Chile Construction Market Size, Trend Analysis by Sector, Competitive Landscape and Forecast to 2027

Chile Construction Market Size, Trend Analysis by Sector, Competitive Landscape and Forecast to 2027

Summary

GlobalData forecasts that the Chilean construction industry will decline by 3.7% this year and edge up marginally in 2024 reflecting weakened consumer and investor confidence. According to the Banco Central de Chile, the construction industry’s value add fell by 1.9% year on year (YoY) in Q2 2023, preceded by Y-o-Y decline of 0.6% in Q1 2023 and 3.4% in Q4 2022. The decline is attributed to weakness in the residential sector in which the total area of new residential construction permits issued in the country fell sharply by 22% YoY in the first eight months of 2023, preceded by annual decline of 18.1% in 2022, according to the Cámara Chilena de la Construcción (CChC). This is heavily influenced by supply chain disruptions and persistence of high inflation. In light of this uncertainty, the government expects construction investments to fall by 5.9% in 2023 due to a drop in both public and private investment.

The construction industry is expected to grow at a 3.2% annual average rate from 2025 to 2027, supported by investments in industrial sector, infrastructure and renewable energy projects. Chile’s railway infrastructure will be supported by the government’s aim of constructing 27 rail infrastructure projects by 2027 with a total investment of CLP4.2 trillion ($5 billion). This involves modernization of the passenger and freight railway infrastructure operated by the Chilean Railways Company, Empresa de Ferrocarriles del Estado (EFE), and to expand to 150 million passengers by 2027 (up from 50 million in 2021) to and to double the volume of freight transported to 21 million tons per year by 2027 from 2021. In April 2023, the government announced its National Lithium Strategy, with an aim of promoting the exploration of this important mineral and creation of a new National Lithium Company once the Congress approves the plan. Forecast period growth will also be supported by the government’s focus to increase renewable energy supply from 43% as of 2022 to 70% of the country's energy mix by 2030 and achieve carbon neutrality by 2050.

The report provides detailed market analysis, information, and insights into the Chilean construction industry, including -

• The Chilean 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 Chilean construction industry
• Analysis of the mega-project pipeline, focusing on development stages and participants, in addition to listings of major projects in the pipeline.

Scope

This report provides a comprehensive analysis of the construction industry in Chile. It provides -

• Historical (2018-2022) and forecast (2023-2027) valuations of the construction industry in Chile, 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

Reasons to Buy

• 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.