Listed infrastructure companies in the developed markets own an estimated $6.1 trillion1 in infrastructure assets globally. We estimate that these companies will spend $200 billion annually, upgrading, replacing, and expanding their existing assets. On the asset base of $6.1 trillion, that means an annual growth rate of 3.2%. This growth rate is organic and repeating and undertaken regardless of the next uncertain macro event.
Exhibit 1 below shows the intensity of annual capital spending across each infrastructure sector. What is important for infrastructure investors is that this investment is being made under a regulatory structure which provides companies a high level of certainty into the rate of return that will be achieved.