The infrastructure industry is the backbone of global development. Fundamental necessities such as transport, water utilities, or power grids - all branches of infrastructure – sustain urban and suburban life. As cities expand and technology evolves, the infrastructure industry carries the weight of nearly every global sector on its shoulders.
Rising inflation, geopolitical tensions, and higher interest rates have inhibited progress on major projects. However, demand for infrastructure renewal remains strong. According to market research, the infrastructure sector market size is expected to reach USD 3.69 trillion by 2029, growing at a category annual growth rate (CAGR) of 6.27%. According to the Global Infrastructure Outlook by the G20, the investment needs for the global infrastructure industry will reach USD 94 trillion by 2040. Due to growing population trends, combined with increasing Sustainable Development Goals (SDG) policy implementation by the UN, infrastructure needs and the associated costs will continue to increase exponentially. Meeting these needs will perhaps be the biggest challenge facing businesses in the industry.
In the EMEA region, various regional factors are powering infrastructure development. Mega-projects like Saudi Arabia’s NEOM and the UAE’s renewable energy initiatives are fuelling the drive for major investments in the Middle East. Thanks to government-backed efforts on smart cities, clean energy, and advanced transportation systems, the region is gradually positioning itself as a global leader in innovative infrastructure. Meanwhile, the EU’s Green Deal is accelerating sustainable infrastructure development with investments in green energy and eco-friendly urban projects. However, labour shortages, rising construction costs, and regulatory complexities are providing major challenges to this growth.
ValuStrat offers infrastructure consulting services that are specifically tailored to help businesses and governments navigate these complexities and capitalise on emerging opportunities. Our comprehensive infrastructure consulting services include:
- Strategic advisory: Guiding infrastructure investments and planning with a focus on sustainability, tech integration, and regulatory compliance. For example, advising on smart city projects like NEOM ensures that projects meet global standards and future needs.
- Valuations: Offering precise valuations for assets such as transport networks and energy grids, critical for mergers, acquisitions, and capital allocation in projects like renewable energy and major transport hubs.
- Due diligence: Conducting thorough assessments to ensure financial and operational viability. This is essential for large-scale projects like cross-border energy grids and PPPs in transportation.
- Market research: Providing insights on trends like renewable energy and smart grid technologies, helping stakeholders identify risks and opportunities in green infrastructure and urban development.
- Transaction advisory: Supporting PPPs and joint ventures in sectors like energy and water, structuring deals that maximise value and minimise risks for long-term infrastructure projects.
- Project monitoring: Offering oversight to keep projects on track for time, budget, and quality. This helps manage risks in major initiatives like transportation upgrades and infrastructure expansions.
The future of the global infrastructure industry is marked by the goals of sustainable development and digital transformation. With a growing number of governments investing in projects to reduce their carbon footprint and build climate-resilient infrastructure, technologies such as IoT, AI, and smart grids will work together to streamline asset management and operational efficiency.
With a rapidly growing economy, infrastructure development seems to be becoming increasingly essential. Keeping up with this growing need may leave some companies scrambling to meet demands. However, with the right tools to inform the decision-making process, businesses that adapt to change can lead the industry’s future.