DUBLIN--(BUSINESS WIRE)--The "Mexico Construction Industry Databook Series - Market Size & Forecast by Value and Volume (area and units) across 40+ Market Segments in Residential, Commercial, Industrial, Institutional, Infrastructure Construction and City Level Construction by Value , Q4 2022 Update" report has been added to ResearchAndMarkets.com's offering.
The construction industry in Mexico is expected to grow by 2.7% to reach MXN 2,454,782 million in 2022.
Despite near-term challenges in certain construction sectors, medium to long term growth story in Mexico remains intact. The construction industry in Mexico is expected to grow steadily over the next four quarters. The growth momentum is expected to continue over the forecast period, recording a CAGR of 4.7% during 2022-2026. The construction output in the country is expected to reach MXN 2,698,184.0 million by 2026.
construction industry in Mexico is projected to continue its growth in 2022 after recording steady growth in 2021. The ongoing growth recovery will be supported by construction activities in the infrastructure sector along with improvement in construction confidence. This, coupled with the growing investment from the Mexican government to advance ongoing infrastructure developments, will support industry growth over the next three to four years.
However, the steep increase in prices of construction materials, along with the rising inflation rate, is projected to have an impact on the growth of the industry in the short term.
Notably, over the next few years, the demand for housing units in Mexico is expected to increase substantially, which will drive the growth of the residential construction market. Overall, the publisher maintains a steady growth outlook for the Mexican construction industry from the medium to long-term perspective.
Mexico plans major infrastructure construction investment to jump-start the economy
To jump-start its stagnant economy, Mexico is planning major infrastructure construction investment in partnership with private firms while seeking to attract investment from the United States.
- In February 2022, the Mexican Finance Minister announced that the country is preparing a multi-billion-dollar infrastructure package with private firms. Moreover, Mexico is also seeking to attract investment from the United States, which would otherwise go to China. This is part of the country's strategy to jump-start the economy in Mexico.
- Notably, the public-private investment package will include over 40 construction projects across different sectors, including highways, energy ventures, ports, and telecommunications. The Ministry has also reached out to investors in the United States to put resources in Mexico rather than China. It asked firms in the United States to move operations to Mexico from Asia, as it is closer and would be beneficial to cut supply chain costs.
- In May 2022, the Infrastructure, Communications, and Transport Ministry announced that the public and private sectors are investing at least US$38.6 billion in road and rail infrastructure.
The spending from the government and private companies towards the development and construction of infrastructure projects in Mexico is expected to keep assisting the market growth over the next three to four years.
The growing demand for housing units is projected to assist the growth of the residential sector in Mexico
The demand for new housing units has been on the rise in Mexico. With the number of people living together shrinking and more people moving to urban locations, the demand has surged in Latin American country. This growing demand means that Mexico needs to build more housing units per year.
- According to a report from the Massachusetts Institute of Technology (MIT), Mexico needs to build 800,000 housing units each year to keep up with the growing demand. This is about 3.87% of the total GDP in Mexico. Notably, the report, funded by the Colombian startup La Haus, a residential marketplace to buy and sell new developments, states that a number of houses in Mexico will be replaced over the next three to four years.
This growing demand for residential housing units in Mexico will keep assisting new developments and construction activities, thereby supporting the growth of the overall market from the short to medium-term perspective.
The Mexican construction sector is facing steep price increases in the construction materials
Globally, construction firms have been dealing with rising material prices, and the trend is no different in Mexico. Notably, the price increase in the cost of building materials has resulted in project delays and budget overruns, thereby affecting the recovery of the sector.
- According to the Mexican Chamber of the Construction Industry (CMIC), the cost of building materials, such as rebar, steel, and cement, increased 15% to 25% from December 2021 to April 2022. The ongoing war between Russia and Ukraine has also affected the prices and availability of materials.
The higher prices of these building materials, along with the growing inflation, is projected to have a short-term growth impact on the Mexican construction industry.
Scope
KPIs covered include the following:
- Market size by value
- Market size by volume of construction
- Number of units
Mexico Top Cities Construction Data
Mexico Residential Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by
- Housing type (multi family, single family)
- Key cities (Tier - 1, Tier - 2, Tier - 3 segmentation)
- Price point/income level (luxury, mid-tier, affordable)
- Construction stage (new construction, re-development & maintenance)
Mexico Residential Green Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by
- Green building by Housing type (multi family, single family)
- Green building by Key cities (Tier - 1, Tier - 2, Tier - 3 segmentation)
- Green building by Price point/income level (luxury, mid-tier, affordable)
Mexico Commercial Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by
- Office (further broken down by Grade A, Grade B, and Grade C)
- Retail (further broken down by Grade A, Grade B, and Grade C)
- Hospitality (further broken down by Grade A, Grade B, and Grade C)
- Restaurant (further broken down by Grade A, Grade B, and Grade C)
- Entertainment
- Sports facility
- Construction stage (new construction, re-development & maintenance)
Mexico Commercial Green Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by
- Office green building construction
- Retail green building construction
- Hospitality green building construction
- Restaurant green building construction
- Entertainment green building construction
- Sports facility green building construction
- Other commercial green building construction
Mexico Industrial Green Building Construction Coverage: 10-year market size & forecast in value and volume (area and units)
Mexico Institutional Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by
- Healthcare construction
- Educational construction
- Public sector
- Construction stage (new construction, re-development & maintenance)
Mexico Institutional Green Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by
- Healthcare green building construction
- Educational green building construction
Mexico Infrastructure Construction Sectors: 10- year market size & forecast in value terms by
- Marine and inland water infrastructure
- Utility system construction (oil and gas infrastructure, communication infrastructure, power infrastructure, water and sewer infrastructure)
- Transportation infrastructure (highway, street and bridge construction, railway construction, airport construction, and tunnel construction)
- Construction stage (new construction, re-development & maintenance)
Mexico Green Infrastructure Construction: 10- year market size & forecast in value terms
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