Panama Construction Market Size, Trends, and Forecasts by Sector - Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market Analysis, 2023-2027

Panama Construction Market Size, Trends, and Forecasts by Sector - Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market Analysis, 2023-2027

Summary

The construction industry in Panama is expected to continue to expand over the forecast period, recovering from the severe contraction in 2020, such that output in real terms will have surpassed 2019 levels by 2024. The recovery in output will be driven by investment in road and rail infrastructure, along with improvements in the buildings sectors. According to the National Institute of Statistics and Census (INEC), total construction area of the main municipalities of building in the country grew by 32.5% in the first eight months of 2023. Moreover, the construction of three major road projects such as the $1.1 billion Panama-Colón Highway Expansion, the $1.3 billion fourth bridge over the Panama Canal, and the $2.6 billion Panama Metro Line 3 project, will bolster growth in the short term. Meanwhile, in December 2023, the government of Panama outlined 2024 budget’s proposal of $32.8 billion with a rise of 18.7% as compared with the budget of $27.6 billion for 2023. Of the total budget, allocations include $14.4 billion for social services development, $5.8 billion for public debt service, and $5.7 billion for the education sector.

Following fast rates of growth in 2023 and 2024, GlobalData expects the construction industry to register an annual average growth rate of 4.8% over the remainder of the forecast period 2025-27, supported by investments in the transport, renewable energy, infrastructure, and education building projects. According to GlobalData’s project pipeline, the government is undertaking a $3 billion railway infrastructure project that involves the construction of a 20km monorail line between Ciudad del Futuro and Panama Pacifico. The construction works are expected to commence in early 2024 and reach completion by the end of 2025. The government is also focusing on attracting investors to its green hydrogen sector by providing various policy incentives, such as exemption from import taxes on required equipment for renewable hydrogen production projects.

The report provides detailed market analysis, information and insights into Panama’s construction industry, including -

• Panama’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 Panama’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.

Scope

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

• Historical (2018–2022) and forecast (2023–2027) valuations of the construction industry in Panama, 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.