Global infrastructure construction is forecast to grow by almost 5 per cent on average each year between 2019 and 2023, according to new research.
Data and analytics company Global Data expects construction to grow by 4.8 per cent on an annual average basis in real terms, propelled by Asia where growth is expected to average 7 per cent a year.
The company is tracking more than 14,000 large scale infrastructure projects across the public and private sectors, worth a minimum value of US$25 million, totalling around US$14.8 trillion.
The energy industry has the most projects in the pipeline, according to Global Data, with 5681. This is followed by the roads sector with 4004 and railways at 1945. Rail project were found to dominate when it comes to value, with $US 5.4 trillion in the pipeline, followed by energy at $US 4.7 trillion and roads at $US 2.6 trillion.
The total length of all the road projects underway around the world for the next five years totals around 186,993 kilometres.
Global Data Economist, Yasmine Ghozzi, said there are huge infrastructure upgrades underway in roads, railways and power generation in Africa and the Middle East.
“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,” Ghozzi said.
“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.”
“Whether solar, wind, or hydroelectricity, most countries in all regions are boosting their investments in green energy. Saudi Arabia’s landmark US$200 billion Soft Bank deal to build the world’s largest solar farm tops the list of the power project pipeline.”