PitchBook-2024年四季度建筑与工程-私募股权趋势和投资策略（英）_14页_8mb

Construction & Engineering Private Equity Summary

Core Content

The Construction & Engineering (C&E) sector experienced a surge in private equity (PE) activity in 2024, driven by global infrastructure spending, digital transformation, and a fragmented market structure. The total number of deals reached 1,178, a 34% increase from 2023, with a total deal value of $80.9 billion, up 25% year-over-year. This growth was fueled by increased deal activity in all major segments: construction, engineering, and construction tech, with specialty construction and civil/energy showing the most significant gains.

Despite the strong annual performance, deal activity slowed in Q4 2024 due to macroeconomic uncertainty, geopolitical tensions, and tariff-related disruptions. The Trump administration's tariff policies and rising interest rates introduced short-term caution, particularly in commercial office construction. However, long-term demand drivers such as the energy transition, resilient nonresidential construction pipelines, and the adoption of digital tools like BIM and AI-enabled design remain intact.

Key Trends

• Deal Activity:

  • 2024 saw 1,178 deals, up 34% from 2023.
  • Total deal value reached $80.9 billion, up 25% YoY.
  • Q4 2024 deal count dropped 22% from Q3, while deal value fell 42% from Q3 and 9.4% YoY.
  • PE firms are expected to remain selective but opportunistic, focusing on areas like specialty trades, renewable infrastructure, and construction tech platforms.

• Exit Activity:

  • There were 146 exits in 2024, up 36% from 2023.
  • Exit value increased to $40.8 billion, up 82% from 2023.
  • The trend shows a strong rebound from previous years, indicating a healthy exit environment.

• Debt Activity:

  • Construction and industrials loans remained healthy, with new-issue spreads for construction loans slightly rising in 2024 but dropping in Q1 2025.
  • The share of industrials debt in total debt issued declined from 45% in 2023 to 25% in 2024, and further to 6% in Q1 2025.
  • The rapid increase in total debt issuance suggests a more diversified market, but PE investors remain cautious due to the uncertainty in the industrials sector.

Major Segments

• Specialty Construction:

  • Led all categories in deal activity in 2024 with 467 deals, up 27% from 2023.
  • Accounted for 32% of total C&E deal value in 2024.
  • Attractive to PE due to its fragmented nature and potential for scalability and efficiency improvements through technology integration.

• Civil/Energy:

  • Recorded 117 deals in 2024, totaling $13.8 billion, up from 77 deals worth $4.5 billion in 2023.
  • Deal count rose by 52%, and deal value tripled, reflecting increased global infrastructure spending.
  • Key drivers include the need for modernizing aging infrastructure, renewable energy investment, and the role of public-private partnerships.

• Construction Tech:

  • A growing area of interest for PE firms, driven by technological innovations that improve efficiency and profitability.
  • Includes advancements such as 3D printing, AI, digital twins, and automation.

Impact of Tariffs

• The Trump administration's tariff policies have introduced significant uncertainty for the C&E sector.
• Higher material costs and potential disruptions to project budgets and timelines are expected.
• PE investors are cautious due to the unpredictable nature of US trade policy and its impact on the sector's fundamentals.
• Companies are reevaluating supply chains and seeking alternative trade partners to mitigate risks.

Market Size and Growth

• The global C&E market was valued at $14.4 trillion in 2022, representing 14% of global GDP.
• Projected to grow at a CAGR of 5.8% from 2022 to 2032, driven by government infrastructure spending, ESG development, and urbanization.
• In the US, the market was valued at $1.9 trillion in 2024 and is expected to reach $2.8 trillion by 2034.
• Europe's market is forecast to grow at a CAGR of 4.8%, reaching $2.8 trillion by 2030.
• Asia-Pacific is expected to grow at a CAGR of 7%, reaching $8.7 trillion by 2030, with China and India leading the growth.

Industry Dynamics

• The C&E industry is cyclical and influenced by economic conditions, infrastructure spending, and office occupancy trends.
• It is also closely tied to interest rates, with PE activity typically slowing during high-rate periods.
• The sector is undergoing rapid technological transformation, creating a divide between tech-enabled firms and traditional ones.
• PE firms are increasingly targeting less tech-savvy businesses to modernize operations through automation and digital tools.

Data and Methodology

• The report includes data on nearly 5,400 companies across North America and Europe, segmented into nine categories and over 60 subcategories.
• Deal counts and values are estimated, adjusted for data collection lags, and not provided at the segment or category level due to limited activity in some areas.
• The geographic scope is limited to North America and Europe due to the opacity and less investability of Chinese markets.

Conclusion

The C&E sector continues to attract PE interest due to its visible cash flows, fragmented market, and potential for technological integration and scalability. While short-term challenges like tariffs and macroeconomic uncertainty persist, long-term growth drivers such as global infrastructure investment and digital transformation are expected to sustain interest in the sector. PE firms are likely to focus on subsegments with high consolidation potential and tech-driven efficiency improvements.