Market Size of Brazil Construction Industry
| 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 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 Size Summary
The Brazilian construction industry is poised for significant growth, driven by favorable economic conditions such as low-interest rates and government initiatives like "Casa Verde e Amarela." Despite challenges like a high budget deficit and political instability, the government has introduced infrastructure development programs to stimulate the market. The residential and commercial sectors are expected to be key drivers of this growth, supported by a recovering labor market and credit expansion. However, the industry faces short-term challenges due to material shortages, rising costs, and bureaucratic hurdles. The government's infrastructure concessions program, aimed at enhancing ports, roads, and sanitation, is expected to attract substantial investment through public-private partnerships, further bolstering the sector.
The construction market in Brazil is highly competitive, with major international players and significant consolidation among a few key companies. The Brazilian Development Bank and other state-owned banks play a crucial role in financing infrastructure projects, particularly in the northeast region. Government programs and international investments, including those from China, are set to support the industry's expansion. Despite the competitive landscape, opportunities for growth remain, driven by strategic projects and partnerships. The market's future prospects are closely tied to the government's privatization efforts and infrastructure investments, which are seen as vital for economic recovery and development.
Brazil Construction Market Size - Table of Contents
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1. MARKET INSIGHTS
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1.1 Current Economic and Construction Market Scenario
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1.2 Technological Innovations in the Construction Sector
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1.3 Insights into Supply Chain/Value Chain Analysis
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1.4 Impact of Government Regulations and Initiatives on the Industry
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1.5 Review and Commentary on the Impact of Brazil's Economic and Political Crisis
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1.6 Comparison of Key Industry Metrics of Brazil with Other Latin American Countries
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1.7 Comparison of Construction Cost Metrics of Brazil with Other Latin American Countries
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1.8 Impact of COVID-19 on the Market
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2. MARKET SEGMENTATION
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2.1 By Sector
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2.1.1 Commercial Construction
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2.1.2 Residential Construction
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2.1.3 Industrial Construction
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2.1.4 Infrastructure (Transportation) Construction
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2.1.5 Energy and Utility Construction
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Brazil Construction Market Size 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.
