Construction in Brazil – Key Trends and Opportunities to 2021

Construction in Brazil – Key Trends and Opportunities to 2021

Synopsis

In real terms, the Brazilian construction industry registered a review-period (2012–2016) compound annual growth rate (CAGR) of -2.42%. This decline can be attributed to the deteriorating business environment and weak investor confidence, leading to reduced demand in the construction industry. Factors such as austerity measures adopted by the government – so as to reduce the budget deficit and corruption allegations against politicians – had an adverse impact on the construction industry.

The industry is expected to remain weak over the forecast period (2017–2021), albeit with a slight improvement. It is, however, expected to recover and record minimal growth from 2018 onwards, supported by a gradual recovery in economic conditions and subsequent improvements in investor and consumer confidence.

The industry’s recovery is expected to be supported by government programs such as ‘Minha Casa, Minha Vida’, the Logistics Investment Program (PIL), Plano Decenal de Energia 2024 (PDE 2024) and the National Education Plan 2014–2024. In March 2017, the government launched the Infrastructure Concessions Program with an aim to increase investment in the country’s road, airports, ports and energy infrastructure.

Timetric expects the industry’s output value to post a CAGR of -0.68% in real terms over the forecast period.

Summary

Timetric’s Construction in Brazil – Key Trends and Opportunities to 2021 report provides detailed market analysis, information and insights into the Brazilian construction industry, including:

  • The Brazilian construction industry's growth prospects by market, project type and construction activity
  • Critical insight into the impact of industry trends and issues, and the risks and opportunities they present to participants in the Brazilian construction industry
  • Profiles of the leading operators in the Brazilian construction industry
Scope

This report provides a comprehensive analysis of the construction industry in Brazil. It provides:
  • Historical (2012-2016) and forecast (2017-2021) valuations of the construction industry in Brazil using construction output and value-add methods
  • Segmentation by sector (commercial, industrial, infrastructure, energy and utilities, institutional and residential) and by sub-sector
  • Breakdown of values within each project type, by type of activity (new construction, repair and maintenance, refurbishment and demolition) and by type of cost (materials, equipment and services)
  • Detailed profiles of the leading construction companies in Brazil
Reasons To Buy
  • Identify and evaluate market opportunities using Timetric's standardized valuation and forecasting methodologies.
  • Assess market growth potential at a micro-level with over 600 time-series data forecasts.
  • Understand the latest industry and market trends.
  • Formulate and validate strategy using Timetric's critical and actionable insight.
  • Assess business risks, including cost, regulatory and competitive pressures.
  • Evaluate competitive risk and success factors.
Key Highlights
  • Timetric expects residential construction market output to record a forecast-period CAGR of 2.86% in nominal terms, driven by government’s efforts to balance demand and supply of affordable houses, coupled with a decline in the real estate interest rate. The average real estate interest rate in the country declined by 8.4% in the first ten months of 2017, compared to the same period of 2016.
  • Under the Programa de Investimento em Logística (PIL), the government is focusing on the construction of transport infrastructure with an aim to provide fast and convenience freight transport system. Accordingly, under this, the government plans to invest BRL86.4 billion (US$26.7 billion) on rail infrastructure, BRL66.1 billion (US$20.4 billion) on road infrastructure, BRL37.4 billion (US$11.6 billion) on port infrastructure and BRL8.5 billion (US$2.7 billion) on airport infrastructure by 2019.
  • To support economic development and growth, the government is focusing on the development of high speed internet infrastructure across the country. Accordingly, the government plans to install high speed fiber optic cables in 70% of the country’s municipalities by 2020. The government also plans to provide an internet connection speed of up to 78.0Mbps to 128,000 schools by the end of 2018. The government also plans to connect 92.0% of small cities through broadband connection by the end of 2019.
  • Timetric expects the energy and utility construction market output to record a forecast-period CAGR of 2.66% in nominal terms, driven by the government’s focus on renewable energy infrastructure. The government aims to generate 48% of the total energy mix from the renewable sources by 2026. Accordingly, it plans to install 13GW of new solar power plants with an investment of BRL87.2 billion (US$25.0 billion) by 2030, and 17GW of new wind energy facilities with an investment of BRL85.5 billion (US$24.5 billion) by 2020.
  • The government seeks to ensure compulsory and qualitative education for all children, while eliminating illiteracy among those aged over 15 years by 2020. The government is also planning to increase the number of facilities required for higher and professional education. This initiative is expected to drive investments in new educational buildings projects over the forecast period.

    • Executive Summary
    • Industry Outlook
      • Commercial Construction
      • Industrial Construction
      • Infrastructure Construction
      • Energy and Utilities Construction
      • Institutional Construction
      • Residential Construction
    • Key Issues and Developments
    • Market Data Analysis
      • Construction Output and Value Add
        • Construction output by project type
          • Table Brazilian Construction Output by Project Type (BRL Million), 2012-2016
          • Table Brazilian Construction Output by Project Type (BRL Million), 2016-2021
        • Construction output by cost type
          • Table Brazilian Construction Output by Cost Type (BRL Million), 2012-2016
          • Table Brazilian Construction Output by Cost Type (BRL Million), 2016-2021
        • Construction output by activity type
          • Table Brazilian Construction Output by Activity Type (BRL Million), 2012-2016
          • Table Brazilian Construction Output by Activity Type (BRL Million), 2016-2021
        • Construction value add by project type
          • Table Brazilian Construction Value Add by Project Type (BRL Million), 2012-2016
          • Table Brazilian Construction Value Add by Project Type (BRL Million), 2016-2021
      • Commercial Construction
        • Commercial construction output by project type
          • Table Brazilian Commercial Construction Output by Project Type (BRL Million), 2012-2016
          • Table Brazilian Commercial Construction Output by Project Type (BRL Million), 2016-2021
        • Commercial construction output by cost type
          • Table Brazilian Commercial Construction Output by Cost Type (BRL Million), 2012-2016
          • Table Brazilian Commercial Construction Output by Cost Type (BRL Million), 2016-2021
        • Commercial construction output by activity type
          • Table Brazilian Commercial Construction Output by Activity Type (BRL Million), 2012-2016
          • Table Brazilian Commercial Construction Output by Activity Type (BRL Million), 2016-2021
        • Commercial construction value add by project type
          • Table Brazilian Commercial Construction Value Add by Project Type (BRL Million), 2012-2016
          • Table Brazilian Commercial Construction Value Add by Project Type (BRL Million), 2016-2021
      • Industrial Construction
        • Industrial construction output by project type
          • Table Brazilian Industrial Construction Output by Project Type (BRL Million), 2012-2016
          • Table Brazilian Industrial Construction Output by Project Type (BRL Million), 2016-2021
        • Industrial construction output by cost type
          • Table Brazilian Industrial Construction Output by Cost Type (BRL Million), 2012-2016
          • Table Brazilian Industrial Construction Output by Cost Type (BRL Million), 2016-2021
        • Industrial construction output by activity type
          • Table Brazilian Industrial Construction Output by Activity Type (BRL Million), 2012-2016
          • Table Brazilian Industrial Construction Output by Activity Type (BRL Million), 2016-2021
        • Industrial construction value add by project type
          • Table Brazilian Industrial Construction Value Add by Project Type (BRL Million), 2012-2016
          • Table Brazilian Industrial Construction Value Add by Project Type (BRL Million), 2016-2021
      • Infrastructure Construction
        • Infrastructure construction output by project type
          • Table Brazilian Infrastructure Construction Output by Project Type (BRL Million), 2012-2016
          • Table Brazilian Infrastructure Construction Output by Project Type (BRL Million), 2016-2021
        • Infrastructure construction output by cost type
          • Table Brazilian Infrastructure Construction Output by Cost Type (BRL Million), 2012-2016
          • Table Brazilian Infrastructure Construction Output by Cost Type (BRL Million), 2016-2021
        • Infrastructure construction output by activity type
          • Table Brazilian Infrastructure Construction Output by Activity Type (BRL Million), 2012-2016
          • Table Brazilian Infrastructure Construction Output by Activity Type (BRL Million), 2016-2021
        • Infrastructure construction value add by project type
          • Table Brazilian Infrastructure Construction Value Add by Project Type (BRL Million), 2012-2016
          • Table Brazilian Infrastructure Construction Value Add by Project Type (BRL Million), 2016-2021
      • Energy and Utilities Construction
        • Energy and utilities construction output by project type
          • Table Brazilian Energy and Utilities Construction Output by Project Type (BRL Million), 2012-2016
          • Table Brazilian Energy and Utilities Construction Output by Project Type (BRL Million), 2016-2021
        • Energy and utilities construction output by cost type
          • Table Brazilian Energy and Utilities Construction Output by Cost Type (BRL Million), 2012-2016
          • Table Brazilian Energy and Utilities Construction Output by Cost Type (BRL Million), 2016-2021
        • Energy and utilities construction output by activity type
          • Table Brazilian Energy and Utilities Construction Output by Activity Type (BRL Million), 2012-2016
          • Table Brazilian Energy and Utilities Construction Output by Activity Type (BRL Million), 2016-2021
        • Energy and utilities construction value add by project type
          • Table Brazilian Energy and Utilities Construction Value Add by Project Type (BRL Million), 2012-2016
          • Table Brazilian Energy and Utilities Construction Value Add by Project Type (BRL Million), 2016-2021
      • Institutional Construction
        • Institutional construction output by project type
          • Table Brazilian Institutional Construction Output by Project Type (BRL Million), 2012-2016
          • Table Brazilian Institutional Construction Output by Project Type (BRL Million), 2016-2021
        • Institutional construction output by cost type
          • Table Brazilian Institutional Construction Output by Cost Type (BRL Million), 2012-2016
          • Table Brazilian Institutional Construction Output by Cost Type (BRL Million), 2016-2021
        • Institutional construction output by activity type
          • Table Brazilian Institutional Construction Output by Activity Type (BRL Million), 2012-2016
          • Table Brazilian Institutional Construction Output by Activity Type (BRL Million), 2016-2021
        • Institutional construction value add by project type
          • Table Brazilian Institutional Construction Value Add by Project Type (BRL Million), 2012-2016
          • Table Brazilian Institutional Construction Value Add by Project Type (BRL Million), 2016-2021
      • Residential Construction
        • Residential construction output by project type
          • Table Brazilian Residential Construction Output by Project Type (BRL Million), 2012-2016
          • Table Brazilian Residential Construction Output by Project Type (BRL Million), 2016-2021
        • Residential construction output by cost type
          • Table Brazilian Residential Construction Output by Cost Type (BRL Million), 2012-2016
          • Table Brazilian Residential Construction Output by Cost Type (BRL Million), 2016-2021
        • Residential construction output by activity type
          • Table Brazilian Residential Construction Output by Activity Type (BRL Million), 2012-2016
          • Table Brazilian Residential Construction Output by Activity Type (BRL Million), 2016-2021
        • Residential construction value add by project type
          • Table Brazilian Residential Construction Value Add by Project Type (BRL Million), 2012-2016
          • Table Brazilian Residential Construction Value Add by Project Type (BRL Million), 2016-2021
    • Company Profile: Odebrecht SA
      • Odebrecht SA - Company Overview
        • Table Odebrecht SA, Key Facts
      • Odebrecht SA - Business Description
      • Odebrecht SA - Main Products and Services
        • Table Odebrecht SA, Main Products and Services
      • Odebrecht SA - History
        • Table Odebrecht SA, History
      • Odebrecht SA - Company Information
        • Odebrecht SA - key competitors
        • Odebrecht SA - key employees
          • Table Odebrecht SA, Key Employees
    • Company Profile: The CCR Group
      • The CCR Group - Company Overview
        • Table The CCR Group, Key Facts
      • The CCR Group - Main Services
        • Table The CCR Group, Main Services
      • The CCR Group - History
        • Table The CCR Group, History
      • The CCR Group - Company Information
        • The CCR Group - key competitors
        • The CCR Group - key employees
          • Table The CCR Group, Key Employees
    • Company Profile: Cyrela Brazil Realty SA Empreendimentos e Participacoes
      • Cyrela Brazil Realty SA Empreendimentos e Participacoes - Company Overview
        • Table Cyrela Brazil Realty SA Empreendimentos e Participacoes, Key Facts
      • Cyrela Brazil Realty SA Empreendimentos e Participacoes - Main Services
        • Table Cyrela Brazil Realty SA Empreendimentos e Participacoes, Main Services
      • Cyrela Brazil Realty SA Empreendimentos e Participacoes - History
        • Table Cyrela Brazil Realty SA Empreendimentos e Participacoes, History
      • Cyrela Brazil Realty SA Empreendimentos e Participacoes - Company Information
        • Cyrela Brazil Realty SA Empreendimentos e Participacoes - key competitors
        • Cyrela Brazil Realty SA Empreendimentos e Participacoes - key employees
          • Table Cyrela Brazil Realty SA Empreendimentos e Participacoes, Key Employees
    • Company Profile: Even Construtora e Incorporadora SA
      • Even Construtora e Incorporadora SA - Company Overview
        • Table Even Construtora e Incorporadora SA, Key Facts
      • Even Construtora e Incorporadora SA - Business Description
      • Even Construtora e Incorporadora SA - Main Services
        • Table Even Construtora e Incorporadora SA, Main Services
      • Even Construtora e Incorporadora SA - History
        • Table Even Construtora e Incorporadora SA, History
      • Even Construtora e Incorporadora SA - Company Information
        • Even Construtora e Incorporadora SA - key competitors
        • Even Construtora e Incorporadora SA - key employees
          • Table Even Construtora e Incorporadora SA, Key Employees
    • Company Profile: TPI Triunfo Participacoes e Invest SA
      • TPI Triunfo Participacoes e Invest SA - Company Overview
        • Table TPI Triunfo Participacoes e Invest SA, Key Facts
      • TPI Triunfo Participacoes e Invest SA - Business Description
      • TPI Triunfo Participacoes e Invest SA - Main Services
        • Table TPI Triunfo Participacoes e Invest SA, Main Services
      • TPI Triunfo Participacoes e Invest SA - History
        • Table TPI Triunfo Participacoes e Invest SA, History
      • TPI Triunfo Participacoes e Invest SA - Company Information
        • TPI Triunfo Participacoes e Invest SA - key competitors
        • TPI Triunfo Participacoes e Invest SA - key employees
          • Table TPI Triunfo Participacoes e Invest SA, Key Employees
    • Appendix
      • What is this Report About?
      • Definitions
        • Table Timetric Construction Market Definitions
      • Methodology
      • Contact Timetric
      • About Timetric
      • Timetric's Services
      • Disclaimer

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