South Korea Transportation Infrastructure Market

South Korea Transportation Infrastructure Market Size Report – In a Glance

As per the survey report on South Korea transportation infrastructure market, the market is expected to foresee a CAGR value of 3.6% during 2025-2035, and further generate a market size of USD 7.9 billion by the end of 2035. In 2025, the market size was value at USD 5.8 billion revenue.

• The South Korea transportation infrastructure market’s growth is driven by rising demand for development of transportation facilities.
• KDMI analyst’s growth analysis foresees shrinking labor force as restraints for South Korea transportation infrastructure market.

South Korea Transportation Infrastructure Market Analysis

Transportation Infrastructure refers to physical system and facilities that helps in the movement of people, goods, and information. Transportation infrastructure includes roads, railways, airports and other infrastructure which plays important role in managing vehicles movement and control systems via advanced technology. Developed transportation infrastructure leads in economic growth, social interaction, and others. The South Korea transportation infrastructure market growth is driven by the rising demand for development in transportation facilities. According to the UNEP report, by 2030, the Seoul city will have evolved into a city having a highly convenient transport system, where people will need not rely on their cars, leading to the “Seoul Transport Vision 2030”. The South Korean urban population is rapidly rising, in 2013, it was increased by 49.6%, which leads to growing demand for advanced transportation infrastructure. Bechtel, ACS Group, and Alstom are some of the significant participants in the South Korea transportation infrastructure market.

South Korea Transportation Infrastructure Market Growth Drivers and Restraints

Growth Drivers

• Government Investments and Infrastructure Development Plans – The South Korean government has been increasingly investing in expanding and upgrading transportation infrastructure in the country, including roads, railways, airports, and ports. The government has launched various specific programs and schemes to develop transport infrastructure that help country in leading economic health. Government programs like National Transport Master Plan are launched with the aim of strengthening logistics efficiency, reducing travel time, and integrating smart technologies to improve ad bolster transport system. Public private partnership also helps in promoting and attracting foreign investment that help government in expanding their transport facilities by integrating smart, advanced, and AI-driven features to different parts of the world, contributing to the growth of South Korea transportation infrastructure market.
• Urbanization and Population concentration – Rapid urbanization in South Korea, particularly in metropolitan cities drive the demand for infrastructure development. The urban population in the country is expanding significantly and along with this, corporates are highly contributing to the economic health of the country, which is demanding for more efficient transport infrastructure like wider road networks, efficient transit systems, and enhanced intercity connectivity that makes transportation easier for individuals. Urbanization is also leading to the development of multi-modal transport system integrated with advanced systems using high-end technology, drives the market growth.

Restraints

• Shrinking labor force – South Korea’s elderly population is rapidly rising which is led to the shrink of skilled labor workforce, limiting the growth of transportation infrastructure development. To integrate smart systems in transport infrastructure, the need for skilled labor is rising, and the unavailability of skilled workers, it has become difficult to develop country’s transportation infrastructure. This growing shortage of labor in country is leading to intensifying situation which could negatively impacts economic health and development, limiting the growth of South Korea transportation infrastructure market.

South Korea Transportation Infrastructure Market Segmentation

Our experts at KD Market Insights have segmented the South Korea transportation infrastructure research report as:

Analyst’s Observation on South Korea Transportation Infrastructure Market Recent Development

Over the years, the experts at KD Market Insights have been observing the recent developments associated with South Korea transportation infrastructure market trends. Our expert’s market forecast analysis has recorded the market players adopting plentiful of key strategies including new product launches, mergers & acquisitions, and collaborations.

The Korea Petroleum Quality & Distribution Authority has announced to launch a public funding project with the aim to provide subsidies for purchasing hydrogen transportation equipment. The funding is intended to boost hydrogen distribution for transportation purposes and stabilize hydrogen prices. The Ministry of Trade, Industry, and Energy has decided to fund 50% of the total project cost, amounting to USD 1.59 million.

South Korea is developing its own hyperloop technology, known as Hypertube, to lead in ultra-high-speed transportation. A committee was formed and it has decided to allot USD 8.8 million for initial research. The Hypertube aims to transport passengers and freight at speeds over 1,200 km/h.

South Korea Transportation Infrastructure Market Competitive Landscape

Some of the significant participants who top the South Korea transportation infrastructure market share:

• Bechtel
• ACS Group
• Globalvia Inversiones (GVI)
• Inc
• Alstom
• Royal Bam Group
• CGCOC Group
• Samsung Engineering
• China Railway Construction
• POSCO Engineering & Construction
• Power Construction Corporation of China
• Anhui Construction Engineering Group