current
Emerging Markets Infrastructure Boom
Emerging markets, particularly in Asia, will drive massive growth in infrastructure spending, outpacing developed nations.
Timeframe
near-term
Categories
Subcategories
Impact areas
Detailed Analysis
A significant shift in global infrastructure investment is underway, with emerging markets taking center stage. Driven by rapid economic growth and urbanization, these economies are becoming the primary drivers of infrastructure development. The report highlights that "Emerging countries were spending more on infrastructure than developed nations before the financial crisis in 2008, but its impact on the large Western economies has accelerated the shift." This trend is particularly pronounced in Asia, with China leading the charge. The increasing prosperity in these markets is creating a surge in demand for infrastructure across various sectors, including transportation, energy, water, and telecommunications.
Context Signals
Global infrastructure spending is projected to reach $9 trillion by 2025.
Asia-Pacific market will represent nearly 60% of global infrastructure spending by 2025.
Western Europe's share will shrink to less than 10%.
Edge
The rapid infrastructure development in emerging markets presents significant opportunities for investors and construction firms.
The focus on infrastructure in these regions could lead to the development of innovative and sustainable solutions.
Competition for resources and talent in these high-growth markets will intensify.
