Key themes

• Massive infrastructure investment gap of $3.8tn annually until 2030.
• Cities account for 70% of global emissions and generate 720bn tonnes of waste.
• Smart city solutions market expanding across 10,000 global cities.
• Government initiatives including EU Green Deal (€1.8tn) and US INVEST in America Act ($715bn).
• Growing focus on environmental sustainability and operational efficiency.

Core insights

• Infrastructure investment to exceed traditional 3% of GDP benchmark.
• Private capital increasingly critical as governments face fiscal constraints.
• Three key sectors emerging: smart cities, infrastructure and environmental services.
• Geographic opportunities in Australia, Northern Europe, US, Canada and Asia.
• China’s carbon-neutral goals require a 7x increase in green power production.

Companies highlighted:

Smart city solutions

• Smart City Solutions (mcap €450m): DACH region leader.
• Teleste Corporation (mcap €80m): urban transport systems.
• SenSen Networks (mcap A$37m): AI-powered urban analytics.

Infrastructure

• Morgan Sindall Group (mcap £850m): UK urban regeneration.
• Vinci (mcap €60bn): European infrastructure.
• International Public Partnerships (mcap £2.4bn): global infrastructure assets.

Environmental services

• Renewi (mcap £677m): waste management.
• ADS-TEC Energy (mcap US$715m): EV charging infrastructure.
• SDCL Energy Efficiency Income Trust (mcap £0.5bn): energy efficiency.
• Gresham House Energy Storage Fund (mcap £288m): energy storage.

Conclusions

• Urbanisation presents compelling long-term investment opportunities.
• Success requires strong balance sheets and execution capabilities.
• Focus on companies with:
  • deep local market knowledge;
  • technology integration capabilities;
  • proven project execution; and
  • a strong sustainability focus.
• Scale and persistence of urban growth suggests sustainable investment opportunities for decades.

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