Sarah Shaw

The rise of technology will be a key growth thematic in 2024 and beyond for the infrastructure sector as it continues expanding to keep up demand for dependable and high-speed wireless networks, according to 4D Infrastructure global portfolio manager, Sarah Shaw.

“We’re hearing so much about the rise of technology and how artificial intelligence is the new future. But that’s not going to happen without the foundation infrastructure investment in place to support it.

“This explosive growth in both data consumption and the ‘internet of things’ is fueling significant investment opportunities for infrastructure owners globally.”

Furthermore, as the global population continues to grow, and the emerging middle class demands access to even more technology, this infrastructure asset growth is set to continue rising rapidly. 

“By the end of 2022, nearly 5.5 billion people globally subscribed to a mobile service – out of a total global population of just over seven billion people.

“We’ve got mobile technologies and services generating roughly 5 per cent of gross domestic product (GDP), which is creating over $5 trillion of economic value. So, you can see the importance of just mobile technology alone,” says Shaw.

For 4D, Shaw says this means investment in digital infrastructure, like cellular towers, which will play a key role in building out wireless networks that house the electronic communications equipment and antennae.

Beyond mobile technology, enhancing efficiencies of daily operations also benefits infrastructure investors.

“Transport and energy are strongly benefitting from technology investments.

“Take a port operator, for example. Technological innovation will push forward increasing automated and smart ports projects, which will enable port operators to further improve efficiency for the entire logistics chain and cost control to enhance profitability. This is a phenomenon being adopted across the entire infrastructure space.

“Not only is infrastructure enabling the technology boom, it’s also providing the foundation infrastructure for emerging and ongoing growth,” says Shaw. 

Shaw says that the rise of technology is just one of five key growth thematics that positions infrastructure as a resilient, defensive and growing sector for investors.

Developed market replacement spend, global population growth, the emergence of the middle class and the energy transition also underpin infrastructure growth, positioning it well for the long term.

“While we do currently have a great deal of volatility in the market as well as ongoing geopolitical and economic uncertainty, these growth thematics underpin the infrastructure investment case and are going nowhere, regardless of what happens in the short term.

“When you combine these factors across the five key thematics, the investment case for infrastructure going forward remains incredibly attractive. We can think of no more compelling or enduring global investment thematic for the next 50 years,” says Shaw.

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