnels, interchanges, and traffic management devices. The market is primarily propelled by rapid urbanization necessitating network expansion and substantial government fiscal stimulus programs aimed at rehabilitating aging transportation grids. These fundamental drivers are distinct from technological trends, as they address the core economic requirement for reliable physical connectivity and accessibility across both developing and developed nations.

According to the American Road & Transportation Builders Association, in 2024, public highway, pavement, and street construction activity was projected to reach $126 billion, representing a 16 percent increase over the previous year. Despite this robust capital injection, a significant challenge impeding broader market expansion is the persistent funding deficit, where rising material costs and limited public budget allocations frequently delay necessary maintenance and critical new construction projects.

Key Market Drivers

Significant Government Allocations for Infrastructure Modernization Initiatives act as a primary catalyst for the Global Road & Highway Infrastructure Market. Governments worldwide are prioritizing fiscal outlays to upgrade deteriorating networks and support economic logistics, directly translating into large-scale construction contracts. This funding is essential for bridging the gap between aging legacy systems and the capacity required for modern freight and passenger volumes. According to the India Brand Equity Foundation, in January 2026, the Union Budget 2025-26 allocated approximately US$ 33.07 billion to the Ministry of Road Transport and Highways, reflecting a continued emphasis on expanding the national network. Such capital injections ensure a steady pipeline of projects for engineering and construction firms globally while addressing the critical need for robust surface transport connectivity.

Integration of Intelligent Transportation Systems (ITS) and Smart Highway Technologies is simultaneously reshaping market demand by shifting focus from static paving to digital mobility solutions. Road operators are increasingly deploying sensor-based infrastructure, automated traffic management, and connected vehicle environments to optimize safety and throughput without physically widening roadways. According to the U.S. Department of Transportation, in May 2025, the agency announced $85 million in Stage 2 Strengthening Mobility and Revolutionizing Transportation grants to support advanced community technology projects. This technological shift is complemented by massive physical expansion in key Asian markets. According to Yicai Global, in July 2025, China invested CNY 1.2 trillion (US$ 167.5 billion) in transportation infrastructure during the first five months of the year, underscoring the dual trajectory of digital modernization and physical capacity growth driving the sector.

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Key Market Challenges

The persistent funding deficit constitutes a substantial restraint on the global road and highway infrastructure market. While demand for connectivity grows, financial limitations coupled with escalating raw material prices create a distinct gap between planned infrastructure goals and actual execution. This fiscal strain forces governments and contractors to defer essential maintenance and delay the initiation of critical new construction phases. As input costs for core materials fluctuate, fixed public budgets lose their purchasing power, leading to reduced project scopes or extended timelines that dampen overall market momentum.

This shortfall in capital allocation results in an accumulating backlog of repairs that further exacerbates the financial burden on the sector. According to the Asphalt Industry Alliance, in 2024, the one-time catch-up cost required to bring the local road network in England and Wales up to a serviceable standard reached £16.3 billion. Such significant financial disparities indicate that despite available fiscal stimulus, the actual deployment of funds struggles to keep pace with the deterioration of existing assets. Consequently, the market faces a challenging cycle where the cost of deferred maintenance restricts the capital available for necessary expansion.

Key Market Trends

The adoption of recycled and green paving materials is fundamentally altering the material supply chain within the global road infrastructure sector. Stakeholders are increasingly substituting virgin aggregates and energy-intensive binders with circular alternatives like Recycled Asphalt Pavement (RAP) and warm-mix technologies to meet rigorous decarbonization targets. This shift not only mitigates environmental impact but also addresses volatile input costs by maximizing resource efficiency during procurement and application phases. According to the National Asphalt Pavement Association, May 2024, in the '14th Annual Asphalt Pavement Industry Survey', mixtures produced with Warm-Mix Asphalt (WMA) technologies constituted 39.1 percent of the total estimated asphalt mixture market during the 2023 construction season, highlighting the substantial scale of this transition toward sustainable production methods.

The implementation of Building Information Modeling (BIM) and digital twins is simultaneously revolutionizing project delivery and long-term asset lifecycle management. Engineering firms are moving beyond static design drawings to dynamic, multi-dimensional models that predict construction conflicts and optimize subsurface utility mapping before the physical breaking of ground. This digitization reduces costly rework and accelerates timeline adherence for complex highway expansions by creating a precise virtual representation of the physical asset. According to Bentley Systems, October 2024, in the '2024 Infrastructure Yearbook', the deployment of advanced 3D subsurface modeling on a large-scale infrastructure project in Victoria, Australia, resulted in cost savings of AUD 16 million and reduced engineering time by 1,500 hours, demonstrating the tangible economic value of digital construction workflows.

Segmental Insights

The Traffic Management System segment represents the fastest-growing category in the Global Road & Highway Infrastructure Market. This rapid expansion is driven by the escalating need to address traffic congestion and enhance commuter safety in densely populated urban centers. Regulatory entities like the U.S. Department of Transportation are increasingly emphasizing the integration of intelligent transport frameworks to optimize traffic flow and reduce environmental impact. Consequently, public and private sector investments are shifting toward automated monitoring and control solutions to modernize aging infrastructure, making traffic management a vital component of future road development.

Regional Insights

North America maintains a dominant position in the global road and highway infrastructure market, driven by extensive federal initiatives to rehabilitate aging transportation networks. The United States Department of Transportation plays a central role in this expansion by allocating significant capital toward the repair and development of interstate systems. Furthermore, strong regulatory frameworks ensure consistent project execution and adherence to safety standards, fostering a stable environment for infrastructure development. This sustained focus on maintaining structural integrity and enhancing long-distance connectivity supports the region's continued leadership in the global sector.

Recent Developments

• In December 2024, CRH, through its subsidiary Tarmac, successfully delivered a breakthrough road resurfacing trial on the A64 highway in the United Kingdom that achieved a 75 percent reduction in carbon emissions compared to traditional methods. The project utilized a range of innovative technologies, including a bio-component binder that locks carbon into the road surface and the use of 40 percent recycled asphalt in the lower pavement layers. This research-led initiative, conducted in collaboration with National Highways, demonstrated the viability of net-zero road maintenance techniques and involved the use of electric plant equipment to further minimize the environmental impact of highway infrastructure works.
• In July 2024, Heidelberg Materials entered into a definitive purchase agreement to acquire Highway Materials, Inc., one of the largest independent aggregates and asphalt producers in the Greater Philadelphia market. This acquisition includes four crushed stone quarries, nine hot-mix asphalt plants, and a concrete recycling facility, significantly strengthening Heidelberg Materials' footprint in the United States road infrastructure market. The move aligns with the company's strategy to optimize its portfolio in core growth markets and expand its capabilities in sustainable road building through increased recycling operations and local material supply.
• In May 2024, Cemex introduced a new asphalt product named Vialayer, specifically designed to improve the durability of urban roads and highway infrastructure. The solution is an enhanced Stone Mastic Asphalt (SMA) surface course developed to address common road defects such as potholes, deformation, and premature cracking. Vialayer offers increased stiffness and deformation resistance, making it suitable for high-traffic areas and reducing the long-term maintenance costs for local authorities and infrastructure operators. This product launch expands Cemex’s portfolio of urbanization solutions aimed at creating more resilient and long-lasting road networks.
• In February 2024, John Deere announced a strategic partnership with Leica Geosystems to accelerate the digital transformation of the heavy construction industry, specifically within the road and highway infrastructure sector. This collaboration involves integrating Leica Geosystems' positioning and sensor technology with John Deere’s SmartGrade construction equipment. The partnership aims to deliver factory-installed grade control solutions that reduce material costs and the number of passes required for road grading, thereby improving productivity and safety on job sites. The technology is designed to enhance the precision of earthmoving and paving operations, which are critical for highway construction.

Key Market Players

• Vinci SA
• Bechtel Corporation
• Bouygues SA
• Siemens AG
• Hitachi Ltd.
• Skanska AB
• ACS Group
• China Communications Construction Company

By Road Type	By Components	By Process	By Region
National Highways State Highways and Others	Bridges/Tunnels/Culverts Marking & Signage Safety Equipment Traffic Management System and Others	Maintenance and Expansion	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Road & Highway Infrastructure Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Road & Highway Infrastructure Market, By Road Type:

• National Highways
• State Highways
• and Others

• Road & Highway Infrastructure Market, By Components:

• Bridges/Tunnels/Culverts
• Marking & Signage
• Safety Equipment
• Traffic Management System
• and Others

• Road & Highway Infrastructure Market, By Process:

• Maintenance and Expansion

• Road & Highway Infrastructure Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE