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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 (Q4 2024)

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    Report

  • 52 Pages
  • December 2024
  • Region: Mexico
  • GlobalData
  • ID: 5767965

The Construction in Mexico - Key Trends and Opportunities to 2028 (Q4 2024) report provides detailed market analysis, information and insights into the Mexican construction industry, including:

  • The Mexican 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 Mexican construction industry
  • Analysis of the mega-project pipeline, focusing on development stages and participants, in addition to listings of major projects in the pipeline
Mexico’s construction industry is estimated to have expanded by 4.1% in 2024, supported by investment in building activities, particularly in residential and infrastructure sectors. According to Mexico's National Institute of Statistics and Geography (INEGI), the volume index of construction production in Mexico grew by 6.3% year-on-year (YoY) in the first nine months of 2024, owing to YoY growths in buildings (8.4%), civil engineering works (2.3%), and specialised construction activities (0.8%).

However, the industry is expected to face challenges in 2025, forecasted to shrink by 7.1%. This weakness is attributed to headwinds such as political uncertainty amid precarious US-Mexican relations, fiscal consolidation, depreciation of the local currency (Mexican Peso - MXN), and high construction costs. Mexico's Chamber of Deputies approved the 2025 Federal Expenditure Budget (PEF) in mid-December 2024. The budget includes an allocation of MXN9.3 trillion ($535.1 billion) for 2025 - marking a 1.9% fall in real terms, compared to 2024. The proposed budget prioritizes debt service over key sectors like investment, health, and education. Investment spending - both physical (tangible assets) and financial (funds) - is set to decrease by 14% compared to 2024, while funding for the healthcare sector will fall by 11% and that for the education sector will fall by 1.2%, in 2025. Additionally, Donald Trump's re-election as the President of the US threatens renunciation and migration status quos, while spelling uncertainty for Mexican-US trade. For instance, President-elect Trump announced that when he begins his term in January 2025, he will implement 25% tariffs on all imports from Mexico and Canada, unless the two countries comply with US demands.

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 our 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 business strategies 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
  • About the Analyst
  • 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, $ Billion)
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 (2018=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 Prices)
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)