Brazil Construction Market Size, Trend Analysis by Sector (Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential) and Forecast, 2023-2027
Summary
The construction industry in Brazil is expected to shrink by 1.7% in real terms in 2023 and 0.8% in 2024, owing to subdued investor and consumer confidence amid elevated inflation rates, interest rates, and construction costs, coupled with ongoing weakness in the residential sector. According to the Brazilian Economic Institute of the Getúlio Vargas Foundation (FGV/IBRE), the average National Construction Cost Index (INCC-M) rose by 7.9% year on year (YoY) in the first five months of 2023, owing to a rise in the prices of both labour (11.6% YoY) and materials, equipment, and services (4.7% YoY). Adding the industry’s woes, in May 2023, the Ministry of Planning and Budget reported that the federal government will be blocking expenses worth BRL1.7 billion ($333.2 million) in 2023, to comply with the spending cap rule. Six ministries will be affected by the budget block, with the highest funds being blocked for the Ministry of Cities and the Ministry of Transport. Although the block is temporary and may be reversed in the coming months based on improvement in government revenue, it is likely to affect the progress of public infrastructure projects in the transport and social infrastructure sectors.
The Brazilian construction industry is expected to rebound at an average annual growth rate of 3.3% from 2024 to 2027, supported by investment in the transport, renewable energy, housing, and oil sectors. The government is seeking private sector investment commitments worth BRL300 billion ($58.8 billion) in highways by the end of 2026, under a new concession model. This is a sharp increase compared to the former President Jair Bolsonaro’s administration, which had awarded seven highway concessions worth BRL49 billion ($49.6 billion) from 2019 to 2022. Forecast-period growth in the industry will also be supported by the government’s plan to increase its domestic oil production to 5.4 million barrels per day (mb/d) by 2029 and overtake Canada as the world’s fourth-largest oil producer by that year. According to a survey conducted by the Brazilian Association of Independent Oil and Gas Producers (ABPIP) in December 2022, Brazil's small- and medium-sized oil firms are planning to invest approximately BRL40 billion ($7.8 billion) in onshore fields by 2029.
This report provides detailed market analysis, information and insights into Brazil’s construction industry, including -
- Brazil’s construction industry's growth prospects by market, project type and construction activity
- Critical insight into the impact of industry trends and issues, as well as an analysis of key risks and opportunities in Brazil’s construction industry
- Analysis of the mega-project pipeline, focusing on development stages and participants, in addition to listings of major projects in the pipeline.
This report provides a comprehensive analysis of the construction industry in Brazil. It provides -
- Historical (2018-2022) and forecast (2023-2027) valuations of the construction industry in Brazil, featuring details of key growth drivers.
- Segmentation by sector (commercial, industrial, infrastructure, energy and utilities, institutional and residential) and by sub-sector
- Analysis of the mega-project pipeline, including breakdowns by development stage across all sectors, and projected spending on projects in the existing pipeline.
- Listings of major projects, in addition to details of leading contractors and consultants
- Identify and evaluate market opportunities using GlobalData's standardized valuation and forecasting methodologies.
- Assess market growth potential at a micro-level with over 600 time-series data forecasts.
- Understand the latest industry and market trends.
- Formulate and validate strategy using GlobalData's critical and actionable insight.
- Assess business risks, including cost, regulatory and competitive pressures.
- Evaluate competitive risk and success factors.
- 1 Executive Summary
- 2 Construction Industry: At-a-Glance
- 3 Context
- 3.1 Economic Performance
- 3.2 Political Environment and Policy
- 3.3 Demographics
- 3.4 Risk Profile
- 4 Construction Outlook
- 4.1 All Construction
- Outlook
- Latest news and developments
- Construction Projects Momentum Index
- 4.2 Commercial Construction
- Outlook
- Project analytics
- Latest news and developments
- 4.3 Industrial Construction
- Outlook
- Project analytics
- Latest news and developments
- 4.4 Infrastructure Construction
- Outlook
- Project analytics
- Latest news and developments
- 4.5 Energy and Utilities Construction
- Outlook
- Project analytics
- Latest news and developments
- 4.6 Institutional Construction
- Outlook
- Project analytics
- Latest news and developments
- 4.7 Residential Construction
- Outlook
- Project analytics
- Latest news and developments
- 5 Key Industry Participants
- 5.1 Contractors
- 5.2 Consultants
- 6 Construction Market Data
- 7 Appendix
- 7.1 What is this Report About?
- 7.2 Definitions
- 7.3 CRI Methodology
- 7.4 GlobalData Construction
- Contact Us
- List of Tables
- Table 1: Construction Industry Key Data
- Table 2: Brazil, Key Economic Indicators
- Table 3: Brazil, Commercial Construction Output by Project Type (Real % Change), 2018-27
- Table 4: Brazil, Top Commercial Construction Projects by Value
- Table 5: Brazil, Industrial Construction Output by Project Type (Real % Change), 2018-27
- Table 6: Brazil, Top Industrial Construction Projects by Value
- Table 7: Brazil, Infrastructure Construction Output by Project Type (Real % Change), 2018-27
- Table 8: Brazil, Top Infrastructure Construction Projects by Value
- Table 9: Brazil, Energy and Utilities Construction Output by Project Type (Real % Change), 2018-27
- Table 10: Brazil, Top Energy and Utilities Construction Projects by Value
- Table 11: Brazil, Institutional Construction Output by Project Type (Real % Change), 2018-27
- Table 12: Brazil, Top Institutional Construction Projects by Value
- Table 13: Brazil, Residential Construction Output by Project Type (Real % Change), 2018-27
- Table 14: Brazil, Top Residential Construction Projects by Value
- Table 15: Brazil, Key Contractors
- Table 16: Brazil, Key Consultants
- Table 17: Brazil, Construction Output Value (Real, $ Million)
- Table 18: Brazil, Construction Output Value (Nominal, BRL Million)
- Table 19: GlobalData Construction Market Definitions
- Table 20: Risk Dimensions
- Table 21: Ratings, Scores and Definitions
- List of Figures
- Figure 1: Latin America, Construction Output (Real % Change), 2021-27
- Figure 2: Brazil, Construction Output by Sector (Real % Change), 2021-23 and 2024-27
- Figure 3: Brazil, Risk Summary
- Figure 4: Brazil, Risk Regional Comparison
- Figure 5: Brazil, Construction Output Value (Real, $ Billion, 2017 Prices and Exchange Rate), 2018-27
- Figure 6: Brazil, Construction Output Value, by Sector (Real, $ Million), 2018-27
- Figure 7: Brazil, Construction Value Add (BRL Billion, Chained at 1995 Prices)
- Figure 8: Brazil, Gross Fixed Capital Formation (BRL Billion, Chained at 1995 Prices)
- Figure 9: Brazil, Number of People Employed in the Construction Industry, In Thousands
- Figure 10: Brazil, Construction Activity Index
- Figure 11: Brazil, Business Confidence Index (ICEI)
- Figure 12: Brazil, Construction - Operation Capacity Utilization (%)
- Figure 13: Brazil, National Construction Cost Index - M (INCC-M), August 94=100
- Figure 14: Brazil, Construction Projects Momentum Index
- Figure 15: Latin America, Construction Projects Momentum Index
- Figure 16: Brazil, Commercial Construction Output by Project Type (Real, $ Million), 2018-27
- Figure 17: Brazil, Commercial Construction Projects Pipeline, Value by Stage ($ Million)
- Figure 18: Brazil, Services Sector Value Add (BRL Billion, Chained at 1995 Prices)
- Figure 19: Brazil, Services Volume and Revenue Indices, 2022=100, % Change YoY
- Figure 20: Brazil, Number of People Employed in The Accommodation and Food Services Sector, In Thousands
- Figure 21: Brazil, Retail sales volume and revenue index (2022=100)
- Figure 22: Brazil, Industrial Construction Output by Project Type (Real, $ Million), 2018-27
- Figure 23: Brazil, Industrial Construction Projects Pipeline, Value by Stage ($ Million)
- Figure 24: Brazil, Manufacturing Value Add (BRL Billion, Chained at 1995 Prices)
- Figure 25: Brazil, Capacity Utilization in the Manufacturing Sector
- Figure 26: Brazil, Industrial, Manufacturing and Mining Production Indices, (2022=100)
- Figure 27: Brazil, Total Exports ($ Billion)
- Figure 28: Brazil, Number of Vehicles Produced, Registered and Exported
- Figure 29: Brazil, Infrastructure Construction Output by Project Type (Real, $ Million), 2018-27
- Figure 30: Brazil, Infrastructure Construction Projects Pipeline, Value by Stage ($ Million)
- Figure 31: Brazil, Energy and Utilities Construction Output by Project Type (Real, $ Million), 2018-27
- Figure 32: Brazil, Energy and Utilities Construction Projects Pipeline, Value by Stage ($ Million)
- Figure 33: Brazil, Electricity and Gas, Water, Sewage, and Waste Management Activities Value Add (BRL Million, Chained at 1995 Prices)
- Figure 34: Brazil, Electricity Consumed (in GWh)
- Figure 35: Brazil, Institutional Construction Output by Project Type (Real, $ Million), 2018-27
- Figure 36: Brazil, Institutional Construction Projects Pipeline, Value by Stage ($ Million)
- Figure 37: Brazil, Value Add of Administration, Public Health, and Education and Social Security (BRL Billion, Chained at 1995 Prices)
- Figure 38: Brazil, Residential Construction Output by Project Type (Real, $ Million), 2018-27
- Figure 39: Brazil, Residential Construction Projects Pipeline, Value by Stage ($ Million)
- Figure 40: Brazil, Real Estate Value Add (BRL Billion, Chained at 1995 Prices)
- Figure 41: Brazil, Loans for Real Estate Acquisition and Construction (BRL Billion)
- Figure 42: Brazil, Residential Real Estate Sale Index (2012=100)
- Figure 43: Brazil, Residential units sold (In Thousands)
- Figure 44: Brazil, Residential Units Launched (In Thousands)
- Figure 45: Brazil, Headquarters of Key Contractors (% of Total Project Pipeline)
- Figure 46: Brazil, Headquarters of Key Consultants (% of Total Project Pipeline)
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