FIFA World Cup 2014 and 2016 Sumer Olympics is driving the Brazil construction market
Mumbai, India - July 07, 2014 - The Brazil construction industry is estimated to grow exponentially in the coming years, owing to the government's initiatives to boost the economy through infrastructural developments. Due to the positive growth outlook of the segment, industry experts have asserted that the market would grow by a CAGR of 9.60% during the period between 2014 and 2018.
This report: Construction in Brazil - Key Trends and Opportunities to 2018 highlights the current market scenario, key market drivers and challenges which thwart the market. It also provides a meaningful insight into the future market outlook and major players of the industry.
Key market drivers
The Brazil construction market is mainly driven by some of the major sporting events being hosted in the country, as a result of which numerous investors have been making large investments seeing this as a lucrative opportunity. Events like FIFA World Cup 2014, as well as the upcoming 2016 Summer Olympics are encouraging several infrastructural projects to be launched in the country, helping the market progress steadily. These events have also provided lucrative opportunities to the Brazilian construction material suppliers, in the form of increased business. Consequently, the output of construction material suppliers of the nation is slated to grow at a rate of 4.5% in 2014.
Key market players
Some of the dominant players of the industry include The CCR Group, Cyrela Brazil Realty SA Empreendimentos e ParticipaÃ?Ã?es, Even Construtora e Incorporadora SA, Odebrecht SA, Andrade Gutierrez SA and several others. With increased market opportunity several other smaller companies are also gaining prominence. One of the leading vendors - Odebrecht SA has been approved the right to construct Peru's second major natural gas pipeline, alongwith Enagas SA (ENG) in 2014. Together, these two companies will be laying over 1000 kilometers of pipeline planned to be built on the Pacific coast, from Camisea gas fields to power plants, contributing considerably to the market growth.
Market challenges
Despite the market witnessing growth, the rising domestic construction costs have posed as a key challenge to the segment. Brazil's National Index of Construction Costs (INCC) has stated that the construction costs rose by about 7.82% in 2013 and have been growing since. Another factor which threatens the market is the lack of efficient technology to produce improved products, unlike its Chinese counterpart which is well-equipped with the most upgraded infrastructural equipments. This is due to the fact that Brazil lacks any foreign players in the market, as a result of which innovation has been slow to penetrate the market, and has been demarcated as one of the greatest challenges that has been slowing down the expansion of the market.
About Research on Brazil
Research on Brazil is a leading source for market research on various sectors globally, offering premium research content from worldwide publishers of market research reports. Our database hosts premium market research content developed by global publishers. It offers premium industry research reports, company profiles and country briefs. We have a dedicated team of research professionals who can facilitate, in an unbiased manner, the process of identifying appropriate market research reports that are targeted to fulfill all your information-related requirements.
Mumbai, India - July 07, 2014 - The Brazil construction industry is estimated to grow exponentially in the coming years, owing to the government's initiatives to boost the economy through infrastructural developments. Due to the positive growth outlook of the segment, industry experts have asserted that the market would grow by a CAGR of 9.60% during the period between 2014 and 2018.
This report: Construction in Brazil - Key Trends and Opportunities to 2018 highlights the current market scenario, key market drivers and challenges which thwart the market. It also provides a meaningful insight into the future market outlook and major players of the industry.
Key market drivers
The Brazil construction market is mainly driven by some of the major sporting events being hosted in the country, as a result of which numerous investors have been making large investments seeing this as a lucrative opportunity. Events like FIFA World Cup 2014, as well as the upcoming 2016 Summer Olympics are encouraging several infrastructural projects to be launched in the country, helping the market progress steadily. These events have also provided lucrative opportunities to the Brazilian construction material suppliers, in the form of increased business. Consequently, the output of construction material suppliers of the nation is slated to grow at a rate of 4.5% in 2014.
Key market players
Some of the dominant players of the industry include The CCR Group, Cyrela Brazil Realty SA Empreendimentos e ParticipaÃ?Ã?es, Even Construtora e Incorporadora SA, Odebrecht SA, Andrade Gutierrez SA and several others. With increased market opportunity several other smaller companies are also gaining prominence. One of the leading vendors - Odebrecht SA has been approved the right to construct Peru's second major natural gas pipeline, alongwith Enagas SA (ENG) in 2014. Together, these two companies will be laying over 1000 kilometers of pipeline planned to be built on the Pacific coast, from Camisea gas fields to power plants, contributing considerably to the market growth.
Market challenges
Despite the market witnessing growth, the rising domestic construction costs have posed as a key challenge to the segment. Brazil's National Index of Construction Costs (INCC) has stated that the construction costs rose by about 7.82% in 2013 and have been growing since. Another factor which threatens the market is the lack of efficient technology to produce improved products, unlike its Chinese counterpart which is well-equipped with the most upgraded infrastructural equipments. This is due to the fact that Brazil lacks any foreign players in the market, as a result of which innovation has been slow to penetrate the market, and has been demarcated as one of the greatest challenges that has been slowing down the expansion of the market.
About Research on Brazil
Research on Brazil is a leading source for market research on various sectors globally, offering premium research content from worldwide publishers of market research reports. Our database hosts premium market research content developed by global publishers. It offers premium industry research reports, company profiles and country briefs. We have a dedicated team of research professionals who can facilitate, in an unbiased manner, the process of identifying appropriate market research reports that are targeted to fulfill all your information-related requirements.
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