GlobalData, a data analytics and consulting company, predicts a 4.8 per cent global infrastructure growth between 2019 and 2023, on an annual average basis.
According to the company, the increase will be propelled by Asia, where growth is expected to average 7.0 per cent a year in South and South East Asia, as well as 5.8 per cent in North East Asia.
GlobalData is tracking over 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.
The power sector has the most projects in the pipeline with 5,681, followed by the road sector with 4,004, and railways with 1,945, states GlobalData.
With a value of $5.4 trillion, GlobalData reports rail projects dominate the sector, followed by power, accounting for the second-largest sector valued at $4.7 trillion, and roads at $2.6 trillion.
When completed, the tracked road projects will comprise a total 186,993 km under construction (or expansion/renewal) in the next five years.
The most notable road expansion in terms of total length is taking place in South and South East Asia, with a total of 59,835 km of ongoing and upcoming road projects spread across the region.
“In Sub-Sahara Africa and the Middle East and Africa (MEA), where infrastructure construction growth is expected to average 7.3 per cent and 6.6 per cent, respectively, there are huge infrastructure upgrades underway in roads, railways and power generation,” said Yasmine Ghozzi, Economist at GlobalData. “The pace of growth in North America and Europe’s construction industry will perform better in the forecast period than the previous forecast, 2014–2018 – albeit slower than emerging markets. Electricity and power infrastructure will be the 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.”
GlobalData says US President Donald Trump’s $2 trillion infrastructure plan will provide support for the overall growth of the North America region’s industry in the next five years.
However, GlobalData additionally states that the implementation of the plan will hinge on how individual states and municipalities can respond.
“Whether solar, wind, or hydroelectricity, most countries in all regions are boosting their investments in green energy. Saudi Arabia’s landmark US$200bn SoftBank deal to build the world’s largest solar farm tops the list of the power project pipeline,” said Ghozzi.