Emerging trends in infrastructure 2017

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© 2016 KPMG International Cooperative (“KPMG International”). KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated.

kpmg.com/gcs / #construction © 2017 KPMG International Cooperative (“KPMG International”). KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated.

Around the world, uncertainty is rife

Political agendas and social expectations are changing. Power is shifting. And technology is disrupting everything.

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This year, we expect a shift towards more responsive leadership, both from governments and from the private sector

1 2 3 4 5

6 7 8 9 10

Here are the top 10 emerging trends that will change the world of infrastructure in 2017 and beyond

Trend 1:

The confluence of energy, transportation and technology sharpens

Over the coming year, we expect governments to look for new ways to align and drive integrated planning across the three sectors

Trend 2:

The populist agenda disrupts infrastructure markets

Over the coming political cycle, it seems clear that infrastructure investment will grow considerably

Trend 3:

Understanding consumer behavior will be the key to infrastructure planning and management

Changes in the way consumers now interact with infrastructure are turning common wisdom on its head

Trend 4:

Investors are starting to care about social and environmental impacts…not just financial returns

Over the coming year, we expect public and private investors to make serious efforts to communicate the real impact of their investments

Trend 5:

Technology enables greater infrastructure productivity and increases obsolescence risk

An infrastructure CEO will need to think like a technology CEO

The big questions in 2017 will not be whether to invest… The focus will be when and in which new technologies to invest

Trend 6:

Getting more out of existing infrastructure

Government introduces staggered working hours to ease congestion on public transport!

We expect to see governments start to incentivize behaviors that help better manage peak demand

Trend 7:

Governments look to unlock the funding paradigm

Former government

asset under new

ownership

2017 will bring renewed focus on asset recycling

New hospital

funded by sale of

local toll road

Selling existing assets in order to help fund the development of new assets

Trend 8:

Credit enhancement facilities go back to basics

There are literally thousands of projects that are being held up by a combination of poor credit ratings and challenging financing markets

Governments and multilaterals need to recognize that their choice is to either find a way to work with the private sector or not deliver the project at all

Trend 9:

The search for yield drives convergence in the investment market

Infra investment

Contractor

Investor

Operator

Financial investors are already recruiting operational teams

Infra investment

Contractor

Investor

Operator

Construction companies and developers are creating investment arms

Infra investment

Contractor

Investor

Operator

Operators, too, are starting to invest debt and equity into projects in order to move them forward and better balance their risks and returns

Infra investment

Contractor

Investor

Operator

The lines between the different types of investors are starting to blur

Trend 10:

The globalization of infrastructure continues

Infrastructure investors, developers and, operators are expanding their global capabilities, transcending national borders

To learn more about the emerging trends in infrastructure:

kpmg.com/infratrends

infrastucture@kpmg.com

#infratrends

Emerging trends in infrastructure 2017

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