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Construction in Brazil - Key Trends and Opportunities to 2025 (Q4 2021)

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    Report

  • 60 Pages
  • December 2021
  • Region: Brazil
  • GlobalData
  • ID: 5546593
The publisher has revised its growth forecast upwards for the Brazilian construction industry in 2021 - with the industry now expected to grow by 7.2% in real terms, compared to the earlier estimate of 5.8% growth. This upward revision is attributed to the stronger-than-expected construction growth in the third quarter of this year, coupled with investments in the residential, transport and renewable energy sector in the first three quarters of 2021. According to the National Confederation of Industry (CNI), the average construction activity index rose by 11.4% year on year (YoY) in the first 10 months of this year, with growth during that period supported by strong activity in the construction of buildings (14.2% YoY), specialized services for construction (10.7%) and infrastructure construction (10.2%).

The industry is expected to register an annual growth of 2.3% in 2022, before picking up to annual average growth of 2.8% from 2023 to 2025. According to the Brazilian Chamber of Construction Industry (CBIC), the industry’s output is expected to slow in 2022, due to surging inflation, rising interest rates, rising construction costs and slower economic growth. According to the Brazilian Institute of Economics (FGV IBRE), the average National Construction Cost Index (INCC-M) rose by 14.7% YoY in the first 11 months of this year, with sharp increases seen in the cost of both materials, equipment and services and labor. Additionally, uncertainty over the duration and behavior of the Coronavirus (COVID-19) pandemic, and the political and fiscal risks ahead of next year’s presidential elections, could weigh on the industry’s output.

Over the remainder of the forecast period, the construction industry’s output will be supported by investments in transport, housing, renewable energy and telecommunication infrastructure projects. The government plans to continue its spending on infrastructure projects, with a focus on improving regional connectivity through the development of transport infrastructure, especially rail infrastructure, to transport cargo. The government has set a target to increase the share of rail to 35% of the total freight transported by 2035. Brazil’s railway network currently accounts for only 15% of the national logistics distribution, while the road system accounts for 65%. In September 2021, the government launched the Pro Trilhos’ (Pro Rail) program to boost railroad construction. In the same month, it received 19 requests for the construction of new railway lines, thereby attracting investments worth BRL88.7 billion (US$16.6 billion) in the railway sector.

The publisher’s Construction in Brazil - Key Trends and Opportunities to 2025 (Q4 2021) 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 activity
  • Critical insight into the impact of industry trends and issues, as well as an analysis of key risks and opportunities in the Brazilian 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 Brazil. It provides:
  • Historical (2016-2020) and forecast (2021-2025) 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-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 the publisher'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 the publisher's critical and actionable insight.
  • Assess business risks, including cost, regulatory and competitive pressures.
  • Evaluate competitive risk and success factors.

Table of Contents

1 Executive Summary2 Construction Industry: At-a-Glance
3 Context
3.1 Economic Performance
3.2 Political Environment and Policy
3.3 Demographics
3.4 COVID-19 Status
3.5 Risk Profile
4 Construction Outlook
4.1 All Construction
  • Outlook
  • Latest news and developments
  • Construction Projects Momentum Index
4.2 Commercial Construction
  • Outlook
  • Project analytics
  • Latest news and developments
4.3 Industrial Construction
  • Outlook
  • Project analytics
  • Latest news and developments
4.4 Infrastructure Construction
  • Outlook
  • Project analytics
  • Latest news and developments
4.5 Energy and Utilities Construction
  • Outlook
  • Project analytics
  • Latest news and developments
4.6 Institutional Construction
  • Outlook
  • Project analytics
  • Latest news and developments
4.7 Residential Construction
  • Outlook
  • Project analytics
  • Latest news and developments

5 Key Industry Participants
5.1 Contractors
5.2 Consultants
6 Construction Market Data
7 Appendix
7.1 What is this Report About?
7.2 Definitions
7.3 CRI Methodology
7.4 GlobalData Construction
  • Contact the Publisher

List of Tables
Table 1: Construction Industry Key Data
Table 2: Brazil, Key Economic Indicators
Table 3: Brazil, Commercial Construction Output by Project Type (Real % Change), 2016-2025
Table 4: Brazil, Top Commercial Construction Projects by Value
Table 5: Brazil, Industrial Construction Output by Project Type (Real % Change), 2016-2025
Table 6: Brazil, Top Industrial Construction Projects by Value
Table 7: Brazil, Infrastructure Construction Output by Project Type (Real % Change), 2016-2025
Table 8: Brazil, Top Infrastructure Construction Projects by Value
Table 9: Brazil, Energy and Utilities Construction Output by Project Type (Real % Change), 2016-2025
Table 10: Brazil, Top Energy and Utilities Construction Projects by Value
Table 11: Brazil, Institutional Construction Output by Project Type (Real % Change), 2016-2025
Table 12: Brazil, Top Institutional Construction Projects by Value
Table 13: Brazil, Residential Construction Output by Project Type (Real % Change), 2016-2025
Table 14: Brazil, Top Residential Construction Projects by Value
Table 15: Brazil, Key Contractors
Table 16: Brazil, Key Consultants
Table 17: Brazil, Construction Output Value (Real, US$ Million)
Table 18: Brazil, Construction Output Value (Nominal, BRL Million)
Table 19: GlobalData Construction Market Definitions
Table 20: Risk Dimensions
Table 21: Ratings, Scores and Definitions
List of Figures
Figure 1: South and Central America, Construction Output (Real % Change), 2020 and 2021
Figure 2: Brazil, Construction Projects Pipeline by Sector (US$ Billion)
Figure 3: Brazil, COVID-19 Confirmed Cases
Figure 4: Brazil, Risk Summary
Figure 5: Brazil, Risk Regional Comparison
Figure 6: Brazil, Construction Output Value (Real, US$ Billion, 2017 Prices and Exchange Rate), 2016-2025
Figure 7: Brazil, Construction Output Value, by Sector (Real, US$ Million), 2016-2025
Figure 8: Brazil, Construction Value-Add (BRL Billion, Chained at 1995 Prices), % Change YoY
Figure 9: Brazil, Number of People Employed in the Construction Industry, In Thousands, % Change YoY
Figure 10: Brazil, Gross Fixed Capital Formation (BRL Billion, Chained at 1995 Prices), % Change YoY
Figure 11: Brazil, Construction Activity Index
Figure 12: Brazil, Business Confidence Index (ICEI)
Figure 13: Brazil, Construction - Operation Capacity Utilization (%)
Figure 14: Brazil, Construction Projects Momentum Index
Figure 15: Latin America, Construction Projects Momentum Index
Figure 16: Brazil, Commercial Construction Output by Project Type (Real, US$ Million), 2016-2025
Figure 17: Brazil, Commercial Construction Projects Pipeline, Value by Stage (US$ Million)
Figure 18: Brazil, Services Sector Value Add (BRL Billion, Chained at 1995 Prices), % Change YoY
Figure 19: Brazil, Services Volume and Revenue Indices, 2014=100, % Change YoY
Figure 20: Brazil, Number of People Employed in The Accommodation and Food Services Sector, In Thousands
Figure 21: Brazil, Total Retail Sales Volume and Revenue Indices (2014=100), % Change YoY
Figure 22: Brazil, Industrial Construction Output by Project Type (Real, US$ Million), 2016-2025
Figure 23: Brazil, Industrial Construction Projects Pipeline, Value by Stage (US$ Million)
Figure 24: Brazil, Manufacturing Value-Add (BRL Billion, Chained at 1995 Prices), % Change YoY
Figure 25: Brazil, Capacity Utilization in the Manufacturing Sector
Figure 26: Brazil, Industrial, Manufacturing and Mining Production Indices, (2012=100) % Change YoY
Figure 27: Brazil, Total Exports (US$ Billion), % Change YoY
Figure 28: Brazil, Number of Vehicles Produced, Registered and Exported
Figure 29: Brazil, Infrastructure Construction Output by Project Type (Real, US$ Million), 2016-2025
Figure 30: Brazil, Infrastructure Construction Projects Pipeline, Value by Stage (US$ Million)
Figure 31: Brazil, Energy and Utilities Construction Output by Project Type (Real, US$ Million), 2016-2025
Figure 32: Brazil, Energy and Utilities Construction Projects Pipeline, Value by Stage (US$ Million)
Figure 33: Brazil, Electricity and Gas, Water, Sewage, Waste Management Activities Value-Add (BRL Million, Chained at 1995 Prices), % Change YoY
Figure 34: Brazil, Power Generated (In GWh), % Change YoY
Figure 35: Brazil, Electricity Consumed (in GWh), % Change YoY
Figure 36: Brazil, Institutional Construction Output by Project Type (Real, US$ Million), 2016-2025
Figure 37: Brazil, Institutional Construction Projects Pipeline, Value by Stage (US$ Million)
Figure 38: Brazil, Value Add of Public Administration, Health and Education and Social Security (BRL Billion, Chained at 1995 Prices), % Change YoY
Figure 39: Brazil, Residential Construction Output by Project Type (Real, US$ Million), 2016-2025
Figure 40: Brazil, Residential Construction Projects Pipeline, Value by Stage (US$ Million)
Figure 41: Brazil, Real Estate Value-Add (BRL Billion, Chained at 1995 Prices), % Change YoY
Figure 42: Brazil, Loans for Real Estate Acquisition and Construction (BRL Billion), % Change YoY
Figure 43: Brazil, Residential Real Estate Sale Index, 2012=100, % Change YoY
Figure 44: Brazil, Residential Units Sold (In Thousands), % Change YoY
Figure 45: Brazil, Residential Units Launched (In Thousands), % Change YoY
Figure 46: Brazil, Headquarters of Key Contractors (% of Total Project Pipeline)
Figure 47: Brazil, Headquarters of Key Consultants (% of Total Project Pipeline)