Latin America Construction Market Size
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 675.99 Billion |
| Market Size (2029) | USD 842.52 Billion |
| CAGR (2024 - 2029) | 5.00 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Need a report that reflects how COVID-19 has impacted this market and its growth?
Latin America Construction Market Analysis
The Latin America Construction Market size is estimated at USD 675.99 billion in 2024, and is expected to reach USD 842.52 billion by 2029, growing at a CAGR of 5% during the forecast period (2024-2029).
The region's growing demand for real estate and infrastructure drives the market. Furthermore, government projects and policies easing the construction output drive the market.
- The building sector is expanding quickly in Latin America. The area is home to various nations, each with a distinct political and economic climate. Despite this variation, the construction industry is expanding across the region due to several dynamics.
- Despite these factors encouraging expansion, Latin America's construction industry faces several obstacles. Lack of funding for construction projects is among the major problems. Large-scale construction projects are challenging to finance in many regions due to the lack of access to financing. Smaller construction companies, who may find it difficult to obtain finance from conventional lenders, may find this especially true.
- Lack of competenlaborur is another issue Latin America's construction sector is facing. A lack of skilled labor plagues many of the region's nations, especially in technical professions like engineering and architecture. It may be challenging to finish construction projects on schedule and within budget due to the lack of competent labor.
- Urbanization is one of the main factors boosting the Latin American construction industry. More people are relocating to cities for greater economic prospects, and the region is rapidly becoming more urbanized. Demand for new homes, businesses, and infrastructure projects like roads, bridges, and public transportation systems is being driven by this trend.
- In Q2 2022, the region's total hospitality construction pipeline includes 555 projects and 90,496 rooms. Following nearly two years of uncertainty caused by the pandemic, the Latin American hotel industry is finally showing signs of recovery. Consumer confidence has risen as border restrictions and regional quarantine requirementsn have been relaxed. Air passenger traffic to Latin American countries has increased significantly compared to the second quarter of 2021. In the region, 40 projects totaling 8,481 rooms began construction in the first half of 2022. In Q2 2022, new project announcements increased 57% year on year to 36 projects/6,208 rooms.
Latin America Construction Market Trends
Increase in residential construction driving the market
According to government and industry figures, Colombia's supply of urban housing has been increasing. However, it has not been sufficient to offset demand: according to official statistics, the country's housing stock is more than 1.3 million homes short. The government has implemented policies to meet the demand that encourages and subsidizes construction and housing investment. Colombia is experiencing the region's fastest-growing construction boom.
Because of its exceptional business conditions, Panama is on the minds of American, European, and Latin American investors. It's no secret that this tiny country is one of Mundo's favorites. It is the location where a group of consultants decided to establish Mundo some time ago. In recent decades, Panama has experienced a miraculous economic boom. We called it Panamanian Exceptionalism because of its stability and low inflation rates, unusual in Latin America, a region accustomed to military coups, high inflation, and worthless currencies. The real estate industry thrives due to liberal economic policies and political stability. Over the last decade, investors from the United States, Colombia, and Asia have rushed to meet demand, pushing prices up by 5 to 10% per year.
The Brazilian economy recovered more solidly than expected, with indicators higher than in the first quarter. Despite a decrease in the volume of transactions and the vacancy of some spaces still in process, the performance of the Class A office market in this market continues at a steady pace in this first semester. The availability rate is still stable but high at 35.37%, down from 35.45% in the year's first quarter. Despite being low, activity in new occupations outpaced unemployment in most corridors of this important city.
Development of hospitality infrastructure driving the market
Despite economic pressures, the Latin American lodging market is undergoing a "significant economic transformation," according to a report by one of the industry experts. Consistent investment in existing and new hospitality projects will drive lodging demand and support supply growth in two years. With an existing hotel supply ratio (a measure of the estimated relevant hotel rooms in a country per 1,000 inhabitants) of 2.6, Mexico is the most advanced country in its lodging market. Over the next decade, consistent business, tourism, and infrastructure investment will raise the hotel supply ratio to 3.8. Chile, widely regarded as one of the most stable economies in the region, is expected to see a 5.3% increase in supportable supply, bringing in an estimated 46,700 quality hotel rooms in two years.
Colombia has also seen significant supply increases due to tourism, general economic growth, and special tax incentives. While the petroleum sector has suffered, Colombia is expected to attract consistent investment over the next decade as it continues to emerge as an appealing business and tourist destination. Peru has the highest growth rate among the profiled countries, with a high growth rate in quality lodging supply over the next decade despite having a relatively small base of existing stock.
Latin America Construction Industry Overview
The Latin America Construction Market is fairly fragmented, comprising mainly local and regional players, with few global players. The major players are Empresa I.C.A., S.A.B. de C.V., O.A.S. S.A., IDEAL, S.A.B. de C.V., Cyrela Brazil Realty S.A., Andrade Gutierrez S.A., and many more. The rise in tourism creates opportunities for the construction and development of hospitality infrastructure. Also, companies complying with the emerging policies in the region have opportunities to gain a good market share.
Latin America Construction Market Leaders
Sigdo Koppers
Sacyr
MRV Engenharia
Carso Infraestructura y Construcción
Techint Ingeniería y construcción
*Disclaimer: Major Players sorted in no particular order
Latin America Construction Market News
- May 2023: Holcim acquires PASA®, a leading roofing and waterproofing solutions producer in Mexico and Central America, with pro forma net sales of USD 38 million. As a leader in innovation, sustainability, and quality, PASA® expands Holcim’s roofing and waterproofing offer and strengthens its regional business footprint. By integrating the existing PASA® distribution network with waterproofing solutions from its GacoFlex product range, Holcim will deliver more customer value with an enhanced supply chain.
- May 2023: Sika has acquired the MBCC Group, a leading global supplier of construction chemicals. With a focus on innovation and sustainability, MBCC Group has been at the forefront of driving positive change in the construction industry. By joining forces, Sika and MBCC Group have created a workforce of 33,000 experts and achieved net sales of more than CHF 12 billion (USD 13.21 billion).
Latin America Construction Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
2.1 Analysis Methodology
2.2 Research Phases
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Current Economic and Construction Market Scenario
4.2 Technological Innovations in the Construction Sector
4.3 Impact of Government Regulations and Initiatives on the Industry
4.4 Key Exports & import statistics of construction materials
4.5 Impact of COVID - 19 on the market
5. MARKET DYNAMICS
5.1 Drivers
5.1.1 Increase in residential construction driving the market
5.1.2 Development of hospitality infrastructure driving the market
5.2 Restraints
5.2.1 Limited access to financing
5.2.2 Shortage of skilled labor
5.3 Opportunitites
5.3.1 The need for new infrastructure driving the market
5.3.2 Increasing demand for affordable housing
5.4 Value Chain / Supply Chain Analysis
5.5 Porter's Five Forces Analysis
5.5.1 Bargaining Power of Suppliers
5.5.2 Bargaining Power of Consumers / Buyers
5.5.3 Threat of New Entrants
5.5.4 Threat of Substitute Products
5.5.5 Intensity of Competitive Rivalry
6. MARKET SEGMENTATION
6.1 By Type
6.1.1 Residential
6.1.2 Commercial
6.1.3 Industrial
6.1.4 Infrastructure
6.1.5 Energy and Utilities
7. COMPETITIVE LANDSCAPE
7.1 Market Concentration Overview
7.2 Company Profiles
7.2.1 Sigdo Koppers
7.2.2 Sacyr
7.2.3 MRV Engenharia
7.2.4 Carso Infraestructura y Construcci�n
7.2.5 Techint Ingenier�a y construcci�n
7.2.6 Aenza (Gra�a y Montero)
7.2.7 SalfaCorp
7.2.8 Mota-Engil
7.2.9 Besalco
7.2.10 Echeverria Izquierdo
- *List Not Exhaustive
8. FUTURE OF THE MARKET
9. APPENDIX
Latin America Construction Industry Segmentation
Construction includes any on-site physical work that involves erecting a structure, cladding, external finish, formwork, fixtures, installing services, unloading equipment, supplies, etc. A complete background analysis of the Latin America Construction Market, including the assessment of the economy and contribution of sectors in the economy, market overview, market size estimation for key segments, and emerging trends in the market segments, market dynamics, and geographical trends, and COVID-19 impact is included in the report.
The Latin American construction market is segmented by sector (residential, commercial, industrial, infrastructure (transportation), energy, and utilities). The market size and forecast are provided in values (USD) for all the above segments.
| By Type | |
| Residential | |
| Commercial | |
| Industrial | |
| Infrastructure | |
| Energy and Utilities |
Latin America Construction Market Research FAQs
How big is the Latin America Construction Market?
The Latin America Construction Market size is expected to reach USD 675.99 billion in 2024 and grow at a CAGR of 5% to reach USD 842.52 billion by 2029.
What is the current Latin America Construction Market size?
In 2024, the Latin America Construction Market size is expected to reach USD 675.99 billion.
Who are the key players in Latin America Construction Market?
Sigdo Koppers, Sacyr, MRV Engenharia, Carso Infraestructura y Construcción and Techint Ingeniería y construcción are the major companies operating in the Latin America Construction Market.
What years does this Latin America Construction Market cover, and what was the market size in 2023?
In 2023, the Latin America Construction Market size was estimated at USD 643.80 billion. The report covers the Latin America Construction Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the Latin America Construction Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Latin America Construction Industry Report
Statistics for the 2024 Latin America Construction market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Latin America Construction analysis includes a market forecast outlook to for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
