Mobile Menu

Business Environment Profiles - United States

Value of utilities construction

Published: 22 July 2025

Key Metrics

Value of utilities construction

Total (2025)

186 $ billion

Annualized Growth 2020-25

3.5 %

Definition of Value of utilities construction

The annual public and private expenditure toward constructing power, sewage or water supply infrastructure represents the value of utilities construction. Data is sourced from the US Census and is presented in billions of chained 2017 dollars.

Analyze the wider world in which businesses operate

We measure the upstream and downstream ramifications on thousands of industries so businesses can monitor their external operating environment. Explore membership options today.

Purchase options

Included in an IBISWorld Membership

Our industry reports include 35+ pages of data, analysis and charts, including:

  • Industry Financial Ratios
    Industry Financial Ratios
  • Historical and Forecast Growth
    Historical and Forecast Growth
  • Industry Market Size
    Industry Market Size
  • Industry Major Players
    Industry Major Players
  • Profitability Analysis
    Profitability Analysis
  • SWOT Analysis
    SWOT Analysis
  • Industry Trends
    Industry Trends
  • Industry Operating Conditions
    Industry Operating Conditions

Recent Trends – Value of utilities construction

The value of utilities construction is projected to reach $185.6 billion in 2025, with annual growth of 2.8% over the previous year. This year's growth reflects ongoing infrastructure renewal efforts, persistent demand for expanded utility services due to suburban demographic shifts, and sustained investment in renewable energy systems. Supply chain challenges and higher material prices have continued to affect project costs and scheduling, while labor shortages have constrained contractor capacity despite elevated demand.

Between 2020 and 2025, utilities construction expanded at an average annualized rate of 3.5%. The sector's performance during this period was primarily shaped by multi-billion-dollar investments targeting aging infrastructure, particularly water and energy systems, in developed and emerging markets. Modernization remained a central theme as governments and private actors allocated funds to upgrade essential service networks and address reliability concerns. The surge in renewable energy adoption, alongside stricter environmental regulations, spurred the construction of solar farms, wind power facilities, and supporting transmission infrastructure. Advancements in technology, such as the increasing implementation of smart grids and IoT-enabled utility systems, significantly improved network monitoring and efficiency, further driving construction activity.

Population shifts from dense urban centers to suburban areas prompted additional investment in extending utility networks and capacity. However, sharp increases in input and labor costs, attributable to global supply chain disruptions and workforce constraints, tempered growth and compelled industry stakeholders to refine project management and sourcing strategies. Although government initiatives and public-private partnerships played a pivotal role in supporting the construction pipeline, these efforts were sometimes delayed or reprioritized in response to economic and pandemic-related uncertainties over the past five years. The period was also characterized by heightened competition for skilled labor, which became an increasingly important limiting factor as projects grew in complexity and scope.

Over the five-year period to 2025, utilities construction has responded to competing pressures of modernization, environmental responsibility, and demographic change. The sector was broadly supported by forward-looking infrastructure policies, technological innovation, and sustained expansion in utility demand, but was challenged by rising costs and capacity constraints. Trends such as the global shift toward sustainable practices and decarbonization, as well as widespread digitalization of utility networks, shaped the industry's direction and level of investment.

Show more

5-Year Outlook – Value of utilities construction

The value of utilities construction is forecast to climb to $190.6 billion in 2026, representing ...

Looking for IBISWorld Industry Reports?

Gain strategic insight and analysis on thousands of industries.

Trusted by More Than 10,000 Clients Around the World

  • IBISWorld client - VISA
  • IBISWorld client - ADP
  • IBISWorld client - Deloitte
  • IBISWorld client - AMEX
  • IBISWorld client - Bank of Montreal