The construction industry in Chile is expected to grow by 11.7% this year, following a 14.1% decline in 2020. This compares to the previous projection of 10.4% growth this year. The upward revision is largely due to the low base impact of 2020, a higher vaccination rate and an increase in construction investments and output recorded in the first three quarters of 2021. According to the Banco Central de Chile, overall gross fixed capital formation in construction and other investments climbed by 10.6% in the first nine months of 2021, compared to an annual decline of 11.3% in 2020. In addition, the construction value add grew by 11.4% in the first three quarters of 2021.
The publisher expects the industry will grow by 6.6% in 2022, and average 3.4% a year over the remainder of the forecast period (2022-2025). Growth will be supported by the execution of key infrastructure and housing development projects, coupled with the implementation of investments planned in the 2022 Budget. In March 2021, the Ministry of Public Works (MOP) announced a CLP3.4 trillion (US$4.7 billion) investment portfolio for 2022, including 12 major infrastructure projects, with an additional CLP1 trillion (US$1.4 billion) for the construction of seven hospital facilities. In terms of housing development, the Ministry of Housing and Urban Planning announced a CLP25.5 billion (US$34.8 million) investment in November 2021 under the Program for Small Towns, and a CLP42.2 billion (US$57.5 million) investment in October 2021 under Neighborhood Recovery projects, benefiting 17 new towns and 710 neighborhoods.
Over the forecast period, the industry will also be supported by the country's goal of increasing hydrogen capacity to 5GW by 2025 and 25GW by 2030, as well as boosting the share of renewable energy in electricity usage to 70% by 2030 through major renewable energy projects. Chile, which is a world leader in copper production, could face a downside risk in the short term amid falling ore grades and labor strikes; the country's copper production declined in the first nine months of 2021. Furthermore, long-term prospects are at risk from political uncertainty and a dispute over a new constitution and mining royalty bill. Despite this, global demand for copper and battery production, as well as the government's aim of drawing more private investment in copper production, will drive growth in the sector in the forecast period. In September 2021, the government also projected CLP51.3 trillion (US$70 billion) target for mining investments by the end of the decade, primarily from private firms.
The publisher’s Construction in Chile - Key Trends and Opportunities to 2025 (H2 2021) report provides detailed market analysis, information and insights into the Chilean construction industry, including:
The publisher expects the industry will grow by 6.6% in 2022, and average 3.4% a year over the remainder of the forecast period (2022-2025). Growth will be supported by the execution of key infrastructure and housing development projects, coupled with the implementation of investments planned in the 2022 Budget. In March 2021, the Ministry of Public Works (MOP) announced a CLP3.4 trillion (US$4.7 billion) investment portfolio for 2022, including 12 major infrastructure projects, with an additional CLP1 trillion (US$1.4 billion) for the construction of seven hospital facilities. In terms of housing development, the Ministry of Housing and Urban Planning announced a CLP25.5 billion (US$34.8 million) investment in November 2021 under the Program for Small Towns, and a CLP42.2 billion (US$57.5 million) investment in October 2021 under Neighborhood Recovery projects, benefiting 17 new towns and 710 neighborhoods.
Over the forecast period, the industry will also be supported by the country's goal of increasing hydrogen capacity to 5GW by 2025 and 25GW by 2030, as well as boosting the share of renewable energy in electricity usage to 70% by 2030 through major renewable energy projects. Chile, which is a world leader in copper production, could face a downside risk in the short term amid falling ore grades and labor strikes; the country's copper production declined in the first nine months of 2021. Furthermore, long-term prospects are at risk from political uncertainty and a dispute over a new constitution and mining royalty bill. Despite this, global demand for copper and battery production, as well as the government's aim of drawing more private investment in copper production, will drive growth in the sector in the forecast period. In September 2021, the government also projected CLP51.3 trillion (US$70 billion) target for mining investments by the end of the decade, primarily from private firms.
The publisher’s Construction in Chile - Key Trends and Opportunities to 2025 (H2 2021) report provides detailed market analysis, information and insights into the Chilean construction industry, including:
- The Chilean construction industry's growth prospects by market, project type and construction activity
- Critical insight into the impact of industry trends and issues, as well as an analysis of key risks and opportunities in the Chilean construction industry
- Analysis of the mega-project pipeline, focusing on development stages and participants, in addition to listings of major projects in the pipeline.
Scope
This report provides a comprehensive analysis of the construction industry in Chile. It provides:
- Historical (2016-2020) and forecast (2021-2025) 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 the publisher'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 the publisher's critical and actionable insight.
- Assess business risks, including cost, regulatory and competitive pressures.
- Evaluate competitive risk and success factors.
Table of Contents
1 Executive Summary2 Construction Industry: At-a-Glance6 Construction Market Data
3 Context
4 Construction Outlook
5 Key Industry Participants
7 Appendix
List of Tables
List of Figures
