Infrastructure sector to see 4.8% growth by 2023
Infrastructure - AUGUST 19, 2019

Infrastructure sector to see 4.8% growth by 2023

by Kali Persall

Infrastructure investments are expected to grow by 4.8 percent annually between 2019 and 2023, with Asia to record the majority of expansion, according to a new study by data and analytics company GlobalData.

GlobalData said it is currently tracking more than 14,000 large-scale infrastructure projects in both the public and private sectors that are worth a minimum value of $25 million (totaling $14.8 trillion) worldwide at all stages from announcement to execution.

Growth is expected to average 7 percent per year in South Asia and Southeast Asia, and 5.8 percent in North Asia.

With 5,681 projects in the works, the power sector had the most robust pipeline, followed by the road sector with 4,004 projects, and railways with 1,945 projects. Valued at $5.4 trillion, rail projects dominated, followed by power, accounting for the second-largest sector valued at $4.7 trillion, and roads at $2.6 trillion. The road projects will comprise a total 186,993 kilometers (116,192 miles) under construction in the next five years.

“The pace of growth in North America and Europe’s construction industry will perform better in the forecast period than the previous forecast, 2014 to 2018 — albeit slower than emerging markets,” said Yasmine Ghozzi, economist at GlobalData. “Electricity and power infrastructure will be one of the fastest sectors in Europe, as countries across the continent reaffirm their commitment to advance the implementation of the Paris Agreement and intensify their cooperation on climate change and clean energy.”

To read the full report, click here.

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