South Asia infrastructure construction market size was valued at $316.1 billion in 2022, according to a new report by GlobalData Plc. The rising public spending on railways, roads, and electricity to attract steady foreign investments for economic prosperity is projected to aid the market growth over the forecast period.
South Asia Infrastructure Construction Market Outlook 2022-2026 ($ Billion)
South Asia infrastructure construction market outlook report with detailed sectors and country-wise segment analysis is available with GlobalData! Read our free sample report
South Asia Infrastructure Construction Market FAQs
- What was the South Asia infrastructure construction market size in 2022?
The South Asia infrastructure construction market size in 2022 was $316.1 billion. - What is the South Asia infrastructure construction market growth rate during 2022-2026?
The South Asia infrastructure construction market will grow at 6.4% during 2022-2026. - Which are the key sectors of South Asia infrastructure construction market?
The key sectors of South Asia infrastructure construction market are electricity and power, railway, road, water and sewage, and others. - Which sector accounted for the highest South Asia infrastructure construction market growth in 2021?
The electricity and power accounted for the highest share of the South Asia infrastructure construction market growth in 2021. - Which are the key countries in the South Asia infrastructure construction market?
India, Bangladesh, Pakistan, and Sri Lanka are the key countries in the South Asia infrastructure construction market. - Which country showcased the highest South Asia infrastructure construction market growth in 2021?
India showcased the highest share of the South Asia infrastructure construction market growth in 2021.
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South Asia Infrastructure Construction Market Dynamics
South Asia infrastructure construction sector is poised to grow at a stable annual average growth rate of nearly 6.4% from 2022 to 2026. The regional prospects are likely to grow with strong project pipeline despite the ongoing economic scenario in Sri Lanka and Pakistan. The governments in these South Asian economies are taking several measures to boost the construction across key sectors including electricity and power, roads, and railways.
For instance, in India, the government’s intention to increase the number of greenfield highways and work towards the successful implementation of the Pradhan Mantri Gati Shakti Master Plan, which includes the construction of 200,000km of national highways by 2025 will influence the market growth. Similarly, the key trend observed in the Bangladesh infrastructure construction sector was the extended measures taken by the domestic government to attract greater investment in the country’s transport infrastructure through public-private partnerships.
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South Asia Infrastructure Construction Report Highlights
- The South Asia infrastructure construction market is estimated to showcase a CAGR of 6.4% from 2022 to 2026. The growth in the region is spearheaded by strong project pipelines in India with a total estimated value of more than 1.5 trillion.
- In 2021, the electricity and power segment accounted for the largest share in terms of construction output value. The segment is poised to grow at a stable pace over the forecast period owing to more than $758.1 billion worth of project pipeline.
- The roads category registered the second largest share in the regional marketspace, accounting for more than 27.0% in 2021. The segment is projected to be driven by the supporting government policies to develop networks of highways and expressways for efficient transportation of goods and people.
- The railways sector is anticipated to remain the fastest growing segment, clocking a compounded annual growth rate of more than 7.0% over the forecast period. The initiatives undertaken by Indian government to upgrade and develop its railway transportation systems is projected to positively influence the growth of the segment.
- The water scarcity in the South Asia region coupled with high population is a key factor promoting the investments in the water and sewage category. The new initiatives to provide clean and safe drinking water to the urban centers of the region is expected to drive the segmental growth over the predicted timeline.
- India remained a dominant country in 2021 accounting for nearly 85.0% of the share in terms of output value. The Indian government is highly focused on developing a world-class infrastructure with efficient transportation routes and reduced travel time. The country is anticipated to continue its progress supported by strong project pipeline over the forecast period.
- Bangladesh is estimated to emerge as the second-largest country with strong growth potential over the predicted timeline. The funding acquired through financial institutions is projected to aid the investment in the nation’s infrastructure construction sector over the coming years.
- Pakistan is expected to remain the third-largest country in terms of construction output value in 2021. However, multiple political and economic challenges, including political instability, the depreciation of the Pakistani rupee (PKR), depleted foreign exchange reserves, soaring public debt, high inflation, rising commodity and construction material prices are likely to limit the growth over the short-term period.
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South Asia Infrastructure Construction Market Scope
GlobalData Plc has segmented the South Asia infrastructure construction market report by sectors and countries:
South Asia Infrastructure Construction Sectors Outlook (Value, $ Billion, 2016-2026)
- Electricity and Power
- Railway
- Road
- Water and Sewage
- Others
South Asia Infrastructure Construction Countries Outlook (Value, $ Billion, 2016-2026)
- Bangladesh
- India
- Pakistan
- Sri Lanka
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Related Reports
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Table of Contents
1 Overview
2 Sector Overviews
2.1 Railways
2.2 Roads
2.3 Electricity and Power
2.4 Water and Sewage
2.5 Others
3 Project Pipelines
3.1 All Infrastructure Projects
3.1.1 Railway Projects
3.1.2 Road Projects
3.1.3 Electricity and Power Projects
3.1.4 Water and Sewage Projects
3.1.5 Other Projects
4 South Asia Infrastructure Construction Regional Trends
4.1 South Asia Infrastructure Construction Market Data
4.1.1 Bangladesh Infrastructure Construction Market Data
4.1.2 India Infrastructure Construction Market Data
4.1.3 Pakistan Infrastructure Construction Market Data
4.1.4 Sri Lanka Infrastructure Construction Market Data
5 Research Methodology
5.1 Introduction
5.2 Research Methodology Steps
5.2.1 Data Collection and Consolidation
5.2.2 Modelling and Estimation
5.2.3 Forecasting and Validation
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