Infrastructure Sector in Canada - Growth, Trends, COVID 19 Impact AND Forecasts ((2022 - 2027)

Infrastructure Sector in Canada - Growth, Trends, COVID 19 Impact AND Forecasts ((2022 - 2027)

Infrastructure is an important sector for any country's economical growth. The different segments that comprise the infrastructure market mainly include electricity, roads, water systems, public utilities, airports, railways, and telecommunications. The Canadian government’s planned investments in infrastructure are expected to support the growth of Canada’s construction industry. In October 2020, the Canadian government launched a USD 7.6 billion Growth Plan for Canada Infrastructure Bank (CIB) to create 60,000 jobs and support the country's post-COVID-19 economic recovery over the next three years through major investments projects.

The plan is part of the USD 28.1 billion plan allocated to the CIB under the federal government's 'Investing in Canada Plan'. Under this Growth Plan, USD 2 billion is earmarked for clean energy projects, USD 1.6 billion for broadband, USD 1.6 billion for building retrofits, USD 1.2 billion for agriculture irrigation projects, and USD 1.2 billion for electric buses and charging infrastructure. The government has adopted measures to attract more Foreign Direct Investment (FDI) into the country in order to boost tourism, both in terms of domestic travelers and large-scale international MICE events. This has also created a higher demand for airports and airport infrastructure.

Key Market TrendsResidential construction growth in Canada

Canada's construction industry has been recovering faster in recent months, bolstered by increasing investment in residential building construction. The country's housing market has been benefiting from record low interest rates, pent-up demand for new homes, and the significant shift in remote work. The government's ongoing provisions of large fiscal and monetary stimulus and the rollout of the vaccine have raised hopes in the hard-hit sectors such as leisure and hospitality, offices, and recreational buildings.

Low lending rates and renewed immigration levels are expected to drive a moderate up-cycle in new-home construction to 2024, while renovation work is projected to grow steadily. As a result, total residential employment is expected to peak in 2024 before ending the decade with an increase of nearly 20,100 workers (+4%) compared to 2020 levels. Canada is expected to welcome an average of more than 320,000 new international migrants each year between 2021 and 2030. This will make new Canadians a growing segment of the overall labor force.

Government's investment in Canada's infrastructure sector

There’s no shortage of big construction projects and high-value public and private sector projects continue to break ground at a steady clip, despite the challenges of the pandemic. Major projects such as the Bellechasse Transport Centre in Montreal, Calgary’s Complex Continuing Care Facility, and the new Brampton Transit Facility are just a few examples of USD 100 million-plus projects.

Big investments in construction are planned across the country. For instance, the Governments of Canada and Alberta have committed over USD 52.7 million to the completion of several infrastructure projects through the Investing in Canada Infrastructure Program. The Community Infrastructure Improvement Fund (CIIF) has earmarked USD 150 million for the repair and improvement of community infrastructure facilities across the country. The Canadian government is looking forward to investing in major infrastructure projects and the market has a positive sentiment.

Competitive Landscape

Canada's infrastructure market is competitive with the presence of many well-known Canadian infrastructure development countries. With the encouragement of Foreign Direct Investment by the Canadian government, the market is becoming more competitive. Significant investments and project development are being geared towards essential construction projects related to the commercial and manufacturing sectors. With the Canadian government increasing the investment budget towards construction projects post-COVID pandemic, the overall infrastructure sector in the country is becoming increasingly competitive for the major players involved.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

Companies Mentioned

IBM Corporation
Oracle Corporation
Internap Corporation
Packet Inc. (An Equinix Inc. Company)
Scaleway Inc.
Amazon Web Services Inc
Rackspace Inc.
CenturyLink, Inc.
LightEdge Solutions, Inc

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