Infrastructure Market Size, Trends and Growth Forecast by Key Regions and Countries, 2021-2026
Summary
Growth in global infrastructure construction output gathered pace in 2021 having been impacted in 2020 by the disruption caused by the COVID-19 pandemic, but growth momentum has since been hit by soaring material costs and rising borrowing costs. Output picked up to 4.2% in 2021, having slowed to 3.1% in 2020, but is expected to have eased back to 3.8% in 2022. Infrastructure construction, which includes roads, railways, power and electricity, water and sewerage, and other infrastructure (which mainly comprises airports and ports), has been bolstered by government efforts worldwide to invest in projects to generate economic growth momentum. Output growth will pick up pace in 2023, assuming that the US makes progress with its spending plans under the Infrastructure Investment and Jobs Act (IIJA) and China pushes ahead with its infrastructure investment to offset weakness elsewhere in the economy. Output growth in 2023 is predicted to rise to 6.7%, before averaging 5.4% in 2024-26.
At the sector level, infrastructure spending globally will continue to be dominated by roads and electricity and power sectors, with annual average output for roads projected to stand at $1.24 trillion in 2022-2026 (in real terms, at 2017 prices and exchange rates), and for electricity and power at $1.12 trillion, with both sectors combined accounting for 56.6% of total infrastructure spending. In terms of infrastructure spending growth, the rail sector will register the fastest growth rate, expanding at an annual average of 6.8% in 2022-2026, with numerous high-value projects being pushed ahead.
This report provides a detailed analysis of the prospects for the global infrastructure construction industry up to 2026.
Scope
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