Infrastructure - Industry - Global Market, Share and Trends 2023-2028

Summary of Infrastructure

Several factors drive the continued growth of the massive $9.8 trillion global infrastructure industry in the coming years. Many countries around the world launch large-scale, long-term infrastructure development plans to boost their economic growth through improved transportation networks, reliable energy supplies and modernized utilities. Trillions of dollars invest in ambitious projects like –spanning roads, railways, airports, seaports, power plants, pipelines, telecom towers and more.

At the same time, a growing focus drives sustainability in the construction of new structures. Governments and private players recognize the need to build infrastructure assets that environmentally friendly and use renewable materials and clean energy sources to power operations. New digital technologies also enable the creation of smart infrastructure networks that can remotely monitor and manage for maximum efficiency. This allows utilities, transportation systems and other facilities to leverage technologies like– IoT, AI and cloud computing.

The infrastructure sector forecasts to expand at a compound annual growth rate — CAGR 6.2% between2023-2028. Major institutional investors also recognize infrastructure as an attractive asset class that provides stable income over the long run. With strong demand drivers and increasing investments, this industry will continue to play a vital role in the development of economies worldwide in the coming years.

Recent Trends and Insights

Infrastructure organizations are prioritizing sustainability. As sustainable practices become standard, the global infrastructure market is projected to reach $9.7 trillion by 2026.

Technologies like– AI, machine learning, and IoT are driving digital transformation in the industry. Data markets may allow evidence-based planning by reaching $10 billion in infrastructure data by 2025.

Private sector involvement is expanding financing, development, and operation of projects. Private infrastructure investment could total $3 trillion by 2025 through increased participation.

Stakeholders now emphasize resilience against disasters and disruptions. The resilience market may grow to $250 billion by 2025 in response to adapting infrastructure against climate change impacts.

Product Insights

Infrastructure construction actively accounts for over 35% of the global market, representing the largest and most important segment. This active construction includes various types — civil engineering and construction works that actively build transportation networks, utilities, and other infrastructure assets. Within construction, transportation infrastructure such as– roads, highways, rail lines, ports, and airports actively generate the most revenues. This active revenue generation occurs due to the massive investments that actively require developing transportation infrastructure networks in most countries and regions across the world.

Utilities infrastructure forms another major segment and actively includes– power generation, transmission & distribution projects, water supply & treatment facilities, and other public utilities. Reliable electricity and water infrastructure actively prove essential for economic and social development. Many nations actively have ongoing programs that expand access to power and water services in rural and remote areas. Telecommunications infrastructure like– cellular towers, fiber networks, and data centers represents a fast-growing segment actively driven by the rollout of 4G/LTE and new 5G networks. 5G infrastructure deployment over the next few years actively presents a big opportunity.

Other important product segments actively include– infrastructure management software, IT & communication services that actively allow remote monitoring and optimization of infrastructure performance. This active optimization includes– supervisory control and data acquisition (SCADA) systems, geographic information systems (GIS), and cloud-based analytics platforms. They actively help infrastructure operators improve efficiency, reduce costs, and better plan maintenance through advanced data analytics. There is also growing demand for infrastructure as a service (IaaS) and other cloud-based models that actively manage the huge volumes of data generated by– transportation, utilities, and smart city projects.

Key Companies

Some major players within this vast domain of industry are

• Brookfield Infrastructure Partners LP
• American Tower Corporation
• Crown Castle International Corp.
• Equinix, Inc.
• Digital Realty Trust, Inc.
• Emaar Properties
• China State Grid Corporation
• Larsen & Toubro
• Reliance Industries
• Adani Group

Regional Analysis

Asia Pacific accounted for over 35% market share in 2023, driven by China and India’s massive infrastructure investments. The region is estimated to continue leading over the forecast period.

North America held the second largest share with major infrastructure spending by the US. The region is expected to grow at a CAGR of 5.3% through 2028.

Europe has also witnessed increased infrastructure investments recently to boost economic growth. The Europe market size was valued at USD 620 billion in 2023.

In Latin America, countries like– Brazil, Mexico are focusing on transportation and energy infrastructure to support industrialization.

Meanwhile, the Middle East and Africa are investing heavily in– building roads, railways, power projects to diversify their economies and better connect regions.

Market Segmentation

By Type:

• Transportation Infrastructure
• Energy Infrastructure
• Water and Sanitation Infrastructure
• Communication Infrastructure
• Social Infrastructure

By End User:

• Government
• Private Sector
• Public-Private Partnerships (PPP)
• Industrial Sector
• Residential Sector

By Enterprise Size:

• Large Industries
• Small & Medium Industries

By Region:

• North America
• Europe
• Asia-Pacific
• Latin America
• Middle East and Africa

Our Methodology

We have offered a well-founded review of the Infrastructure Industry market along with ongoing trends and upcoming projections to highlight proximate investment opportunities in this report. Moreover, an extensive analysis of any future prospects, challenges, competitors, or navigating aspects is also provided. A methodical detailed regional examination is presented.

Primary Research  

Our multi-pronged research approach includes interviews with industry leaders and a global survey of advanced manufacturing professionals to gain qualitative insights. We utilize our proprietary databases encompassing key performance indicators worldwide in order to collate relevant data points. A multivariate forecasting framework considering historical performance, current dynamics and qualitative factors are utilized to develop market sizing and growth projections through 2029.

We supplement our primary research with a careful examination of secondary materials such as– case studies, news stories and references from other sources. Organizations can benefit from the strategic advice and conclusions offered because they will be better equipped to respond to the dynamic nature of this industry and seize emerging possibilities.

We employ a comprehensive and iterative research methodology focused on minimizing deviation to provide the most accurate market estimates. Our research utilizes a combination of bottom-up and top-down approaches across segments and utilizes databases, primary research insights and industry experts for analysis.

Raw data is obtained from multiple sources and thoroughly filtered to ensure only authenticated and validated sources are considered. We collect data from raw material suppliers, industry associations, technology providers, and buyers to gain a holistic perspective.

Quantitative Analysis

Our market estimates are derived through statistical models, beginning with collection of historical data and analysis of macro- and micro-economic factors influencing the market. Gathered information on market dynamics, technology and pricing trends are utilised to build the models.

Econometric and technological models are applied to project short- and long-term market potential respectively. A bottom-up approach is preferred to minimize errors. Key parameters considered include market drivers and restraints, material pricing trends, regulatory scenarios, and capacity additions.

Weights are assigned to these parameters based on impact analysis and market forecasting is performed via statistical tools and techniques. We believe this methodology results in an accurate and realistic market picture.