Latin America Construction Market Size & Share Analysis - Growth Trends & Forecasts (2023 - 2028)

The Latin America Construction Market is segmented By Sector (Residential, Commercial, Industrial, Infrastructure (Transportation), Energy and Utilities). The report offers market size and forecast values (USD billion) for all the above segments.

Latin America Construction Market Size

Latin America Construction Market - CAGR
share button
Study Period 2019-2028
Base Year For Estimation 2022
Forecast Data Period 2023 - 2028
Historical Data Period 2018 - 2021
CAGR > 4.50 %
Market Concentration Low

Major Players

Latin America Construction Market 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 size of the Latin America Construction Market is valued at about USD 643.80 billion in the current year and is anticipated to register a CAGR of over 4.5% during the forecast period. The growing demand for real estate and infrastructure in the region is driving the market. Furthermore, government projects and policies easing the construction output are driving the market.

  • Construction output in Latin America is expected to increase. Brazil, the region's largest country, performed well in 2021, with levels higher than before the pandemic. It should also be noted that Argentina and Peru have performed well, whereas Mexico has been sluggish, with the country struggling to regain output lost in 2020. It will not reach pre-pandemic levels until 2025. Following a sharp drop in output, a low base effect, coupled with fiscal stimulus and accommodating monetary policy, fueled a strong recovery in construction output through 2021. The fiscal response to the pandemic largely separated countries in the region, as public works absorbed much of the private sector's losses. A large-scale fiscal response is being implemented in Brazil.
  • In Mexico, on the other hand, the government attempted to control the deficit, resulting in a muted fiscal response and, as a result, a slow recovery in output. The global surge in commodity prices and supply-chain fragilities has resulted in rampant inflation in the region; inflation has reached double digits in major economies such as Brazil and Argentina, with Argentina's expected to exceed 50% by 2021. Steel, lumber, and concrete costs have weighed on the value chain, causing delays and cost increases. On the plus side, higher commodity prices have benefited much of Latin America; rising copper, lithium, and other base metal prices have resulted in increased export earnings and tax revenue, which bode well for a more positive investment climate.
  • 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 quarantine requirements across the region 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 totalling 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

This section covers the major market trends shaping the Latin America Construction Market according to our research experts:

Increase in residential construction driving the market

Colombia's supply of urban housing has been increasing, according to government and industry figures. 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 favourites. 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 the country's stability and low inflation rates, which are unusual in Latin America, a region accustomed to military coups, high inflation, and worthless currencies. The real estate industry is thriving as a result of 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, and 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 first quarter of the year. Despite being low, activity in new occupations outpaced that of unemployment in most corridors of this important city.

Latin America Construction Market trend - increasing output

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 is expected to drive lodging demand and support supply growth through 2025. 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 terms of 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 by 2025.

Colombia has also seen significant supply increases as a result of 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 Market trend - hospitality infrastructure

Latin America Construction Industry Overview

The Latin America Construction Market is fairly fragmented, comprising local and regional players mainly, with few global players. The major players are Empresa ICA, S.A.B. de C.V., OAS 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 is creating 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 share of the market

Latin America Construction Market Leaders

  1. Empresa ICA, S.A.B. de C.V.

  2. OAS S.A.

  3. IDEAL,S.A.B. de C.V.

  4. Cyrela Brazil Realty S.A.

  5. Andrade Gutierrez S.A.

*Disclaimer: Major Players sorted in no particular order

Latin America Construction Market - Competitive Landscape

Latin America Construction Market News

  • August 2022- Lumen Technologies announced the completion of the sale of its Latin American operations to Stonepeak for USD 2.7 billion in cash. Cirion, Stonepeak's Latin American subsidiary, operates as an independent portfolio company. With approximately USD 49.3 billion in assets under management, Stonepeak is a leading alternative investment firm specializing in infrastructure and real assets. Stonepeak aims to create value for its investors and portfolio companies while also having a positive impact on the communities.
  • July 2022- The United States Trade and Development Agency (USTDA) and the CAF-Development Bank of Latin America (CAF) have renewed their collaboration to advance high-quality, long-term infrastructure projects in Latin America and the Caribbean. The USTDA and CAF have agreed on a new joint action plan to advance clean energy, transportation, digital connectivity, climate, water, and environmental infrastructure projects throughout the region.

Latin America Construction Market Report - Table of Contents


    1. 1.1 Study Assumptions

    2. 1.2 Scope of the Study


    1. 2.1 Analysis Methodology

    2. 2.2 Research Phases



    1. 4.1 Current Economic and Construction Market Scenario

    2. 4.2 Technological Innovations in the Construction Sector

    3. 4.3 Impact of Government Regulations and Initiatives on the Industry

    4. 4.4 Key Exports & import statistics of construction materials

    5. 4.5 Impact of COVID - 19 on the market


    1. 5.1 Restraints

    2. 5.2 Opportunitites

    3. 5.3 Value Chain / Supply Chain Analysis

    4. 5.4 Porter Five Forces

      1. 5.4.1 Bargaining Power of Suppliers

      2. 5.4.2 Bargaining Power of Consumers / Buyers

      3. 5.4.3 Threat of New Entrants

      4. 5.4.4 Threat of Substitute Products

      5. 5.4.5 Intensity of Competitive Rivalry


    1. 6.1 By Type

      1. 6.1.1 Residential

      2. 6.1.2 Commercial

      3. 6.1.3 Industrial

      4. 6.1.4 Infrastructure

      5. 6.1.5 Energy and Utilities


    1. 7.1 Market Concentration Overview

    2. 7.2 Company Profiles

      1. 7.2.1 Empresa ICA, S.A.B. de C.V.

      2. 7.2.2 OAS S.A.

      3. 7.2.3 Somague-Engenharia, S.A

      4. 7.2.4 IDEAL,S.A.B. de C.V.

      5. 7.2.5 Cyrela Brazil Realty S.A.

      6. 7.2.6 Andrade Gutierrez S.A.

      7. 7.2.7 Construcciones el Condor S.A.

      8. 7.2.8 Salfacorp S.A.

      9. 7.2.9 Construtora Queiroz Galvão S.A.

      10. 7.2.10 Odinsa S.A.

      11. 7.2.11 Socovesa S.A.*

    3. *List Not Exhaustive

  9. 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, or the like. 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 America Construction Market is segmented By Sector (Residential, Commercial, Industrial, Infrastructure (Transportation), Energy and Utilities). The report offers market size and forecasts in value (USD billion) for all the above segments.

By Type
Energy and Utilities

Report scope can be customized per your requirements. Click here.

You can also purchase parts of this report. Do you want to check out a section wise price list?

Latin America Construction Market Research FAQs

The Latin America Construction Market is projected to register a CAGR of greater than 4.5% during the forecast period (2023-2028).

Empresa ICA, S.A.B. de C.V., OAS S.A., IDEAL,S.A.B. de C.V., Cyrela Brazil Realty S.A. and Andrade Gutierrez S.A. are the major companies operating in the Latin America Construction Market.

Latin America Construction Industry Report

Statistics for the 2023 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 2028 and historical overview. Get a sample of this industry analysis as a free report PDF download.

80% of our clients seek made-to-order reports. How do you want us to tailor yours?

Please enter a valid email id!

Please enter a valid message!