Infrastructure Sector In Asia Pacific Market Size (2024 - 2029)

The Asia Pacific infrastructure market is poised for significant growth, with Southeast Asia leading the charge through substantial projects supported by international loans, particularly from Japan and China. The infrastructure sector is crucial for India's economic ambitions, with government initiatives like the National Infrastructure Pipeline driving development. Japan maintains a competitive edge in Southeast Asia, focusing heavily on Vietnam for its infrastructure investments. Despite challenges posed by the COVID-19 pandemic, the region's infrastructure investment landscape remains promising, with a strong emphasis on low-carbon, climate-resilient projects and digitalization.

Market Size of Infrastructure Sector In Asia Pacific Industry

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Infrastructure Sector In Asia Pacific Market Summary
Study Period 2019 - 2029
Base Year For Estimation 2023
Market Size (2024) USD 1.33 Trillion
Market Size (2029) USD 1.83 Trillion
CAGR (2024 - 2029) 6.59 %
Market Concentration Low

Major Players

Infrastructure Sector In Asia Pacific Market Major Players

*Disclaimer: Major Players sorted in no particular order

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APAC Infrastructure Market Analysis

The Infrastructure Sector In Asia Pacific Market size is estimated at USD 1.33 trillion in 2024, and is expected to reach USD 1.83 trillion by 2029, growing at a CAGR of 6.59% during the forecast period (2024-2029).

  • Southeast Asia is experiencing a boom in infrastructure, with major projects in Vietnam, Thailand, the Philippines, Malaysia, and Indonesia accepted. Those were supported in many cases by loans and other assistance provided by Japan and China. The distinction between Japan and China's one-year investment in Southeast Asia represents just part of the story. China’s investments in ASEAN infrastructure have risen rapidly in recent years.
  • The backbone of the Indian economy, the infrastructure sector, is essential to improving the nation's overall development. Other industry sub-segments include telephony, power, roads, ports, etc. India has to enhance its infrastructure to reach its 2025 economic growth target of USD 5 trillion. The National Infrastructure Pipeline (NIP), along with other initiatives like "Make in India" and the production-linked incentives (PLI) program, was launched by the government to promote the expansion of the infrastructure industry. Historically, more than 80% of the money spent on infrastructure in the country has gone into expenditures related to transportation, electricity, water, and irrigation. Significant infrastructure development requires a substantial inflow of investor funds.
  • Japan is still leading the Southeast Asia Infrastructure Race against China, with almost one-and-a-half times its rival projects outstanding. Japanese-backed projects in the region’s six largest economies – Indonesia, Malaysia, Philippines, Singapore, Thailand, and Vietnam – are valued at USD 367 billion. Vietnam is by far the biggest priority for Japan's participation in infrastructure, with projects pending worth USD 209 billion – more than half of Japan's total. This includes USD 58.7 billion of high-speed rail between Hanoi and Ho Chi Minh City in Vietnam.
  • Overall, the prospects for regional infrastructure investment are highly promising. While COVID-19 has had a considerable influence on infrastructure development and finance throughout the area, part of that change is beneficial to project lenders and investors. The epidemic is hastening investment in low-carbon, climate-resilient infrastructure, as well as initiatives that improve internet connection and public health. And, as our survey results demonstrate, these two areas—ESG and digitalization—will continue to dominate the infrastructure sector for the foreseeable future.

APAC Infrastructure Industry Segmentation

Infrastructure is the backbone of domestic and international commerce and industrial and agricultural production. It is the fundamental organizational and physical framework necessary to operate a firm successfully. The infrastructure sector focuses on major infrastructure such as power, roads and bridges, dams, and urban infrastructure.

The market is segmented by the Infrastructure segment (Social Infrastructure, Transportation Infrastructure, Extraction Infrastructure, Manufacturing Infrastructure) and by country (China, India, Japan, South Korea, Philippines, and the Rest of Asia-Pacific).

The report offers market size and forecast values (USD) for all the above segments, and the COVID-19 impact is comprehensively covered.

By Infrastructure segment
Social Infrastructure
Schools
Hospitals
Defence
Other social infrastructures
Transportation Infrastructure
Railways
Roadways
Airports
Waterways
Extraction Infrastructure
Power Generation
Electricity Transmission & Disribution
Water
Gas
Telecoms
Manufacturing Infrastructure
Metal and Ore Production
Petroleum Refining
Chemical Manufacturing
Industrial Parks and clusters
Other manufacturing infrastructures
By Country
China
India
Philippines
Japan
South Korea
Rest of Asia Pacific
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Infrastructure Sector In Asia Pacific Market Size Summary

The Asia Pacific infrastructure market is poised for significant growth, driven by substantial investments and strategic initiatives across the region. Southeast Asia is witnessing a surge in infrastructure development, with countries like Vietnam, Thailand, the Philippines, Malaysia, and Indonesia leading the charge, often supported by financial assistance from Japan and China. In India, the infrastructure sector is a crucial component of the national economy, with the government implementing programs like the National Infrastructure Pipeline and "Make in India" to boost development. Japan continues to play a dominant role in Southeast Asia, with a focus on large-scale projects, particularly in Vietnam. The region's infrastructure landscape is also evolving in response to the COVID-19 pandemic, which has accelerated investments in low-carbon and climate-resilient projects, as well as those enhancing digital connectivity and public health.

The market is characterized by a fragmented landscape with numerous new entrants vying for projects, supported by private and venture capital investments. Key players include China State Construction Engineering, China Communications Construction Company, Power Construction Corporation of China, Samsung C&T, and Obayashi Corporation. The Philippines is exploring international financing and foreign investment in its infrastructure modernization efforts, while China continues to expand its transportation infrastructure through ambitious plans. Japan is enhancing its transportation networks, including high-speed rail and airport facilities. The market's growth trajectory is further supported by strategic partnerships and investments in renewable energy and green technologies, indicating a robust outlook for the infrastructure sector in the Asia Pacific region.

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Infrastructure Sector In Asia Pacific Market Size - Table of Contents

  1. 1. MARKET DYNAMICS

    1. 1.1 Market Overview

    2. 1.2 Market Drivers

      1. 1.2.1 Asia Pacific countries are investing in infrastructure projects to improve regional connectivity and promote economic integration

      2. 1.2.2 The Asia Pacific region has a large and growing population, along with a rising middle class

    3. 1.3 Market Restraints

      1. 1.3.1 Limited public budgets and difficulties in attracting private investment can hinder the financing of large-scale projects

      2. 1.3.2 Delays in land acquisition can significantly impact project timelines and costs

    4. 1.4 Market Opportunities

      1. 1.4.1 The rapid growth of mobile and internet usage in the Asia Pacific region has created opportunities for investment in telecommunications infrastructure

    5. 1.5 Value Chain / Supply Chain Analysis

    6. 1.6 Porter's Five Forces Analysis

      1. 1.6.1 Bargaining Power of Suppliers

      2. 1.6.2 Bargaining Power of Buyers/Consumers

      3. 1.6.3 Threat of New Entrants

      4. 1.6.4 Threat of Substitute Products

      5. 1.6.5 Intensity of Competitive Rivalry

    7. 1.7 Market Insights

      1. 1.7.1 Current Economic and Construction Market Scenario

      2. 1.7.2 Technological Innovations in the industry

      3. 1.7.3 Impact of Government Regulations and Initiatives on the Industry

      4. 1.7.4 Impact of COVID -19 on the market

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Infrastructure segment

      1. 2.1.1 Social Infrastructure

        1. 2.1.1.1 Schools

        2. 2.1.1.2 Hospitals

        3. 2.1.1.3 Defence

        4. 2.1.1.4 Other social infrastructures

      2. 2.1.2 Transportation Infrastructure

        1. 2.1.2.1 Railways

        2. 2.1.2.2 Roadways

        3. 2.1.2.3 Airports

        4. 2.1.2.4 Waterways

      3. 2.1.3 Extraction Infrastructure

        1. 2.1.3.1 Power Generation

        2. 2.1.3.2 Electricity Transmission & Disribution

        3. 2.1.3.3 Water

        4. 2.1.3.4 Gas

        5. 2.1.3.5 Telecoms

      4. 2.1.4 Manufacturing Infrastructure

        1. 2.1.4.1 Metal and Ore Production

        2. 2.1.4.2 Petroleum Refining

        3. 2.1.4.3 Chemical Manufacturing

        4. 2.1.4.4 Industrial Parks and clusters

        5. 2.1.4.5 Other manufacturing infrastructures

    2. 2.2 By Country

      1. 2.2.1 China

      2. 2.2.2 India

      3. 2.2.3 Philippines

      4. 2.2.4 Japan

      5. 2.2.5 South Korea

      6. 2.2.6 Rest of Asia Pacific

Infrastructure Sector In Asia Pacific Market Size FAQs

The Infrastructure Sector In Asia Pacific Market size is expected to reach USD 1.33 trillion in 2024 and grow at a CAGR of 6.59% to reach USD 1.83 trillion by 2029.

In 2024, the Infrastructure Sector In Asia Pacific Market size is expected to reach USD 1.33 trillion.

APAC Infrastructure Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)