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:
This report provides a comprehensive analysis of the construction industry in Brazil. It provides:
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-Glance6 Construction Market Data
3 Context
4 Construction Outlook
5 Key Industry Participants
7 Appendix
List of Tables
List of Figures
