Market Size of Latin America Prefab Wood Buildings Industry
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2020 - 2022 |
| CAGR | > 4.50 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Latin America Prefab Wood Buildings Market Analysis
The Latin America Prefab Wood Buildings Market is expected to grow at a CAGR of more than 4.5% during the forecast period.
- Contractors and suppliers in South America's construction sector are experiencing extreme uncertainty as a result of the COVID-19 outbreak. Lockdowns and limitations forced some construction businesses to halt their projects.
- Before the industrial revolution, wood was the most important building material. During the last two centuries, however, wood has often been replaced by concrete, bricks, steel, and also plastics. However, these materials have a significant negative impact on the environment. To prevent this, more construction companies are considering using bio-based materials such as wood. Sustainable timber provides a more ecologically acceptable cladding material than manufactured panels, and the variations in hue provided by natural wood can provide a dynamic aesthetic to any green building. Governments are striving to use more bio-based building materials, including wood.
- The market for prefab wooden structures has an opportunity due to recent increases in the cost of traditional construction methods and the growth of green buildings in the region. In the first half of 2022, the costs of the construction industry in Brazil increased by 7.53%. In June 2022, there was an increase of 2.14% in the INCC, which corresponds to the third largest increase for that month in the last 28 years. According to the Mexican Chamber of the Construction Industry (CMIC), the cost of building materials, such as rebar, steel, and cement, increased 15% to 25% from December 2021 to April 2022. In addition to the building materials prices, the labor costs increased by 20% in Mexico.
- In February 2022, the U.S. Green Building Council (USGBC) announced Mexico ranks ninth in the world on its annual list of Top 10 Countries and Regions for LEED in 2021. Brazil is the other Latin American country to make the 2021 list and ranked number seven. Both countries represent the ever-growing international demand for certified LEED green buildings that help reduce environmental impact and support health and well-being.
