2025 Global Report Summary: Emerging Trends in Infrastructure and Transportation by KPMG

The KPMG 2025 Global Report posits that the infrastructure and transportation sector is undergoing a Global Reset, characterized by massive and disruptive change. This reset is driven by four fundamental forces: the escalating frequency and severity of weather events which is increasing the need for resilient assets, governments and corporations prioritizing energy security, the digital revolution impacting demand for new data centers and power generation and geopolitical shifts. All these forces together are forcing a rethink of supply chains and transportation. The report which compiles the views of 10 global infrastructure leaders is intended to provoke debate and compel executives, policymakers and investors to adopt a clear-sighted and risk-taking approach to navigate the future.

Key Insights:

1. The infrastructure funding gap is growing exponentially, with the World Bank estimating it likely reached the G20’s 2040 projection of US$15 trillion per year as early as 2023.
2. Governments are sitting on massive potential capital, as an IMF study of 38 countries found over US$100 trillion worth of assets on public books.
3. Institutional investors have a “treasure trove of capital,” with the world’s top 500 asset managers collectively managing more than US$128 trillion.
4. Citizen openness to privatization is rising, as people globally are about 10% more likely to trust business versus government.
5. Rising bond yields and a retreat of bilateral investment and development aid (particularly from China) are undermining emerging market fiscal capacity in 2025.
6. The lack of standards across global supply chains is causing misalignment in three key areas: infrastructure (roads, ports, warehouses), regulation and operational processes.
7. Global supply chains are expected to come under massive pressure after 2025 due to an increase in trade wars, new tariffs and counter-tariffs.
8. There is a rising demand on companies to assess and manage their Scope 3 emissions within their supply chain.
9. Global tree cover has declined 12% since 2000, highlighting the loss of natural capital and the monitored population of mammals, birds, reptiles and fish has declined by an average of 73%.
10. Digital twins are finally seeing value, driven by advancements in AI and machine learning.
11. Organizations without digital twins of their core assets will likely face questions about their control, governance and reporting, and suffer competitive disadvantages.
12. New asset classes—including renewable energy, data centers, 5G, sensors, and robotics—are being integrated into the built infrastructure at a rapid pace.
13. Traditional asset management strategies are no longer fit for purpose, as new assets have different lifespans, maintenance, and contracting terms.
14. The sector is shifting away from the slow annual planning cycle toward a more dynamic and continuous strategy development approach.
15. Project owners are looking to cut costs and drive efficiency, operating with no elasticity for cost overruns or delays from construction partners.
16. For high-demand items like electricity cables, generators, and transformers, lead times have shifted from months to years due to supply chain capacity shortages.
17. There is a significant talent gap in the infrastructure sector for roles with long time-to-competence, such as overhead line workers and commissioning engineers.
18. The energy transition is entering a phase that prioritizes economic pragmatism, balancing environmental outcomes against economic viability.
19. The most likely scenario for global shipping in 2025 is one of tariffs and counter-tariffs, lower trade volumes, and widespread stagflation.
20. Shipping lines are advised to stop rewarding investors with short-term gains and instead reinvest windfalls into collaboration, digitization and sustainability for long-term competitive advantage.

Conclusion

To succeed in this Global Reset, infrastructure leaders and investors must be willing to take risks by making decisions quickly in the face of incomplete information. The solution lies in a fundamental shift: governments must embrace privatization and clearly align asset sales with new service development and the industry must drive standardization to unlock massive supply chain value. The report also suggests that asset owners must adopt a dynamic, data-driven approach to strategy, by using new technologies like digital twins. Those who fail to prepare for the massive and disruptive changes ahead of 2025, whether in funding, supply chain or sustainability, will likely find themselves left out of the solution.
You can read the full report here.