New York, July 17, 2023 (GLOBE NEWSWIRE) -- Reportlinker.com announces the release of the report "Global Infrastructure Construction Market Size & Share Analysis - Growth Trends & Forecasts (2023 - 2028)" - https://www.reportlinker.com/p06459646/?utm_source=GNW
The negative impacts COVID-19 has had 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 have gotten the attention of local and national governments, which have been focusing on allocating financial resources to the immediate needs of health care and supply chains over the past 2 years. COVID-19 constitutes a demand and a supply shock that has 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 have faced a dramatic decrease in demand that has resulted in substantial revenue losses for project sponsors. This has increased project risks, such as default events, termination, insolvency or governments breaching contracts.
Although heavily impacted by the disruption caused by the COVID-19 pandemic, 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 will require interventions and collaborative action from multiple participants. These include not just public– private cooperation and consolidated effort, but also new ways of measuring impacts and the development of innovative instruments geared to financing green infrastructure projects. Also important at a national and regional level will be factors such as regulatory frameworks, subsidies and tax regimes. These overlapping considerations mean the task of funding and building sustainable infrastructure is arguably one of the biggest and most complex challenges that the global financial and political system has ever faced. But it’s a challenge that must be overcome.
Infrastructure is relatively underinvested in advanced technologies compared to other capital-intensive industries. In the current environment, pressure from reductions in capacity and 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 reduce the need for onsite workers, thus increasing safety, and they can dramatically improve preventative maintenance inspecting and scoping work faster than existing methods and providing 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 will boost demand for data transmission and storage assets including fibre networks, data, and edge datacentres and telecommunication towers that are already popular among infrastructure investors.
Infrastructure Sector Market Trends
Investment on infrastructure growing in Asia-Pacific region
Pandemic recovery and stimulus packages adopted in developed countries and regions focus largely on infrastructure and are therefore expected to boost international project finance.
Asia was the only region reporting growth, in both number and value of projects. FDI inflows to Asia-Pacific remained resilient; the region stood out as an attractive destination for international investments throughout the pandemic.
For instance, in India, despite steady GDP deceleration in the last few years, the government attracted significant and steady foreign direct investment (FDI) inflows in the last decade. In the first nine months of 2020-21, India attracted equity FDI of USD 51.4 billion, up 40% compared to the USD 36.77 billion during the same period the previous year.
In India, one of the crucial components that drive and sustain economic growth is infrastructure, as it is critical to improve and maintain the country’s manufacturing competitiveness leading to higher growth.
Key challenges in India’s infrastructure sector are land acquisition policies, implementation delays, and the risk of project overruns caused by bureaucratic delays. However, the current government ensures minimizing such delays, reducing complexities, and improving transparency in projects to increase the pace of infrastructure projects.
The government launched the National Infrastructure Pipeline (NIP) for FY 2019-25, an INR 111-lakh-crore (USD 1.5 trillion) group of infrastructure projects aimed at improving ease of living and business environment.
Initially, it was earmarked for 6,835 projects, further expanded to 7,400 projects in 2021. Roads, housing, urban development, railways, conventional power, renewable energy, and irrigation account for most of the project value.
Pandemic poses a challenge to Infrastructure industry
Before COVID-19, infrastructure-related budget gaps were already unexpectedly large in certain regions. For example, many local and state budgets in the United States were never able to recover from the Great Recession.
Between 2007 and 2017, total public infrastructure spending declined by approximately USD 10 billion in real terms, with a bigger share of the remaining funds going to maintenance rather than new projects.
A 2020 survey of more than 900 municipalities in America found that 90% experienced decreased revenues, while 76% incurred additional expenses. As of August 2020, state and local governments delayed or canceled almost USD 10 billion in infrastructure projects due to the pandemic.
International-sponsored projects were particularly hard hit, as they frequently require foreign engineers and technicians on building sites. When it comes to supply-chain delays, the construction industry relies significantly on Chinese manufacturers, whose operations were severely impacted by COVID-19.
Infrastructure Sector Industry Overview
The global infrastructure construction market is highly fragmented and competitive, with a mix of domestic and international players existing in all countries and regions.
Some of the top players worldwide include ACS Actividades de Construcción y Servicios SA (ACS Group), VINCI, China State Construction Engineering Corp. Ltd, Skanska AB, Larsen & Toubro, Kajima Corporation, Hochtief Aktiengesellschaft, China Communications Construction Group Ltd, Balfour Beatty, Bouygues Group, Fluor Corporation, and Hyundai Engineering & Construction Co. Ltd (HDEC), among others.
There are many types of construction sectors that are considered part of the industry. Building, engineering, specialty construction, and planning and development are a few sectors that comprise this booming industry. The revenue generated by the global construction industry significantly increased in recent years. European and Chinese construction contractors generated the largest share of construction contract revenues worldwide.
Additional Benefits:
The market estimate (ME) sheet in Excel format
3 months of analyst support
Read the full report: https://www.reportlinker.com/p06459646/?utm_source=GNW
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