Brazil Construction Market Size
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2020 - 2022 |
| CAGR | 8.00 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Brazil Construction Market Analysis
Brazil's construction market is expected to register a CAGR of approximately 8% during the forecast period. The market is driven by low-interest rates and the government's housing programs such as "Casa Verde e Amarela". Despite Brazil's high budget deficit and weak economic conditions due to the political crisis in the country, the authorities released an infrastructure development program. The low-interest-rate environment will encourage buyers to return to the market and builders to take on new projects.
The COVID-19 pandemic interrupted the growth of the market. Although construction activity continued in most states, increased uncertainty has prompted builders to delay the launch of new projects while buyers delayed their purchase decisions. The Residential and Commercial sectors are expected to accelerate the construction industry during the forecasted period. The industry is set to witness stable growth during the forecasted period due to recovering labor market, credit growth, and favorable agenda by the government with its extensive support for privatization which will boost the state enterprises and big international players investing and allocating the funds to infrastructure development for roads, ports, and airports.
Despite strong housing demand, it is expected that the shortage of building materials and rising prices will curb investment in the housing market and the entire industry in the short term. Other factors hindering investment in the industry include high levels of bureaucracy and corruption scandals.
Brazil Construction Market Trends
Government Initiatives for Infrastructural Development
In Brazil, the government launched an infrastructure concessions program with an aim to develop the country's port, road, railway, power transmission lines, and sanitation infrastructure. Under this plan, the government aims to invest BRL 45.0 billion (USD 14.1 billion) through the public-private partnership (PPP) model. Furthermore, government programs such as Minha Casa Minha Vida (MCMV), Plano Decenal de Expansao de Energia 2026, and the National Education Plan are expected to support industry growth over the forecast period.
The residential and commercial sectors are expected to accelerate the construction industry during the forecasted period. The future prospects for the construction sector remain bleak in comparison to other segments of the economy. It could become crucial in efforts to boost the economy in the forecasted period, as it is a very labor-intensive segment.
USD 866 million was invested in 762 infrastructure projects in 2022 to upgrade the state of Brazilian tourist cities and maximize the potential of the industry, drawing more tourists and providing them with a more comfortable stay.
The upgrades comprised, among other interventions, the rehabilitation and building of event spaces, public squares, waterfronts, asphalt paving, and vistas. With investments totaling USD 274.7 million, 268 projects in the Northeast alone were finished. With 219 projects, the South area received the second-most enhancements, after only the Southeast with 155.
Increasing Investment Opportunities for the Foreign and Local Investors
The Brazilian government's efforts to mobilize privatization being considered as a means to stimulate economic growth has been a major opportunity, following which it introduced Projeto Crescer (Project Growth).
The Chinese government is also assured to invest in infrastructure, energy, manufacturing, and mining projects. In addition, as a part of the new energy plan PDE 2024, the Ministry of Mines and Energy revised the country's solar energy targets compared to the target planned for 2023. The initial target includes producing 3,500MW of solar power by 2023, while the new target includes generating 7,000MW of solar energy by 2024.
The Brazilian Development Bank (BNDES) has been playing a dominant role in long-term financing in Brazil. The other two big state-owned banks, Caixa Economica Federal and Banco do Brasil, have also increased their market share. For projects located in the northeast of Brazil, other major sources of financing for infrastructure projects are Caixa Economica Federal, Banco do Brasil, Banco do Nordeste, and other government-owned banks.
Brazil Construction Industry Overview
The Brazilian construction market is highly competitive, with the presence of major international players. The Brazil construction market presents opportunities for growth during the forecast period, which is expected to drive market competition further. With a few players holding a significant share, the Brazilian construction market has an observable level of consolidation. Major players are Construtora Oas SA, MRV, Teixeira Duarte, Andrade Gutierrez Engenharia SA, and Constran Internacional.
Brazil Construction Market Leaders
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Construtora Oas SA
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MRV
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Teixeira Duarte
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Andrade Gutierrez Engenharia SA
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Constran Internacional
*Disclaimer: Major Players sorted in no particular order
Brazil Construction Market News
- August 2022: Brazilian antitrust watchdog CADE gave the go-ahead for the USD 1.025 billion transactions and cleared Holcim AG's local cement division to be sold to steelmaker Cia Siderurgica Nacional. Holcim, the largest cement manufacturer in the world with headquarters in Switzerland attempts to diversify away from its core industry, CSN initially announced the acquisition of LafargeHolcim Brasil in September 2021.
- July 2022: ArcelorMittal announced that it has reached a deal with the owners of Companhia Siderrgica do Pecém (CSP) to buy it for about USD 2.2 billion. The transaction is still pending a number of corporate and regulatory approvals, including CADE's (the Brazilian antitrust agency) approval, which is anticipated by the end of 2022. ArcelorMittal can potentially strengthen the company's position in the rapidly expanding Brazilian steel market as a result of the acquisition.
Brazil Construction Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Assumptions
- 1.2 Scope of the Study
2. RESEARCH METHODOLOGY
- 2.1 Analysis Methodology
- 2.2 Research Phases
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
- 4.1 Current Economic and Construction Market Scenario
- 4.2 Technological Innovations in the Construction Sector
- 4.3 Insights into Supply Chain/Value Chain Analysis
- 4.4 Impact of Government Regulations and Initiatives on the Industry
- 4.5 Review and Commentary on the Impact of Brazil's Economic and Political Crisis
- 4.6 Comparison of Key Industry Metrics of Brazil with Other Latin American Countries
- 4.7 Comparison of Construction Cost Metrics of Brazil with Other Latin American Countries
- 4.8 Impact of COVID-19 on the Market
5. MARKET DYNAMICS
- 5.1 Drivers
- 5.2 Restraints
- 5.3 Opportunities
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5.4 Porter's Five Forces Analysis
- 5.4.1 Bargaining Power of Suppliers
- 5.4.2 Bargaining Power of Consumers/Buyers
- 5.4.3 Threat of New Entrants
- 5.4.4 Threat of Substitute Products
- 5.4.5 Intensity of Competitive Rivalry
6. MARKET SEGMENTATION
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6.1 By Sector
- 6.1.1 Commercial Construction
- 6.1.2 Residential Construction
- 6.1.3 Industrial Construction
- 6.1.4 Infrastructure (Transportation) Construction
- 6.1.5 Energy and Utility Construction
7. COMPETITIVE LANDSCAPE
- 7.1 Overview
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7.2 Company Profiles
- 7.2.1 Construtora Oas SA
- 7.2.2 MRV
- 7.2.3 Teixeira Duarte
- 7.2.4 Andrade Gutierrez Engenharia SA
- 7.2.5 Constran Internacional
- 7.2.6 Mendes Junior
- 7.2.7 Polimix Concreto Ltd
- 7.2.8 Empresa Construtora Brasil SA
- 7.2.9 Agis Group
- 7.2.10 ARG Group*
- *List Not Exhaustive
8. FUTURE OF THE MARKET
9. MAJOR INFRASTRUCTURE DEVELOPMENT PROJECTS (PROJECT DESCRIPTION, VALUE, LOCATION, SECTOR, AND CONTRACTORS)
- 9.1 Existing Infrastructure
- 9.2 On-going Projects
- 9.3 Upcoming Projects
10. APPENDIX
** Subject To AvailablityBrazil Construction Industry Segmentation
The construction market includes a wide range activity that covers upcoming, ongoing, and growing construction projects in different sectors, which include but are not limited to geotechnical (underground structures) and superstructures in residential, commercial, and industrial structures as well as infrastructure construction (like roads, railways, and airports) and power generation (transmission-related infrastructure). This report covers market insights, such as market dynamics, drivers, restraints, opportunities, technological innovation and its impact, Porter's five forces analysis, and the impact of COVID-19 on the market. In addition, the report also provides company profiles to understand the competitive landscape of the market.
The Brazilian construction market is segmented by sector (commercial construction, residential construction, industrial construction, infrastructure (transportation) construction, and energy and utility construction).
| By Sector | Commercial Construction |
| Residential Construction | |
| Industrial Construction | |
| Infrastructure (Transportation) Construction | |
| Energy and Utility Construction |
Brazil Construction Market Research FAQs
What is the current Brazil Construction Market size?
The Brazil Construction Market is projected to register a CAGR of 8% during the forecast period (2024-2029)
Who are the key players in Brazil Construction Market?
Construtora Oas SA , MRV, Teixeira Duarte , Andrade Gutierrez Engenharia SA and Constran Internacional are the major companies operating in the Brazil Construction Market.
What years does this Brazil Construction Market cover?
The report covers the Brazil Construction Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the Brazil Construction Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Brazil Construction Industry Report
Statistics for the 2024 Brazil Construction market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Brazil Construction analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
