Global infrastructure construction is forecast to grow by 4.8% on an annual average basis in real terms between 2019 and 2023, according to GlobalData.
This growth is predicted to be driven by Asia, where growth is expected to average 7.0% a year in South and South East Asia, and 5.8% in North East Asia.
GlobalData is said to be tracking worldwide more than 14,000 large-scale infrastructure projects in both the public and private sectors that are worth a minimum of US$25 million (totalling US$14.8 trillion) at all stages.
The power sector has the most projects in the pipeline with 5,681, followed by the road sector with 4,004, and railways with 1,945.
In terms of value, rail projects dominate, with these projects valued at approximately US$5.4 trillion. Power is the second-largest sector valued at US$4.7 trillion, with roads at US$2.6 trillion.
When completed, the tracked road projects will comprise a total 186,993km under construction (or expansion/renewal) in the next five years.
The most notable road expansion in terms of total length is taking place in South and South East Asia, with a total of 59,835km of ongoing and upcoming road projects across the region. A total of 160,198km of railway track and 1,271.6GW of generating capacity will be undertaken and completed in the next five years.
Yasmine Ghozzi, economist at GlobalData, said, “In Sub-Sahara Africa and the Middle East and Africa (MEA), where infrastructure construction growth is expected to average 7.3% and 6.6%, respectively, there are huge infrastructure upgrades underway in roads, railways and power generation.
“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. Electricity and power infrastructure will be the one of the fastest sectors in Europe as countries across the continent reaffirm their commitment to climate change and clean energy.”