Market Trends of France Transportation Infrastructure Construction Industry
This section covers the major market trends shaping the France Transportation Infrastructure Construction Market according to our research experts:
Increasing Constructions of Infrastructure Projects
In December 2021, A79 motorway upgradation in France was proposed. A79 is a major trunk road both locally and on the European scale. It is the main road crossing the Allier department, linking the departments' towns. On average, more than 10,000 to 15,000 vehicles use this road, 40% of which are Heavy Goods Vehicles (HGVs). Due to the heavy usage of vehicles, congestion occurs, and it becomes an accident-prone area.
Furthermore, from Sazeret (Allier) in the west to Digoin (Saône-et-Loire) in the east, 88 km of the RN79 will gradually be transformed from two single lanes to a two-lane dual carriageway. The structure will be upgraded to the latest standards or demolished. This project enables users with free-flow tolling and avoids barriers across traffic lanes.
On the other hand, The Grand Paris Express is a huge project in the country. The project was started in 2015, and it is progressing on time. This project is expected to complete by 2030. By the end of this period, the project will have 68 new stations and 200 kilometers (124.3 miles) of new railway lines, 90% of which will be built below ground.
Furthermore, the first phase of this project is estimated to be completed by 2024. More than EUR 35.6 billion is invested into this project, including a provision of EUR 7 billion for risks and contingencies. Moreover, France invested more than EUR 13 billion in transportation infrastructure under the transportation strategy plan from 2018 to 2022. More than 51% of the investments are used for constructing and improving railway transportation infrastructure projects.
Increasing Investments Driving the Sector
In 2021, France increased its light rail projects. More than 27 projects are executed with more than USD 7 billion in investments. Whereas more than USD 780 million were invested in Marseille Tramway Extensions in 2021, the construction work started in Q3 2021 and is expected to be complete by Q4 2025.
Furthermore, the French rail budget increased in 2021. The budget includes EUR 4.7 billion of investment in rail transport to aid in the recovery from the pandemic crisis. This budget covers support for 9000km of branch lines at risk of closure, the relaunching of overnight passenger trains, EUR 700 million to fund expansions to the greater Paris network, and EUR 330 million for projects including the development of RER-style networks in Strasbourg, Lille, and Bordeaux, a third metro line in Toulouse and new light rail lines. In addition, an extra EUR 66 million was invested in SNCF Network to support Intercity and TER regional passenger services.
Moreover, in 2020, the gross domestic product (GDP) spent on all modes of transportation infrastructures accounted for more than EUR 21.02 billion. Higher investment is made in railways, which amounted to EUR 10.8 billion, followed by roadways (with EUR 9.08 billion) and Airways (with EUR 0.68 billion). Meanwhile, in 2020, public investments in infrastructure amounted to EUR 19.8 billion.
