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Infrastructure Securitization Market Report Overview
The global Infrastructure Securitization Market size was valued at approximately USD 5.25 billion in 2024 and is expected to reach USD 9.36 billion by 2032, growing at a CAGR of about 7.5%. during the forecast period.
The global COVID-19 pandemic has been unprecedented and staggering, with the infrastructure securitization market experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden rise in CAGR is attributable to the market's growth and demand returning to pre-pandemic levels once the pandemic is over.
Infrastructure securitization is a process whereby cash flows generated by infrastructure assets are used to create securities that are sold to investors. The infrastructure assets can include toll roads, bridges, airports, ports, and other types of public facilities. Besides, the infrastructure securitization market has grown in recent years as governments and private investors seek new ways to finance infrastructure projects. The market is typically divided into two main categories; public-private partnerships (PPPs) and asset-backed securities (ABS).
The infrastructure securitization market is anticipated to flourish at a CAGR due to the stable and predictable cash flows generated by infrastructure assets, which provide a good match for long-term liabilities. As a result, there is an increasing demand for infrastructure securitization products, which is likely to continue to grow during the forecast period. The market is split by type, by application, and by region.
COVID-19 Impact: Pandemic Creates Uncertainty and Volatility in Financial Markets
The COVID-19 pandemic has had a significant impact on the infrastructure securitization market. the work health crisis has created challenges for many sectors of the economy, infrastructure assets, such as toll roads, airports, and power plants, have been relatively resilient. However, the pandemic has also created uncertainty and volatility in financial markets, which has had both positive and negative impacts on the infrastructure securitization market.
Latest Trends
"Market opportunities in Green Infrastructure Securitization and Public-Private Partnerships (PPPs)"
The infrastructure securitization market is a rapidly evolving industry, and there are several trends that are currently shaping the market. one of the significant factors, for instance, a growing trend toward securitizing green infrastructure assets, such as renewable energy projects, electric vehicle charging stations, and energy-efficient buildings. This is driven by increasing demand for sustainable infrastructure and ESG (Environmental, Social, and Governance) investments. Along with this, governments around the world are increasingly turning to PPPs to finance infrastructure projects, and this is leading to the development of new PPP-based securitization structures. These structures enable private investors to participate in PPP projects and provide a way to transfer risk from governments to investors.
Infrastructure Securitization Market Segmentation
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By Type Analysis
According to type, the market can be bifurcated into Water Supply Charges, Highway and Bridge Toll, Electricity Charges, Gas Charge, Public Transportation charges, Ticket Fees for Sceic Spots.
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By Application Analysis
Based on application, the market can be divided into Construction Industry, Utilities, and Transportation.
Driving Factors
"The Government's Desire to Attract Private Investments in order to Augment Market Growth"
The securitization market for infrastructure assets has grown significantly in recent years, driven by several factors, including, stability of cash flow, infrastructure assets, such as toll roads or power plants, typically generate stable and predictable cash flows, making them attractive to investors seeking long-term income streams. Furthermore, many governments around the world are facing budget constraints and are looking for ways to attract private investment into infrastructure projects. Securitization allows them to tap into the capital markets and raise funds for their projects which is anticipated to boost the infrastructure securitization growth market in the coming years.
"Growing Large-Scale Infrastructure Projects Enhance the Market Growth"
The infrastructure securitization market is an important part of the global infrastructure finance landscape, and it is likely to continue to grow as governments and private investors seek new ways to finance infrastructure projects. Additionally, the infrastructure securitization market is driven by a combination of factors, including the need for infrastructure investment, the demand for yield, the regulatory environment, mitigating risk for project developers, and the stability of cash flows. Such market-driven aspects will contribute to the expansion of the market throughout the projection period.
Restraining Factors
"Lack of Standardization, Political, and Regulatory Risk Might Impede the Growth of the Market"
There are many factors driving the growth of the infrastructure securitization market. However, the infrastructure securitization market can be constrained by factors such as the lack of standardization, political and regulatory risk, limited supply, long-term nature of investments, and financing costs. Therefore, these factors can be barriers to market development in the future.
Infrastructure Securitization Market Regional Insights
"North America Dominates the Market due to Constant Growing Infrastructure Assets in the Region"
In recent years, North America has been the most active region in the infrastructure securitization market. The United States, in particular, has been a significant market for infrastructure securitization, with deals involving toll roads, airports, and other infrastructure assets. Europe has also seen significant activity, with deals involving infrastructure assets such as wind farms and public transport systems. In terms of revenue, North America holds the majority of the infrastructure securitization market shares and it is predicted that this region will dominate the market during the forecast.
Key Industry Players
"Key Players’ Emphasis on Dynamics of the Industry to Expand Market Size "
In the past few years, the infrastructure securitization market is growing rapidly. As well as a number of companies are stepping out into this rising industry with effective strategies, depth research, and dynamics of the market. Although, numerous successful companies are present in the market and generating impressive profit revenue. Yet, new service providers are giving competition. Some of the leading brand such as China Merchants Securities, Ping An Securities, CICC, CICC Fortune, Shenwan Hongyuan Securities, Everbright Securities, Hengtai Securities, Minsheng Securities, Open source securities, Guorong Securities with others service providers are ruling the market based on their quality of service. Moreover, these players will stimulate the market revenue.
LIST OF TOP INFRASTRUCTURE SECURITIZATION COMPANIES
- China Merchants Securities
- Ping An Securities
- CICC
- CICC Fortune
- Shenwan Hongyuan Securities
- Everbright Securities
- Hengtai Securities
- Minsheng Securities
- Open source securities
- Guorong Securities
Report Coverage
This report describes the infrastructure securitization market. It emphasizes the market value, expected CAGR, and USD value over the forecast period, before and after the impact of the COVID-19 pandemic restrictions on the international market, and how the industry is going to turn the corner is also stated in the report. The report provides significant market data with its product type and product applications, end-use details, and an idea of the market growth in the future. This report also provides an understanding of the growing market trends and developments and their effects on the market growth, driving factors along with restraining factors that impact the market dynamics. Along with this, the leading region, key players of the market, and their tactics to beat the market competition, sustainable policies, their collaboration, mergers, companies’ profile, previous years’ revenue, profit & loss, and market position based on their share value in the market, are also explained in the report.
REPORT COVERAGE | DETAILS |
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Market Size Value In |
US$ 5.25 Billion in 2024 |
Market Size Value By |
US$ 9.36 Billion by 2032 |
Growth Rate |
CAGR of 7.5% from 2024 to 2032 |
Forecast Period |
2024-2032 |
Base Year |
2023 |
Historical Data Available |
Yes |
Regional Scope |
Global |
Segments Covered | |
By Type
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By Application
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Frequently Asked Questions
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What value is the global Infrastructure Securitization Market expected to touch by 2032?
The global Infrastructure Securitization Market is expected to touch approximately USD 9.36 billion in 2032.
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What is the leading region in the infrastructure securitization market?
North America is a significant market for infrastructure securitization, with deals involving toll roads, airports, and other infrastructure assets in the region.
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What are the key players in the infrastructure securitization market?
China Merchants Securities, Ping An Securities, CICC, CICC Fortune, Shenwan Hongyuan Securities, Everbright Securities, Hengtai Securities, Minsheng Securities, Open source securities, and Guorong Securities are top players of the infrastructure securitization market.
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What are the key driving factors of the global infrastructure securitization market?
Infrastructure securitization market growth is driven by the growing approval of the construction industry, utilities, and transportation among businesses.