United StatesGlobal forces are reshaping how economies function, creating structural shifts that may present long-term investment opportunities. Sustainable infrastructure sits at the center of these shifts, supported by durable demand drivers that may extend well beyond short-term market cycles.
Demand for modern, resilient infrastructure is accelerating as three global megatrends, including demographic shifts, the deterioration of existing systems and rapid digital advancement reshapes how economies grow and function.
1. Urbanization and Aging Demographics Are Shifting Demand
The global population is growing, urbanizing, and aging – trends that are materially shifting long-term demand patterns.
By 2030, one in six people globally will be aged 60 or over, with the population in this age group rising from 1 billion in 2020 to approximately 1.4 billion.1
In the US, the first wave of baby boomers will reach age 80 by 2030 (projected to be nearly 20 million people), triggering a rapid expansion in the senior population and enlarging the market for senior housing and care solutions.2
This demographic growth is reinforced by meaningful purchasing power. Baby boomers control over half (52%) of US household wealth,3 enabling a greater share of seniors to access high-quality “supported housing” offerings and creating durable, cycle-resilient demand.
Urbanization is accelerating in parallel. The global urban population is forecast to rise from around 4.2 billion to 6.7 billion people by the middle of the century.4 As cities become denser, they require upgrades to water treatment systems, waste management infrastructure, and communications networks. These are not discretionary upgrades; they are critical investments that underpin economic stability and quality of life.
2. Aging Infrastructure Needs a 21st-Century Overhaul
Much of today’s infrastructure was built decades ago and many core systems are now operating far beyond their intended lifespan. In the United States, infrastructure overall earns only a “C” grade, with the American Society of Civil Engineers estimating a $3.7 trillion funding gap between current funding and what is needed to bring infrastructure to good condition.5
The US electrical grid exemplifies these challenges. More than 90% of power outages stem from aging distribution equipment and weather-related stress.6 Roughly 70% of transformers are over 25 years old, and failure rates are expected to rise as transmission and distribution assets approach or exceed their useful lives.7
These reliability pressures are intensifying as electricity demand climbs: By 2030, growth in data centers, electrification, and advanced manufacturing could push annual US electricity consumption from data centers up to 12% of national load, further straining the existing grid.8 Estimates suggest that modernizing the US power grid to meet energy and reliability goals could require up to $2 trillion or more in investment.9
Global trends mirror the US experience. Countries worldwide are upgrading aging networks, with grid investments projected to exceed $470 billion in 2025.10 According to McKinsey, energy infrastructure, including grid upgrades and clean generation, is one of the largest components of global projected infrastructure spend, totaling an estimated $23 trillion.11
Together these factors signal a multi-decade modernization cycle defined not only by replacing aging assets but by deploying more efficient, resilient technologies.
3. Digital Risks Are Raising the Stakes
Digital threats have become a critical source of economic and operational risk. Cybercrime is estimated to cost the global economy approximately $10.5 trillion by the end of 202512 As attacks increasingly target utilities, transportation networks, data centers, and industrial control systems, the financial impact of disruption is escalating.
In response, investment in secure digital infrastructure is accelerating. The global cybersecurity market is valued at over $200 billion today and is expected to grow at a double-digit annual rate for the next decade, as governments, utilities, and enterprises reinforce essential systems.13 For investors, this reinforces digital infrastructure as a structural growth opportunity driven by the essential need to protect and modernize critical systems.
In this environment, infrastructure resilience is no longer optional; it is foundational. Governments, utilities, and private enterprises are prioritizing investments that protect essential systems from cyber disruption.
A Differentiated Allocation Focused on Potential Long-Term Growth
The Impax Global Infrastructure ETF BLDX seeks to provide exposure to companies positioned to benefit from these long-term trends. Rather than relying on cyclical spending or short-term policy incentives, the fund focuses on businesses aligned with essential infrastructure needs such as energy, water, transportation, communications, and environmental services.
For investors, sustainable infrastructure may offer a way to access potential secular growth opportunities that differ meaningfully from traditional mega-cap technology allocations. These companies are tied to physical assets, regulated markets, and essential services – often characterized by stable demand profiles and long investment horizons.
In a market environment where diversification and durability matter, sustainable infrastructure represents more than a theme. It reflects the systems the global economy depends on, and the investments required to keep them operating in a rapidly changing world.
1 World Health Organization (WHO), Ageing and Health, October 1, 2025, who.int
2 US Census Bureau: Demographic Turning Points for the United States: Population Projections 2020 to 2060
3 Federal Reserve, December 2024: Distribution of Household Wealth in the U.S. since 1989
4 UN Department of Economic and Social Affairs, 2018: World Urbanization Prospects
5 ASCE (American Society Of Civil Engineers), ASCE Report Card Gives U.S. Infrastructure Highest-Ever C Grade, Stresses Need For Sustained Investment to Support Economic Growth, March 25, 2025, asce.org
6 2021 Report Card For America’s Infrastructure, ASCE
7 Electrical Trader, Infrastructure Spending Trends and Power Equipment Growth, January 9, 2026
8 Ford, Neil, US grid investors focus on demand hotspots in planning shift, October 20, 2025, Reuters
9 Andersen, Glen et al, Modernizing The Electrical Grid: State Role and Policy Options, National Conference of State Legislators (NSCL) Report, September 22, 2021
10 BloombergNEF, Global Grid Investment Could Top $470 Billion For The First Time in 2025, December 1, 2025
11 Green, Alastair et al, The Infrastructure Moment, McKinsey & Company, September 9, 2025. Mckinsey.com
12 Cybersecurity Ventures, Annual Cybercrime Report 2020, https://cybersecurityventures.com/annual-cybercrime-report-2020/
13 Fortune Business Insights, Cybersecurity Market Outlook, December 29, 2025.
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