Latin America Commercial Construction Market Report and Forecast 2024-2032

According to the report, the Latin America commercial construction market size reached a value of USD 255.00 billion in 2023. Aided by the rising investments in infrastructure and increasing demand for commercial spaces, the market is projected to further grow at a CAGR of 3.8% between 2024 and 2032 to reach a value of USD 359.81 billion by 2032.

The Latin America commercial construction market growth is driven by the rising demand for commercial spaces across key sectors, such as retail, healthcare, hospitality, and office infrastructure. Major urban centres like São Paulo, Mexico City, and Buenos Aires are hubs of commercial activity, where multinational corporations, financial institutions, and local businesses are increasingly seeking modern and efficient office environments. This escalating demand drives the construction of new office buildings and retail spaces while also spurring the renovation of existing structures.

The steady rise in urbanisation and population growth across the region is significantly influencing commercial construction. With Latin America's urban population expected to grow exponentially in the coming years, the demand for infrastructure will continue to rise, particularly in cities with emerging business environments, consequently driving up the Latin America commercial construction market share.

The favourable investment climate in various Latin American countries has attracted foreign investors seeking opportunities in real estate. Government incentives and policies encouraging foreign investment have contributed to the growth of the commercial construction market.

Tourism is a crucial driver in many Latin American economies, with cities like Cancun, Rio de Janeiro, and Buenos Aires being popular tourist destinations. The growth of the tourism sector necessitates the expansion of the hospitality sector, leading to the construction of new hotels and resorts and refurbishing existing ones.

The retail sector is rapidly expanding across the region, with international brands and local businesses opening new stores and retail outlets. This has increased the demand for modern retail spaces, particularly in large shopping centres and malls.

The adoption of smart building technologies is becoming increasingly common in the commercial construction sector. Building management systems, IoT-enabled devices, and energy-efficient solutions are being integrated into new constructions and renovation projects, leading to Latin America commercial construction market development. Additionally, green certifications and environmentally friendly building practices are gaining prominence across the region.

Modular construction is increasingly being adopted to reduce costs and improve efficiency. Prefabricated modules allow for quicker assembly and lower construction waste. Additionally, with the growing impacts of climate change, resilient infrastructure is gaining importance. Commercial buildings are being designed to withstand extreme weather conditions and natural disasters.

The market is expected to witness a substantial share from the transportation sector. This can be attributed to the governments in the region making significant investments to improve railways, roadways, and air transportation systems, thereby enhancing the urban transportation sector and fostering economic growth. Additionally, the influx of international tourists is also contributing to the growth of this segment.

As per the Latin America commercial construction market analysis, Brazil, the largest market in Latin America, is witnessing rapid urbanisation and significant investments in infrastructure. Its commercial construction sector is expected to remain buoyant due to a surge in retail and office space demand. Mexico is another key market, primarily driven by a strong manufacturing sector and its proximity to the United States. The hospitality and retail sectors are also growing steadily.

Despite economic challenges, Argentina's commercial construction market is picking up pace due to rising investments in retail spaces and hospitality projects. The country's political stability and favourable economic policies are attracting significant foreign investments, particularly in office spaces and retail infrastructure.

Market Segmentation

The market can be divided based on the end use and region

Market Breakup by End Use

• Government
• Civil Infrastructure
• Transportation
• Retail
• Hospitality
• Healthcare
• Education
• Offices
• Data Centres
• Amusement and Recreation
• Others

Market Breakup by Region

• Central America
• South America
• Caribbean

Competitive Landscape

The report looks into the market shares, plant turnarounds, capacities, investments, and mergers and acquisitions, among other major developments, of the leading companies operating in Latin America commercial construction market. Some of the major players explored in the report are as follows:

• Sigdo Koppers S.A.
• SACYR S.A.
• Grupo Galas, S.A.
• Techint E&C S.A
• Aenza
• Salfacorp S.A.
• Mota-Engil Group
• Hogares Eden, S.A. de C.V.
• Constructora VDZ SpA
• Others