The publisher expects the Brazilian construction industry to contract in 2023, declining by 2.5% in real terms, following annual growth of 6.8% in 2022. This weakness is expected to continue in 2024, with the industry declining by 2.1% that year, owing to the impact of elevated costs for materials, energy and labor, and weak business confidence. According to the Brazilian Economic Institute of the Getúlio Vargas Foundation (FGV/IBRE), the average National Construction Cost Index (INCC-M) rose by 5.4% year-on-year (YoY) in the first 11 months of 2023, owing to a rise in prices of both labour (8.8% YoY) and materials, equipment, and services (0.7%). These economic headwinds are all expected to weigh on both economic and construction industry growth, particularly the residential construction sector in the short to medium term. Reflecting the sluggishness in the residential sector, the total number of residential units sold in the country fell by 3% YoY in the first nine months of 2023, while the total value of loans issued for real estate acquisition and construction fell by 16.9% YoY in the first 10 months of 2023, according to the Brazilian Association of Real Estate Credit and Savings Companies (ABECIP).
The Brazilian construction industry is expected to rebound at an average annual growth rate of 3.6% from 2025 to 2027, supported by investment in industrial, transport, renewable energy, housing, and oil sectors. Moreover, President Luiz’s BRL1.7 trillion ($332.2 billion) “New Growth Acceleration Program” (Novo Programa de Aceleração do Crescimento/PAC) launched in August 2023 for the development of schools, hospitals, highways, railways, ports, airports, waterways, 5G networks, housing and sanitation by 2028 will support growth over the forecast period. In the same month, the government has set its target to reduce its greenhouse gas (GHG) emissions by 37% by 2025 and by 50% by 2030, based on 2005 levels. Additionally, the industry’s growth will also be supported by the government’s plan to increase its domestic oil production to 5.4 million barrels per day (bpd) by 2029 and overtake Canada as world’s fourth-largest oil producer by that year. Growth over the forecast period will also be supported by the government’s focus to increase the production of green hydrogen. As part of this initiative launched by the government in November 2021, the government is aiming to produce 15 million tonnes of green hydrogen by 2030 with a total investment of BRL91.3 billion ($17.9 billion) in Ceara.
The report provides detailed market analysis, information and insights into the Brazilian construction industry, including -
The Brazilian construction industry is expected to rebound at an average annual growth rate of 3.6% from 2025 to 2027, supported by investment in industrial, transport, renewable energy, housing, and oil sectors. Moreover, President Luiz’s BRL1.7 trillion ($332.2 billion) “New Growth Acceleration Program” (Novo Programa de Aceleração do Crescimento/PAC) launched in August 2023 for the development of schools, hospitals, highways, railways, ports, airports, waterways, 5G networks, housing and sanitation by 2028 will support growth over the forecast period. In the same month, the government has set its target to reduce its greenhouse gas (GHG) emissions by 37% by 2025 and by 50% by 2030, based on 2005 levels. Additionally, the industry’s growth will also be supported by the government’s plan to increase its domestic oil production to 5.4 million barrels per day (bpd) by 2029 and overtake Canada as world’s fourth-largest oil producer by that year. Growth over the forecast period will also be supported by the government’s focus to increase the production of green hydrogen. As part of this initiative launched by the government in November 2021, the government is aiming to produce 15 million tonnes of green hydrogen by 2030 with a total investment of BRL91.3 billion ($17.9 billion) in Ceara.
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 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 (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-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 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 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