The ongoing rebalancing of global economic power has led to unprecedented investment plans in infrastructure in the emerging markets. For example, the Asia Pacific market, driven by China’s growth, is expected to represent nearly 60% of global infrastructure spending by 2025. In contrast, Western Europe’s share is expected to shrink to less than 10% from twice as much just a few years ago, according to PwC and Oxford Economics’ Capital Project and Infrastructure spending outlook to 2025 report.
While there are common drivers of infrastructure growth across emerging markets, such as the need for new infrastructure and the goals of sustaining economic growth and handling rapid urbanisation, the environment and challenges vary widely. When pursuing opportunities, infrastructure management companies, engineering and construction operators, private materials and financial firms need to be asking themselves:
Who are the right local and global infrastructure partners? What are the differences in infrastructure funding structures? How does bidding happen for mega projects? Are there demands for green infrastructure?
In PwC's Emerging Markets Infrastructure Series, we define infrastructure in different emerging markets and provide insights on the goals, challenges, risks and opportunities associated with infrastructure developments in those markets.
Click here to access individual reports on the countries including such growth markets as: Brazil, China, India, Indonesia, Malaysia, Mexico, Nigeria, Russia, South Africa and Turkey as well as regional reports such as Asia Pacific, Middle East, Central and Eastern Europe and more.
This PwC report explains why a strong economy, new laws and an ambitious infrastructure investment program in Mexico spell opportunity.
The need to upgrade India’s infrastructure is especially acute in its huge cities. With the urban population projected to reach 500 million by 2017, experts discuss what is holding India back in this PwC emerging markets, capital infrastructure report.
In China, government planners and foreign investors alike are wrestling with the implications of water scarcity and shortage. The United Nations says China has 21% of the world’s population, but only 6% of its freshwater. In considering what measures will help, many leaders say the starting place is infrastructure and construction solutions, according to a recent report by PwC.
Chinese firms have made major investments in African infrastructure, targeting key sectors such as telecommunications, transport, construction, power plants, waste disposal and port refurbishment. Given the scale of Africa’s infrastructure deficit, these investments represent a vital contribution to the continent’s development. according to a recent report by PwC.
Infrastructure is a top priority for Brazil as it prepares to host the World Cup and Olympics. And, as with any challenge, this gap offers great investment opportunities. Brazil has been making great strides in attracting such investment, especially in the transportation sector.
Explores the many sides of the talent shortage challenging infrastructure companies working in emerging markets. To plan, build and maintain this infrastructure, developing nations will need millions of highly skilled workers, including civil engineers, electrical and mechanical engineers, architects, designers, surveyors and project managers.