Roads - market and competition

Here you can read about the competitive situation of the Swedish Transport Administration's procurements in the roads sector.

Construction companies such as AF Group, NCC and Peab dominate in road investments. Companies that have increased their volumes recently and are challenging are, for example, AF Group and GRK Infra.

Interest in the Swedish Transport Administration's road investments has developed in a positive direction. In 2021, the average number of tenders per procurement of contracts was 4.0.

Maintenance roads

Maintenance activities are divided into basic maintenance, maintenance including reinvestment (surface roads, construction, infrastructure, other corrective and preventive maintenance) and operation.

Basic maintenance, roads

Basic maintenance includes care, inspection and ongoing maintenance of roads and their roadside areas as well as of other installations included in the road system.

Svevia has the largest share in basic maintenance roads. Terranor and Skanska are stable contenders. However, NCC chose to divest its road service business Terranor to the German company Mutares at the end of 2020. New suppliers such as BDX Företagen, Orefield Group and Artic Infra have established themselves within basic maintenance of roads. The competitive situation has been low in recent years, despite the establishment of new suppliers. In 2021, the average number of tenders was 3.1 tenders per procurement.

For two years, the Swedish Transport Administration has been in continuous dialogue with the industry about challenges and opportunities. The Collaboration High contract model has been tested in two areas with great interest from the industry. Work is underway to procure on added value. Work is also underway to reduce unbalanced bidding and to create attractive and efficient contracts.

Maintenance roads including reinvestment

Maintenance roads including reinvestment includes maintenance surfacing and tar securing on surfaced roads, construction works such as bridges and tunnels, infrastructure systems and other corrective and preventive maintenance not carried out within the framework of basic maintenance.

Surfaced roads – including bearing capacity and frost proofing

The Swedish companies Svevia, NCC, Peab and Skanska have a combined market share of approximately 90 per cent of the total purchase volume. The Swedish Transport Administration is working on a bonus model for reduced climate impact, control of the size of procurements and sub-contracts and a timetable for national coordination of seasonal procurements. One of the challenges is a compressed procurement and performance season that requires coordination on several levels within the Swedish Transport Administration.

Construction work roads

Most of this activity involves the renovation of bridges and tunnels. Svevia, DAB Group, and NCC are the more dominant players. There are 10 suppliers in contracting that account for 80 per cent of the total purchase volume.

Infrasystems roads

This maintenance activity covers a variety of technologies, for example; lighting/power, ITS system, telecommunications and HVAC and sanitation. The largest suppliers are Vattenfall, Granitor, Swarco, One Nordic and Q-free. In 2021, the average number of tenders was 2.7 tenders per procurement. There are approximately 12 suppliers that account for 80 per cent of the total volume value of infrasystem road contracts.

Other maintenance roads

Other maintenance roads consists of maintenance measures and road reinvestments not carried out in the context of basic maintenance, surfaced roads, building work and infrasystems, such as preventive and corrective measures in construction, road equipment, road markings and plant operation. Here the market is dominated by Svevia, NYAB, Peab, EKC Sweden and Cleanosol.