Report

The Poland Transportation Infrastructure Construction Market is expected to record a CAGR of more than 5% during the forecast period.

COVID-19 impacted the transportation sector. The impact is in direct and indirect ways, such as reduction in transit services, slowing down of construction works due to social distancing, and disrupted supply chain. However, the sector is recovering and focusing on developments.

Transportation infrastructure facilitates the movement of public goods in the country. Furthermore, an increase in urban mobility creates demand for the construction of more transportation projects. The transportation infrastructure is driven by modernization, which involves reforming railways and improving and rebuilding roads, bridges, airports, etc. This factor resulted in uninterrupted transit and freight services directly contributing to the region's economy.

Under the current European Commission ( EU ) funding scheme, for 2014 to 2023 (with perspective until 2025), the government plans to invest USD 17.5 billion in railway infrastructure and USD 36.6 billion in road infrastructure. The Directorate is currently processing system upgrades and implementing new technologies. In 2021 the Council of Ministers adopted a draft resolution on eliminating barriers to Highway-free flow. This solution will allow drivers to move smoothly.

One of the most important investments under current programs is the National Traffic System, which received USD 139 million whooping amount from the European Commission. This system will support the drivers by informing them about real-time traffic data, accidents, and road conditions. In the 2021-2030 time period, the Polish railway will receive USD 75 billion for the development of train infrastructure in Poland. Under the National Railway Program (KPK), the most important investment railway program in Poland, PKP PLK has planned for over 230 infrastructure projects worth USD18.7 billion, which will improve over 5,592 mi of railroad tracks.

Poland Transportation Infrastructure Construction Market Trends

Increasing Government Investments for Transportation Infrastructure in Poland

The Transportation Infrastructure construction sector in Poland is expected to grow during the forecast period, the main contributors being ongoing road and railway infrastructure projects in Poland. Poland has a large and growing road network of about 3807 miles of express roads and 1,300 miles of highways.

As per International Trade Administration, The National Directorate for Roads and Highways (GDDKiA) plans to spend USD 37.5 billion on highways and roads by 2025. This would allow investments in new road infrastructure or upgrades. 87 miles of new roads were constructed in the year 2020 alone. In the year 2021, more than 930 miles of roads were under construction, while 156 miles of roads were in the tender process. The plan for 2021 assumes the completion of 239 miles of new roads, including almost 24 miles of a highway and more than 190 miles of express roads. According to the International Trade Administration, The European Commission has already spent over USD 10 billion for the modernization of the Polish railway system. Under the program, 9000 km of railway roads will be created or improved, and 500 trains will be upgraded.

Under the National Railway Program (KPK), the most important investment railway program in Poland, PKP PLK has planned for over 230 infrastructure projects worth USD 18.7 billion, which will improve over 5,592 m of railroad tracks. Projects worth USD 2.6 billion have been completed, and projects worth USD 10 billion are underway. The priority is the cargo routes, especially those linking the south of the country to the seaport in the north and those in large cities.

Poland has plans to build the largest infrastructure project in the EU, connecting Europe and Asia and making the country a passenger and cargo hub. This initiative, expected to mobilize over EUR 30,000 billion, presents an opportunity for Spanish companies, not only in construction but also in other sectors connected to the rail sector.

The Central Communication Port (Centralny Port Komunikacyjny - CPK), also known as the Solidarity Transport Hub (STH), is the largest infrastructure project in Poland's history and currently the largest infrastructure project in Europe.

The main characteristic of CPK is that it will bring together various types of road, rail, and air transport in the same place. This means that the most important elements of Polish transport infrastructure will converge in CPK. The objective is to connect the major Polish cities with the airport and provide a commuting time under 2 -2.5 hours. It needs to be underlined that the new airport terminal will have a train station linked to the new high-speed rail network.

Growth in Travel & Tourism is Driving the Transportation Infrastructure.

Poland's travel and tourism industry has grown rapidly, demonstrating consistent growth in leisure and business trips. The relatively stable state of the country's economy, promotional activities by tourism authorities, and hosting of international events supported this growth.

Growing efforts by the government to promote Poland as a tourist destination, as well as to develop the country's road network to meet European standards, have supported the car rental market's growth. The trend is expected to continue over the forecast period due to increasing business and leisure trips, along with trips from airports to travelers' destinations.

In Poland, car rental revenue is increasing as the country registers a rise in business trips. This has eventually increased the demand for road infrastructure in Poland. Also, the Travellers coming from other nations have boosted the need for Airport Infrastructure in the country. The increase in car rental revenue is also associated with the rise in the number of domestic and international flights.

The Warsaw Chopin airport is an economic leader that, before the pandemic in 2019, had a growth of 6.2% compared to 2018, mainly through LOT Polish Airlines (18.9 million passengers). Regional airports are also quickly growing with a large increase in passengers and development plans. Polish Regional Ports identified 210 investment needs (of USD 1 billion) to be realized in regional airports between 2018 and 2037.

Poland Transportation Infrastructure Construction Market Competitor Analysis

The market is relatively fragmented, with a large number of local players like Budimex SA, Strabag SP ZOO, Porr SA, Torpol, and Unibep SA. The demand for sustainability and technological advancements in the transport infrastructure market is increasing, and companies in the region are expected to adopt and remain competitive.

Additional Benefits:

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