Market Research Report
Latin America Construction Market - Growth, Trends, and Forecasts (2020 - 2025)
|Latin America Construction Market - Growth, Trends, and Forecasts (2020 - 2025)|
Published: August 1, 2020
Mordor Intelligence Pvt Ltd
Content info: 150 Pages
Delivery time: 2-3 business days
The Latin America Construction Market is estimated to grow at a CAGR of approximately 5% during the forecast period.
Despite increasing the foreign trade tension, uncertainty in policies and fiscal pressures that are weighing on the economy of Latin American, the construction industry will continue to expand during the forecasted period.
Be that it as may, the growth made isn't uniform across the continent in terms of GDP or the infrastructure market. A select group of countries are outperforming markets and can draw on the adequate private and public capital, partly determined by solid commodity prices from the extraction markets, to help and facilitate infrastructure investment, while other higher risk markets with progressively constrained opportunities continue to weigh down the overall attractiveness of the region. The improving expansion of the industry will be driven by an arrival to critical development and growth in several large markets such as Brazil and Colombia, as well as the continued strong growth of other markets, including Chile and Peru.
By 2021, the construction industry in Mexico is forecasted to be one of the largest in the Latin America, with a value of USD 121 billion followed by brazil with USD 73.9 billion.
Capital Expenditure and Leading Infrastructure Projects in Pipeline to Boost Construction Sector
The market is expected to observe a growth during the forecast period driven by many projects in infrastructure under the pipeline. The value of infrastructure projects as seen in 2018 is valued at USD 829.3 billion with rail projects valued at USD 204.3 billion. The governments focus on sustainable infrastructure projects, and in different sectors including rail, energy-oil and gas, urban mass transit, ports, renewable energy, social infrastructure to meet the demands of the population growth will be one of the main factors which propel the construction sector in Latin America.
Focus on Tourism to Boost the Construction and Infrastructure Market
The construction industry is expected to grow over the forecast period (2020-2025), fueled by the government's focus on improving tourism sector infrastructure in the country. Furthermore, the government aims to enhance the sustainability of the tourism sector, with a special emphasis on developing the country as a medical and health tourism hub. In January 2020, Brazil reported nearly nine thousand hotel rooms under construction, which made it the leading country in the construction of lodging facilities in Central and South America. Colombia was the second country in the region with the largest number of hotel rooms under construction, followed by Chile and Peru. In the first quarter of 2020, there were 702 hotel construction pipelines in Latin America. At that point in time, 324 lodging facilities were already under construction, while 203 more were expected to start construction in the following twelve months.
The report covers the major players operating in the Latin America Construction Market. The market is fragmented, and the market is expected to grow during the forecast period due to the increase in the construction investments and up-coming major projects in the country and other few factors are driving the market.