Infrastructure. Crafting a better tomorrow.
As countries gear up for post-pandemic economic recovery, many have committed to improving their infrastructure. But the infrastructure of the future will need to be built not just for performance, but sustainability.
Although “Infrastructure” is one of the original long-term thematic Supertrends, the topic has recently attracted attention because of its role in major fiscal stimulus packages aimed at reviving global economies. Infrastructure, closely linked to our “Climate change” Supertrend, encompasses the sweeping developments taking place to ensure that the world’s transportation, energy, water and telecommunications systems – along with the cities where people live – can support ambitious, yet sustainable growth. As infrastructure is considered vital to a peaceful and prosperous future, it is also one of the 17 United Nations Sustainable Development Goals
In this video, experts share their views on the future of infrastructure.
Reinforcing mobility
Although the pandemic-related lockdowns made 2020 a difficult year for the transportation sector, the start of vaccination campaigns has raised hopes of higher travel demand. At the same time, the pandemic has delayed necessary infrastructure investments, with underfunding affecting not only public safety, but also a country’s economic growth, employment and competitiveness.
Energy in flux
With climate change and the Paris Agreement top of mind, the energy sector has been challenged to add renewable power generation capacity. The International Energy Agency estimated that between 2019 and 2040, the world would need to spend approximately USD 12.9 trn to finance the required growth. Other investment areas range from improving the efficiency and connectivity of transmission networks to constructing ultra-high-voltage grids.
The challenge with water
As water losses in cities can be significant in the distribution process to customers, the refurbishment of existing water pipes will be essential. The Organisation for Economic Co-operation and Development estimates that by 2040, USD 5.6 trn will be needed to improve global water infrastructure – slightly less than half of the required electricity network investments.
Smarter cities
The construction of more sustainable building systems in large cities will also be important to global carbon reduction efforts. In light of the Paris Agreement targets, the World Green Building Council has set 2030 as the year all new buildings should reach net-zero emissions. The role of smart buildings – which will use big data, the internet of things and artificial intelligence to drive energy efficiency, security, and more intelligent waste management and recycling solutions – cannot be underestimated.
In search of bandwidth
Telecoms-related infrastructure is tightly linked with the growth of videoconferencing and e-learning. The demand for internet data traffic and data storage looks set to expand beyond the pandemic, especially as 5G adoption takes hold and potentially leads to a jump in global wireless network traffic.
The value of your investment may go down so that you will receive less than you invested.
To the extent that this material contains statements about the future, such statements are forward looking and are subject to a number of risks and uncertainties and are not a guarantee of future results/performance.
Source: Credit Suisse, unless otherwise noted.
Monthly “90 seconds with” podcast: September 2023
Still focused on quality
Listen to podcast
