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Global construction profit pool, 2030
Note: EPC is engineering, procurement, and construction; profit margin is EBIT
Sources: CapIQ; Bain analysis
Profit
margin
Revenue
Development
EPCs and design
General contractors
Specialty
subcontractors
Machinery manufacturing
Machinery rental
Off-site construction methods
Distribution
and logistics
Materials and components
Tech infrastructure
Software
Software integrators and value-added services
Expected change in ...
Profit margin
Revenue
Developers will see higher margins from better executed projects, but will face pricing pressure as risk declines
Diminishing role of general contractors, some consolidation, and specialization of contractors
OEM commoditization partly countered by hardware enhancement
Off-site construction to grow and capture higher margin as IDC reaches scale
Increasing off-site construction drives new ways of distribution, while digitalization of supply chain pressures distributors, leading to a net drop
New value-added solutions and services businesses
Rapidly growing construction software and tech infrastructure
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