Asia Faces $1 Trillion Annual Energy Investment Need Through 2040
Source Summary
McKinsey estimates Asia will require approximately $1 trillion annually in energy investment over the next 15 years to meet rising demand and reduce vulnerability to supply disruptions, totaling $15 trillion through 2040. The region's energy demand is now projected to reach 370 million terajoules by 2040, a 15% increase from the firm's forecast one year ago. The revised outlook reflects heightened concerns about exposure to disruptions in oil and gas shipments through the Strait of Hormuz.
Why it matters
The scale of required investment signals Asia's critical energy security challenge and the region's growing exposure to geopolitical disruptions affecting global oil and gas flows.
