In this article we are going to list the 19 largest construction companies in the world. Click to skip ahead and jump to the 10 largest construction companies in the world.
The construction industry is one of the biggest and most lucrative industries in the world, and is expected to have a global value of $11,094 billion. That is $11 trillion dollars from just a single industry. This is based on a CAGR of 9.2%, which is immense compared to many other industries such as the beer industry or the beverage industry, where the CAGR is not even 5%.
While construction and infrastructure is absolutely crucial for developed economies, it is also integral for the growth of some of the less developed economies. Building roads, providing access to clean water, building affordable houses for the population and ensuring the provision of electricity can have a transforming effect on improving the lives of the people who reside there. New building and better infrastructure is also integral for developed economies to continue providing and steadily improving the standard of living that its residents are used to. Furthermore, apart from the direct contribution of this industry, it has significant and integral links with other sectors and industries, and its indirect impact may actually outweigh its direct contribution. The construction industry actually provides employment to over a hundred million people across the globe, which is truly a staggering number. 6% of the global GDP comes from just the construction industry, which can be broken down as 5% of total GDP in developed countries, and 8% of GDP for developing countries. By 2040, it is estimated that global expenditure in this industry will cross $3.2 trillion each year, though this can only happen if countries increase their construction budget, which might be a necessity for them considering the greater demand in construction due to a burgeoning population. If you want to take a look at what they achieve, take a look at the 10 biggest construction companies in the world.
The residential construction industry alone increased at a CAGR of 6% between 2015 – 2019. And this is the smallest sector of the construction industry, where commercial construction and infrastructure construction are the main focus of companies. The latter alone was worth $2.7 billion in just 2019. Of course, any forecasts after 2019 have to be taken with more than a pinch of salt, as the world has turned upside down and all predictions have become null and void. The Covid-19 pandemic, which has claimed over 1.2 million lives and infected nearly 50 million people worldwide as at the time of writing this article, saw the world go into lockdown to try and fight the virus, which has also seen economies destroyed or at least severely effected, with even the biggest countries in the world seeing their GDP contract significantly. Because of the lockdown, the construction industry came to a virtual halt as people couldn’t leave their house for any reason whatsoever unless it was an emergency. All developments and projects were suspended and since it is one of the few industries where you cannot work from home, there was no backup option either. Now that the second wave has gripped the world and seems to be even more severe than the first, we can only imagine and not say with any certainty what the future of this industry will be. That it will survive, is undoubtable, but at what cost is the real question.
The top 19 construction companies in the world have revenue of nearly a trillion dollars. Profits exceeded $29 billion while they had assets worth nearly $1.6 trillion. While construction is a truly global sector, the biggest companies are present in just a few countries, which China utterly dominating this list. Thanks to the biggest country in the world having giant conglomerates which are state owned, it was able to get 7 entries on this list. The United States of America on the other hand, could only feature one. If you were to consider the top 100, you would see a lot more US companies, but because of the fact that the economy is very competitive in the US, there aren’t just a few giants which dominate the entire industry. For their rankings, we referred to Forbes and considered not just the market cap of each company, but also its asset portfolio, revenue and profits. Where we haven’t been able to find one of the criteria we have used an approximation based on the criteria that were available. If you have been following the construction industry for the last few years at least, you won’t be surprised to see the number one entry as it has remained consistent for a while. But till then, let’s take a look at the construction companies ready for most of the development
19. Strabag (WBAG: STR)
Market cap in 2019 (in billions of dollars): 2.9
Revenue in 2019 (in billions of dollars): 18
Profit in 2019 (in millions of dollars): 417
Total assets in 2019 (in billions of dollars): 13.6
Headquartered in Vienna, Strabag is an Austrian company and is among the largest in all of Europe as well. It had revenues of nearly half a billion in 2019 and has an active presence in Europe, as well as in India, China, Canada and Chile.