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Latin America Infrastructure Construction Market Size and Trends Analysis by Countries, Sector and Segment Forecast to 2026

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Published: February 24, 2023 Report Code: GRCREG000005CN

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Latin America Infrastructure Construction Market Report Overview

The Latin America infrastructure construction market size was evaluated at $230.6 billion in 2023 and is estimated to grow at a compound annual growth rate (CAGR) of 3.8% over the forecast period. The regional growth is strongly supported by the project pipelines from countries including Brazil, Mexico, Colombia, and Argentina.

The aforementioned four countries in terms of construction output value accounted for more than 70.0% of the overall regional share in 2023. In addition, these countries are estimated to dominate the regional project pipeline with an approximate share of 69.0%. Brazil is anticipated to remain the front-runner with a share of more than 42.0% of the overall regional project pipeline.

Latin America Infrastructure Construction Market Outlook, 2019-26 ($ Billion)

Latin America Infrastructure Construction Market Outlook, 2019-26 ($ Billion)

 

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According to estimates from GlobalData, the Latin America infrastructure construction market witnessed a decline of 15.3% in 2020 owing to the economic disruption caused by the emergence of coronavirus. The output value spurred in 2023 as construction activities were resumed in the region with necessary restriction measures to register a year-on-year growth rate of 10.9%. However, the rising debt burden on the key countries of the region coupled with the high inflation rate lowered the momentum of construction output in 2023.

Latin America Infrastructure Construction Market Segmentation by Sectors

The Latin America infrastructure construction industry covers railways, roads, water and sewage, electricity and power, and others. The roads segment is anticipated to dominate the overall market share in 2023.

Roads: Road infrastructure in the Latin America region is the largest segment of the infrastructure construction industry as of 2023 and is projected to continue its dominance over the forecast period. Brazil in terms of output value is estimated to emerge as the key country within this region, accounting for approximately 34.0% in 2023.

The largest project in Brazil’s pipeline is the $6.2 billion Mario Covas Northern Stretch Ring Road project which involves the construction of a 44km-long ring road. It will include the construction of road lanes, tunnels, overpasses, bridges, and highways.

Latin America Infrastructure Construction Market Share by Sectors, 2023 (%)

Latin America Infrastructure Construction Market Share by Sectors, 2023 (%)

 

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Water and Sewage: This segment is projected to observe the slowest annual average growth rate of 2.9% from 2022 to 2026 as compared to its counterparts. The Latin American region is increasingly witnessing more intense droughts and floods with cities and farms facing severe water shortages. The high inflation is pushing up construction which could dampen investment in the short term. Investment in the long term 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.

Electricity and Power: The electricity and power infrastructure construction output value in the region is estimated to showcase an annual average growth rate of 4.2% from 2022 to 2026. The regional dynamics of this segment are widely influenced by Brazil, the largest electricity market in the region. The efforts to shift power generation from traditional sources to renewables are likely to continue in the Latin America region over the forecast period.

For instance, in June 2022, the storage battery manufacturing company Jiangxi Ganfeng Lithium Co. Ltd, based in China, began the construction work at the Mariana Lithium project in Argentina’s northwestern Salta province. The ARS75 billion ($600 million) project is expected to be entirely powered by a 150MW solar plant and is slated to create more than 100,000 jobs.

Railways: The railway infrastructure construction sector is projected to be dominated by Brazil in terms of project pipelines over the forecast period. Brazil’s railway network accounted for only 15% of the national logistics distribution in 2021, while the road system accounted for 65%. In early November 2022, the Ministry of Infrastructure reported that it received a total of 48 applications from the private sector worth BRL189.4 billion ($37 billion) to construct 15,013.4km of new rail line under the Pro Rail law.

Others: The others category comprises ports, inland waterways, marine, and airports. This segment in terms of construction output value accounted for more than 26.0% of the overall market share in 2023. Consisting of mainly net exporting countries, Latin American ports facilitate the supply of many critical raw materials for food and industrial production to the US and Europe.

Growth in the regional airport sector is likely to continue to be spurred over the medium to long term by a gradual rise in domestic demand and a surge in travelers from the US to popular tourist destinations in South and Central America. It is likely that governments will continue to invest in airport infrastructure to expand capacity and meet the requirements for higher demand over the long term.

Latin America Infrastructure Construction Market Analysis by Countries

Brazil accounted for a major share of more than 34.0% of the regional construction output in 2023. The country is also the largest holder of project pipelines in the region. The government plans to continue its spending on infrastructure projects, with a focus on improving regional connectivity through the development of transport infrastructure.

For instance, in October 2022, Brazilian land transport regulator ANTT approved three companies to construct five freight rail lines in three states. With an expected total investment of BRL16.8 billion ($3.3 billion), the five projects involve the construction of 1,041km new lines. Accordingly, Petrocity Ferrovias will invest BRL740 million ($144.4 million) to construct a 68km railway branch in Goiás, connecting Corumbá de Goiás with Anápolis.

Mexico is projected to follow Brazil in second place in terms of construction output value and project pipelines. According to the reports released by the Ministry of Economy in November 2022, Foreign Direct Investment (FDI) in Mexico increased by 29.5% YoY in the first nine months of 2022, reaching MXN32.2 billion ($1.3 billion), with the manufacturing sector accounting for 36.3% of the total investment followed by the transport sector which accounts for 14.5% of the total investment.

Argentina is estimated to observe an average growth rate of nearly 2.7% from 2023 to 2026, supported by transport investment. The ongoing construction of 218 roadway projects under the ministry of public works is expected to be completed by 2025. The National Highway Authority of Argentina plans to rehabilitate a total of 2,292km of roads, complete the construction of 261km of highways, and have 1,192km of highways under construction, by the end of 2023.

Furthermore, as part of the Argentina Rail Modernization Plan for 2030, the Ministry of Transport signed three memorandums of understanding (MoU) in February 2022, with Chinese companies for the development of three rail projects.

Latin America Infrastructure Construction Market Share by Country, 2023 (%)

Latin America Infrastructure Construction Market Share by Country, 2023 (%)

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Colombia is expected to register an annual average growth rate of 5.9% from 2022 to 2026, primarily backed by ongoing efforts to accelerate the completion of Colombia’s 4G road infrastructure program and push forward with plans for its 5G concessions program. Furthermore, the new government announced the Intermodal Transportation Master Plan and National Development Plan to connect the country from the Pacific to the Atlantic through 657km of railway lines and 30 railway projects which will be financed through public-private partnerships (PPPs).

Latin America Infrastructure Construction Market Research Scope

Market Size in 2023 $230.6 billion
Market Size in 2026 $255.6 billion
CAGR 3.8% from 2022 to 2026
Historic Years 2016-2021
Forecast Period 2022-2026
Report Scope & Coverage Sector Overview, Construction Output Value ($ Million), Project Pipeline by Country and Sector, Regional Outlook by Key Sectors, Top 20 Project Details by Sector
Key Segments Roads, Railways, Electricity and Power, Water and Sewage, Others
Key Countries Argentina, Brazil, Colombia, Mexico, and Rest of Latin America

Scope

  • Latin America infrastructure construction market outlook: analysis as well as historical figures and forecasts of revenue opportunities from the sector and regional segments.

  • The report provides an overview of the outlook for the Latin America infrastructure construction industry to 2026.

  • Analysis of the outlook for infrastructure investment in major countries: Argentina, Brazil, Colombia, Mexico, and Rest of Latin America.

  • Insight into the project pipelines for roads, railways, electricity and power, water and sewage, and others.

Reasons to Buy

  • Evaluate regional trends in infrastructure development from insight into output values and project pipelines. Identify the fastest growers to enable assessment and targeting of commercial opportunities in the markets best suited to strategic focus.

  • Identify the drivers in the Latin America infrastructure construction market and consider growth in developed economies. Formulate plans on where and how to engage with the market while minimizing any negative impact on revenues.

  • Accompanying GlobalData’s Forecast products, the report examines the assumptions and drivers behind ongoing and upcoming trends in the Latin America infrastructure construction market.

Key Players


Table of Contents

  • CHAPTER 01 Overview

  • CHAPTER 02 Sector Overviews

    • 2.1 Railways

    • 2.2 Roads

    • 2.3 Electricity and Power

    • 2.4 Water and Sewage

    • 2.5 Others

  • CHAPTER 03 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

  • CHAPTER 04 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

  • CHAPTER 05 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

  • CHAPTER 06 About GlobalData

  • Contact Us

Table

Table 1 Latin America Infrastructure Construction Output, by Country (Real, $ 2017 Billion), 2016–2026

Table 2 All Latin America Infrastructure Construction, Project Pipeline Value by Stage and Key Countries ($ Million)

Table 3 All Latin America Infrastructure Construction, Project Pipeline Value by Stage and Sector ($ Million)

Table 4 Top 20 Railway Projects by Value

Table 5 Top 20 Road Projects by Value

Table 6 Top 20 Electricity and Power Projects by Value

Table 7 Top 20 Water and Sewage Projects by Value

Table 8 Top 20 Airport Projects by Value

Table 9 Top 20 Other Projects by Value

Table 10 Latin America Infrastructure Construction Output Value, by Sector (Real $ Billion), 2016–26

Table 11 Argentina Infrastructure Construction Output Value, by Sector (Real $ Billion), 2016–26

Table 12 Brazil Infrastructure Construction Output Value, by Sector (Real $ Billion), 2016–26

Table 13 Colombia Infrastructure Construction Output Value, by Sector (Real $ Billion), 2016–26

Table 14 Mexico Infrastructure Construction Output Value, by Sector (Real $ Billion), 2016–26

Table 15 Rest of Latin America Infrastructure Construction Output Value, by Sector (Real $ Billion), 2016–26

Figures

Fig.1 Latin America Infrastructure Construction Output Value (Real $ Billion) and Growth (% Change)

Fig.2 Global Infrastructure Construction Output Value by Region (Index, 2016 = 100)

Fig.3 Railway Infrastructure Output (% of GDP) vs Population Density per Km of Rail

Fig.4 Railway Infrastructure Output (% of GDP) vs Efficiency of Train Services

Fig.5 Railway Infrastructure Construction Output Value, % of GDP, Average of Time Period

Fig.6 Railway Infrastructure Construction Output Value (Real $ Million)

Fig.7 Road Infrastructure Output (% of GDP) vs Quality of Roads

Fig.8 Road Infrastructure Output (% of GDP) vs Road Connectivity

Fig.9 Road Infrastructure Construction Output Value, % of GDP, Average of Time Period

Fig.10 Road Infrastructure Construction Output Value (Real $ Million)

Fig.11 Electricity and Power Infrastructure Output (% of GDP) vs Electricity Power Losses

Fig.12 Electricity and Power Infrastructure Output (% of GDP) vs Electricity Quality

Fig.13 Electricity and Power Construction Output Value, % of GDP, Average of Time Period

Fig.14 Electricity and Power Construction Output Value (Real $ Million)

Fig.15 Water and Sewage Infrastructure Output (% of GDP) vs Reliability of Water Supply

Fig.16 Water and Sewage Infrastructure Output (% of GDP), Access to Safely Managed Sanitation

Fig.17 Water and Sewage Infrastructure Construction Output Value, % of GDP, Average of Time Period

Fig.18 Water and Sewage Infrastructure Construction Output Value (Real $ Million)

Fig.19 Others Infrastructure Construction Output (% of GDP) vs Efficiency of Seaport Services

Fig.20 All Latin America Infrastructure Construction, Project Pipeline Value by Stage ($ million)

Fig.21 All Latin America Infrastructure Construction, Project Pipeline Value by Stage and Sector ($ Million)

Fig.22 All Latin America Infrastructure Construction, Project Pipeline Value by Stage and Key Countries ($ Million)

Fig.23 All Latin America Railways, Project Pipeline by Stage ($ Million)

Fig.24 All Latin America Railways, Project Pipeline by Stage and Key Countries ($ Million)

Fig.25 All Latin America Railways, Project Pipeline by Funding Type and Key Countries (% of Total)

Fig.26 All Latin America Railways, Project Pipeline Rail Length by Completion Year (km)

Fig.27 All Latin America Railways, Pipeline Valie by Railway Type ($ Million)

Fig.28 All Latin America Roads, Project Pipeline by Stage ($ Million)

Fig.29 All Latin America Roads, Project Pipeline by Stage and Key Countries ($ Million)

Fig.30 All Latin America Roads, Project Pipeline by Funding Type and Key Countries (% of Total)

Fig.31 All Latin America Roads, Project Pipeline Length by Completion Year (km)

Fig.32 All Latin America Electricity and Power, Project Pipeline by Stage ($ Million)

Fig.33 All Latin America Electricity and Power, Project Pipeline by Stage and Key Countries ($ Million)

Fig.34 All Latin America Electricity and Power Generation, Project Pipeline by Type and Stage ($ Million)

Fig.35 All Latin America Electricity and Power Generation, Capacity Additions by Completion Year (MW)

Fig.36 All Latin America Water and Sewage, Project Pipeline by Stage ($ Million)

Fig.37 All Latin America Water and Sewage, Project Pipeline by Stage and Key Countries ($ Million)

Fig.38 All Latin America Water and Sewage, Project Pipeline by Funding and Key Countries ($ Million)

Fig.39 All Latin America Other, Project Pipeline by Stage ($ Million)

Fig.40 All Latin America Other, Project Pipeline by Stage and Key Countries ($ Million)

Fig.41 All Latin America Other, Project Pipeline by Funding Type and Key Countries ($ Million)

Fig.42 Research Methodology Steps

Fig.43 Core Objectives of Data Collection and Consolidation

Fig.44 Modelling Approach

Fig.45 Forecasting and Validation Flow

Fig.46 GlobalData Proposition and Product Capabilities

Fig.47 GlobalData Sector Coverage

Fig.48 Supporting business-critical decision making at the largest & most successful companies

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