Energy
Infrastructure Boom: 5 Ways Investors Can Play It
Infrastructure Boom: 5 Ways Investors Can Play It
View the high resolution version of today’s graphic by clicking here.
The world needs infrastructure, and the world needs it soon.
It’s not just about replacing aging pieces of infrastructure like bridges and roads – it’s also about developing modern infrastructure that enables new technology, faster communications, and our ability to use, move, and transmit energy from renewables and natural gas.
Today’s infographic comes to us from Miller Howard Investments and it details five specific ways that investors could play the coming infrastructure boom.
Five Ways to Play The Infrastructure Boom
Here are some of the happening areas within infrastructure, and why:
1. Utilities
The utilities sector will by driven by growth in EVs, renewable energy, abundance of U.S. oil and gas, and smart grid technology.
- If all U.S. vehicles were EVs, it would mean an immediate 25% boost to electricity demand
- In 2016, more money was invested in solar and wind than all other electricity sources combined
2. Global Communications
Comms will be buoyed by the rapid growth of 5G, as well as the IoT and its impact on ecommerce.
- Wireless data use: 96 exabytes per month (EB/mo) to 278 EB/mo between 2016 and 2021
- The U.S. will capture the largest share of the 5G value chain
3. Energy Infrastructure
Aging infrastructure needs to be updated, while more capacity for electric and O&G transmission is needed.
- Between 2013-2030, it’s estimated $4.64 trillion will need to be invested in U.S. energy infrastructure
- By 2035, the U.S. will have net exports of 35 billion cubic feet (Bcf) per day of natural gas
4. Transportation and Logistics
More goods need to get to more places. Transportation and logistics will benefit tremendously from the growth of ecommerce, smart warehouses, cloud-based logistics-as-a-service, and delivery innovation.
- By 2020, global ecommerce sales is expected to eclipse the $4 trillion mark
- Parcel shipment volume is accelerating to grow at a higher rate each year
5. Enablers
Big data, 5G and IoT, and increased automation are enabling bigger trends, such as EVs and smart homes.
- By 2040, it’s estimated that 54% of all new car sales will be electric
- Meanwhile, the internet of things is exploding to 75.4 billion things by 2025
Who’s Building the Most Solar Energy?
This was originally posted on our Voronoi app. Download the app for free on iOS or Android and discover incredible data-driven charts from a variety of trusted sources.
In 2023, solar energy accounted for three-quarters of renewable capacity additions worldwide. Most of this growth occurred in Asia, the EU, and the U.S., continuing a trend observed over the past decade.
In this graphic, we illustrate the rise in installed solar photovoltaic (PV) capacity in China, the EU, and the U.S. between 2010 and 2022, measured in gigawatts (GW). Bruegel compiled the data..
Chinese Dominance
As of 2022, China’s total installed capacity stands at 393 GW, nearly double that of the EU’s 205 GW and surpassing the USA’s total of 113 GW by more than threefold in absolute terms.
| Installed solar capacity (GW) | China | EU27 | U.S. |
|---|---|---|---|
| 2022 | 393.0 | 205.5 | 113.0 |
| 2021 | 307.0 | 162.7 | 95.4 |
| 2020 | 254.0 | 136.9 | 76.4 |
| 2019 | 205.0 | 120.1 | 61.6 |
| 2018 | 175.3 | 104.0 | 52.0 |
| 2017 | 130.8 | 96.2 | 43.8 |
| 2016 | 77.8 | 91.5 | 35.4 |
| 2015 | 43.6 | 87.7 | 24.2 |
| 2014 | 28.4 | 83.6 | 18.1 |
| 2013 | 17.8 | 79.7 | 13.3 |
| 2012 | 6.7 | 71.1 | 8.6 |
| 2011 | 3.1 | 53.3 | 5.6 |
| 2010 | 1.0 | 30.6 | 3.4 |
Since 2017, China has shown a compound annual growth rate (CAGR) of approximately 25% in installed PV capacity, while the USA has seen a CAGR of 21%, and the EU of 16%.
Additionally, China dominates the production of solar power components, currently controlling around 80% of the world’s solar panel supply chain.
In 2022, China’s solar industry employed 2.76 million individuals, with manufacturing roles representing approximately 1.8 million and the remaining 918,000 jobs in construction, installation, and operations and maintenance.
The EU industry employed 648,000 individuals, while the U.S. reached 264,000 jobs.
According to the IEA, China accounts for almost 60% of new renewable capacity expected to become operational globally by 2028.
Despite the phasing out of national subsidies in 2020 and 2021, deployment of solar PV in China is accelerating. The country is expected to reach its national 2030 target for wind and solar PV installations in 2024, six years ahead of schedule.
-
Markets6 days agoThe Best U.S. Companies to Work for According to LinkedIn
-
VC+2 weeks agoVC+: Get Our Key Takeaways From the IMF’s World Economic Outlook
-
Demographics2 weeks agoThe Countries That Have Become Sadder Since 2010
-
Money2 weeks agoCharted: Who Has Savings in This Economy?
-
Technology2 weeks agoVisualizing AI Patents by Country
-
Economy2 weeks agoEconomic Growth Forecasts for G7 and BRICS Countries in 2024
-
Wealth1 week agoCharted: Which City Has the Most Billionaires in 2024?
-
Technology1 week agoAll of the Grants Given by the U.S. CHIPS Act