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22 October 2025
Infrastructure is the invisible engine of modern life—powering mobility, enabling trade, and connecting communities. From roads, rail, and airports to water networks, energy grids, and digital systems, the foundations of infrastructure are critical for economic growth and social well-being. In today’s globalized economy, the United States and Europe stand out as two of the most important infrastructure markets.
Both regions share a common challenge: aging assets and rising demand. Yet their approaches diverge significantly—the U.S. relies heavily on modernization and technological adoption, while Europe is leading the way in green and sustainable infrastructure.
Before comparing the two regions, it helps to understand the global backdrop. The global infrastructure sector reached USD 3.82 trillion in 2025, with projections to hit USD 5.18 trillion by 2030, growing at a 6.3% CAGR.1 While Asia-Pacific dominates with nearly half of global revenue, North America and Europe together account for more than a quarter of global spending, making them key drivers of industry direction.
This scale highlights why infrastructure is often referred to as the backbone of the economy. Every percentage point of investment here multiplies across industries—from real estate and manufacturing to technology and energy.
Market Size & Growth
North America’s infrastructure construction market is valued at USD 287.27 billion in 2025 and is projected to reach USD 362.13 billion by 2030, growing at 4.74% CAGR. The United States represents over 80% of this market, reflecting its sheer scale.2 The momentum is the Infrastructure Investment and Jobs Act (IIJA)—a USD 1.2 trillion federal package designed to rebuild roads, bridges, water systems, and expand digital infrastructure.3 Alongside, the Inflation Reduction Act (IRA) is channeling billions into clean energy and EV adoption.
By country, the United States dominated with 81% of the North American transportation infrastructure construction market share in 2024.
Key Priorities
• Transportation Backbone: The United States has budgeted more than USD 350 billion for federal highway programs through 2026, with formula allocations and competitive grants already supporting more than 66,000 projects and sustaining nearly 1 million construction jobs. roadways led with a 54% share of the North American transportation infrastructure construction market in 2024; railways is forecast to expand at a 5.62% CAGR through 2030.
• Renovation & Resilience: An expanding share of public dollars is earmarked for repairing infrastructure rated structurally deficient. The 2025 Infrastructure Report Card shows 6.7% of U.S. bridges in poor condition, prompting large-scale rehabilitation programs such as the Portal North Bridge upgrade, now three-quarters complete, and New York’s Grand Central Artery restoration.
• Digital Push: Investments in sensor-enabled smart highways, digital twins, and AI- driven traffic management reflect the U.S.’s tech-first mindset.
• Climate & Green Transition: EV charging infrastructure, resilient coastal defenses, and renewable-powered grids are rapidly scaling, supported by tax credits and federal subsidies.
• The Metropolitan Transportation Authority’s USD 68.4 billion capital plan prioritises power-system upgrades and flood resilience, signalling a pivot to performance-based asset management instead of piecemeal repairs.2 In essence, the U.S. model is about renewal and digital innovation, with a strong blend of federal funding and private participation.
Market Size & Growth
The Europe Infrastructure Construction Market Size was estimated at 639.05 (USD Million) in 2024. The Europe Infrastructure Construction Industry is expected to grow from 671(USD Million) in 2025 to 1,146 (USD Million) by 2035. The Europe Infrastructure Construction Market CAGR (growth rate) is expected to be around 4.986% during the forecast period.4 Unlike the U.S., Europe’s growth is policy-driven—anchored in the European Green Deal and Trans-European Transport Network (TEN-T) strategy. The focus is not just building more but building sustainably and creating multimodal connectivity across EU.5
Key Priorities
1. Multimodal Connectivity: The TEN-T network integrates railways, waterways, and airports across borders. Projects like the Grand Paris Express (EUR 35 billion)6 and Spain’s EUR 24.2 billion rail plan7 underline Europe’s commitment to rail and metro connectivity.
2. Green Infrastructure Leadership: The European Green Deal aims to 55% cut in net emissions by 2030 and a 90% reduction for 2040. Here, Infrastructure plays a central role whether it’s hydrogen corridors, renewable grids, or low-carbon transport hubs. A commitment of €275 billion in clean investments and 42 % of funds dedicated to climate action. Clean energy infrastructure initiatives include accelerated permitting for renewables and EV charging stations every 60 km.8
3. Smart Cities & Renovation: Europe is investing in energy-efficient retrofits and digital technologies like Building Information Modeling (BIM) and IoT-enabled urban utilities. Renovating both public and private buildings was singled out in the European Green Deal as a key initiative to drive energy efficiency in the sector and deliver on objectives. The Renovation Wave aims to renovate 35 million buildings by 2030, at least doubling the annual rate of energy renovations in the EU.9
4.Increased Government Investment in Infrastructure: The European Union has been prioritizing infrastructure development to enhance connectivity and economic growth, with plans to invest approximately 1 trillion Euros into green and digital projects through the Next Generation EU initiative. This investment is expected to foster job creation and stimulate the Europe Infrastructure Construction Market Industry significantly. According to the European Commission, for every Euro invested in public infrastructure, the economy can benefit from an average return of 3 Euros.4
Europe’s model is about sustainability, connectivity, and long-term planning.
Both regions face shared headwinds: labor shortages, material cost volatility, and the need to speed up permitting processes. But their future directions highlight different strengths:
• U.S. Future Path: Likely to double down on digital-first and resilient infrastructure, with continued growth in smart mobility systems, AI-led asset monitoring, and private capital inflows.
• Europe Future Path: Will continue to lead in green and climate-conscious infrastructure, aiming for carbon-neutral cities, energy-positive buildings, and hydrogen-powered logistics networks by 2050.
• The U.S. is prioritizing modernization, resilience, and digital adoption—backed by massive federal stimulus and private-capital inflows. Its strength lies in innovation and technology-driven delivery.
• Europe, in contrast, focuses on connectivity, green transitions, and multimodal transport integration under centralized EU strategies. Its strength lies in sustainability and long-term planning.
• Both regions face skilled-labor shortages and rising costs, yet their investments are reshaping the global infrastructure market.