
Global Steel Aluminum Composite Conductive Rail Market Insights, Size, and Forecast By Product Type (Conductive Rails, Support Structures, Connectors), By End Use (Railway Companies, Construction Firms, Telecommunication Providers), By Application (Power Transmission, Railway Infrastructure, Telecommunication), By Material Composition (Steel, Aluminum, Composite Materials), By Region (North America, Europe, Asia-Pacific, Latin America, Middle East and Africa), Key Companies, Competitive Analysis, Trends, and Projections for 2026-2035
Key Market Insights
Global Steel Aluminum Composite Conductive Rail Market is projected to grow from USD 12.8 Billion in 2025 to USD 21.5 Billion by 2035, reflecting a compound annual growth rate of 6.7% from 2026 through 2035. This market encompasses the manufacturing and deployment of conductive rails that integrate steel and aluminum for enhanced electrical conductivity, structural integrity, and reduced weight, primarily used in applications requiring efficient power transfer. The core value proposition lies in leveraging aluminum’s superior electrical conductivity and lightweight properties with steel’s strength and durability, offering a cost effective and high performance alternative to traditional single material rails. Key drivers propelling market expansion include the increasing demand for high speed rail networks, the expansion of urban mass transit systems globally, and the growing focus on energy efficiency in industrial applications. Furthermore, the rising adoption of electric vehicles and associated charging infrastructure, alongside the modernization of existing railway lines, are significant contributors to market growth. However, challenges such as the high initial capital investment required for manufacturing and installation, the complexity of joining dissimilar metals, and potential vulnerability to material degradation in harsh environments act as market restraints. Despite these hurdles, the market presents substantial opportunities in the development of advanced composite materials with improved corrosion resistance and further weight reduction, as well as in the emergence of smart rail infrastructure integrated with IoT for predictive maintenance and optimized performance.
Global Steel Aluminum Composite Conductive Rail Market Value (USD Billion) Analysis, 2025-2035

2025 - 2035
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The Asia Pacific region stands out as the dominant region in the Global Steel Aluminum Composite Conductive Rail Market. This leadership is attributed to rapid urbanization, significant government investments in transportation infrastructure development, particularly in high speed rail and metro projects across countries like China, India, and Japan. The region's robust manufacturing capabilities and a large consumer base for public transportation further solidify its position. Asia Pacific is also the fastest growing region, driven by continuous infrastructure modernization efforts, the introduction of new rail lines to connect remote areas, and the increasing demand for efficient and sustainable transportation solutions. The imperative to reduce carbon emissions and alleviate traffic congestion in densely populated urban centers is fueling the adoption of advanced composite conductive rails. Moreover, substantial investments in renewable energy projects and industrial electrification across the region contribute to the demand for efficient power transmission solutions, where these composite rails find critical application.
The market is segmented by Application, End Use, Material Composition, and Product Type, with Railway Infrastructure emerging as the leading segment due to the extensive use of these rails in high speed trains, metro systems, and tramways for power delivery and structural support. Key players such as Nippon Light Metal, Constellium, Megha Engineering and Infrastructures, Hindalco Industries, UACJ Corporation, Hydro, Kaiser Aluminum, Novelis, RUSAL, and Amcor are actively shaping the competitive landscape. These companies are strategically focusing on research and development to innovate new material compositions that offer superior performance characteristics, improve manufacturing processes to reduce costs, and expand their global footprint through strategic partnerships and collaborations. Efforts are also directed towards developing custom solutions to meet specific infrastructure requirements of diverse regions, enhancing product durability, and integrating smart technologies for advanced monitoring and maintenance, thereby securing long term market relevance and competitive advantage.
Quick Stats
Market Size (2025):
USD 12.8 BillionProjected Market Size (2035):
USD 21.5 BillionLeading Segment:
Railway Infrastructure (72.8% Share)Dominant Region (2025):
Asia Pacific (45.2% Share)CAGR (2026-2035):
6.7%
Global Steel Aluminum Composite Conductive Rail Market Emerging Trends and Insights
Electrification Evolution Steel Aluminum Hybrid Rails
Electrification Evolution Steel Aluminum Hybrid Rails signify a key trend in the global conductive rail market. Traditional steel rails are increasingly being augmented or replaced by innovative hybrid designs that integrate aluminum. This shift is driven by aluminum’s superior electrical conductivity and lighter weight, leading to more efficient power transmission and reduced energy losses in railway systems. While steel provides essential structural strength and durability, especially for heavy loads and high wear areas, aluminum sections are strategically incorporated to enhance electrical performance. These hybrid rails offer a compelling balance of mechanical robustness and improved electrical efficiency, facilitating higher speeds and increased capacity for modern electrified transportation networks. This evolution addresses the growing demand for sustainable and high performance rail infrastructure globally.
Smart City Infrastructure Conductive Composites
Smart City Infrastructure Conductive Composites represent a significant evolution within the global steel aluminum composite conductive rail market. As cities increasingly integrate advanced digital technologies, there is a growing demand for infrastructure that facilitates efficient power and data transmission. Traditional conductive rails, while effective, can be optimized for the diverse and complex needs of a smart urban environment.
This trend focuses on developing and deploying composite materials with enhanced electrical conductivity, often incorporating conductive additives like graphene or carbon nanotubes into steel and aluminum matrices. These advanced composites offer superior performance for various smart city applications beyond typical rail transport, including intelligent street lighting networks, autonomous vehicle charging systems embedded in roadways, and decentralized power grids for smart buildings. The goal is to create infrastructure that is not only robust and durable but also seamlessly integrated into the city’s digital backbone, enabling more reliable and distributed energy and data flow. This innovation addresses the need for more adaptable, efficient, and future proof conductive solutions in urban development.
Sustainable Transit Lightweight Rail Solutions
Sustainable transit lightweight rail solutions are a critical driver in the global steel aluminum composite conductive rail market. This trend emphasizes the development and adoption of lighter, more energy efficient rail systems for urban and interurban transportation. Traditional heavy rail infrastructure is being superseded by innovative designs that prioritize reduced material usage and lower operational costs. Steel aluminum composites offer a compelling solution, combining the strength and conductivity needed for robust rail systems with a significantly lower weight profile. This directly translates to less energy consumption by trains and reduced wear on tracks and rolling stock. Furthermore, lighter rails are easier to install and maintain, decreasing construction timelines and long term expenditures. The focus is on enhancing the environmental performance of public transit while maintaining high standards of safety and reliability, catering to a growing demand for eco conscious and economically viable urban mobility.
What are the Key Drivers Shaping the Global Steel Aluminum Composite Conductive Rail Market
Electrification and Urbanization Driving Rail Infrastructure Expansion
Electrification and urbanization are profoundly shaping the global conductive rail market. As cities expand and populations grow, the demand for efficient and sustainable public transportation escalates. Governments worldwide are investing heavily in new metro lines, light rail systems, and high speed rail networks to connect burgeoning urban centers and reduce traffic congestion. This expansion necessitates vast quantities of steel aluminum composite conductive rails due to their superior conductivity, strength, and lighter weight compared to traditional materials. Furthermore the increasing focus on decarbonization and electric vehicles extends to rail, driving the need for robust electrification infrastructure. This twin push of urban growth and electric propulsion creates a sustained demand for advanced rail solutions.
Demand for Enhanced Conductivity and Durability in Rail Systems
Modern rail systems face increasing demands for speed, reliability, and reduced maintenance. Traditional steel rails, while robust, have limitations in electrical conductivity and weight. Aluminum and composite materials offer superior electrical properties, crucial for powering high speed trains and signaling systems with less energy loss. The integration of these materials into composite conductive rails addresses the need for enhanced current transmission efficiency, minimizing power consumption and heat generation. Furthermore, these advanced rails demonstrate improved corrosion resistance and fatigue strength, extending their service life and significantly reducing the frequency and cost of inspections and replacements. This blend of heightened conductivity and prolonged durability is essential for the future expansion and modernization of global railway infrastructure, supporting heavier loads and faster transit times.
Technological Advancements in Composite Material Manufacturing
Technological advancements in composite material manufacturing are a critical driver for the global steel aluminum composite conductive rail market. Innovations in material science and engineering are enabling the creation of advanced composites with enhanced properties. These include superior strength to weight ratios, improved corrosion resistance, and optimized electrical conductivity. New manufacturing techniques, such as additive manufacturing and advanced pultrusion, allow for the production of complex geometries and more precise material integration. This leads to more efficient and durable conductive rails that meet increasingly stringent performance requirements for high speed rail, metro systems, and industrial applications. These advancements reduce installation costs, extend service life, and improve overall system reliability, thereby increasing the adoption of these composite rail solutions.
Global Steel Aluminum Composite Conductive Rail Market Restraints
Raw Material Price Volatility and Supply Chain Disruptions
Raw material price volatility and supply chain disruptions significantly constrain the global steel aluminum composite conductive rail market. Unpredictable fluctuations in the cost of primary aluminum, steel, and copper directly impact production expenses, making long term project forecasting challenging for manufacturers. Sudden price surges erode profit margins and can lead to project delays or cancellations, especially for large scale infrastructure developments. Furthermore, global events such as geopolitical tensions, natural disasters, or pandemics can disrupt the flow of these essential materials. Logistical bottlenecks, port closures, and transportation challenges create extended lead times and increase shipping costs. This instability in material availability and pricing hinders consistent production schedules, reduces operational efficiency, and forces manufacturers to either absorb higher costs or pass them on to customers, ultimately impacting market growth and competitiveness.
Intense Competition from Traditional Rail Technologies
The global steel aluminum composite conductive rail market faces a significant restraint from intense competition offered by traditional rail technologies. Existing infrastructure heavily relies on conventional steel rails, which benefit from established manufacturing processes, extensive supply chains, and a long history of proven reliability. Railway operators often find the upfront investment and perceived risk associated with adopting new composite technologies a deterrent, preferring to stick with familiar and widely available solutions. This deeply entrenched preference for traditional materials creates a high barrier to entry for composite rail manufacturers. Overcoming this inertia requires demonstrating clear, tangible benefits in terms of cost effectiveness, performance, and longevity that sufficiently outweigh the ingrained advantages of conventional rail systems.
Global Steel Aluminum Composite Conductive Rail Market Opportunities
Capturing Growth in High-Load, High-Efficiency Conductive Rail for Urban Transit & Industrial Electrification
The opportunity involves strategically capturing escalating demand for high load, high efficiency steel aluminum composite conductive rail, vital for urban transit and industrial electrification across global markets. Modern cities require robust power solutions for expanding metro networks, trams, and light rail systems, driving a critical need for advanced electrification infrastructure. Simultaneously, industries are increasingly electrifying operations, from heavy machinery to port equipment, demanding reliable and energy efficient power delivery.
Steel aluminum composite rails offer the ideal blend of strength and superior conductivity, minimizing energy losses and enhancing system performance. Companies can seize this growth by innovating and supplying these specialized rails, meeting stringent performance requirements for faster, greener, and more efficient infrastructure. This focuses on enabling sustainable development through cutting edge electrification solutions in rapidly expanding urban centers and modernizing industrial sectors globally, representing a significant market expansion.
Addressing Demand for Lightweight, Corrosion-Resistant Composite Conductive Rails in Harsh Environments & Renewable Energy Integration
The global steel aluminum composite conductive rail market faces a substantial opportunity by directly addressing the escalating demand for highly specialized rail solutions. Industries are urgently seeking lightweight and inherently corrosion resistant conductive materials essential for deployment in severe operational conditions. These challenging environments encompass coastal regions, industrial complexes, and areas exposed to extreme weather or chemical agents, where traditional conductive materials suffer rapid degradation, leading to expensive upkeep and operational downtimes.
Composite conductive rails, expertly combining the strengths of steel and aluminum, offer superior durability and reduced weight. This simplifies installation, minimizes structural load, and extends service life. Furthermore, the global surge in renewable energy projects significantly drives this need. Solar farms, wind power installations, and grid integration initiatives require robust, long lasting conductive infrastructure capable of enduring environmental rigors. Providing these high performance composite rails allows manufacturers to secure a growing segment within critical infrastructure development, particularly in regions aggressively pursuing both industrialization and clean energy transitions.
Global Steel Aluminum Composite Conductive Rail Market Segmentation Analysis
Key Market Segments
By Application
- •Power Transmission
- •Railway Infrastructure
- •Telecommunication
By End Use
- •Railway Companies
- •Construction Firms
- •Telecommunication Providers
By Material Composition
- •Steel
- •Aluminum
- •Composite Materials
By Product Type
- •Conductive Rails
- •Support Structures
- •Connectors
Segment Share By Application
Share, By Application, 2025 (%)
- Railway Infrastructure
- Power Transmission
- Telecommunication

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Why is Railway Infrastructure dominating the Global Steel Aluminum Composite Conductive Rail Market?
Railway Infrastructure stands as the leading application segment, holding a significant share due to its fundamental reliance on conductive rail technology. This dominance stems from the continuous global investment in expanding and modernizing railway networks, including high speed rail, metro systems, and light rail. These systems inherently require robust and efficient conductive rails for power transmission to trains and for essential signaling and communication, making it an indispensable component for operational efficiency and safety across the sector.
How do End Use segments influence the demand for conductive rails?
The End Use segments are directly shaped by the dominant applications, with Railway Companies emerging as the primary purchasers of steel aluminum composite conductive rails. Their ongoing projects for new rail line construction, electrification, and maintenance drive substantial demand. Construction Firms also play a crucial role, often contracted by railway companies for installation and infrastructure development, while Telecommunication Providers contribute to a smaller segment, mainly for specialized signal transmission applications within transportation corridors.
What role do different Material Compositions play in market development?
Material Composition is pivotal in determining performance characteristics and suitability for various applications. While steel rails are traditionally robust for structural support, aluminum offers superior conductivity and lighter weight. Composite materials, combining the strengths of both steel and aluminum or incorporating other advanced components, are increasingly favored for their optimal balance of strength, conductivity, corrosion resistance, and lifespan. This innovation allows for tailored solutions that meet the demanding and diverse requirements of modern railway and power transmission systems.
Global Steel Aluminum Composite Conductive Rail Market Regulatory and Policy Environment Analysis
The global steel aluminum composite conductive rail market operates within a stringent regulatory framework focused on safety, performance, and environmental compliance. National and international bodies establish extensive standards governing material composition, electrical conductivity, mechanical properties, and fire resistance to ensure operational reliability and passenger security. Regions like Europe and North America possess well established certification processes for new rail technologies, requiring rigorous testing and adherence to specific technical specifications. Environmental policies increasingly influence material sourcing and manufacturing practices, promoting sustainability and resource efficiency. Trade policies, including tariffs and import regulations, impact global supply chains and competitive dynamics. Government led infrastructure investments often include procurement policies favoring certified, high performance components, driving demand and standardization. Policy support for innovation also encourages development and adoption of advanced conductive rail solutions. Overall, market growth is significantly shaped by evolving regulatory requirements and government strategic infrastructure initiatives worldwide.
Which Emerging Technologies Are Driving New Trends in the Market?
The global steel aluminum composite conductive rail market thrives on continuous innovation. Advancements in materials science are paramount, focusing on superior metallurgical bonding between steel and aluminum layers to optimize electrical conductivity and mechanical strength, crucial for high performance rail systems. Emerging manufacturing technologies like advanced co extrusion and laser welding techniques are enabling the production of more precise, durable, and lighter weight composite rails, reducing installation costs and improving operational efficiency.
Further innovation includes integrating smart sensing capabilities directly into the rail structure. These embedded sensors provide real time data on rail integrity, wear, and power transmission, facilitating predictive maintenance and enhancing overall safety and reliability. Research into advanced coatings and surface treatments is improving corrosion resistance and reducing wear, extending the lifespan of conductive rails in diverse environmental conditions. The drive towards electrification in transportation and industrial sectors also fuels the development of more efficient and resilient composite rail solutions, supporting higher current densities and minimizing energy losses.
Global Steel Aluminum Composite Conductive Rail Market Regional Analysis
Global Steel Aluminum Composite Conductive Rail Market
Trends, by Region

Asia-Pacific Market
Revenue Share, 2025
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Dominant Region
Asia Pacific · 45.2% share
Asia Pacific stands as the dominant region in the global steel aluminum composite conductive rail market, commanding a substantial 45.2% market share. This leading position is primarily fueled by rapid urbanization, significant infrastructure development, and substantial investments in high speed rail networks across countries like China, India, and Japan. The increasing demand for efficient and lightweight conductive materials in public transportation and industrial applications further propels the region's growth. Government initiatives promoting sustainable transport solutions and the expansion of metro systems are key contributors to this dominant market presence. The robust manufacturing capabilities and technological advancements within the region also solidify its leadership.
Fastest Growing Region
Asia Pacific · 9.2% CAGR
Asia Pacific is poised to be the fastest growing region in the global steel aluminum composite conductive rail market with a remarkable CAGR of 9.2% during the forecast period of 2026-2035. This robust growth is primarily fueled by rapid urbanization and extensive infrastructure development across emerging economies like India and Southeast Asian nations. Significant investments in high speed rail networks and metro expansions are driving demand for lightweight and efficient conductive rail solutions. Furthermore the increasing adoption of renewable energy sources necessitates advanced rail systems for power transmission and distribution further propelling market expansion. Government initiatives promoting sustainable transport and smart city projects also contribute substantially to this accelerated regional growth.
Impact of Geopolitical and Macroeconomic Factors
Geopolitical factors heavily influence the Global Steel Aluminum Composite Conductive Rail Market. Trade wars and protectionist policies, particularly between major steel producing and consuming nations, disrupt supply chains and inflate input costs. Tariffs on steel and aluminum imports from China, for example, increase the price of raw materials for rail manufacturers globally. Political instability in resource rich regions like Africa or Latin America can jeopardize the supply of critical minerals used in specialized alloys, further impacting production and pricing. National infrastructure development plans, often politically driven, create significant demand surges or contractions for conductive rails.
Macroeconomic conditions are equally critical. Global economic slowdowns or recessions reduce government and private sector investment in rail infrastructure projects, directly impacting market demand. Conversely, periods of sustained economic growth stimulate public works spending and urban expansion, boosting rail construction. Inflationary pressures, particularly for energy and transportation, elevate manufacturing costs for composite rails. Exchange rate fluctuations between major currencies also affect import export costs and the competitiveness of domestic manufacturers. Interest rate changes influence the financing costs of large scale infrastructure projects, indirectly impacting demand.
Recent Developments
- March 2025
Nippon Light Metal announced a strategic initiative to expand its production capacity for high-strength aluminum-steel composite rails. This expansion aims to meet the increasing demand from high-speed rail projects in Southeast Asia and Europe.
- January 2025
Hydro and Constellium formed a joint venture to develop a new generation of lightweight, high-conductivity composite rails for urban transit systems. This partnership leverages Hydro's expertise in aluminum production and Constellium's advanced material science capabilities.
- November 2024
Megha Engineering and Infrastructures acquired a significant stake in a South Korean technology firm specializing in innovative bonding techniques for multi-metal composites. This acquisition is expected to enhance MEIL's capabilities in producing more durable and efficient conductive rail solutions.
- September 2024
Hindalco Industries launched a new product line of environmentally friendly, recycled-content aluminum-steel composite conductive rails. This initiative aims to cater to the growing demand for sustainable infrastructure materials in developed markets.
Key Players Analysis
Nippon Light Metal, Constellium, and Hydro are key players in the Global Steel Aluminum Composite Conductive Rail Market, focusing on advanced extrusion and bonding technologies to enhance conductivity and structural integrity. Megha Engineering, Hindalco, and Novelis drive market growth through infrastructure projects and lightweighting solutions, while Kaiser Aluminum and RUSAL expand through strategic partnerships and diversified product portfolios, leveraging their expertise in materials science to meet increasing demand for efficient rail systems.
List of Key Companies:
- Nippon Light Metal
- Constellium
- Megha Engineering and Infrastructures
- Hindalco Industries
- UACJ Corporation
- Hydro
- Kaiser Aluminum
- Novelis
- RUSAL
- Amcor
- ArcelorMittal
- Essar Steel
- Aleris
- Alcoa
- Jindal Aluminium
Report Scope and Segmentation
| Report Component | Description |
|---|---|
| Market Size (2025) | USD 12.8 Billion |
| Forecast Value (2035) | USD 21.5 Billion |
| CAGR (2026-2035) | 6.7% |
| Base Year | 2025 |
| Historical Period | 2020-2025 |
| Forecast Period | 2026-2035 |
| Segments Covered |
|
| Regional Analysis |
|
Table of Contents:
List of Figures
List of Tables
Table 1: Global Steel Aluminum Composite Conductive Rail Market Revenue (USD billion) Forecast, by Application, 2020-2035
Table 2: Global Steel Aluminum Composite Conductive Rail Market Revenue (USD billion) Forecast, by End Use, 2020-2035
Table 3: Global Steel Aluminum Composite Conductive Rail Market Revenue (USD billion) Forecast, by Material Composition, 2020-2035
Table 4: Global Steel Aluminum Composite Conductive Rail Market Revenue (USD billion) Forecast, by Product Type, 2020-2035
Table 5: Global Steel Aluminum Composite Conductive Rail Market Revenue (USD billion) Forecast, by Region, 2020-2035
Table 6: North America Steel Aluminum Composite Conductive Rail Market Revenue (USD billion) Forecast, by Application, 2020-2035
Table 7: North America Steel Aluminum Composite Conductive Rail Market Revenue (USD billion) Forecast, by End Use, 2020-2035
Table 8: North America Steel Aluminum Composite Conductive Rail Market Revenue (USD billion) Forecast, by Material Composition, 2020-2035
Table 9: North America Steel Aluminum Composite Conductive Rail Market Revenue (USD billion) Forecast, by Product Type, 2020-2035
Table 10: North America Steel Aluminum Composite Conductive Rail Market Revenue (USD billion) Forecast, by Country, 2020-2035
Table 11: Europe Steel Aluminum Composite Conductive Rail Market Revenue (USD billion) Forecast, by Application, 2020-2035
Table 12: Europe Steel Aluminum Composite Conductive Rail Market Revenue (USD billion) Forecast, by End Use, 2020-2035
Table 13: Europe Steel Aluminum Composite Conductive Rail Market Revenue (USD billion) Forecast, by Material Composition, 2020-2035
Table 14: Europe Steel Aluminum Composite Conductive Rail Market Revenue (USD billion) Forecast, by Product Type, 2020-2035
Table 15: Europe Steel Aluminum Composite Conductive Rail Market Revenue (USD billion) Forecast, by Country/ Sub-region, 2020-2035
Table 16: Asia Pacific Steel Aluminum Composite Conductive Rail Market Revenue (USD billion) Forecast, by Application, 2020-2035
Table 17: Asia Pacific Steel Aluminum Composite Conductive Rail Market Revenue (USD billion) Forecast, by End Use, 2020-2035
Table 18: Asia Pacific Steel Aluminum Composite Conductive Rail Market Revenue (USD billion) Forecast, by Material Composition, 2020-2035
Table 19: Asia Pacific Steel Aluminum Composite Conductive Rail Market Revenue (USD billion) Forecast, by Product Type, 2020-2035
Table 20: Asia Pacific Steel Aluminum Composite Conductive Rail Market Revenue (USD billion) Forecast, by Country/ Sub-region, 2020-2035
Table 21: Latin America Steel Aluminum Composite Conductive Rail Market Revenue (USD billion) Forecast, by Application, 2020-2035
Table 22: Latin America Steel Aluminum Composite Conductive Rail Market Revenue (USD billion) Forecast, by End Use, 2020-2035
Table 23: Latin America Steel Aluminum Composite Conductive Rail Market Revenue (USD billion) Forecast, by Material Composition, 2020-2035
Table 24: Latin America Steel Aluminum Composite Conductive Rail Market Revenue (USD billion) Forecast, by Product Type, 2020-2035
Table 25: Latin America Steel Aluminum Composite Conductive Rail Market Revenue (USD billion) Forecast, by Country/ Sub-region, 2020-2035
Table 26: Middle East & Africa Steel Aluminum Composite Conductive Rail Market Revenue (USD billion) Forecast, by Application, 2020-2035
Table 27: Middle East & Africa Steel Aluminum Composite Conductive Rail Market Revenue (USD billion) Forecast, by End Use, 2020-2035
Table 28: Middle East & Africa Steel Aluminum Composite Conductive Rail Market Revenue (USD billion) Forecast, by Material Composition, 2020-2035
Table 29: Middle East & Africa Steel Aluminum Composite Conductive Rail Market Revenue (USD billion) Forecast, by Product Type, 2020-2035
Table 30: Middle East & Africa Steel Aluminum Composite Conductive Rail Market Revenue (USD billion) Forecast, by Country/ Sub-region, 2020-2035
