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According to the latest market research study published by P&S Intelligence, the U.S. transportation infrastructure market, valued at USD 380.4 billion in 2024, is set for steady expansion, projected to reach USD 550.5 billion by 2032 at a CAGR of 4.9% from 2025 to 2032. This growth is being fueled by the modernization of aging infrastructure, rapid urban population growth, and the rising need for supply chain optimization. With much of the country’s road, bridge, and transit systems in poor condition, the American Society of Civil Engineers underscores the urgent requirement for reconstruction.

Government commitment is evident — in 2024 alone, the U.S. Department of Transportation allocated USD 419.8 billion to develop smarter, climate-resilient infrastructure systems, electric power networks, and technology-driven transportation solutions. These efforts align with national goals to reduce greenhouse gas emissions, driving investments in EV charging infrastructure, modern mass transit systems, and high-speed regional railways.

Incorporating IoT-enabled monitoring, intelligent traffic management, and predictive maintenance technologies is making transportation networks safer, cost-effective, and more sustainable. Both public and private stakeholders are embracing green digital upgrades to meet the mobility demands of a growing population while stimulating economic growth.

Key Insights

• Roadways dominate the market with a 55% share in 2024, supported by the U.S.’s vast 46,000-mile Interstate Highway System, which handles over 85% of passenger-miles and 60% of goods transported by weight. Federal programs channel the majority of infrastructure funding into roads and bridges due to their extensive use and urgent repair needs.
• Railways are the fastest-growing segment, benefiting from investments in commuter rail modernization, intercity connections, and freight capacity enhancements.
• Freight transport leads operationally, accounting for 70% of the market in 2024 and expected to grow at a CAGR of 5%, fueled by e-commerce expansion, manufacturing sector growth, and supply chain upgrades. Freight and logistics services contributed USD 1,826.5 billion to GDP in 2023, up from USD 1,755.4 billion in 2022.
• Renovation & modernization is the fastest-growing construction type, with a CAGR of 5.5%, driven by the integration of EV charging infrastructure, smart traffic systems, and climate-resilient upgrades. Over 45,000 bridges are currently in poor condition, necessitating rapid intervention.
• Roads & bridges remain the largest component at 40% market share in 2024, with over 125 projects underway. In October 2024, the Federal Highway Administration allocated USD 61 billion to related projects nationwide.
• Ports & docks are the fastest-growing component category, supported by trade expansion and upgrades to accommodate larger cargo vessels.
• The South is the leading regional market with 35% share in 2024, driven by rapid urbanization and population gains exceeding 2 million residents in 2023–2024. Texas and Florida lead in major highway, airport, and rail upgrades.
• The West is the fastest-growing regional market, fueled by high-density urban development and investments in commuter and freight rail.
• Sustainability is a defining trend, with deployment of IoT sensors, AI-driven traffic control, energy-efficient lighting, low-emission vehicles, and green construction materials.
• The National Electric Vehicle Infrastructure (NEVI) Formula Program allocates USD 4.155 billion (FY 2022–2026) to install 500,000 public EV chargers nationwide, while the Low or No Emission Vehicle Program provides USD 1.5 billion to procure over 1,000 U.S.-made buses, at least 80% being low- or zero-emission.
• Autonomous shuttles, real-time transit apps, and adaptive traffic lights are enhancing commuter convenience, cutting congestion, and improving urban mobility.
• Government investment is the biggest market driver, supported by the Infrastructure Investment and Jobs Act (IIJA) allocating USD 1.2 trillion for transportation modernization across road, rail, air, and marine networks.
• Major projects underway include Aviation/Century station and La Brea subway station in Los Angeles, Lynnwood City Center and Marymoor Village stations in Seattle, the Main Street streetcar extension in Kansas City, and the Skyline station at Honolulu airport.
• In March 2024, the Department of Transportation recommended 14 additional transportation projects in 11 states, totaling USD 4 billion in planned investment.
• Competitive landscape is fragmented, with leading players like Bechtel Corporation, Kiewit Corporation, Skanska USA, AECOM, and The Walsh Group working alongside numerous smaller contractors.
• In February 2025, Wabtec introduced a liquid natural gas fuel injection system for trains, enhancing efficiency in passenger and freight rail operations.
• In January 2024, Quikrete Holdings announced the acquisition of Summit Materials Inc. for USD 11.5 billion, expanding its infrastructure capabilities.