Brazil Construction Market Size, Trend Analysis by Sector, Competitive Landscape and Forecast, 2023-2027

Brazil Construction Market Size, Trend Analysis by Sector, Competitive Landscape and Forecast, 2023-2027
Summary

GlobalData expects growth in the Brazilian construction industry to decelerate from 6.9% in 2022 to 0.6% in 2023, before shrinking by 1.5% in 2024. This weakness in the initial part of the forecast period is attributed to elevated costs for materials, energy and labor, and the continued tightening of monetary policy. These economic headwinds are all expected to weigh on both economic and construction industry growth in the coming quarters. According to the Brazilian Economic Institute of the Getúlio Vargas Foundation (FGV/IBRE), the average National Construction Cost Index (INCC-M) rose by 6.2% year-on-year (YoY) in the first eight months of 2023, owing to a rise in prices of both labour (9.7% YoY) and materials, equipment, and services (3.1% YoY). Rising interest rates and high construction costs are also expected to severely dampen investment in the residential sector this year.

The Brazilian construction industry is expected to rebound at an average annual growth rate of 3.3% from 2025 to 2027, supported by investment in the transport, renewable energy, housing, and oil sectors. In August 2023, the Brazilian government launched the ‘Growth Acceleration Program’, which includes an investment of BRL1.7 trillion ($333.2 billion) in infrastructure across all states. The program, known as PAC, will be marked by a strong public-private partnership, with over BRL1.4 trillion ($274.4 billion) estimated to be disbursed by 2026.

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 activityCritical insight into the impact of industry trends and issues, as well as an analysis of key risks and opportunities in the Brazilian construction industryAnalysis 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 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-sectorAnalysis 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 consultantsReasons to BuyIdentify 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.