More than three years ago, the McKinsey Global Institute (MGI) published a comprehensive report evaluating the world’s future infrastructure needs. We found that while trillions of dollars in annual investment will be required well into the future just to keep up with expected rates of growth, a pattern of underinvestment has produced a growing shortfall and allowed many foundational systems to deteriorate. Yet there are solutions for ensuring that global infrastructure spending goes further. The consistent application of leading practices in the planning, delivery, operation, and maintenance of existing assets could make it possible to save up to 40 percent on global infrastructure spending.
This research offers an updated perspective based on the latest infrastructure spending data and a fresh evaluation of the world’s needs. It adds detail and nuance on what the sector can do to improve, based on our client work and case studies from around the world. We also lay out our latest thinking on infrastructure financing, including not only strategies for private financing but also measures to encourage public investment.