Construction in Chile - Key Trends and Opportunities to 2023

Construction in Chile - Key Trends and Opportunities to 2023

  • November 2019 •
  • 46 pages •
  • Report ID: 5663958 •
  • Format: PDF
Construction in Chile - Key Trends and Opportunities to 2023

Summary
The Chilean construction industry recovered in 2018, with output value expanding by 3.2% in real terms, compared to -3.2% in 2017; this growth was supported by higher consumer spending, coupled with recovery in copper prices and global commodity demand, which in turn increased the government’s ability to spend within the country’s infrastructure. In addition, in 2018, foreign direct investment (FDI) in the country increased by 206%, due to the government’s introduction of a new FDI policy. Consequently, the industry’s output value, measured at constant 2017 US dollar exchange rates, increased from US$39.6 billion in 2017 to US$40.9 billion in 2018.

The industry’s output value is expected to continue to expand over the forecast period (2019-2023), due to increasing investments in transport infrastructure, energy, commercial and industrial projects, as well as improvement in consumer and investor confidence. The government plans to invest CLP9.3 trillion (US$14 billion) to develop the country’s roads, railways, hospitals and other social infrastructure during the period of 2019-2023. According to Cámara Chilena de la Construcción (the Chilean Chamber of Construction - CChC), the total investment in construction grew by 2.7% in 2018; this was preceded by annual contractions of 4.6% in 2017 and 0.7% in 2016.

The industry’s output value in real terms is expected to rise at a compound annual growth rate (CAGR) of 4.07% over the forecast period. The industry is consequently expected to rise from a value of US$40.9 billion in 2018 to US$49.9 billion in 2023, measured at constant 2017 US dollar exchange rates.

Infrastructure construction was the largest market in the Chilean construction industry in 2018, accounting for 36.1% of the industry’s total value in 2018. The market is expected to increase its market share over the forecast period, accounting for 37.3% of the industry’s total value in 2023. Residential construction accounted for 29.4% of the industry’s total output in 2018, followed by energy and utilities construction with 13.8%, commercial construction with 9.2%, industrial construction with 7.2% and institutional construction with 4.3%.

The total construction project pipeline in Chile including all mega projects with a value above US$25 million - stands at CLP86.9 trillion (US$135.8 billion). The pipeline, which includes all projects from pre-planning to execution, is relatively skewed towards early-stage projects, with 62.9% of the pipeline value being in projects in the pre-planning and planning stages as of November 2019.

The report “Construction in Chile - Key Trends and Opportunities to 2023” provides detailed market analysis, information and insights into the Chilean construction industry, including -

- Historical (2014-2018) and forecast (2019-2023) valuations of the construction industry in Chile, featuring details of key growth drivers
- Segmentation by sector (commercial, industrial, infrastructure, energy and utilities, institutional and residential) and by sub-sector
- Analysis of the mega-project pipeline, including breakdowns by development stage across all sectors, and projected spending on projects in the existing pipeline
- Listings of major projects, in addition to details of leading contractors and consultants

Scope
This report provides a comprehensive analysis of the construction industry in Chile.

It provides -
- Historical (2014-2018) and forecast (2019-2023) valuations of the construction industry in Chile, featuring details of key growth drivers.
- Segmentation by sector (commercial, industrial, infrastructure, energy and utilities, institutional and residential) and by sub-sector
- Analysis of the mega-project pipeline, including breakdowns by development stage across all sectors, and projected spending on projects in the existing pipeline.
- Listings of major projects, in addition to details of leading contractors and consultants

Reasons to buy
- Identify and evaluate market opportunities using 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 critical and actionable insight.
- Assess business risks, including cost, regulatory and competitive pressures.
- Evaluate competitive risk and success factors.
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