Private Equity Sector Brief: Infrastructure Engineering
Executive Summary
The $1.2 trillion Infrastructure Investment and Jobs Act (IIJA) has allocated $550 billion in new federal spending through 2030, driving sustained demand for infrastructure engineering services and creating a compelling opportunity for private equity investors in a fragmented market with multiyear revenue visibility.
Infrastructure engineering refers to the planning, analysis, design, permitting, environmental review, and construction engineering and inspection (CEI) of nonbuilding structures. This brief outlines the market opportunity, thematic drivers, and market fragmentation across highway/bridge, rail/train, water/wastewater, and energy/grid infrastructure engineering. It is intended to serve as a roadmap for private equity firms developing an investment thesis or targeting an acquisition in the space.
Why Infrastructure Engineering Attracts Private Equity
Demand is supported by resilient federal and state funding, public safety mandates, and aging assets that provide multiyear visibility into engineering work. More than 40% of U.S. drinking water infrastructure has surpassed the 50-year mark, with the IIJA dedicating $55 billion to water system upgrades and $40 billion to bridge rehabilitation alone. These aging assets require ongoing engineering assessment, design, and inspection services that generate predictable, recurring demand regardless of economic cycles.
Market Size and Growth Outlook
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Total market: $30.6 billion in 2025; expected to surpass $39 billion by 2029 (6.5% CAGR)
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Segment outlook: Energy and grid lead growth; water/wastewater and highway/bridge remain resilient bases; rail/train benefits from $66 billion in federal modernization allocations
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Funding: Multiyear programs and tightening standards sustain recurring demand and backlog visibility that supports acquisition valuations
The market remains highly fragmented, with local and regional firms serving public agency clients. This fragmentation creates opportunities for acquisition-led growth and regional consolidation strategies.
Access the full report to understand the market drivers and ways private equity can invest in the space.
