The utility system construction market consists of sales of utility system construction services and related goods by entities (organizations, sole traders and partnerships) that construct distribution lines and related buildings and structures for utilities (i.e., water, sewer, petroleum, gas, power, and communication). All structures (including buildings) that are integral parts of utility systems (e.g., storage tanks, pumping stations, power plants, and refineries) are included in this market. The work performed includes new work, additions, alterations, maintenance, and repairs. The utility system construction market is segmented into water and sewer line and related structures construction; oil and gas pipeline and related structures construction and power and communication line and related structures construction.
Market Scope and Structure Analysis
The utility construction market is expected to be driven by rapid growth in emerging markets during the forecast period. Emerging markets growth was aided by rise in disposable income, stable political environment, and increase in foreign investments in these countries. Developed economies are also expected to register stable growth during the forecast period. In addition, emerging markets are expected to continue to grow slightly faster than the developed markets during the forecast period. Thus, strong economic growth boosted construction demand in emerging markets such as China, India, Brazil, Saudi Arabia, and Indonesia, thereby driving the market growth during the forecast period.
Health and safety issues have always been a major concern in the utility construction industry. Construction activities always face worker safety issues with them working at height, working in confined spaces, working underground and close proximity to falling materials, handling load manually, handling hazardous substances, using plant and equipment, fire and exposure to live cables. Inadequate safety and health measures has a negative impact on both the construction and built environments resulting in fatalities, injuries and diseases.
COVID-19 Impact analysis
- COVID-19 pandemic has shut down the production of various products in the utility system construction market attributed to the lockdown in countries worldwide. This has hampered the growth of utility system construction market from the last few months and is likely to continue during 2021.
- COVID-19 has already affected the sales of utility system construction in the first quarter of 2021 and is anticipated to cause a negative impact on the market growth throughout the year.
- The major demand for utility system construction was previously noticed from giant manufacturing countries including the U.S., Germany, Italy, UK, and China, which are negatively affected by the spread of the coronavirus, thereby declining the demand for utility system construction.
- Further, potential impact of the lockdown is currently vague and financial recovery of companies is totally based on its cash reserves. Utility system construction market manufacturers can afford a full lockdown only for a few months, after which the players have to modify their investment plans. For instance, various players in the market halted their production activities for several weeks to reduce the expenses. Whereas few players also adopted employee lay-offs to sustain during the COVID-19 health crisis
- Utility system construction market are expected to focus on protecting their workforce, operations, and supply chains to respond toward immediate crises and find new ways of working after COVID-19. For instance, provision of sanitizers, maintaining social distancing, as well as ensuring the vaccination of every employee in the company can assist in promoting the health & safety of the workforce.
Top Impacting Factors
Utility system construction companies are using advanced technologies such as drones to efficiently manage projects. A drone is an unmanned aerial vehicle (UAV) that is integrated with communication technologies and controlled by a remote. Some of the typical applications of drones in utility system construction include earthwork volume calculations, elevation mapping, and environmental analysis. During the construction, the terrain can change on a daily basis, thus requiring project managers to monitor these changes. Drones are also being used to monitor project progress and help managers in decision making. The utility system construction market growth offers an in-depth analysis and opts various business growth options like partnership agreements, new product launches, and acquisitions in the market.
- Proper guidance from the Government also boost the growth of the business. For instance, on December 19, 2014, the government published better connected: a practical guide to utilities for home builders. It sets out what developers and utilities companies should expect from each other when providing utilities to bring forward future development. It is targeted at housing developers, but is relevant to all developments.
- Technology can improve productivity, whether you have one or thousands of employees. Artificial Intelligence (AI) allows companies to look like they have an entire team working to satisfy customers. It saves on overhead costs and expands business capabilities. For instance, DJI Matrice 300 RTK and Parrot ANAFI USA are two of the widely used drones in the commercial operations.
- A strategic partnership is the one where the partners remain independent; share the benefits from, risks in and control over joint actions; and make ongoing contributions in strategic areas. Most often, they are established when companies need to acquire new capabilities within their existing business. For instance, The Hawaiian Electric Company (HECO) partnered with solar companies to better understand and accommodate for the solar energy being generated on Hawaii’s grid. With help from SunShot’s SUNRISE funding program, HECO collaborated with AWS Truepower to integrate solar forecasting abilities into the utility’s energy management systems (EMS). AWS Truepower provides services for all stages of the solar project development cycle.
Key Benefits of the Report
- This study presents the analytical depiction of the utility system construction market along with the current trends and future estimations to determine the imminent investment pockets.
- The report presents information related to key drivers, restraints, and opportunities along with detailed analysis of the utility system construction market share.
- The current market is quantitatively analysed to highlight the utility system construction market industry growth scenario.
- Porter’s five forces analysis illustrates the potency of buyers & suppliers in the market.
- The report provides a detailed utility system construction market analysis based on competitive intensity and how the competition will take shape in coming years.
Questions answered in the Utility System Construction Market Report
- Who are the leading global players in the utility system construction market?
- What are the current trends and predicted trends?
- What is utility system construction?
- What is utility system construction market prediction in the future?
- What are the challenges faced in the utility system construction market?
- What are the driving factors and opportunities in the market?
- What are the key benefits of the utility system construction market report?
Utility System Construction Market Report Highlights
By Product Type
By End User industry
Key Market Players
Mastec, Inc., American Tower Corporation, Powerteam Services, Keene Systems, Inc., UTILITY CONSTRUCTION COMPANY INC., China Energy Engineering Group, Michels Corporation, Qwest Communications International, Inc, Paraflex, Charter Oak Utility Constructors, Inc.