The report below gives a good overview of the Summer 2025 M&A activity in the Engineering and Construction Industry Sector. The global engineering and construction industry is undergoing a transformational shift shaped by rapid technological developments, changing economic dynamics, and an evolving regulatory environment. According to the FMI 2025 Engineering and Construction Overview Report, the total U.S. Engineering and construction spending is forecast to increase by 2%, which is driven by investments into non-residential segments like water treatment, power infrastructure, and manufacturing facilities. The engineering services market is projected to grow from $1.1 trillion in 2024 to $1.2 trillion in 2025 with a CAGR of 3.4%. The increasing infrastructure development is driving the engineering services industry, as cities and economies are growing, leading to the demand for new infrastructure, transportation networks, energy facilities, and smart cities. The recent study by Global Data suggests that the construction output is expected to rebound in the second half of 2025 with an average annual growth rate of 2% during the period 2026-2029. The geographic regions of America, Europe, Asia-Pacific, and Middle East Africa (APMEA) are leading the market. The growth is clearly evident in the American market, where the U.S. Bipartisan Infrastructure Law (BIL) and the Infrastructure Investment and Jobs Act (IIJA) continue to drive demand for public work projects and move substantial funds into these sectors. However, the industry faces numerous challenges such as labor shortages and supply chain instability. As technology adoption is accelerating the growing construction sector, telematics, AI-driven automation, and modular construction provide opportunities for infrastructure and commercial development on a larger scale. In conclusion, the engineering and construction industry in 2025 is marked by resilience amidst challenges. Strategic investments in technology and infrastructure are driving growth while addressing evolving demands for sustainability and efficiency across global markets.
Posted by Peter Heydenrych.
Read the Entire Summer 2025 Engineering and Construction Report Here