Sweden Transportation Infrastructure Construction - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2024 - 2029)

The Sweden Transportation Infrastructure Construction Market size is estimated at USD 16.86 billion in 2024, and is expected to reach USD 22.05 billion by 2029, growing at a CAGR of 5.64% during the forecast period (2024-2029).

Key Highlights

• The transportation infrastructure construction industry in Sweden is expected to exhibit positive growth in 2024 due to growing economic activity and optimistic growth trends in building permits. Moreover, the Swedish Government has allocated huge funds towards transportation infrastructure in the country to upgrade the construction plans.
• The financial framework for the infrastructure plan is stated in the Government bill Infrastructure for the Future: Sustainable investment throughout Sweden. Directions for this work are also included in a government directive of 23 June 2021 to the Swedish Transport Administration to prepare a proposal for an intermodal national plan for transport infrastructure development from 2022 to 2033.
• The transport infrastructure planning framework estimates SEK 799 billion (USD 94 billion) from 2022 to 2033, where the funds are to be issued as follows:
• Operation, renewal, and maintenance of state-owned railways: SEK 165 billion (USD 19.41 billion)
• Renewal and maintenance of the state-owned road network, including frost-proofing and ensuring load-bearing capacity: SEK 197 billion (USD 23.18 billion)
• Transportation system development: A total of SEK 437 billion (USD 51.41 billion), within which SEK 107 billion (USD 12.59 billion) is to be allocated to new mainlines of high-speed rail and SEK 42 billion (USD 4.94 billion) to county plans.

Key Highlights

• Compared to the infrastructure plan for 2018-2029, appropriations for the maintenance of roads and railways have increased by 13 and 25 percent, respectively. The appropriation for the development of the transport system represents a 25 percent increase on the current plan.
• The total cost of the continuation of the current plan and the additional costs amounts to SEK 460 billion (USD 54.12 billion) over the course of the planning period, exceeding the stated financial framework for the development of SEK 437 billion (USD 51.41 billion).
• The Swedish Transport Administration has also analysed whether cost savings can be implemented; and whether it is feasible to postpone or divide into sections certain objects in the current plan. In the assessment of the Swedish Transport Administration, the scope for new investment in the plan over and above the continued expansion of ERTMS and the Government’s preference for bringing forward the construction of the North Bothnia Line is extremely limited.

Sweden Transportation Infrastructure Construction Market Trends

Continuous expansion, upgradation, and modernization of Swedish Railways

• The government bill for Infrastructure for the Future allocates over 80 percent of the funds to named investments, with the majority directed towards the railway network. Almost half of these investments are designated for the first three stages of new high-speed rail mainlines, and nearly a quarter is allocated to railway engineering systems. These systems encompass power supply measures, traffic management systems, and the new digital European Train Control System (ERTMS) signal system.
• In its directive, the government stated that the Swedish Transport Administration’s proposed plan should include investments of SEK 107 billion (USD 12.84 billion) in the new mainlines during the planning period. Due to the current lack of progress in the ongoing planning process for the Gothenburg-Borås stage, the Swedish Transport Administration needs to postpone parts of the implementation and reallocate funds to other objects, both within and outside the new mainlines. The Swedish Transport Administration, therefore, proposes that SEK 104 billion (USD 12.48 billion) be allocated to the new mainlines during the planning period.
• There is a 25 percent increase in the appropriation for the maintenance of state-owned railways (SEK 40 billion (USD 4.8 billion) during the planning period) compared to the 2018-2029 plan. Increasing resources for railway maintenance will reduce long-term maintenance and renewal costs, as timely maintenance is more cost-effective and lowers the risk of service disruptions and speed restrictions.
• Continuous modernization of the railways is also underway in the country. The ongoing introduction of the new digital signaling system ERTMS is a prerequisite and a platform for modernizing the railways. ERTMS is also necessary for the new high-speed rail mainlines and the upgrading of the East Coast Line and West Coast Line to accommodate trains traveling at 250 km/h.
• Other important modernizations include a new fiber optic network to increase communications capacity, a national train management system, the development and administration of the Swedish Transport Administration’s telecommunication facility, remote control of railways, and the introduction of the Future Railway Mobile Communications System (FRMCS)

Transport infrastructure of Sweden is improving with the Stockholm Bypass

• One of Europe’s fastest-growing cities, Stockholm, is projected to have a population of 2.5 million or more by 2030. To address the ever-increasing congestion on roads accompanying population growth, significant investments are underway to improve transportation infrastructure. The Ministry has allocated most of the funds for the development of transportation infrastructure rather than the maintenance of State Railways and Roads.
• The Stockholm Bypass is one such improvement, establishing a new route for the European E4 highway past Stockholm, with a new motorway linking northern and southern Stockholm, totaling 21 km. Of this, 18 km will pass through a road tunnel to minimize cultural and environmental impacts.
• WSP is involved in both the project design and construction, providing expertise in multidisciplinary dimensions, including rock mechanics, geotechnical and geological considerations, design of temporary constructions, environmental and hydrogeological investigations, soil reinforcements, rock portals, site supervision, tender documents, BIM modeling, etc., during the construction phase.
• The completion of the Stockholm Bypass is anticipated to take almost 15 years. The bypass is projected to carry 140,000 vehicles per day or more when operational, enabling reliable, safe, and smooth travel with less disruption and congestion, thereby contributing to the ongoing livability of this ever-growing city.

Sweden Transportation Infrastructure Construction Industry Overview

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 Skanska, Atkins, Ramboll Group, NCC, Veidekke, Sweco ABWSP, Obrascon Huarte Lain S.A., etc.

Additional Benefits:

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

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