Water and Sewer Line and Related Structures Construction
Industry: Water and Sewer Line and Related Structures Construction
Naics: 237110
Private Company Multiples
Industry Overview
The water and sewer line construction industry has shown steady growth over the past five years. Revenue has increased at a 1.6% CAGR, reaching $62.4 billion by 2023, with a 0.1% growth in 2023.
Early in the period, low interest rates drove capital investment in large projects. Recent economic shifts have led to a focus on repair and maintenance work as higher interest rates make larger projects less financially viable.
Key markets driving industry growth include thermoelectric power, agriculture, and public water supply. The increasing demand for electricity, partly due to electric vehicles, is boosting thermoelectric power plant construction, supporting the water and sewer line industry.
Aging domestic water and sewer infrastructure is creating demand for maintenance, repair, and reconstruction. Environmental challenges and the need for water-efficient facilities are providing additional growth opportunities.
The industry is projected to grow at a 1.5% CAGR, reaching $67.1 billion by 2028. This growth is expected to be driven by investment in sewage and water treatment plants, spurred by urban expansion. Lower interest rates may make expensive projects more feasible, potentially driving construction activity.
The adoption of innovative technologies such as trenchless construction and smart pipes is expected to enhance revenue growth. These advancements could improve efficiency and open new market opportunities.
Key Financial Metrics
Income Statement Benchmark
