Demand analysis is an assessment of the current and expected demand for completion of the investment, thus providing a basis for selecting the optimal variant and scope of the identified problem. Demand analysis results are needed for CBA.

Demand analysis includes the following sections:

  • The "top-down" demand forecast reflects the macroeconomic prediction of economic development (development of transport mode share in total transport performance, etc.). It is based on observed trends in the sectors in the region;
  • The approach to "bottom-up" demand analysis is based on the analysis, evaluation and prediction of real needs in a given region, the required public service, and so on. The recommended tool for applying this approach is modeling, which reflects a change in behavior in case of realization of investment activities.