Brazil Construction Market Size, Trends, and Forecasts by Sector - Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market France, 2023-2027
Summary
GlobalData expects the Brazilian construction industry to contract in 2023, declining by 2.5% in real terms, following annual growth of 6.8% in 2022. This weakness is expected to continue in 2024, with the industry declining by 2.1% that year, owing to the impact of elevated costs for materials, energy and labor, and weak business confidence. According to the Brazilian Economic Institute of the Getúlio Vargas Foundation (FGV/IBRE), the average National Construction Cost Index (INCC-M) rose by 5.4% year-on-year (YoY) in the first 11 months of 2023, owing to a rise in prices of both labour (8.8% YoY) and materials, equipment, and services (0.7%). These economic headwinds are all expected to weigh on both economic and construction industry growth, particularly the residential construction sector in the short to medium term. Reflecting the sluggishness in the residential sector, the total number of residential units sold in the country fell by 3% YoY in the first nine months of 2023, while the total value of loans issued for real estate acquisition and construction fell by 16.9% YoY in the first 10 months of 2023, according to the Brazilian Association of Real Estate Credit and Savings Companies (ABECIP).
The Brazilian construction industry is expected to rebound at an average annual growth rate of 3.6% from 2025 to 2027, supported by investment in industrial, transport, renewable energy, housing, and oil sectors. Moreover, President Luiz’s BRL1.7 trillion ($332.2 billion) “New Growth Acceleration Program” (Novo Programa de Aceleração do Crescimento/PAC) launched in August 2023 for the development of schools, hospitals, highways, railways, ports, airports, waterways, 5G networks, housing and sanitation by 2028 will support growth over the forecast period. In the same month, the government has set its target to reduce its greenhouse gas (GHG) emissions by 37% by 2025 and by 50% by 2030, based on 2005 levels. Additionally, the industry’s growth will also be supported by the government’s plan to increase its domestic oil production to 5.4 million barrels per day (bpd) by 2029 and overtake Canada as world’s fourth-largest oil producer by that year. Growth over the forecast period will also be supported by the government’s focus to increase the production of green hydrogen. As part of this initiative launched by the government in November 2021, the government is aiming to produce 15 million tonnes of green hydrogen by 2030 with a total investment of BRL91.3 billion ($17.9 billion) in Ceara.
The report provides detailed market analysis, information and insights into the Brazilian construction industry, including -
- The Brazilian 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 the Brazilian 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
- 8 About GlobalData
- 9 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, $ Million, 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, National Construction Cost Index – M (INCC-M), August 94=100
- Figure 13: Brazil, Construction Projects Momentum Index
- Figure 14: Latin America, Construction Projects Momentum Index
- Figure 15: Brazil, Commercial Construction Output by Project Type (Real, $ Million), 2018–27
- Figure 16: Brazil, Commercial Construction Projects Pipeline, Value by Stage ($ Million)
- Figure 17: Brazil, Services Sector Value Add (BRL Billion, Chained at 1995 Prices)
- Figure 18: Brazil, Services Volume and Revenue Indices, 2022=100, % Change YoY
- Figure 19: Brazil, Number of People Employed in The Accommodation and Food Services Sector, In Thousands
- Figure 20: Brazil, Retail sales volume and revenue index (2022=100)
- Figure 21: Brazil, Industrial Construction Output by Project Type (Real, $ Million), 2018–27
- Figure 22: Brazil, Industrial Construction Projects Pipeline, Value by Stage ($ Million)
- Figure 23: Brazil, Manufacturing Value Add (BRL Billion, Chained at 1995 Prices)
- Figure 24: Brazil, Capacity Utilization in the Manufacturing Sector
- Figure 25: Brazil, Industrial and Manufacturing Production Indices, (2022=100)
- Figure 26: Brazil, Total Exports ($ Billion)
- Figure 27: Brazil, Number of Vehicles Produced, Registered and Exported
- Figure 28: Brazil, Infrastructure Construction Output by Project Type (Real, $ Million), 2018–27
- Figure 29: Brazil, Infrastructure Construction Projects Pipeline, Value by Stage ($ Million)
- Figure 30: Brazil, Energy and Utilities Construction Output by Project Type (Real, $ Million), 2018–27
- Figure 31: Brazil, Energy and Utilities Construction Projects Pipeline, Value by Stage ($ Million)
- Figure 32: Brazil, Electricity, Gas, and Water Services Value Add (BRL Million, 2007 Constant Prices)
- Figure 33: Brazil, Electricity Consumed (in GWh)
- Figure 34: Brazil, Institutional Construction Output by Project Type (Real, $ Million), 2018–27
- Figure 35: Brazil, Institutional Construction Projects Pipeline, Value by Stage ($ Million)
- Figure 36: Brazil, Public Administration and Defense Sector Value Add (BRL Million, 2007 Constant Prices)
- Figure 37: Brazil, Residential Construction Output by Project Type (Real, $ Million), 2018–27
- Figure 38: Brazil, Residential Construction Projects Pipeline, Value by Stage ($ Million)
- Figure 39: Brazil, Real Estate Value Add (BRL Billion, Chained at 1995 Prices)
- Figure 40: Brazil, Loans for Real Estate Acquisition and Construction (BRL Billion)
- Figure 41: Brazil, Residential Real Estate Sale Index (2012=100)
- Figure 42: Brazil, Residential units sold (In Thousands)
- Figure 43: Brazil, Residential Units Launched (In Thousands)
- Figure 44: Brazil, Headquarters of Key Contractors (% of Total Project Pipeline)
- Figure 45: Brazil, Headquarters of Key Consultants (% of Total Project Pipeline)
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