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

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

The Netherlands Transportation Infrastructure Construction Market is expected to record a CAGR of more than 5% during the forecast period.

COVID-19 impacted the transportation sector. The impact is in direct and indirect ways, such as reduction in transit services, slowing down construction works due to social distancing, and disrupted supply chain.

Transportation infrastructure facilitates the movement of public goods in the country. Furthermore, an increase in urban mobility creates demand for the construction of more transportation projects. The transportation infrastructure is driven by modernization, which involves reforming railways and improving and rebuilding roads, bridges, airports, etc. This factor resulted in uninterrupted transit and freight services directly contributing to the region’s economy.

The increase in government expenditure towards transportation infrastructure construction development, along with the investments in energy-efficient and environmentally sustainable assets, is promoting the market demand for the Netherlands transportation infrastructure construction market. Investment in large-scale infrastructure projects is one of the key strategies of the Netherlands to promote its economic growth. The government's effort to improve the country's infrastructure to sustain growth in the manufacturing sector and expand municipal utilities will contribute to the growth in construction spending.

Increasing public investments in Netherlands’s commercial construction sectors is a key market opportunity for the companies operating in the construction of transportation infrastructure. The presence of huge customers is resulting in strong FDI (foreign direct investment) inflows into the country.

Transportation is a key factor in the growth of the economy in the Netherlands because it is a highly developed country with a very dense population. Also, the country has a very dense and modern transportation infrastructure, facilitating transport with the road, rail, air, and water networks.

The main mode of transportation for long distances in the Netherlands is training. Regional and local public transport is by bus, and in some cities by metro and tram. Randstadnet or R-net is a collaborative project of governments and public transport operators providing high-quality public transport in the Randstan area of the Netherlands. To connect the local village area of the Netherlands with the major cities like Rotterdam, The Hague, and Amsterdam, mostly trams are used. Due to the large number of waterways in the Netherlands, not every road connection has been bridged, and there are still some ferries in operation.

Moreover, in the Netherlands, there is a need for better road infrastructure because of cycling. Around 36% of the population in the Netherlands prefer cycling as their daily mode of transportation. This frequency of bicycle travel is enabled by excellent cycling infrastructure in the country, such as cycling paths, cycling tracks, protected intersections, ample special bicycle parking areas, and by making cycling routes shorter and more direct (and therefore usually quicker) than car routes.

The government of the Netherlands is focusing on building the new transportation infrastructure as well as improving the existing infrastructure because transportation is one of the key factors contributing to the country's economy. Also, to meet the needs and demands of the dense population ( 17 Million in 2021), transportation infrastructure is an important need.

In the Netherlands, the travel and tourism sector has become increasingly important to the Dutch economy. The revenue from travel and tourism is expected to grow more and more every year during the forecast period. The travel and tourism sector faced a major hit during the COVID - 19 pandemic period. However, the sector is expected to bounce back during the forecast period.

This sector is comprised of three major components: domestic, inbound, and outbound tourism. Domestic tourism, which includes Dutch citizens traveling locally within the Netherlands, reports the highest expenditure in terms of tourism expenditure in the Netherlands.

In the Netherlands, the majority of tourists are attracted to Amsterdams. Due to its historic buildings, canals, and famous museums, Amsterdam is one of the leading destination spots in the Netherlands. Not only known for its leisure tourism, but the Dutch capital is also a business travel destination, attracting thousands of global business visitors from across the world each year. However, the global pandemic caused by the novel coronavirus (COVID-19) heavily hit both the Dutch leisure and business tourism industries in 2020. Meanwhile, in years prior to the pandemic, visitation numbers remained at roughly 20 million.

In 2020, most individuals who traveled for holiday or business purposes to the Netherlands were from Germany, as roughly 3.22 million German tourists visited their neighboring country. Together with the Belgians and British, they accounted for more than half of the European tourists visiting the country in 2020.

The market is relatively fragmented, with a large number of local and International players like Royal BAM Group, Besix, Dura Vermeer, Volker Wessels, and AVG Infra. The demand for sustainability and technological advancements in the transport infrastructure market is increasing, and companies in the region are expected to adopt and remain competitive.

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