Report Overview

Urbanization and population growth and government initiatives and policies are expected to boost the growth of Saudi Arabia Transportation Infrastructure Construction Market during the forecast period between 2024 and 2030.

Saudi Arabia Transportation Infrastructure Construction Market - Industry Trends & Forecast Report, 2030

Saudi Arabia Transportation Infrastructure Construction Market size was estimated to be worth USD 9.67 billion in 2023. During the forecast period between 2024 and 2030, Saudi Arabia Transportation Infrastructure Construction Market size is projected to grow at a CAGR of 2.90%, reaching a value of USD 11.72 billion by 2030. Major growth factors for Saudi Arabia Transportation Infrastructure Construction Market include rising investment in infrastructure development under Vision 2030 and the rising need for robust transportation infrastructure for economic growth. In addition, favorable government policies and funds are directed toward maintaining existing infrastructure, including roads, railways, airports, and ports.

Transportation Infrastructure Construction – Overview

Transport infrastructure is made up of permanent facilities, buildings, and networks that support the flow of people and products. Roads, bridges, tunnels, trains, and trams are the five main categories under which urban transportation infrastructure falls. It makes international trade in products and services easier. The main objective of building transportation infrastructure is to provide a secure, dependable, and interconnected system of routes that support economic development, increase accessibility, lessen traffic, and improve communities' general quality of life.

Saudi Arabia Transportation Infrastructure Construction Market

Growth Drivers

Favorable Government Investments and Projects

Infrastructure development has received significant funding from the Saudi government, and key transportation projects are financed in large part through the Public Investment Fund (PIF). For Instance, the construction of Riyadh Air was announced in 2023 to establish Riyadh as the regional aviation hub to be at par with centers like Dubai and Doha. Another significant development in the nation's growing tourist infrastructure was the opening of the Red Sea Project's new airport in September 2023. Ultimately, the goal established by Saudi Arabia is for its airports to accommodate 330 million people by 2030, an increase from around 100 million in 2019.

Challenges

Delays or Cancellation of Infrastructure Construction Projects

Lockdowns, travel restrictions, and health concerns led to labor shortages, which severely impacted the construction workforce and delayed project timelines. The pandemic caused significant disruptions in global supply chains, which in turn caused shortages of equipment and construction materials in the Saudi Arabian construction sector, resulting in delays and, in some cases, cancellations of infrastructure projects.

Impact of Escalating Geopolitical Tensions on Saudi Arabia Transportation Infrastructure Construction Market

The escalating geopolitical tensions negatively impacted the growth of Saudi Arabia transportation infrastructure construction market. The construction industry is one of the most deeply impacted sectors by the ongoing geopolitical conflicts. These conflicts affect the sector in different ways, including supply chain disruptions, labor shortages, security, and trade. The disruption in the supply chain leads to a material shortage in the industry and eventually increases material prices. This may often lead to delays in infrastructure construction projects, restricting overall market growth.

Saudi Arabia Transportation Infrastructure Construction Market

Segmental Coverage

Saudi Arabia Transportation Infrastructure Construction Market – By Type

By type, Saudi Arabia Transportation Infrastructure Construction Market is segmented into railways, airports, roads and bridges, and ports. The roads and bridges segment holds the largest share of the Saudi Arabia transportation infrastructure construction market. Growing awareness of the critical role roads and bridges play in connectivity and economic growth has accelerated the building of these infrastructure projects. Infrastructure development is a top priority for the Saudi government to handle urbanization, population expansion, and improve transportation systems.

Saudi Arabia Transportation Infrastructure Construction Market – By Application

Based on application, Saudi Arabia Transportation Infrastructure Construction Market is segmented into urban and rural. The urban segment accounts for the highest market share. The rising population and increasing migration rate in urban centers in Saudi Arabia fuel the need for efficient transportation infrastructure in urban cities. Furthermore, the high concentration of commercial and industrial facilities in urban cities drives the need for the development of transportation infrastructure to facilitate the smooth flow of major economic activities.

Saudi Arabia Transportation Infrastructure Construction Market – By Construction Type

On the basis of construction type, Saudi Arabia Transportation Infrastructure Construction Market is segmented into new construction and renovation. The new construction segment dominates Saudi Arabia transportation infrastructure construction market. Saudi Arabia is emerging as the biggest construction market globally, with various construction projects for economic diversification and growth. These projects include giga-project tourism destinations and cities with robust transport networks. The Kingdom is significantly investing in the construction of roads, railways, ports, and particularly airports to establish itself as the regional aviation hub, which is anticipated to drive the Saudi Arabia transportation infrastructure construction market growth during the forecast period.

Competitive Landscape

Saudi Arabia Transportation Infrastructure Construction market is intensely competitive, as a number of companies are competing to gain a significant market share. Key players in the market include Saudi Binladin Group, Mohammad Al Mojil Group, Nesma & Partners Contracting Co. Ltd, Al Rashid Trading & Contracting Company (RTCC), El-Seif Engineering Contracting Company, Al Harbi Trading & Contracting Co. Ltd, China Communications Construction Company, and China Railway Construction Corporation.

To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Recent Developments

• In February 2024 – Mace, a construction firm based in the United Kingdom, obtained a contract for the construction of King Salman International Airport in Riyadh, which is deemed the largest airport in the world.

Scope of the Report

By Type

• Railway

• Airport

• Roads and Bridges

• Ports

By Application

• Urban

• Rural

By Construction Type

• New Construction

• Renovation