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Mexico Construction Market Size, Trends, and Forecasts by Sector - Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market Analysis to 2028 (Q2 2024)

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    Report

  • 49 Pages
  • June 2024
  • Region: Mexico
  • GlobalData
  • ID: 5767965

The Construction in Mexico - Key Trends and Opportunities to 2028 (Q2 2024) report provides detailed market analysis, information, and insights into Mexico’s construction industry, including :

  • Mexico’s 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 Mexico’s construction industry
  • Analysis of the mega-project pipeline, focusing on development stages and participants, in addition to listings of major projects in the pipeline.
Following bourgeoning growth of 15.6% in real terms in 2023, Mexico’s construction industry is expected to slow in 2024, registering marginal growth at 0.3%, thereafter, declining by 6.8% in 2025, owing to high base effects and high inflation, a fall in construction confidence, a nationwide drought that is spiking energy prices, and halting production of manufacturing businesses domestically. According to the Monthly Business Opinion Survey - conducted by the National Institute of Statistics and Geography (INEGI) - the average construction confidence index declined by 2.6% YoY (year on year) in the first five months of 2024; a symptom driven by US bans on Mexico’s new Liquefied Natural Gas (LNG) export terminal in January of 2024. Resultantly, oil and gas production has dramatically dropped. To-date, 9 LNG projects have been cancelled, including the Vista Pacifico Liquified Natural Gas Plant project valued at MXN34.8 billion ($2 billion). According to the INEGI, the volume index of production for oil and gas extraction fell by 3.8% YoY in the first four months of 2024, preceding annual growth of 3% in 2023.

Furthermore, Mexico’s construction industry is expected to register an annual average growth of 2.3% between 2026 and 2028, supported by public-private sector investment in energy, infrastructure, and industrial construction projects. In February of 2024, Woodside - Australian oil company - reported that its oil project, located near the south of Mexico maritime border, received government approval. With an expected investment of MXN125.1 billion ($7.2 billion), the project includes the construction of a floating oil production plant by 2028. In May of 2024, BMW commenced the construction of a battery assembly plant spanning 80,000m2 in San Luis Potosi, holding an investment of MXN13.9 billion ($800 million), and is estimated to complete by 2027. Similarly, in May, Gerdau - Brazilian steel developer - announced plans to develop a steel plant in central Mexico with an estimated investment of MXN10.4 billion ($600 million); construction is expected to commence in 2025.

Scope

This report provides a comprehensive analysis of the construction industry in Mexico. It provides :

  • Historical (2019-2023) and forecast (2024-2028) valuations of the construction industry in Mexico, 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 analyst'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 analyst'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-Glance
3 Context
3.1 Economic Performance
3.2 Political Environment and Policy
3.3 Demographics
3.4 Risk Profile
4 Construction Outlook
4.1 All Construction
  • Outlook
  • Latest news and developments
  • Construction Projects Momentum Index
4.2 Commercial Construction
  • Outlook
  • Project analytics
  • Latest news and developments
4.3 Industrial Construction
  • Outlook
  • Project analytics
  • Latest news and developments
4.4 Infrastructure Construction
  • Outlook
  • Project analytics
  • Latest news and developments
4.5 Energy and Utilities Construction
  • Outlook
  • Project analytics
  • Latest news and developments
4.6 Institutional Construction
  • Outlook
  • Project analytics
  • Latest news and developments
4.7 Residential Construction
  • Outlook
  • Project analytics
  • Latest news and developments
5 Key Industry Participants
5.1 Contractors
5.2 Consultants
6 Construction Market Data
7 Appendix
7.1 What is this Report About?
7.2 Definitions
7.3 CRI Methodology
7.4 the analyst Construction
  • Contact the Publisher
List of Tables
Table 1: Construction Industry Key Data
Table 2: Mexico, Key Economic Indicators
Table 3: Mexico, Commercial Construction Output by Project Type (Real % Change), 2019-28
Table 4: Mexico, Top Commercial Construction Projects by Value
Table 5: Mexico, Industrial Construction Output by Project Type (Real % Change), 2019-28
Table 6: Mexico, Top Industrial Construction Projects by Value
Table 7: Mexico, Infrastructure Construction Output by Project Type (Real % Change), 2019-28
Table 8: Mexico, Top Infrastructure Construction Projects by Value
Table 9: Mexico, Energy and Utilities Construction Output by Project Type (Real % Change), 2019-28
Table 10: Mexico, Top Energy and Utilities Construction Projects by Value
Table 11: Mexico, Institutional Construction Output by Project Type (Real % Change), 2019-28
Table 12: Mexico, Top Institutional Construction Projects by Value
Table 13: Mexico, Residential Construction Output by Project Type (Real % Change), 2019-28
Table 14: Mexico, Top Residential Construction Projects by Value
Table 15: Mexico, Key Contractors
Table 16: Mexico, Key Consultants
Table 17: Mexico, Construction Output Value (Real, $ Million)
Table 18: Mexico, Construction Output Value (Nominal, MXN Billion)
Table 19: the analyst Construction Market Definitions
Table 20: Risk Dimensions
Table 21: Ratings, Scores and Definitions
List of Figures
Figure 1: Latin America, Construction Output (Real % Change), 2022-28
Figure 2: Mexico, Construction Output by Sector (Real % Change), 2022-24 and 2025-28
Figure 3: Mexico, Risk Summary
Figure 4: Mexico, Risk Regional Comparison
Figure 5: Mexico, Construction Output Value (Real, $ Million, 2022 Prices and Exchange Rate), 2019-28
Figure 6: Mexico, Construction Output Value, by Sector (Real, $ Million), 2019-28
Figure 7: Mexico, Construction Value add, 2018 Prices (MXN Billion)
Figure 8: Mexico, Construction Confidence Index, In Seasonally Adjusted Terms
Figure 9: Mexico, Gross Fixed Investment Index (2018=100)
Figure 10: Mexico, Construction Production Volume Index (2013=100)
Figure 11: Mexico, Construction Projects Momentum Index
Figure 12: Latin America, Construction Projects Momentum Index
Figure 13: Mexico, Commercial Construction Output by Project Type (Real, $ Million), 2019-28
Figure 14: Mexico, Commercial Construction Projects Pipeline, Value by Stage ($ Million)
Figure 15: Mexico, Total International Tourist Arrivals (In Thousands)
Figure 16: Mexico, Wholesale and Retail Trade Value Add (MXN Billion, 2018 Prices)
Figure 17: Mexico, Value add of Artistic, Cultural, Sports and Other Related Activities (MXN Billion, 2018 Prices)
Figure 18: Mexico, Commercial Trade Confidence Index, In Seasonally Adjusted Terms
Figure 19: Mexico, Industrial Construction Output by Project Type (Real, $ Million), 2019-28
Figure 20: Mexico, Industrial Construction Projects Pipeline, Value by Stage ($ Million)
Figure 21: Mexico, Manufacturing Value Add (MXN Billion, 2018 Prices)
Figure 22: Mexico, Manufacturing Orders Indicator (IPM), In Seasonally Adjusted Terms
Figure 23: Mexico, Manufacturing Confidence Index, In Seasonally Adjusted Terms
Figure 24: Mexico, Total Merchandise Exports ($ Billion)
Figure 25: Mexico, Infrastructure Construction Output by Project Type (Real, $ Million), 2019-28
Figure 26: Mexico, Infrastructure Construction Projects Pipeline, Value by Stage ($ Million)
Figure 27: Mexico, Construction Production Volume Index for Civil Engineering Activities (2018=100)
Figure 28: Mexico, Value Add of Civil Engineering Activities, In 2018 Prices, In MXN Billion
Figure 29: Mexico, Energy and Utilities Construction Output by Project Type (Real, $ Million), 2019-28
Figure 30: Mexico, Energy and Utilities Construction Projects Pipeline, Value by Stage ($ Million)
Figure 31: Mexico, Generation, Transmission and Distribution of Electrical Energy Value Add (MXN Billion, 2018 Prices)
Figure 32: Mexico, Telecommunications Value Add (MXN Billion, 2018 Prices)
Figure 33: Mexico, Production Volume Index for Oil and Gas Extraction (2018=100)
Figure 34: Mexico, Institutional Construction Output by Project Type (Real, $ Million), 2019-28
Figure 35: Mexico, Institutional Construction Projects Pipeline, Value by Stage ($ Million)
Figure 36: Mexico, Value Add of Education, Health, and Social Care Services, 2018 Prices, % Change YoY
Figure 37: Mexico, Residential Construction Output by Project Type (Real, $ Million), 2019-28
Figure 38: Mexico, Residential Construction Projects Pipeline, Value by Stage ($ Million)
Figure 39: Mexico, Real Estate Services Value Add (MXN Billion, 2018 Prices)
Figure 40: Mexico, House Price Index (2017=100)
Figure 41: Mexico, Gross Fixed Investment on Residential Buildings, 2018=100
Figure 42: Mexico, Headquarters of Key Contractors (% of Total Project Pipeline)
Figure 43: Mexico, Headquarters of Key Consultants (% of Total Project Pipeline)