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In this article, we will be taking a look at the 15 biggest global construction companies. To skip our detailed analysis, you can go directly to see the 5 biggest global construction companies.
The global construction industry is a trillion-dollar industry, and easily among the most important industries in the world. Remember, when the pandemic hit and lockdowns were introduced in most countries across the world, the moment the situation looked a bit better, constructions companies were among the first to be given exemptions to ensure the industry did not suffer for too long. According to Oxford Economics, the global construction sector was valued at $10.7 trillion in 2020, of which more than half came from emerging markets. According to Marsh McLennan, by 2030, the global construction market is expected to increase by $4.5 trillion, and of the new expected value of $15.2 trillion, $8.9 trillion will be from emerging markets, which will be the biggest region comfortably in the construction sector.
While emerging markets will be the biggest region, the biggest growth is expected in Africa, followed by emerging Asia. Of the total growth globally in the construction sector, just four countries account for 58.3%: China, India, the United States and Indonesia. Despite the construction industry facing massive repercussions because of the pandemic and ensuring lockdowns and restrictions, recovery is on the horizon, with the expectation being that initial recovery will come from residential construction, while the medium-term outlook is expected to be supported by infrastructure spending (see Best REIT Stocks To Buy Now).
The ever-increasing population is the main driver behind the growth in the construction industry. Urbanization continues to increase at an explosive pace, and the expectation is that by 2050 more than 2.5 billion people could be added to urban areas, of which the vast majority will be in Asia and Africa. Of course, it is important to remember that public spending is the primary driver of the construction industry, and so, government spending drives investment in the sector.
It is hard to understate the dominance of China in the construction sector. With a population of 1.4 billion people, even domestic construction has massive demand and the construction companies in the country have created entire towns and huge residential buildings. However, ghost towns have become a notable part of China's landscape due to under-occupied developments in China where giant residential complexes sit completely abandoned. According to Business Insider, in 2021, around 65 million homes in China were unoccupied. Another criticism is the quality of construction by many major construction companies in China. Despite these criticisms, Chinese construction companies absolutely rule the list of biggest global construction companies.
To determine the list of the biggest global construction companies, we initially consulted Fortune Global 500. However, the list includes both construction and engineering companies, and we had to manually remove the latter to remain true to the ranking. We then consulted ENR and its ranking of the biggest construction contractors in the world, and then used annual reports and Yahoo Finance to determine the financials of each company. Where the reporting currency was different, we converted it to US dollars to have a uniform currency. Each company was then ranked based on revenue, profit, assets and number of employees, with 40% weightage being assigned to revenue and profits and 20% weightage being assigned to assets and number of employees. Using multiple criteria allowed us to come up with better rankings than any other website, as opposed to those ranking on a single criterion such as just revenue. So, let's take a look at the giants of one of the most important sectors in the world, starting with number 15:
15. Strabag
Total revenue of the company (in millions of dollars): 15,298
Total profits of the company (in millions of dollars): 596
Total assets of the company (in millions of dollars): 12,226
Total number of employees: 73,606
The largest construction company in Austria kicks off our list. Strabag is active in Austria and Germany, while also maintaining a strong presence in most countries in Europe, in addition to Canada, India, Chile and China.
14. Guangzhou Municipal Construction Group
Total revenue of the company (in millions of dollars): 38,624
Total profits of the company (in millions of dollars): 145
Total assets of the company (in millions of dollars): 28,163
Total number of employees: 43,052
Guangzhou Municipal Construction Group is the first of many Chinese companies among the largest contractors in the world. It is engaged in the construction of buildings, public works, urban rail facilities and real estate development.
13. Ferrovial
Total revenue of the company (in millions of dollars): 6,778
Total profits of the company (in millions of dollars): 1,197
Total assets of the company (in millions of dollars): 24,896
Total number of employees: 95,978
Ferrovial is a Spanish construction company which is involved in the construction and maintenance of transport infrastructure in addition to urban services.
12. Eiffage
Total revenue of the company (in millions of dollars): 19,208
Total profits of the company (in millions of dollars): 777
Total assets of the company (in millions of dollars): 33,775
Total number of employees: 70,893
Eiffage is the first company from France in our list of the biggest construction companies in the world, but it will certainly not be the last. One of its biggest projects include being involved in the construction of the Channel Tunnel.
11. Shanghai Construction Group
Total revenue of the company (in millions of dollars): 43,572
Total profits of the company (in millions of dollars): 584
Total assets of the company (in millions of dollars): 55,693
Total number of employees: 51,369
Shanghai Construction Group saw unprecedented growth in the 1990s after Shanghai became part of the growth across China. The company is also involved in several overseas projects.
10. Daiwa House Industry
Total revenue of the company (in millions of dollars): 39,520
Total profits of the company (in millions of dollars): 2,005
Total assets of the company (in millions of dollars): 45,480
Total number of employees: 48,831
Japan's biggest construction company, Daiwa House Industry is involved in the construction of shopping centers, health care facilities, factories, and homes. Considered to be the biggest homebuilder in Japan, the company also manages more than 250 logistic properties.
9. ACS Group
Total revenue of the company (in millions of dollars): 38,317
Total profits of the company (in millions of dollars): 3,601
Total assets of the company (in millions of dollars): 40,550
Total number of employees: 105,553
ACS is the biggest construction company in Spain. Created in 1997 through the merger of two companies, ACS has operations in half a dozen countries and is led by the famous Florentino Perez, the President of Real Madrid.
8. Bouygues
Total revenue of the company (in millions of dollars): 44,508
Total profits of the company (in millions of dollars): 1,330
Total assets of the company (in millions of dollars): 50,758
Total number of employees: 124,651
One of two French companies in our list of the biggest construction companies in the world, Bouygues has engaged in major construction projects across Europe and the wider world, including the Parc des Princes, the Grande Arche, the famous Channel Tunnel and the Port of Miami Tunnel.
7. Power Construction Corporation of China
Total revenue of the company (in millions of dollars): 62,857
Total profits of the company (in millions of dollars): 1,208
Total assets of the company (in millions of dollars): 134,957
Total number of employees: 132,583
The Power Construction Corporation of China is one of the biggest global construction companies. It has been involved in major projects across more than 100 countries, facilitated by its 779 subsidiaries.
6. VINCI
Total revenue of the company (in millions of dollars): 59,389
Total profits of the company (in millions of dollars): 3,071
Total assets of the company (in millions of dollars): 113,725
Total number of employees: 219,299
Vinci is by far the biggest construction company in Europe. The French company is also one of the oldest construction companies in the world.
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Disclosure: None. 15 biggest construction companies in the world is originally published at Insider Monkey.
