Colombia Construction Market Size, Trend Analysis by Sector (Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential) and Forecast, 2023-2027

Colombia Construction Market Size, Trend Analysis by Sector (Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential) and Forecast, 2023-2027
Summary

The Colombian construction industry is expected to contract by 3.4% in real terms in 2023, after growing by 6.5% in 2022. The decline in 2023 is attributed to rising inflation, high construction material costs and interest rates. According to the Colombian Chamber of Construction (Camacol), the Producer Price Index (PPI) for construction materials rose by 13.5% year on year (YoY) in the first four months of 2023, preceded by an annual increase of 14.5% in 2022. Public opposition to the Petro administration’s plan to increase taxes has also increased political risk, potentially undermining investor confidence.

The country’s construction sector is expected to record an annual average growth rate of 4.8% between 2024 and 2027, but it will remain far below levels recorded in 2019 before the disruption cause by COVID-19. The improvement in the latter part of the forecast will be supported by the government’s effort to move away from oil dependent economy which will facilitate investment in renewable energy. As part of this plan, the Ministry of Mines and Energy is undertaking the construction of 16 wind farms with a generation capacity of 2,502MW in La Guajira. With an investment of COP10.1 trillion ($2.5 billion), the ongoing construction works that commenced in Q3 2022 is expected to reach its completion by the end of 2027. Over the forecast period, the industry’s growth will also be supported by government’s aim to push forward with plans for its fifth generation (5G) concessions program after accelerating the completion of Colombia’s fourth generation (4G) infrastructure development program. In line with this plan, the government is aiming to have 30% of the total population have access to 5G connection by the end of 2025 and 68% of the total population by 2030.

This report provides detailed market analysis, information, and insights into the Colombian construction industry, including -The Colombian 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 Colombian 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 Colombia. It provides -Historical (2018–2022) and forecast (2023–2027) valuations of the construction industry in Colombia, 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.