Sweden Transportation Infrastructure Construction Market - Growth, Trends, COVID-19 Impact, And Forecasts (2022 - 2027)

Sweden's Transportation Infrastructure Construction Market is expected to register a CAGR of more than 5% during the forecast period (2022-2027).

COVID-19 affected the transportation sector, and the impact is directly and indirectly, such as a reduction in transit services, constructions slowed down by social distancing factors, affected supply chain, etc. Now the sector is recovering and focusing on developments.

Furthermore, the Swedish government has proposed a SEK 876 billion (USD 105.4 billion) long-term transport infrastructure budget for 2022-2033, which supports the country to become the world's first fossil-free welfare state. To achieve this goal, the government focuses on reducing transport's greenhouse gas emissions. To achieve a 70% reduction by 2030 and net zero emission by 2045. Despite focusing on emission reduction, large amounts of funding are provided to the fossil fuel-reliant road sector.

Moreover, SEK 165 billion will be allocated to railway maintenance and operation. Also, a total of SEK 437 billion has been allocated to develop transport infrastructure across the country, including new rail lines. This financial framework supports the modernization of existing lines, such as Gothenburg - Borås and Hässleholm - Lund. It is also investing in new main lines to increase the rail network's capacity by linking the country's three metropolitan regions of Stockholm, Gothenburg, and Malmö, further contributing to urban development, housing construction, and employment.

Key Market Trends

Increasing Constructions of Mega Projects

Sweden is planning a huge number of infrastructure projects. For instance, the Stockholm bypass is one of Europe's largest infrastructure projects, currently developing in Sweden's capital. This bypass is an alternate route for the European highway (E4), including an underground motorway below Stockholm. This bypass is built 21 kilometers in length (13 miles), out of which 18 kilometers (11 miles) will be tunnels. This road link reduces the traffic congestion in the city. This project is expected to complete by 2030. By the end of the project, more than 140,000 vehicles will drive through it daily.

Furthermore, the Swedish Transport Administration is planning and constructing new railway lines to improve the country's sustainable travel and freight transport. The East Link project is a new double-track railway line between Järna and Linköping, Gothenburg-Borås, and Hässleholm-Lund. This project covers 160 kilometers of ballasted track, with a top speed of 250 kilometers per hour. Also, the project includes construction works of 24 kilometers of tunnels, 150 bridges, and five stations.

In addition, the East Link Project will procure about 25 main construction contracts, 50 enabling works contracts, and 20 design assignments. The first main construction contract starts in 2022. Furthermore, in 2021, the Stockholm Metro extension has been announced to increase public transportation opportunities. This project relieves heavy Stockholm Metro traffic between T-Centralsen and Slussen. Furthermore, the project includes Sickla - Järla - Nacka extension, Kungsträdgården - Sofia - Hammarby kanal extension, and Gullmarsplan - Slakthusområdet - Sockenplan extension.

Increasing Investments in Infrastructure Construction Sector

The transportation infrastructure is experiencing significant growth in investments. The Swedish Transport Administration allocated SEK 876 billion (EUR 85,4 billion) to the Swedish government for 2022-2033 under the national infrastructure bill proposal. This bill supports businesses around the country by enhancing commuting options and helping Sweden reach its economic goals. More than 50% of the proposed funding is invested in developing railways and roads in the country. For instance, the government has announced constructing new high-speed railways between Gothenburg, Malmö, and Stockholm.

Furthermore, the Swedish government is modernizing the infrastructure sector while focusing on sustainable mobility. As an initial response to government investment in expanding night train connections between Sweden and the rest of Europe, the Swedish Transport Administration will inaugurate new night train routes between Malmo and Brussels, Stockholm, and Hamburg.

Moreover, the government plans to invest SEK3 billion (EUR 294.7 million) in 2021 to achieve development of sustainable mobility and make more transport options available to citizens in response to anti-Covid measures. In addition, National Plan for Infrastructure is a long plan proposed by the government from 2018 to 2029. The plan covers a total budget of SEK 700 billion. For Västerbotten and Norrbotten, the two northernmost counties in Sweden. More than SEK 622 billion (EUR 61.1 billion) is directly invested in transport infrastructure from the budget. The rest will be raised through taxation, rail fares, and private funds.

Competitive Landscape

Sweden's transportation infrastructure construction market is fairly fragmented, with the top five to ten players accounting for a significant market share. The transportation infrastructure construction sector in the country is made up of both domestic and international enterprises. Some of the major players in the market include ATKINS, Ramboll Group, WSP, and OBRASCON HUARTE LAIN S.A.

Additional Benefits:

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

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