The Latin America construction market size is expected to reach $612.6 billion by 2027, according to a new report by GlobalData Plc. Strong public and private investment in infrastructure, and energy and utilities construction is expected to remain a key engine of growth in the region over the forecast period.

Latin America Construction Market Share by Sectors, 2018 - 2027 (%)

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Latin America Construction Market FAQs

• What was the global Latin America construction market size in 2023?

The Latin America construction market size is estimated to be $542.6 billion in 2023.

• What is the Latin America construction market growth rate?

The construction market in the Latin America is expected to grow at a CAGR of 2.5% during 2023-2027.

• What are the key sectors in the Latin America construction market?

The key sectors in the Latin America construction market are commercial construction, energy and utilities construction, industrial construction, infrastructure construction, institutional construction, and residential construction.

• Which are the key countries in the Latin America construction market?

The key countries in the Latin America construction market are Argentina, Bolivia, Brazil, Chile, Colombia, Dominican Republic, Ecuador, Mexico, Panama, Peru, and Uruguay.

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Latin America Construction Market Dynamics

Latin America's construction industry continued to grow in 2022, expanding by 4.1%, but the industry has been losing growth momentum with the pace of growth decelerating in recent quarters, indicating a weaker outturn in 2023. The regional construction output growth is expected to decline by 0.5% in real terms in 2023. The industry's weak performance in the current year reflects the downturn in the regional residential sector.

High inflation, high-interest rates, poor fiscal metrics, and political unrest will continue to hamper the region's growth potential. However, there are signs of inflationary pressure subsiding and easing pressure on industry growth. Forecast period growth will be further supported by the public and private sector investment in housing projects, amid rising population, urbanization, and expanding housing deficit in the region. According to the Uruguay government's estimates, the country had a housing deficit of 60,000 to 70,000 homes, as of September 2022. Similarly, the housing gap in Peru is estimated at around 1.8 million housing units.

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Latin America Construction Report Highlights

• The Latin America construction market is predicted to grow at a compound annual growth rate of 2.5% over the forecast period. The growing inclination to develop a detailed infrastructure network supporting regional economic activities is likely to drive market growth over the predicted timeline.
• The residential construction sector is expected to record an average annual growth rate (AAGR) of 2.3% from 2024 to 2027, supported by public and private sector investment in housing projects, amid rising population and urbanization.
• The infrastructure construction category is estimated to account for the second largest regional share in real terms in 2023, supported by investment in the regional railway and road infrastructure projects.
• The energy and utilities construction is expected to register the third-largest regional share in real terms in 2023. The category is expected to grow by 2.2% in real terms in 2023 primarily aided by the investment in the electricity, oil and gas, telecommunications, sewage, and water infrastructure projects.
• The commercial construction segment registered a regional share of 11.7% in real terms in 2023. The regional segmental growth will be supported by continued improvement in tourism activity, as well as growth in wholesale and retail trade construction demand and investments in office, logistics, and data center building projects.
• Brazil is expected to account for the largest regional share in real terms in 2023. The domestic construction industry is estimated to remain weak in the initial part of the forecast period, owing to headwinds caused by elevated inflation rates, interest rates, and construction prices.
• The construction industry of Mexico is predicted to remain the second-largest country in terms of construction output value (Real) in 2023. Increasing investment in corporate nearshoring activity and public infrastructure investment will support domestic construction works over the near future.
• Argentina is the next largest regional country in terms of output value (Real) size in 2023. High inflation, rising interest rates, a weak peso, and a lack of foreign investment, will contain the industry's growth potential in the coming quarters.
• Bolivia's construction industry is anticipated to account for the smallest regional share in real terms in 2023. Forecast-period growth in the Bolivian construction industry will be supported by the Economic and Social Development Plan (PDES) 2021-2025.

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Latin America Construction Market Outlook

GlobalData Plc has segmented the Latin America construction market report by sectors and countries:

Latin America Construction Sectors Outlook (Value, $ Million, 2018-2027)

• Commercial Construction
• Energy and Utilities Construction
• Industrial Construction
• Infrastructure Construction
• Institutional Construction
• Residential Construction

Latin America Construction Countries Outlook (Value, $ Million, 2018-2027)

• Argentina
• Bolivia
• Brazil
• Chile
• Colombia
• Dominican Republic
• Ecuador
• Mexico
• Panama
• Peru
• Uruguay

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Related Reports

• Construction Market Size, Trends and Growth Forecasts by Key Regions and Countries, 2023-2027
• Argentina Construction Market Size, Trend Analysis by Sector (Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential) and Forecast, 2023-2027
• Brazil 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
• Peru Construction Market Size, Trend Analysis by Sector (Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential) and Forecast, 2023-2027
• Chile Construction Market Size, Trend Analysis by Sector (Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential) and Forecast, 2023-2027
• Mexico Construction Market Size, Trend Analysis by Sector (Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential) and Forecast, 2023-2027

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