Growth in the Hydrovac Industry in 2025

The hydrovac industry, centered on the use of hydrovac trucks for non-destructive excavation, is experiencing robust growth in 2025, driven by increasing infrastructure demands, stringent safety regulations, and technological advancements. The global hydrovac trucks market, valued at approximately $528.24 million in 2024, is projected to grow at a compound annual growth rate (CAGR) of 5.53% through 2033, with some estimates suggesting the market could reach $1.5 billion by the end of 2025. Similarly, the hydrovac excavation service market, valued at $6,173 million in 2025, is forecasted to expand at a CAGR of 5.1% through 2033, reflecting the rising adoption of hydrovac services across construction, utilities, and municipal sectors. This surge underscores the industry’s critical role in addressing modern excavation challenges with precision and safety.

A key driver of the hydrovac industry’s growth in 2025 is the global push for infrastructure development. With annual infrastructure spending reaching approximately $9.5 trillion, projects like pipeline installations, telecom expansions, and urban utility upgrades are fueling demand for hydrovac trucks. These vehicles excel at tasks like potholing and daylighting, allowing safe exposure of underground utilities without the risk of costly strikes, which caused over 160,000 utility damage events in 2022 alone. North America, particularly the U.S., leads this growth, with the hydrovac service market valued at $797.7 million in 2024 and projected to grow at a 3.9% CAGR through 2034. The U.S. Infrastructure Investment and Jobs Act has further accelerated demand, as hydrovac trucks are ideal for non-destructive digging in complex urban environments.

Safety regulations are another significant factor propelling the hydrovac industry forward. Governments and regulatory bodies, such as the U.S. Department of Transportation, mandate non-mechanical excavation near utilities to prevent damage, which can cost millions in repairs and fines. Hydrovac trucks, using high-pressure water and vacuum systems, align perfectly with these requirements, reducing accident risks and ensuring compliance. The construction sector, which held a 36.1% market share in 2023, and the mining industry, with 14.4%, are increasingly adopting hydrovac services for their ability to handle diverse soil types and tight spaces safely, further boosting market expansion.

Technological advancements are enhancing the appeal of hydrovac trucks in 2025. Innovations like smart booms with sensor technology to detect obstacles, digital mapping integration, and water recycling systems improve efficiency and safety while reducing costs. Companies like Badger Infrastructure Solutions, which reported a 7% revenue increase to $172.6 million in Q1 2025, are investing in fleet expansion (aiming for 1,710–1,760 units by year-end) and advanced manufacturing in facilities like Red Deer, Alberta. Strategic acquisitions, such as Tornado Infrastructure Equipment’s purchase of CustomVac, are also consolidating the hydrovac market, enhancing service offerings and driving innovation.

Despite this growth, challenges like high initial costs—hydrovac trucks can exceed $450,000—and limited awareness among some contractors persist. Education and outreach efforts are critical to overcoming these barriers, as the safety and environmental benefits of hydrovac trucks become more recognized. With their ability to minimize soil disturbance, reduce carbon footprints, and operate in challenging conditions like frozen ground, hydrovac services are aligning with sustainability goals. As urbanization, infrastructure investment, and regulatory pressures continue to rise, the hydrovac industry’s growth in 2025 is poised to solidify its position as a cornerstone of safe, efficient, and eco-friendly excavation practices.

If you have an upcoming excavation project you'd like to discuss, contact the professional excavators here at Hole Hogz. We service Las Vegas, Henderson, Boulder City, and most parts of Clark County Nevada.