Across emerging markets (EM), a boom in infrastructure building is underway. In power and water, property, ports and airports and beyond, emerging markets governments and private sector players are deploying unprecedented amounts of capital to upgrade the emerging world. We forecast a total of US$21.7 trillion in infrastructure spending in EM over the next decade, with Asia representing 67% of this total.

Urbanization, the move to the market economy, and the demand from the developed world for EM exports are straining existing infrastructure assets. Climate change will also require mitigating expenditure. At the same time, robust GDP growth and supportive balance of payments positions have provided the funding to build infrastructure in most EM countries, albeit that delivery capability still varies significantly.

Private funding in conventional project finance form as well as innovative dedicated infrastructure funds are heavily engaged. A surge in market listings of owners, operators and contractors to build EM infrastructure assets, is also underway. On our estimates, the number of listed EM infrastructure-related entities has risen from 230 to 354 (54% increase) over the last five years—with total market capitalization increasing from $146 billion to $1.1 trillion.