Asia Pacific Transportation Infrastructure Construction Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

Asia Pacific Transportation Infrastructure Construction Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

The Asia-Pacific transportation infrastructure construction market is expected to register a growth rate of over 6% during the forecast period, 2022-2027.

COVID-19 had a significant impact on the Asia-Pacific construction sector in 2020. Despite the fact that COVID-19 is projected to slow infrastructure development, construction is expected to pick up. In 2021, the transport infrastructure construction market began to rise after the COVID-19 impact. Economic activity in China has resumed after weeks of the shutdown, and infrastructure work has resumed as an early sign of recovery.

In 2021, the revenue of major players like China State Construction Engineering Corporation and China Railway Construction Corporation was USD 253.7 billion and 142.5 billion, respectively.

The Asian Development Bank (ADB) is assisting Pacific DMCs with their connectivity infrastructure planning, construction, and maintenance. Transport projects contribute to more than 59% of ADB's Pacific portfolio's overall value.

The ADB's support for the transportation sector is helping to bridge gaps in the Pacific area, resulting in more profitable, stable, and long-term growth.

• With a total length of 5.89 million kilometers, India has the world's second-largest road network. This network transports 64.5% of all goods in India, whereas 90% of all passenger traffic in India travels by road. With improved connectivity between cities, towns, and villages around the country, road transportation has gradually increased over time.
• Between FY16 and FY21, highway construction in India witnessed a 17% CAGR. Despite the pandemic and lockdown, India built 13,298 kilometers of roadways in FY21. The Ministry of Road Transport and Highways built 2,284 kilometers of national highways in June 2021, compared to 1,681 kilometers in June 2020.
• For FY 2019-25, the Indian government has budgeted USD 1.4 trillion for the National Infrastructure Pipeline. Over the next five years, the roads sector is expected to account for 18% of capital spending.
• The Ministry of Road Transport and Highways has proposed the construction of 34,800 km of national highways in five years for a total cost of USD 76.55 billion under Phase I of the Bharatmala Pariyojana. Under this program, 22 greenfield projects with a total length of 8,000 kilometers are being built for USD 43.94 billion. By 2025, the Indian government plans to build 23 new national highways.
• The Indian government has launched the Gati Shakti-National Master Plan, which will aid in the development of infrastructure in a purposeful way, creating a large number of job opportunities in the country.
• The government is working on policies to encourage considerable investment through many initiatives. By 2022, 200K kilometers of national highways are anticipated to be finished.

• People have migrated to cities and metropolitan areas in the Asia-Pacific region in search of better work and income possibilities as new economies arise and a greater focus on industrialization is placed on the region. Citizens' migration has eventually led to large urban populations, catalyzing the growth of megacities across the Asia-Pacific region.
• In 2021, 53.4% of urban areas were present in the Asia-Pacific region compared to other regions globally.
• According to the United Nations Department of Economic and Social Affairs (UN DESA), in the Asia-Pacific region, the population living in urban areas is expected to reach 2.9 billion in 2030.
• In 2021, the degree of urbanization in Asia was at around 75%, and it was 25% in the Oceania region.
• The Asia-Pacific region's urbanization rate is still low, indicating that the growth of megacities throughout Asia will continue. This needs ongoing initiatives to address and minimize the impacts that megacities have on their surroundings. Measures within sustainable urban development through technical innovations and better infrastructure constructions could benefit in addressing megacity challenges.

The market is relatively fragmented, with a large number of local and international players. The transportation infrastructure construction market in Asia-Pacific presents opportunities for growth during the forecast period.

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