The global infrastructure market is set to grow by 6.0% a year until 2020, according to a new report.
A new report from Timetric’s Infrastructure Intelligence Center (InfraIC), Global Infrastructure Outlook, reveals that the global infrastructure market is expected to grow to $4.2tr in 2020, after reaching $3.1tr in 2016.
The InfraIC is currently tracking over 12,700 public and private large-scale infrastructure projects worldwide — worth $14.2tr — from the initial announcement to the execution phase.
Electricity and power projects dominate the infrastructure construction market with 6,171 projects in the pipeline, according to the report. Electricity and power is then followed by roads with 2,887 projects, railways with 1,641, airports and ports with 1,237, and water and sewerage with 853.
In terms of total investment value, power and electricity projects are at the forefront with $5.4tr, while railways, valued at $5.2tr, account for the second-largest sector. Road projects recorded the third-largest cost share of $1.9tr, followed by airports and ports ($1.2tr) and water and sewerage ($421.5bn).
The public sector owns 53.3% of the projects, while 27.3% are owned by both the public and private sectors. The remaining 19.4% are privately owned.
The report also states that China and India and other emerging Asian countries have been driving much of the growth in infrastructure spending. China will remain a powerhouse, accounting for 29% of the world’s infrastructure expenditure, and set to grow at 10.5% annually to 2020.
Western Europe and the US and Canada, which account for 50% of the global GDP, are all recording ongoing, if somewhat muted, infrastructure spending
Scott Taylor, InfraIC economist, says that these findings in Western Europe, US and Canada are not unexpected. “Developed economies have a far higher quality of infrastructure and less need to invest across all sectors, but in particular in basic needs infrastructure, such as the water and sewerage and some parts of the electricity and power and telecommunications sectors,” Taylor said.
Ghana and Ethiopia are expected to record the fastest growth in infrastructure to 2020, followed by Malaysia. The Middle East and Africa are particularly strong in terms of investment in railways. Qatar, for example, is expected to grow by 25.2% on average each year to 2020, driven by the $44.4bn Rail Integrated Network project currently under construction in Doha, which will add 1,010km to an almost non-existent rail network.
* For more information on the Global Infrastructure Outlook, visit the Construction Intelligence Center Report Store.