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Home > Construction >  Construction in Chile – Key Trends and Opportunities to 2025 (H2 2021)

Construction in Chile – Key Trends and Opportunities to 2025 (H2 2021)

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.

GlobalData 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.

GlobalData’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 GlobalData'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 GlobalData's critical and actionable insight.

– Assess business risks, including cost, regulatory and competitive pressures.

– Evaluate competitive risk and success factors.

Table of Contents

Table of Contents

1 Executive Summary

2 Construction Industry: At-a-Glance

3 Context

3.1 Economic Performance

3.2 Political Environment and Policy

3.3 Demographics

3.4 COVID-19 Status

3.5 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 GlobalData Construction

Contact Us

List of Tables

List of Tables

Table 1: Construction Industry Key Data

Table 2: Chile, Key Economic Indicators

Table 3: Chile, Commercial Construction Output by Project Type (Real % Change), 2016-2025

Table 4: Chile, Top Commercial Construction Projects by Value

Table 5: Chile, Industrial Construction Output by Project Type (Real % Change), 2016-2025

Table 6: Chile, Top Industrial Construction Projects by Value

Table 7: Chile, Infrastructure Construction Output by Project Type (Real % Change), 2016-2025

Table 8: Chile, Top Infrastructure Construction Projects by Value

Table 9: Chile, Energy and Utilities Construction Output by Project Type (Real % Change), 2016-2025

Table 10: Chile, Top Energy and Utilities Construction Projects by Value

Table 11: Chile, Institutional Construction Output by Project Type (Real % Change), 2016-2025

Table 12: Chile, Top Institutional Construction Projects by Value

Table 13: Chile, Residential Construction Output by Project Type (Real % Change), 2016-2025

Table 14: Chile, Top Residential Construction Projects by Value

Table 15: Chile, Key Contractors

Table 16: Chile, Key Consultants

Table 17: Chile, Construction Output Value (Real, US$ Million)

Table 18: Chile, Construction Output Value (Nominal, CLP Billion)

Table 19: GlobalData Construction Market Definitions

Table 20: Risk Dimensions

Table 21: Ratings, Scores and Definitions

List of Figures

List of Figures

Figure 1: South and Central America, Construction Output (Real % Change), 2020 and 2021

Figure 2: Chile, Construction Projects Pipeline by Sector (US$ Billion)

Figure 3: Chile, COVID-19 Confirmed Cases

Figure 4: Chile, Risk Summary

Figure 5: Chile, Risk Regional Comparison

Figure 6: Chile, Construction Output Value (Real, US$ Billion, 2017 Prices and Exchange Rate), 2016-2025

Figure 7: Chile, Construction Output Value, by Sector (Real, US$ Million), 2016-2025

Figure 8: Chile, Construction Value Add, Constant 2013 Prices (CLP Billion, % Change YoY)

Figure 9: Chile, Gross Fixed Capital Formation, Constant 2013 Prices, % Change YoY

Figure 10: Chile, Number of Workers in the Construction Sector (In Thousands, % Change YoY)

Figure 11: Chile, Total Area of New Building Permits Issued, % Change YoY

Figure 12: Chile, IMACEC Economic Activity Index (2013=100, % Change YoY)

Figure 13: Chile, Construction Projects Momentum Index

Figure 14: South and Central America, Construction Projects Momentum Index

Figure 15: Chile, Commercial Construction Output by Project Type (Real, US$ Million), 2016-2025

Figure 16: Chile, Commercial Construction Projects Pipeline, Value by Stage (US$ Million)

Figure 17: Chile, IMACEC Economic Activity Index in the Restaurants and Hotels Sector (2013=100, % Change YoY)

Figure 18: Chile, Retail Trade Activity Index (2014=100)

Figure 19: Chile, Foreign Tourist Arrivals (In Thousands)

Figure 20: Chile, Industrial Construction Output by Project Type (Real, US$ Million), 2016-2025

Figure 21: Chile, Industrial Construction Projects Pipeline, Value by Stage (US$ Million)

Figure 22: Chile, Industrial and Manufacturing Production Indices (2014=100, % Change YoY)

Figure 23: Chile, Mining Production Indices (2014=100, % Change YoY)

Figure 24: Chile, Copper Production (In Thousand Tons, % Change YoY)

Figure 25: Chile, Exports, % Change YoY

Figure 26: Chile, Infrastructure Construction Output by Project Type (Real, US$ Million), 2016-2025

Figure 27: Chile, Infrastructure Construction Projects Pipeline, Value by Stage (US$ Million)

Figure 28: Chile, Energy and Utilities Construction Output by Project Type (Real, US$ Million), 2016-2025

Figure 29: Chile, Energy and Utilities Construction Projects Pipeline, Value by Stage (US$ Million)

Figure 30: Chile, Institutional Construction Output by Project Type (Real, US$ Million), 2016-2025

Figure 31: Chile, Institutional Construction Projects Pipeline, Value by Stage (US$ Million)

Figure 32: Chile, Residential Construction Output by Project Type (Real, US$ Million), 2016-2025

Figure 33: Chile, Residential Construction Projects Pipeline, Value by Stage (US$ Million)

Figure 34: Chile, Residential Building Permits, % Change YoY

Figure 35: Chile, Housing Sales, % Change YoY

Figure 36: Chile, Real Housing Price Index, 2004=100, % Change YoY

Figure 37: Chile, Headquarters of Key Contractors (% of Total Project Pipeline)

Figure 38: Chile, Headquarters of Key Consultants (% of Total Project Pipeline)

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