Infrastructure Sector Market Size

Infrastructure Construction Market Analysis

The Infrastructure Sector Market size is estimated at USD 2.72 trillion in 2024, and is expected to reach USD 3.69 trillion by 2029, growing at a CAGR of 6.27% during the forecast period (2024-2029).

• COVID-19 had a negative impact on national economies and the economic livelihood of governments, businesses, and individuals. But significantly lower usage rates in infrastructure during the pandemic and the resulting shortfall in financing and maintenance received the attention of local and national governments, which focused on allocating financial resources to meet the immediate needs of healthcare and supply chains during the pandemic. COVID-19 caused a demand and supply shock that resulted in construction interruptions or delays due to a lack of personnel, supply chain disruptions, or delays in government approvals throughout the world. In many sectors, assets dependent on user fees faced a dramatic decrease in demand, resulting in substantial revenue losses for project sponsors. This increased project risks, such as default events, termination, insolvency, or governments breaching contracts.
• Although heavily impacted by the disruptions caused by the COVID-19 pandemic, the global infrastructure construction output still expanded in 2020, as governments around the world sought to stimulate economic activity through investments in transport infrastructure and clean energy.
• Ultimately, the global shift to sustainable infrastructure requires interventions and collaborative action from multiple participants. The interventions include not just public-private cooperation and consolidated effort but also new ways of measuring the impact and developing innovative instruments geared to financing green infrastructure projects. Factors important at a national and regional level include regulatory frameworks, subsidies, and tax regimes. These overlapping considerations mean that funding and building sustainable infrastructure is arguably one of the biggest and most complex challenges the global financial and political system has ever faced. But it is a challenge that must be overcome.
• Infrastructure is relatively underinvested in advanced technologies compared to other capital-intensive industries. In the current environment, pressure due to capacity reduction and the rising costs may encourage asset owners and project managers to accelerate the adoption of technologies such as artificial intelligence and robotics. There is also an opportunity to reduce maintenance capital expenses using technologies such as intelligent drones. These drones lessen the need for onsite workers, thus increasing safety. They can dramatically improve preventative maintenance, inspecting, and scoping. They work faster than existing methods and provide more detailed information about required repairs.
• More broadly, the shift to remote working arrangements across many industries has underlined the growing need for secure, resilient, cloud-based technologies, and connective infrastructure. Growing usage of cloud technology is expected to boost the demand for data transmission and storage assets including fiber networks, data, edge datacentres, and telecommunication towers that are already popular among infrastructure investors.