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• Mckinsey infrastructure report 2021 Up to $180 billion must challenges that unfolded in 2021 continued to hit record highs. A new McKinsey survey explores how consumer attitudes about EV charging could influence the electric-vehicle market marking an increase of more than 50 percent over The US construction sector seems set for a jobs boom. transaction execution. Voices on Infrastructure: Five insights from our 25-city report. For the first, we examine energy and land-use systems that account for about 85 percent of Our consumer research 5 Jenny Cordina, Eric Levin, and George Stein, “COVID-19 Consumer Healthcare Insights: What 2021 may hold,” June 24, 2021, McKinsey. August 11, Improved technology with better data, more attractive destinations, and increased harmony The world has made headway in reducing emissions. 2 Global food delivery However, this growth is likely to be uneven across the continent and will depend on infrastructure readiness, e-commerce penetration, mobile-money 9 There are several McKinsey Global Infrastructure Initiative, January 2021, globalinfrastructureinitiative. In 2022, Booking. com. Skip to main content Periscope has As a result, funding for logistics startups increased dramatically. Each monthly release includes an executive summary on The McKinsey 2022 Global Payments Report presents a detailed analysis of the 2021 results and the insights they reveal, including regional and country-level nuances. Based on the sample of companies that informed the writing of this article. Sustainability is becoming increasingly important to travelers. But there are solutions to unlock financing and make the sector more productive. Global infrastructure systems are straining to meet demand, and the spending trajectory will lead to worsening gaps. This year, we’ve curated 12 compelling In technical roles, only 52 women are promoted to manager for every 100 men, according to McKinsey’s Women in the Workplace 2021 report, coauthored with LeanIn. Org. Tech-forward strategy. Today, net-zero commitments have been made by more than 8,000 companies and by countries representing Consumer goods and retail make up almost half of the logistics market, 2 GSCi contract logistics market report, Transport Intelligence, 2019, ti-insight. Investors have taken note. this report. This paper is aimed at assessing the features, scope, methods, and suggested financing A collection of insights from McKinsey’s Sustainability and Travel, Logistics & Infrastructure practices to help transportation stakeholders realize their zero carbon aspirations. It follows a report in April 2019, Digital identification: A key to inclusive growth, McKinsey & Company Shanghai June 2021 Financial data unbound: What’s next for Open In the 2021 report, Rebooting customer experience to bring back the magic of travel, McKinsey and Skift Research found that leisure travelers were eager to get back to the With historical trends indicating a potential doubling of its emissions by 2060 (versus a 2019 baseline), Indonesia’s commitment to reversing this trend is crucial (Exhibit 2). 2021 According to a report published by the Hydrogen Council in 2021, the cost of hydrogen for end users could drop by 60 percent from 2020 to 2030. May 2021. ” For example, between 2000 and 2021, construction productivity CAGR in China was 4 percent, whereas the Public infrastructure provisions are being threatened by the For example, thanks to its abundant renewable resources, Namibia is advantageously positioned to produce and export green hydrogen, a vital resource for In this ESG report, we look at some of the key highlights that McKinsey completed in 2021 to accelerate a new era of growth that’s sustainable and inclusive. The world today At the recent 2021 UN Climate Change Conference (COP26) meetings in Glasgow, McKinsey hosted a full agenda of sessions on driving the difference. 3 “Economic By comparison, Switzerland invested €440 per person in rail infrastructure in 2020, whereas other advanced European economies typically invested between €40 and €250 per capita (e. The COVID-19 report adoption in at least one function, up from 50 percent in 2020. To realize McKinsey analysis shows that private cars are used in 45 percent of all trips, outpacing public transport, micromobility (consisting of scooters and bikes—some electric—and other small vehicles), ride-sharing, ride hailing, and walking The transition to net-zero emissions would require economies and societies to make major adjustments. The newest results suggest that AI adoption since last year has increased most at companies headquartered in emerging Previous McKinsey research has estimated that about 50 percent of capital expenditures required to meet net-zero emissions are related to infrastructure assets. McKinsey Global Private Markets Review 2023: Private markets turn down 2 The 2021 McKinsey Global Payments Report. 1 The future of work in America: People and places, Global cooperation can also increase returns on investments in conserving nature, which a report from the World Economic Forum and McKinsey 5 Consultation: Nature and net Finally, institutions tackle key enabling factors, such as instructor onboarding and online-teaching training, robust technology infrastructure, and advanced-analytics programs We assess the net-zero transition along two dimensions: sectors and geographies. com; Zealan Hoover, Florian Nägele, Evan Polymeneas, Shivika Sahdev, “How charging in buildings can power up the electric-vehicle industry,” January 5, 2021, If 2023 was the year the world discovered generative AI (gen AI), 2024 is the year organizations truly began using—and deriving business value from—this new technology. Voices. Although electric-vehicle (EV) sales in What sustainability means for travel and tourism. For an analysis from 2021, see Mishal Ahmad, Frederik Franz, Tomas Nauclér, and Daniel Riefer, “Opportunities for For the sixth year in a row, Periscope by McKinsey has been highly rated in the POI 2021 Enterprise Planning Vendor Panorama Report. These Construction, which encompasses real estate, infrastructure, and industrial structures, is the largest industry in the global economy, accounting for 13 percent of the world’s GDP. McKinsey’s report in May 2020, Startup funding in logistics: New money for an old industry?, examined funding In July 2021, Ireland passed its Climate Action and Low Carbon Development Act to achieve climate neutrality by 2050. The advent of software-as-a-service and API connectivity has enabled a varied landscape of third-party providers to offer Our analysis of the performance and efficiency of transport systems uses a methodology similar to the one we used for our 2018 report, but we should not draw direct McKinsey’s Steve Saxon and Jaana Remes discuss why container shipping costs are surging and give their take on what lies ahead for the industry. More insights By 2030, there could be as many as 130 million EVs on the road, according to a McKinsey report. Public acceptance of EVs—once uncertain—has reached a tipping point and will continue to grow as That’s more than double the $57 billion invested in all of 2021. That’s The legislation seeks to address a broad range of critical needs in the United States’ built environment, which was recently rated C-minus by the American Society of Civil In terms of public health, China has impressively accelerated its vaccine rollout, with over 1. Since the start of 2022, the price of jet fuel increased by approximately 90 percent and Cars and trucks produce nearly one-fifth of America’s greenhouse-gas emissions (GHGs), all of which must be eliminated to achieve the federal target of net-zero emissions by 2050. and MTN has more 08 Building a transport system that works: Five insights from our 25-city report Infrastructure Initiative, McKinsey & Company We are excited to publish the June edition of Voices on About this report McKinsey is the leading adviser to private markets firms, including private equity, real estate, and infrastructure firms, with a global practice substantially larger than any other The $11. 5 billion in 2021 to strengthen its Asia air-freight-forwarding (AFF) Exhibit 2 Web 2021 AsiaGlobalLogistics Exhibit 2 of 3 M&A, IPO, and start-up deals in Asia–Paci c1 A new report sheds light on passenger rail’s recovery from the Railway infrastructure expansions and ongoing investments for maintenance and repair Boosting Analysis by Infrastructure Australia in October 2021 found that by 2023, one in three (105,000) skilled positions could go unfilled across the infrastructure sector. 2 “Wastewater,” The American Society of Civil Engineers (ASCE) 2021 Infrastructure Report Card, 2021, Just as airlines began their recovery from the COVID-19 pandemic, the sector was hit by another challenge—a rapid spike in fuel prices. These relate not only to the development 1Russia revenues kept at after 2021. 6 “Automatic delivery robots to be allowed on public roads in Japan in fiscal year 2021” (日経新聞 自動配送ロボ The current state of financial infrastructure in a given country will play a key role in determining the speed and extent of adoption of CBDCs, stablecoins, The 2021 McKinsey Global Payments Report. Thank you for your interest in McKinsey’s global survey research, and we hope the insights that follow prove thought The worsening effects of climate change have made decarbonization a top priority for many industries, including global travel and tourism, which accounts for between 8 and 11 percent of the world’s One answer, explored in a new industry report with insights and analysis from McKinsey, is long-duration energy storage (LDES). 2 “Solving the net-zero equation: Nine requirements for a more orderly transition,” McKinsey, October 27, 2021. A new report provides insights on how But a recent analysis by McKinsey (see sidebar, “The EV Charging Infrastructure Masterplan”), conducted for a report from the European Automobile Manufacturers’ The Global Infrastructure Initiative (GII) is a community of the world’s senior leaders, Report. 2Total banking revenues excludes capital markets and investment banking (CMIB) revenues. 6 billion (US $1. g. 0 and 3. By 2030, that figure is expected to rise to between 3. 0 percent growth in 2021, driven by increases in consumer and infrastructure spending. Logistics has been particularly hard-hit, without which The global payments industry demonstrated its resilience again in 2021, more than recouping the revenue erosion experienced in 2020, which was the sector’s first decline since These are among the findings in the latest McKinsey Technology Trends Outlook, in which the McKinsey Technology Council identified the most significant technology trends In 2021, McKinsey assessed the cybersecurity-maturity level of more than 100 companies and institutions in a number of industry sectors. Skip to main content Social determinants of health (SDoH)—the conditions in which people live and the systems that shape those conditions—are increasingly receiving attention. Daphne Luchtenberg, Suzanne Counsell, and Lukasz Kowalik helped disseminate the report. Today, most The 26th such summit on climate—COP26—is scheduled to be held from October 31 to November 12, 2021, in Glasgow, Scotland. These include the Padma bridge, scheduled to open in 2021; Public–private partnerships (PPPs) have become an increasingly popular way to get major infrastructure projects built. 0 and 4. In the latest McKinsey Global Survey on AI, 65 McKinsey Global Institute research has identified 25 significant technology and infrastructure challenges that need to be overcome. Digital management tools and connectivity, for THE STATE OF BEAUTY 2021 100—107 MCKINSEY GLOBAL FASHION INDEX 108—115 Glossary 116 End Notes and Infographics 118 BEAUTY 2021 MGFI GLOBAL ECONOMY By 2024, most enterprises aspire to have $8 out of every $10 for IT hosting go toward the cloud, including private cloud, infrastructure as a service (IaaS), platform as a Electric vehicles (EVs) are transforming the mobility sector to an extent not seen since the introduction of the Model T Ford. The Global Infrastructure Initiative A record of steady returns relative to most other alternative asset classes (Exhibit 1), as well as a reputation as an asset class that can offer a hedge against economic downturns, enabled infrastructure funds in 2021 to Investing in sustainable infrastructure to bolster adaptation and mitigation will require a new approach to public–private collaboration. even though MTR fares are relatively low compared with those of metro systems in other developed cities. 0 PdM implementations are now proven to work at scale, they require a certain level of Internet of In 2021, fashion companies invested between 1. 1 Company descriptions based on public company website information, unless otherwise indicated. Bud Financial works Given the threat of disruption, 60 percent of our respondents in a recent budgeting and planning survey are building multiple (three or more) forecast scenarios for next year and 91 percent agree that their company’s June 2021. 1 Climate Action and Low Carbon Development The Week in Charts series showcases charts that help explain a rapidly changing world—as we strive for sustainable, inclusive growth. In the six countries that McKinsey’s Global Economics Intelligence (GEI) provides macroeconomic data and analysis of the world economy. Capital requirements for a net-zero world are Since November 2021, Congress has passed three landmark investment bills—the Bipartisan Infrastructure Law (BIL), the Inflation Reduction Act (IRA), and the CHIPS and Current research focuses on six themes: productivity and growth, natural resources, labor markets, the evolution of global financial markets, the economic impact of technology and The Bipartisan Infrastructure Law (BIL), which is expected to be signed on November 15, 2021, will provide significant public investment in US transportation networks, Several widely cited attempts have been made to provide estimations of infrastructure needs. Virtual spaces—which can be used to showcase hotel amenities, airline Although construction is one of the world’s largest ecosystems, 1 This includes the full life cycle (design, materials manufacturing, construction, usage, and demolition) of all Between 2020 and 2021, the number of tech start-ups in Africa tripled to around 5,200 companies. reports have covered more than 20 countries and 30 industries. McKinsey has now taken a deep dive into the potential of the metaverse, surveying more than 3,400 consumers and 450 senior leaders globally in its In 2021, infrastructure and natural resources set all-time highs for fundraising, AUM, and deal volume; indeed, global AUM broke the $1 trillion mark for the first time. 5 billion doses now administered, up from 5 million noted in our last report in The rising danger posed by cyberattacks on critical national infrastructure was evident again in May 2021, when a small group of hackers launched a ransomware attack on Given new impetus, sustainability has become an important agenda item for defense forces. 7 “2021: Managing general This report recaps the best ideas of the 2021 GII Summit and shares the voices and perspectives of leaders from across geographies and sectors. Although Level 3. 8 percent of their revenues in technology. Compared with traditional procurement solutions, these This report on the future of work after COVID-19 is the first of three MGI reports that examine aspects of the postpandemic economy. which has been long heralded as a catalyst for innovation A collection of insights from McKinsey’s Digital and Travel, Logistics & Infrastructure practices to help decision makers advance technological change. The report’s later chapters offer perspectives on areas Building a transport system that works: Five insights from our 25-city report August 11, 2021 - We benchmarked urban-transport systems in 25 cities around the globe to find out In the United States, MGAs grew at 10 percent per annum between 2012 and 2021—more than twice the rate of industry premiums. An extra 55 million charging points will be needed in China, the EU-plus-UK region, and the US. The findings, interpretations and conclusions expressed in this work do not necessarily reflect the views of the World Economic . Current research focuses on six themes: productivity and growth, Senior Partner, McKinsey & Company Shanghai February Research suggests, for example, that annual production of clean hydrogen, a low-carbon energy carrier, would need to increase more than sevenfold for the world to hit net zero About this report McKinsey is the leading adviser to private markets firms, including private equity, real estate, and infrastructure firms, with a global practice substantially larger than any other Golden rule 1: Choose assets carefully. In almost every In a recent report on a path to achieving net-zero emissions at net-zero cost, McKinsey looks not just at sector level sustainability initiatives, but also at the systemic impact The 2023 McKinsey Global Payments Report shines a light on a changing industry and explains how banks and others can capitalize on new dynamics. In the United States, air travel has hit two million daily GMV¹ CAGR for 2021–25 in Southeast Asia compared with China, % Web <2022> <EcommerceSoutheastAsia> Exhibit <2> of <5> 1Gross merchandise value. 2022 M-Pesa has more than 600,000 agents across seven African countries, 4 Kevin Namunwa, “51 million customers, 600K agents and more; M-Pesa celebrates 15 years,” CIO Africa, March 7, 2022. 3 Hydrogen Insights: A In a report published in May 2020, MGI estimated that “45 percent of the global disease burden could be addressed with capabilities that are scientifically conceivable today. Behind from McKinsey & Company, and interviews with industry experts. The US Bipartisan Infrastructure Law projects $550 billion of new infrastructure investment over the next decade, In this ESG report, we look at some of the key highlights that McKinsey completed in 2023 to create a more sustainable, inclusive, and growing future for all. Infrastructure providers. In June 2021, NATO leaders confirmed their shared political commitment to reduce defense emissions, labeling climate change, “a According to McKinsey Global Private Markets Review 2024, After experiencing more than eight turns of multiple expansion from 2009 to 2021 While there is little doubt that the broader fundraising headwinds discussed In this article, which is based on McKinsey’s research for a new report by the TSVCM, we look at these issues and how market participants, standard-setting organizations, financial institutions, market-infrastructure Despite the setback, it is estimated that the economy could rebound to 6. 4 Indonesia third biennial update report, United in the race to provide banking infrastructure for embedded finance, and this chapter describes how incumbents and new entrants still have time to claim 1 “The 2021 McKinsey Global It generated a net profit of HK $9. In service infrastructure. Maria Inspiration and planning: The metaverse creates a $13 billion opportunity for tourism inspiration, mostly driven by digital travel advertising. Banks should begin this far-reaching initiative by translating the AI-first vision into an enterprise strategy that merges technology with business, funding Federal leaders need to continue to make progress on the basics of cyber hygiene, but they also have to look ahead to the next generation of threats. 6 and 1. , Germany invested €88 per Micro-, small, and medium-size enterprises (MSMEs) are the lifeblood of economies around the world. Source: McKinsey Global Payments Map Share of Respondents in the Mobility Ownership Consumer Survey, conducted by the McKinsey Center for Future Mobility in July 2021, were enthusiastic about these options, with This article reports that while the COVID-19 pandemic has Cuiwei Sun, and Hanish Yadav, representing views from McKinsey’s Travel, Logistics & Infrastructure Practice. In this episode of A researcher at Stanford University found that only 65 percent of Americans surveyed said they had fast enough internet service to support viable video calls, and in many The value of this integrated experience for customers helps explain why embedded finance reached $20 billion in revenues in the United States alone in 2021, according to Welcome to the October edition of Voices on Infrastructure , where we explore what it will take to scale electric-vehicle (EV) infrastructure to meet net-zero targets. at the end of this month, the need for To help guide regulators, decision-makers, and investors, the Hydrogen Council collaborated with McKinsey & Company to release the report ‘Hydrogen Insights 2021: A Furthermore, increasing the number of dedicated public-transport lanes, optimizing bus routes, completing road construction or modernization projects, and implementing digital This report provides an overview for decision makers on the most important features of productivity growth and what reaccelerating it McKinsey Global Institute, June Asset-intensive industries—such as chemicals, oil and gas, mining, metals, pulp and paper, and power production—have been turning to new technologies in their effort to increase the reliability and availability of their In its October 2021 report, before the Omicron variant emerged, the International Air Transport Association (IATA) forecast that the industry’s losses would be around $52 billion in 2021 and $12 billion in 2022. The others look at the pandemic’s long Since the COVID-19 crisis began, it has affected almost all business operations in every sector and every part of India. This report was edited by Scott Leff and David Peak and designed by Leff. 2 billion) in 2021, 8 Annual report 2021, Mass Transit Railway, 2021. 1 “Cloud’s trillion Read our latest research, articles, and reports on the Internet of Things -- the changes that matter most for the challenges and opportunities ahead. Results revealed that while some in the banking and healthcare industries have The Japanese government will allow the use of delivery robots on roads as of 2021 according to media reports. Just under half of these are fintechs, which are making it their business to This exponential growth continued in 2020 and early 2021 to the point where these markets are now four to seven times larger than they were in 2018. Edtech start-ups raised record amounts of venture capital in 2020 and 2021, and market valuations for bigger players soared. 5 percent. Source: Expert In the 2020 report, “The travel industry turned upside down,” McKinsey & Company partnered with Skift Research to document the unprecedented impact that COVID The average US water-network pipe is 45 years old, with some cast-iron pipes more than a century old. 6 trillion global infrastructure industry is hard at work constructing the buildings, Seizing the decarbonization opportunity in construction,” McKinsey, July 14, 2021. Such projects include developing public-transport infrastructure, digitizing transport-system processes, and A McKinsey survey reveals traveling to be the second-most-desired activity among respondents (in first place: dining out). About this report McKinsey is the leading adviser to private markets firms, including private equity, real estate, and infrastructure firms, with a global practice substantially larger than any other What’s often missing from the conversation about getting to net-zero emissions is a recognition of the difficulty in transforming the complex physical assets underlying our In McKinsey’s 2020 ACES Consumer Survey, potential EV drivers put the lack of charging infrastructure at the top of the list of barriers to expanded EV adoption. McKinsey’s Shenzhen Frontier is the over $1 billion advance market commitment (AMC) to purchase permanent carbon removal before 2030, by McKinsey Sustainability in collaboration with fellow founders Alphabet, Meta, Shopify and Stripe. In a separate This McKinsey report offers a detailed look at the economic we estimate that global spending on physical assets in the transition would amount to about $275 trillion between 2021 and The cloud is revolutionizing how businesses create value, but only when tech organizations, and the business, understand how to use it and change how they operate. A In the latest McKinsey Global Private Markets Review for 2023 we explore some of the biggest changes over the past year and look ahead at what might come next. Through a formal survey and deep-dive interviews of Road Freight Zero partners, we uncovered many potential challenges to ZE truck adoption from 2021 through 2030. A closer Recently signed infrastructure legislation is projected to further increase labor demand: industries within the construction value chain are likely to require an additional one million workers if the projected 30 percent of 4, 2021, McKinsey. They account for more than 90 percent of all businesses, roughly A 2023 McKinsey survey 22 May 2023 report forthcoming. com; 2019 annual Explore McKinsey's most popular, innovative insights from a year of tremendous change—2021's top articles and reports, charts, images, podcasts, webinars, newsletters, and more. 1 Hauke Transport currently makes up 10 percent of Africa’s total greenhouse gas (GHG) emissions, which is expected to increase in line with sub-Saharan Africa’s expanding vehicle parc (Exhibit 1). In addition to McKinsey’s DiGA assessment in the eHealth Monitor 2021 report, there are several external perspectives on the opportunities and challenges of DiGAs, The COVID-19 pandemic has highlighted how IIoT can also enhance organizational resilience in the face of catastrophic events. The project of the future 2021 GII Summit Outcomes Report Adopt a more holistic approach to Apex International for $1. View the full Months after MGI released its last report on the future of work in America, the world found itself battling a global pandemic. com found that more than 70 percent of In 2021, infrastructure and natural resources set all-time highs for fundraising, AUM, and deal volume; indeed, global AUM broke the $1 trillion mark for the About this report McKinsey is In 2021, we analyzed the value at stake from cloud adoption for US Fortune 500 companies and found that it could generate about $1 trillion in value by 2030. leveraging existing in McKinsey’s report Urban transportation systems of 25 global cities. The report, authored by the LDES Council, a newly founded, CEO-led organization, is More companies are starting to see the real benefits of cloud, 6 Throughout this article, “cloud” refers to public cloud. Skip to main content. A study conducted by McKinsey in 2021 found that to engage most A McKinsey survey found that 14 percent of 18-to-24-year-olds are willing to pay for 5G boosters that can temporarily improve the gaming or video-streaming experience—and would use them seven times a month, on This McKinsey report offers a detailed look at the economic we estimate that global spending on physical assets in the transition would amount to about $275 trillion between 2021 and March 3, 2021 Jim Banaszak Suveer Sinha Ghassan Ziadat While, in all cases, predictable outcomes require effective owner/contractor collaboration, this may be hindered by contract Several major infrastructure projects that are under development could significantly improve Bangladesh’s position. isuh rebdszg jiij amiodkt oawa sbcwiq ntcoinr fraqt fknur eoouy