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Road & Railway Construction in Europe - Market Size, Industry Analysis, Trends and Forecasts (2024-2029)

ISIC 421 March 2024 Spotlight Report

Revenue

€252.2bn

2019-2024 1.7 %
2024-2029 X.X %

Employees

2m

2019-2024 6.5 %
2024-2029 X.X %

Businesses

78,700

2019-2024 4.6 %
2024-2029 X.X %

Wages

€XX.Xbn

2019-2024 X.X %
2024-2029 X.X %

Road & Railway Construction in Europe industry analysis

Construction work on Europe’s extensive transport network is essential to keeping the continent moving. Maintaining and upgrading transport infrastructure in Europe typically falls on the government, with private contractors tendered to carry out necessary works. Strong investment to increase connectivity across the continent has supported strong output in recent years, though recent inflationary pressures have threatened growth. Over the five years through 2024, revenue is slated to decline at a compound annual rate of 1.7% to €252.2 billion, including an expected contraction of 2.8% in 2024.

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Industry Statistics and Trends

Road & Railway Construction in Europe key trends

Government funding dictates output.

 

Investment in transport infrastructure has shaped activity, with efforts to expand connectivity across continental Europe spurring tender opportunities.

Supply chain disruption hits order books.

 

Significant project delays and cost overruns have led to some projects being shelved.

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Road & Railway Construction in Europe

Industry Revenue

Total value and annual change from 2011-2029. Includes 5-year outlook.

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Road & Railway Construction in Europe market size (2019-2024)

Industry revenue has declined at a CAGR of 1.7 % over the past five years, to reach an estimated €252.2bn in 2024.

Trends and Insights

Major transport investment packages underpin work for road and motorway contractors

  • The European Commission has committed €30.6 billion to the Connecting Europe Facility (CEF) between 2021 and 2027, unlocking significant investment in transport, energy and digital projects to facilitate increased connectivity between EU nations.

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Road & Railway Construction in Europe outlook (2024-2029)

Market size is projected to grow over the next five years.

Recent spending cutbacks dampen growth prospects

  • Recent cost hikes proved the final straw for the UK’s planned high-speed rail link, HS2, with the Northern leg of the project scrapped in 2023.

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Revenue

€252.2bn

2019-2024 1.7 %
2024-2029 X.X %

Employees

2m

2019-2024 6.5 %
2024-2029 X.X %

Wages

€XX.Xbn

2019-2024 X.X %
2024-2029 X.X %

European Leaders & Laggards

Europe Job Growth CAGR: 6.5 % *
  • Job Growth

Top 5 Countries

  1. Croatia +14.2%
  2. Romania +14.0%
  3. Bulgaria +12.7%
  4. Estonia +12.5%
  5. Russia +12.4%

Bottom 5 Countries

  1. Cyprus -7.4%
  2. Malta -3.2%
  3. Belgium -2.8%
  4. Iceland -1.4%
  5. Latvia -0.7%

* CAGR values are for the years 2019-2024.

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Biggest companies in the Road & Railway Construction in Europe

Company
Market Share (%)
2024
Revenue (€m)
2024
Profit (€m)
2024
Profit Margin (%)
2024
Colas SA
16,000.1
415.1
2.6
Strabag SE
17,765.8
757.3
4.3
Eiffage SA
22,494.0
2,284.6
10.2

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Road & Railway Construction in Europe

Products & Services Segmentation

Industry revenue broken down by key product and services lines.

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Top Questions Answered in this Report

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What is the market size of the Road & Railway Construction industry in Europe in 2024?

The market size of the Road & Railway Construction industry in Europe is €252.2bn in 2024.

How many businesses are there in the Road & Railway Construction in Europe industry in 2024?

There are 78,700 businesses in the Road & Railway Construction industry in Europe, which has grown at a CAGR of 4.6 % between 2019 and 2024.

Has the Road & Railway Construction industry in Europe grown or declined over the past 5 years?

The market size of the Road & Railway Construction industry in Europe has been declining at a CAGR of 1.7 % between 2019 and 2024.

What is the forecast growth of the Road & Railway Construction industry in Europe over the next 5 years?

Over the next five years, the Road & Railway Construction industry in Europe is expected to grow.

What does the Road & Railway Construction in Europe include?

Road and motorway construction and Railway and underground railway construction are part of the Road & Railway Construction industry.

Which countries have the most businesses in the Road & Railway Construction industry in Europe?

The European country with the most businesses in the Road & Railway Construction industry is Poland.

How competitive is the Road & Railway Construction industry in Europe?

The level of competition is high and steady in the Road & Railway Construction industry in Europe.

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Table of Contents

About this industry

Industry definition

Contractors in the industry build, repair and alter transport infrastructure, including roads, motorways, railways, subways, bridges, tunnels and airfield runways.

Related Terms

Public Private Partnerships (Ppps)Smart MotorwayDecarbonisation

What's included in this industry?

Road and motorway constructionRailway and underground railway constructionBridge and tunnel construction

Companies

Colas SAStrabag SEEiffage SA

Industry Code

ISIC 2006

421 - Construction of roads and railways in Europe

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Performance

Key Takeaways

Major transport investment packages underpin work for road and motorway contractors

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Revenue Highlights

Trends
  • Revenue
  • 2024 Revenue Growth
  • Revenue Volatility

Employment Highlights

Trends
  • Employees
  • Employees per Business
  • Revenue per Employee

Business Highlights

Trends
  • Businesses
  • Employees per Business
  • Revenue per Business

Profit Highlights

Trends
  • Total Profit
  • Profit Margin
  • Profit per Business

Current Performance

Charts
  • Revenue in the Road & Railway Construction in Europe industry (2011 -2029)
  • Employees in the Road & Railway Construction in Europe industry (2011 -2029)
  • Business in the Road & Railway Construction in Europe industry (2011 -2029)
  • Profit in the Road & Railway Construction in Europe industry (2011 -2029)
Analysis

What's driving current industry performance in the Road & Railway Construction in Europe industry?


Outlook

Analysis

What's driving the Road & Railway Construction in Europe industry outlook?


Volatility

Analysis

What influences volatility in the Road & Railway Construction in Europe industry?

Charts
  • Industry Volatility vs. Revenue Growth Matrix

Life Cycle

Analysis

What determines the industry life cycle stage in the Road & Railway Construction in Europe industry?

Charts
  • Industry Life Cycle Matrix

Products and Markets

Highlights

Trends
  • Largest Market
  • Product Innovation

Key Takeaways

New cross-border transport connections drive construction activity. Efforts to increase connectivity across the continent have created tender opportunities for road, rail and tunnel construction contractors.

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Products and Services

Charts
  • Products and Services Segmentation
Analysis

How are the Road & Railway Construction in Europe industry's products and services performing?

Analysis

What are innovations in the Road & Railway Construction in Europe industry's products and services?


Major Markets

Charts
  • Major Market Segmentation
Analysis

What influences demand in the Road & Railway Construction in Europe industry?


International Trade

Highlights

  • Largest Importer
  • Smallest Importer
  • Total Imports into Europe
  • Largest Exporter
  • Smallest Exporter
  • Total Exports into Europe
Heat maps
  • Industry Concentration of Imports by Country
  • Industry Concentration of Exports by Country
Data Tables

Value and annual change (%) included

  • Number of Imports and Exports by European Country (2024)

Geographic Breakdown

Business Locations

Heat maps
  • Share of Total Industry Revenue by Region (2024)
  • Share of Total Industry Enterprises by Region (2024)
  • Share of Total Industry Employment by Region (2024)
  • Share of Total Industry Wages by Region (2024)

Industry Geographic Breakdown

Data Tables

Values and annual change provided for 37 European countries:

  • Revenue (2024)
  • IVA (2024)
  • Enterprises (2024)
  • Employment (2024)
  • Exports (2024)
  • Imports (2024)

Competitive Forces

Highlights

Trends
  • Concentration
  • Competition
  • Barriers to Entry
  • Substitutes
  • Buyer Power
  • Supplier Power

Key Takeaways

The scale of Europe’s transport network ensures opportunities remain for smaller contractors. Smaller contractors account for a significant market share, mainly competing for low-value maintenance contracts on local transport networks.

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Supply Chain

Charts

Buyer and supply industries

Companies

Market Share

Charts
  • Industry Market Share by Company (2019-2024)

Companies

Data Tables

Top 8 companies by market share:

  • Market share (2024)
  • Revenue (2024)
  • Profit (2024)
  • Profit Margin (2024)

Data Tables
  • Countries of operation for Colas SA
  • Countries of operation for Strabag SE
  • Countries of operation for Eiffage SA
  • Countries of operation for Skanska AB
  • Countries of operation for ACS Actividades de Construcción y Servicios SA
  • Countries of operation for Ferrovial SA
  • Countries of operation for Amey UK Ltd
  • Countries of operation for Costain Ltd

External Environment

Highlights

Trends
  • Regulation & Policy
  • Assistance

Key Takeaways

Major road and rail building projects must be assessed for their impact on the environment. Major transport construction projects are evaluated based on their impact on a range of environmental factors.

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External Drivers

Analysis

What demographic and macroeconomic factors impact the Road & Railway Construction in Europe industry?

Financial Benchmarks

Highlights

Trends
  • Profit Margin
  • Average Wage
  • Largest Cost

Key Takeaways

Soaring costs hit profitability. A surge in the cost of key construction materials has prevented a return to pre-pandemic levels of profitability.

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Cost Structure

Charts
  • Share of Economy vs. Investment Matrix
  • Industry Cost Structure Benchmarks:
    • Marketing
    • Depreciation
    • Profit
    • Purchases
    • Wages
    • Rent
    • Utilities
    • Other
Analysis

What trends impact cost in the Road & Railway Construction in Europe industry?


Key Ratios

Data tables
  • IVA/Revenue (2014-2029)
  • Imports/Demand (2014-2029)
  • Exports/Revenue (2014-2029)
  • Revenue per Employee (2014-2029)
  • Wages/Revenue (2014-2029)
  • Employees per Establishment (2014-2029)
  • Average Wage (2014-2029)

Country Benchmarks

European Leaders & Laggards

Data Tables

Top and boottom five countries listed for each:

  • Revenue Growth (2024)
  • Business Growth (2024)
  • Job Growth (2024)

European Country Performance

Data Tables

Rankings available for 37 countries. Statistics ranked include:

  • IVA/Revenue (2024)
  • Imports/Demand (2024)
  • Exports/Revenue (2024)
  • Revenue per Employee (2024)
  • Wages/Revenue (2024)
  • Employees per Establishment (2024)
  • Average Wage (2024)

Structural Comparison

Data Tables

Trends in 37 countries benchmarked against trends in Europe

  • Concentration
  • Competition
  • Barriers to Entry
  • Buyer Power
  • Supplier Power
  • Volatility
  • Capital Intensity
  • Innovation
  • Life Cycle

Key Statistics

Industry Data

Data Tables

Including values and annual change:

  • Revenue (2014-2029)
  • IVA (2014-2029)
  • Establishments (2014-2029)
  • Enterprises (2014-2029)
  • Employment (2014-2029)
  • Exports (2014-2029)
  • Imports (2014-2029)
  • Wages (2014-2029)

Methodology

Where does IBISWorld source its data?

IBISWorld is a world-leading provider of business information, with reports on 5,000+ industries in Australia, New Zealand, North America, Europe and China. Our expert industry analysts start with official, verified and publicly available sources of data to build an accurate picture of each industry.

Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and IBISWorld's proprietary database of statistics and analysis to provide balanced, independent and accurate insights. 

IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools.

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