Brazil Construction Industry Databook Series Q1 2023 Update: Government and Private Infrastructure Projects Boosts Sector Recovery

DUBLIN, Feb. 15, 2023 /PRNewswire/ -- The "Brazil Construction Industry Databook Series - Market Size & Forecast by Value and Volume, Q1 2023 Update" report has been added to  ResearchAndMarkets.com's offering.

According to the publisher, construction industry in Brazil is expected to grow by 4.8% to reach BRL 7,15,626 million-in 2023.

Despite near-term challenges in certain construction sectors, medium to long term growth story in Brazil remains intact. The construction industry in Brazil is expected to grow steadily over the next four quarters. The growth momentum is expected to continue over the forecast period, recording a CAGR of 4.2% during 2023-2027. The construction output in the country is expected to reach BRL 8,42,595.7 million by 2027.

Economic uncertainty, higher interest rates, and surging household debts have affected the growth of the Brazilian construction industry in 2022 and the trend is projected to further continue over the next 12 months. The affordable housing program launched by the government, Casa Verde Amarela, reported a decline of 26.2% in launches up to September 2022, year on year. Furthermore, a 9.3% decline was recorded in year-over-year sales. The decline in household incomes has affected the spending power of homebuyers in Brazil.

The decline in construction activities has also affected the sales of construction materials in 2022. According to the Brazilian Cement Association, cement sales declined 0.8% year over year in November 2022. During the January to November 2022 period, cement sales declined 2.5% year over year. The trend is projected to further continue in 2023 amid economic uncertainties that are affecting consumer spending power. However, government spending on infrastructure construction projects is expected to support industry recovery in 2023

The demand for data centers is projected to drive commercial construction investment in Brazil

With the increasing digitalization, the demand for data center capacity has gone up significantly over the last few years. As local businesses, including small merchants and retailers, build their presence online, this demand is projected to further grow over the next three to four years. Consequently, firms are expanding their existing data centers as well as investing in the construction of new facilities in Brazil.

• In October 2022, Scala, the Latin American data center firm, announced that it is planning to launch a new facility in Brazil. Located in Avenida Pernambuco, the data center facility will be constructed with an investment of US$48 million and will have a capacity of 7.2 MW. Construction activities are currently ongoing and the project is slated for completion in Q2 2023.

From the short to medium-term perspective, Scala is planning to launch more new facilities across Latin America. Along with the Avenida Pernambuco facility, another facility is under development in Rio. As the demand continues to grow, more firms are expected to invest in the construction of new and expansion of existing facilities. Angola Cables, for instance, announced that the firm will invest US$40 million in data center expansion projects in Brazil.

Government and private spending on infrastructure projects to support the growth recovery of the construction industry in Brazil

The macroeconomic factors, including the ongoing war between Russia and Ukraine and rising inflation, have had a severe impact on the construction industry growth in Brazil. Going forward, the publisher expects the sector to remain under pressure owing to economic uncertainties. However, government spending on infrastructure projects in 2023, is projected to support the growth recovery for the construction sector from the short to medium-term perspective.

• Brazil is looking to expand its railway network over the next few years, and consequently, the investment in the development of nationwide railway infrastructure is projected to drive significant investment. In November 2022, Rumo, the Brazilian logistic firm, gave the go-ahead for the construction of a US$3 billion rail project in Mato Grosso State.
• Investment in other infrastructure projects such as bridges and roadways is also expected to drive the growth recovery in Brazil. In December 2022, Minas Gerais state also announced that it will start the construction of a US$950 million Belo Horizonte beltway in 2024. In December 2022, Parana state also announced that it is moving forward with the construction of a US$74 million bridge.

The private and public spending towards these construction projects, along with several others that are in the pipeline, will also drive the growth recovery for the construction chemical sector in Brazil over the next three to four years.-

The demand for prefabricated construction is projected to grow in Brazil

In Brazil, the prefabricated construction industry is expected to record steady growth over the next three to four years. To capitalize on this trend, more and more players are entering the prefabricated construction segment in Brazil.

• In December 2022, ArcelorMittal entered into a collaboration with Modularis to target the pre-built construction market in Brazil. Through its Brazilian arm, ArcelorMittal, along with Modularis, will serve the civil construction industry. Notably, the modules developed by the firm will be used for hotel and residential construction.

From the short to medium-term perspective, the demand for affordable housing will also drive the trend of prefabricated construction in Brazil. Consequently, more and more players are projected to enter the market over the next three to four years.

Scope

Market Data and Insights: This report provides market size and forecast across 40+ construction segments for a period of 10 years from 2018-2027 in Brazil. KPIs covered include the following:

• Market size by value
• Market size by volume of construction
• Number of units

Brazil Economic Indicators
Brazil Top Cities Construction Data
Brazil Residential Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by

• Housing type (multi family, single family)
• Key cities (Tier - 1, Tier - 2, Tier - 3 segmentation)
• Price point/income level (luxury, mid-tier, affordable)
• Construction stage (new construction, re-development & maintenance)

Brazil Residential Green Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by

• Green building by Housing type (multi family, single family)
• Green building by Key cities (Tier - 1, Tier - 2, Tier - 3 segmentation)
• Green building by Price point/income level (luxury, mid-tier, affordable)

Brazil Commercial Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by

• Office (further broken down by Grade A, Grade B, and Grade C)
• Retail (further broken down by Grade A, Grade B, and Grade C)
• Hospitality (further broken down by Grade A, Grade B, and Grade C)
• Restaurant (further broken down by Grade A, Grade B, and Grade C)
• Entertainment
• Sports facility
• Construction stage (new construction, re-development & maintenance)

Brazil Commercial Green Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by

• Office green building construction
• Retail green building construction
• Hospitality green building construction
• Restaurant green building construction
• Entertainment green building construction
• Sports facility green building construction
• Other commercial green building construction

Brazil Industrial Green Building Construction Coverage: 10-year market size & forecast in value and volume (area and units)
Brazil Institutional Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by

• Healthcare construction
• Educational construction
• Public sector
• Construction stage (new construction, re-development & maintenance)

Brazil Institutional Green Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by

• Healthcare green building construction
• Educational green building construction

Brazil Infrastructure Construction Sectors: 10- year market size & forecast in value terms by

• Marine and inland water infrastructure
• Utility system construction (oil and gas infrastructure, communication infrastructure, power infrastructure, water and sewer infrastructure)
• Transportation infrastructure (highway, street and bridge construction, railway construction, airport construction, and tunnel construction)
• Construction stage (new construction, re-development & maintenance)

Brazil Green Infrastructure Construction: 10- year market size & forecast in value terms
Reasons to buy

• In-depth Understanding of Construction Market Dynamics: Understand market opportunity, industry dynamics, key trends and drivers across 40+ market segments and sub-segments of building and infrastructure construction industry in Brazil.
• Top Ten Cities Construction Value Data
• Volume and Value Data: Get detailed understanding of the market both from value and volume (both by activity and units) perspective for historical as well as forecast period
• Develop Market Specific Strategies: Identify growth segments and target specific opportunities to formulate your strategy; assess market specific key trends, drivers and risks in construction industry.
• City Level Insights: Get city level trend analyses by tier-1, tier-2, and tier-3 cities.

For more information about this report visit https://www.researchandmarkets.com/r/kddha4

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