Assessing the global transport infrastructure market: Outlook to 2025

Transport infrastructure investment is projected to increase at an average annual rate of about 5% worldwide over the period of 2014 to 2025.

The market is ripe for private-led transport infrastructure capital projects. A positive picture of a growing market for transport infrastructure investment worldwide has many economies considering how to attract private investment.  And investors are evaluating which subsectors and regions have the most potential. A 2015 PwC and Oxford Economics forecast takes a look at what investors need to know about which transportation subsectors and markets are expected to grow and what factors are driving growth. 

Asia-Pac, Africa to lead

Overall, our forecasts present a positive picture of a growing market for transport infrastructure worldwide. Asia-Pacific remains the largest transport infrastructure market, while Sub-Saharan Africa will continue to be the fastest-growing regional infrastructure market. 

Rising wealth = more roads

Considering individual subsectors, ports are predicted to grow the fastest, while airport investments are expected to slow down. Roads will likely remain the biggest area of investment, especially for growth markets like Latin America where rising wealth is driving strong increases in car ownership and, in turn, a need for better roads. Railways, by contrast, are forecast to have a relatively strong growth in those advanced economies with mature transport markets such as the UK and Spain where high-speed networks are expected to undergo further development. 

A growing number of technological innovations and cross-border collaborations are also expected to drive strategic investments in different transport subsectors, especially roads and railways.

Key to success - preparation

While the global financial crisis has reinforced the belief that infrastructure is a strong asset class, and there is interest in investing in transportation in both mature and growth markets, each provides unique opportunities and challenges. 

A key factor to unlocking these transport investment opportunities — and overcoming the challenges — is better project preparation. If governments and investors are going to deliver good projects and realise good socio-economic and financial returns, they need to focus on upfront preparation before the project even starts. The right preparation will provide assurance to investors about key risks associated with a project and its bankability, thus ensuring a higher level of investor interest in the project and a greater chance of overall success. 

Download PwC’s Assessing the global transport infrastructure market: Outlook to 2025 for additional insights and details about our forecasts by sector and region.

Learn about the challenges and opportunities facing both growth and developed markets. See how technology innovations and cross-border collaborations, along with public-private partnerships, are driving strategic investment in transportation infrastructure. Explore some of the obstacles, incentives and investment drivers expected to drive growth by 2025. And read our recommendations to both private and public sector entities looking to invest in transport infrastructure.

Contact us

Julian Smith
Global transportation & logistics leader
Tel: +62 21 5212901
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Richard Abadie
Global leader, Capital projects & infrastructure, PwC UK
Tel: +44 (0) 20 7213 3225
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Neil Broadhead
UK Capital Projects & Infrastructure Leader
Tel: +44 (0) 20 7804 4423
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Mark Rathbone
Asia-Pacific Capital Projects and Infrastructure Leader
Tel: +65 6236 4190
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