Latin America Infrastructure Construction Market Worth $222.0 billion in 2022 with the Highest Contribution from Brazil

Latin America Infrastructure Construction Market Worth $222.0 billion in 2022 with the Highest Contribution from Brazil - GlobalData Plc

iCrowd Newswire
21 Mar 2023, 19:02 GMT+10

Latin America infrastructure construction market size was evaluated at $222 billion in 2022, according to a new report by GlobalData Plc. The infrastructure development will be supported by improving economic conditions, the restart of major infrastructure projects, and fiscal stimulus aimed at improving connectivity across the region.

Latin America Infrastructure Construction Market Outlook 2022-2026 ($ Billion)

Latin America infrastructure construction market outlook report with detailed sectors and country-wise segment analysis is available with GlobalData! Read our free sample

Latin America Infrastructure Construction Market FAQs

What was the Latin America infrastructure construction market size in 2022?
The Latin America infrastructure construction market size in 2022 was $222 billion.

What will be the Latin America infrastructure construction market growth rate during 2022-2026?
The Latin America infrastructure construction market will grow at 3.8% during 2022-2026.

Which are the key sectors of Latin America infrastructure construction market?
The key sectors of Latin America infrastructure construction market are electricity and power, railway, road, water and sewage, and others.

Which sector accounted for the highest Latin America infrastructure construction market growth in 2021?
The roads sector accounted for the highest share of the Latin America infrastructure construction market growth in 2021.

Which are the key countries in the Latin America infrastructure construction market?
Argentina, Brazil, Colombia, Mexico, and Rest of Latin America are the key countries in the Latin America infrastructure construction market.

Which country showcased the highest Latin America infrastructure construction market growth in 2021?
Brazil showcased the highest share of the Latin America infrastructure construction market growth in 2021.

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Latin America Infrastructure Construction Market Dynamics

The Latin America infrastructure construction market will grow at a CAGR of 3.8% during the projected period, mainly due to over 20% construction projects undergoing the execution stage, while over 60% in the pre-planning and planning stages, respectively. Growing government spending on infrastructure projects supported by the inflow of FDI in the revenue-generating economies of the region will further propel the infrastructure construction market growth in Latin America.

For instance, the Brazilian 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. Similarly, the infrastructure construction sector in Mexico is supported by public and private sector investment in rail and road infrastructure projects. The government in other economies including Columbia, Argentina, and rest of Latin America are working on strengthening the infrastructure development across sectors including the railways, roads, and electricity and power sectors.

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Latin America Infrastructure Construction Report Highlights

The Latin America infrastructure construction market is estimated to grow at a compounded annual growth rate of 3.8% over the forecast period. The regional dynamics are likely to remain steady with nearly a quarter of the infrastructure project pipeline undergoing the execution stage and more than 60% the in the pre-planning and planning stages, respectively.

The roads category is anticipated to emerge as the largest segment over the predicted timeline, mostly fueled by public spending to enhance or expand the existing regional connectivity across key economies of the region.

The water and sewage sector accounted for the second-largest share in 2021. The high inflation is pushing up construction which could dampen investment in the short term. Long-term investments will be driven by the growing climate emergency, the aim to meet UN sustainable development goals, and governments' growth ambitions. This is likely to be supported by foreign aid and grants.

The electricity and power segment is anticipated to showcase a strong annual average growth rate of nearly 4.2% over the forecast period. The efforts to pursue renewable sources of energy for electricity generation are likely to positively aid the segmental growth in the short-term period.

The railways category accounted for the smallest share within the overall regional dynamics in 2021. Although, this sector is expected to remain the second fastest growing segment over the forecast period, mostly backed by project pipelines in Brazil, Mexico, and Argentina.

Brazil is projected to remain a dominant force with a project pipeline share of nearly 42.0% within the overall regional group. The Ministry of Transport, Brazil (MoT) is developing a railway network as a part of the Logistic Investment Program in Brazil. The program includes the construction, modernization, and maintenance of 7,500km of railway lines by the end of 2027.

Mexico is expected to emerge the second largest country in terms of construction output value in 2021. The country is expected to register a growth of 3.3% during 2024-26, supported by public and private sector investment in rail and road infrastructure projects. For instance, in the latest budget, the government allocated MXN142.9 billion ($7.2 billion) for completing the construction of the Maya railroad project.

Argentina is predicted to record an annual average growth rate of 2.7% from 2023 to 2026. This growth is primarily driven by the government's commitment towards carrying out public work projects, along with its initiative to modernize railways by 2030.

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Latin America Infrastructure Construction Report Scope

GlobalData Plc has segmented the Latin America infrastructure construction market report by sectors and countries:

Latin America Infrastructure Construction Sectors Outlook (Value, $ Billion, 2016-2026)

Electricity and Power

Railway

Road

Water and Sewage

Others

Latin America Infrastructure Construction Countries Outlook (Value, $ Billion, 2016-2026)

Argentina

Brazil

Colombia

Mexico

Rest of Latin America

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Table of Contents

1 Overview

2 Sector Overviews

2.1 Railways

2.2 Roads

2.3 Electricity and Power

2.4 Water and Sewage

2.5 Others

3 Project Pipelines

3.1 All Infrastructure Projects

3.1.1 Railway Projects

3.1.2 Road Projects

3.1.3 Electricity and Power Projects

3.1.4 Water and Sewage Projects

3.1.5 Other Projects

4 Latin America Infrastructure Construction Regional Trends

4.1 Latin America Infrastructure Construction Market Data

4.1.1 Argentina Infrastructure Construction Market Data

4.1.2 Brazil Infrastructure Construction Market Data

4.1.3 Colombia Infrastructure Construction Market Data

4.1.4 Mexico Infrastructure Construction Market Data

4.1.5 Rest of Latin America Infrastructure Construction Market Data

5 Research Methodology

5.1 Introduction

5.2 Research Methodology Steps

5.2.1 Data Collection and Consolidation

5.2.2 Modelling and Estimation

5.2.3 Forecasting and Validation

About us

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