120
CEOs from the
infrastructure and transport sector
11
Countries
more than 500 Mill.
USD Annual sales
Despite ongoing economic and geopolitical uncertainties, CEOs in the infrastructure and transport sector expect growth over the next three years - both in terms of revenue and employees. However, key challenges continue to pose obstacles to this growth.
The CEOs we surveyed expressed concerns about skills shortages, technology adoption and climate risks. They are worried about the risks of generative AI and fear not meeting their climate targets. They talk about the changing expectations of stakeholders and complex technology environments.
At the same time, they also show ambition and drive. They are determined to invest in developing their AI capabilities and skills. They are nurturing their workforce and developing talent. Perhaps most importantly, they are focussing more than ever on building public trust.
Infrastructure and Transport CEO Outlook 2024
CEOs from around the world answered our questions
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Dr. Steffen Wagner
Partner, Deal Advisory, Head of Corporate Finance, Head of Transport & Infrastructure
KPMG AG Wirtschaftsprüfungsgesellschaft
Key findings of our research
1. Growth in an uncertain environment
63% of CEOs from the infrastructure and transport sector expect profit growth of over 2.5% in the next three years. However, they express concerns about the impact of generative AI and other new technologies, the current state of the global economy and competition for skilled labour.
2. Building public trust
As trust in governments declines globally, 62% of industry CEOs believe that the public instead expects companies to bridge this gap and address societal challenges. In addition, 71% are willing to divest a profitable part of the company if it would damage the company's reputation.
3. Prioritisation of climate risks
CEOs believe that the impact of climate and environmental change is the second biggest risk (after operational issues) for their companies. However, 57% of our respondents also state that stakeholder expectations regarding ESG are changing faster than they can adapt their strategy.
4. Driving digital transformation processes
68% of industry respondents say that generative AI is a top investment priority, despite the ongoing economic uncertainty. However, they also express significant concerns about the challenges associated with implementing generative AI, such as bias, data privacy and lack of transparency.
5. Shaping the workforce
93% of CEOs from the industry plan to increase their workforce in the next three years and the majority expect generative AI to increase headcount. However, competition for skilled labour is fierce and industry CEOs predict that the challenges of skills shortages are likely to have a negative impact on the success of their respective companies over the next three years.
Methodology
KPMG's Infrastructure and Transport CEO Outlook 2024, part of the 10th edition of KPMG's CEO Outlook 2024, was compiled based on the views of 120 Chief Executive Officers from the infrastructure and transport sector. The survey took place between 25 July and 29 August 2024 and provided a unique insight into the views, strategies and tactics of CEOs.
The companies of all respondents have an annual turnover of more than USD 500 million, a third of these companies have a turnover of more than USD 10 billion. The survey includes CEOs from eleven core markets (Australia, Canada, China, France, Germany, India, Italy, Japan, Spain, the UK and the US) and eleven key industries, including infrastructure and transport.
NOTE: Rounding differences possible.
In the infrastructure and transport research, mobility and transport were the two largest sub-sectors with 50 per cent of respondents and rail with 12 per cent. The most represented countries by number of company headquarters are the USA, India, followed by China, Canada, France, Italy and Spain.
