Infrastructure Sector In Asia Pacific Market Size

APAC Infrastructure Market Analysis

The Infrastructure Sector In Asia Pacific Market size is estimated at USD 1.33 trillion in 2024, and is expected to reach USD 1.83 trillion by 2029, growing at a CAGR of 6.59% during the forecast period (2024-2029).

• Southeast Asia is experiencing a boom in infrastructure, with major projects in Vietnam, Thailand, the Philippines, Malaysia, and Indonesia accepted. Those were supported in many cases by loans and other assistance provided by Japan and China. The distinction between Japan and China's one-year investment in Southeast Asia represents just part of the story. China’s investments in ASEAN infrastructure have risen rapidly in recent years.
• The backbone of the Indian economy, the infrastructure sector, is essential to improving the nation's overall development. Other industry sub-segments include telephony, power, roads, ports, etc. India has to enhance its infrastructure to reach its 2025 economic growth target of USD 5 trillion. The National Infrastructure Pipeline (NIP), along with other initiatives like "Make in India" and the production-linked incentives (PLI) program, was launched by the government to promote the expansion of the infrastructure industry. Historically, more than 80% of the money spent on infrastructure in the country has gone into expenditures related to transportation, electricity, water, and irrigation. Significant infrastructure development requires a substantial inflow of investor funds.
• Japan is still leading the Southeast Asia Infrastructure Race against China, with almost one-and-a-half times its rival projects outstanding. Japanese-backed projects in the region’s six largest economies – Indonesia, Malaysia, Philippines, Singapore, Thailand, and Vietnam – are valued at USD 367 billion. Vietnam is by far the biggest priority for Japan's participation in infrastructure, with projects pending worth USD 209 billion – more than half of Japan's total. This includes USD 58.7 billion of high-speed rail between Hanoi and Ho Chi Minh City in Vietnam.
• Overall, the prospects for regional infrastructure investment are highly promising. While COVID-19 has had a considerable influence on infrastructure development and finance throughout the area, part of that change is beneficial to project lenders and investors. The epidemic is hastening investment in low-carbon, climate-resilient infrastructure, as well as initiatives that improve internet connection and public health. And, as our survey results demonstrate, these two areas—ESG and digitalization—will continue to dominate the infrastructure sector for the foreseeable future.