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

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

Summary

The construction industry in Peru is projected to shrink by 5.1% in real terms this year, following an annual growth of 3% in 2022. Political instability along with economic challenges, including elevated inflation and construction costs and high interest rates, will dampen investment activity. According to the Instituto Nacional de Estadística e Informática (INEI), the average construction material price index remained high, rising by 1.2% year on year (YoY) in the first nine months of 2023 having jumped 11.5% in 2022. Moreover, the slowdown in the public investment in construction projects will weigh on the construction industry’s growth. According to the Peruvian Institute of Economics (IPE), the public investment in construction activity recorded real growth of only 0.2% YoY in the first nine months of 2023, preceded by annual growth of 9% in 2022. The Peruvian central bank estimated in September 2023 that economic and political weakness will reduce private investment in mining sector developments by 4.5% this year. However, according to the Ministry of Energy and Mines (MINEM), as of September 2023, the country had secured PEN2 billion ($520.6 million) for 70 mining exploration projects. In addition, the government committed in its 2023 Budget to complete the construction of over 350km of national highways, nearly 199km of regional roads, and 2,160 bridges by the end of 2023.

GlobalData expects the construction industry improve from 2024, with annual average growth of 3.7% between 2024 and 2027, supported by investment in mining, housing, electricity, and transport infrastructure projects. The government is focusing on promoting green hydrogen and ensuring that more renewables are incorporated into the power mix; this will aid the country in increasing the share of renewable energy in the power mix to 60% renewable energy and 40% gas in the electricity mix by 2025. In March 2023, Peru Energia, a platform of Peruvian energy companies, forecast a potential of up to 130GW in non-conventional renewable energy resources including solar, wind, geothermal, biomass, mini hydroelectric, and tidal, nearly ten times the existing installed capacity.

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

• The Peruvian 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 Peruvian 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 Peru. It provides -

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