2024 marked an incredible year for global infrastructure and megaprojects, in the United States alone, put-in-place construction infrastructure spending reached $2.15 trillion, a 6.4% jump from 2023, according to ConstructConnect’s Chief Economist, Michael Guckes. A recent survey by FMI Consulting predicts annual construction spending on megaprojects to rise by 30% from 2024 through 2028. This surge will account for around 10% of total construction spending over the next five years. Meanwhile, the International Energy Agency (IEA) reported that global investments in clean energy technologies and infrastructure doubled fossil fuel investments, reaching $2 trillion in 2024.
If these mean anything, it signified a remarkable resurgence of megaproject spending since the COVID-19 pandemic; thanks to government stimulus spending, the private sector’s response to disruptions in the international supply chain and the growing demand for fossil fuels and renewable energy. However, this trend is neither arbitrary nor even, as most megaprojects are clustered around specific sectors.
Trend in megaprojects
Since 2022, heavy engineering, industrial and power infrastructure have led the charge in megaproject spending. In the US alone, megaprojects accounted for 18% of all non-residential construction spending. However, 2024 has set the stage for unprecedented growth and innovation in infrastructure and megaprojects. From Africa’s rise as an infrastructure powerhouse to Asia’s technological drive and Europe’s emphasis on sustainable leadership, the world of megaprojects is being redefined a billion dollars at a time.
Connectivity Clusters
In Africa, megaprojects surged due to the increasing priority of the continent’s biggest infrastructure spender, the government. The continent emphasised regional integration and energy expansion.
In Nigeria, for instance, the Bola Tinubu administration bulldozed harsh opposition to break the grounds for its $11bn Lagos-Calabar Coastal Highway. The 700km project will connect over nine coastal cities, promising to improve trade, tourism and regional connectivity. In East Africa, Kenya’s government finalised a Public-Private Partnership for its $3.6bn Mombasa–Nairobi Expressway. Once completed in 2026, the 437km highway is expected to reduce travel time to just six hours.
The São Paulo Metro Line 6 in Brazil, Latin America’s largest infrastructure project continued at pace. Set to begin partial operations by late 2026, the PPP will serve over 1 million daily commuters. In Europe, the Paris 2024 Olympics infrastructure likely stole the spotlight. France unveiled its €1.5 billion worth of Olympic-ready sustainable global benchmark standard for green megaprojects.
In the Middle East, the Qatari government invested $2.7 billion into its Transportation Master Plan for Qatar. Key projects include the Doha Metro, the Bahrain-Qatar causeway and the multi-billion dollar Sharq Bridge which will connect the Katara Cultural Village with Hamad International Airport.
Industrial Clusters
Industrial infrastructure also witnessed significant momentum in 2024. Construct Connect reported that new industrial construction projects more than doubled, growing from $66 billion in 2021 to $151 billion in 2022 before settling at $133 billion in 2023. By the end of 2024, industrial put-in-place construction spending reached a whopping $232 billion. Though spending volumes are expected to slow in the coming year, forecasts show it will coast at $208 billion by 2028.
For Africa, few industrial infrastructures shaped the year like the now-operational Dangote Refinery. The $20 billion project in Nigeria commenced operations in January 2024. By September 2024, it began producing gasoline, with plans to achieve full capacity by year-end. In 2024, the refinery’s spending primarily focused on operational ramp-up and securing crude oil supplies to achieve its target processing capacity of 650,000 barrels per day. Estimates suggest securing a minimum supply of 300,000 barrels daily could require approximately $2 billion every 90 days.
Energy Clusters
Energy infrastructure formed another key cluster in 2024, driven by the global electrification drive push. In the US, projected spending to hit $150 billion in 2025, as expenditures are expected to hit $245 billion by 2028. This year, Ethiopia successfully brought its Grand Renaissance Dam closer to full operational capacity. Two new turbines launched in August boosted its output to 1,550 megawatts, more than doubling its previous output.
Looking forward…
As we approach 2025, several key trends will shape the future. Climate adaptation and sustainability will see project sponsors prioritise resilience against rising sea levels, extreme weather and energy transitions. Offshore wind farms and net-zero cities such as Saudi Arabia’s $1.5 trillion NEOM, will continue to dominate the landscape. In project finance, we will see more context-specific PPPs as governments increasingly collaborate with private stakeholders to fund ambitious projects and ensure long-term viability. However, rising material costs and labour shortages, particularly in Europe and the US, may delay project timelines. The use of Artificial Intelligence, digital twins and automation will enhance project delivery, monitoring and efficiency.
Though structural factors remain favourable for megaprojects. The gradual effect of stimulus spending, combined with anticipated economic stabilisation through dipping interest rates and slower wage growth will likely support further growth. “These trends demonstrate the ongoing resilience and adaptability of the construction sector,” Guckes reports, adding, “Owners and developers will continue transferring record amounts of capital to their construction partners as these megaprojects progress.”
