Construction in Mexico-Key Trends and Opportunities to 2022
Mexico's construction industry suffered a downturn in 2017, contracting by 2.4% in real terms that year, following an average annual growth of 1.7% during 2014-2016.
The industry is expected to expand over the forecast period (2018-2022), supported by government efforts to develop the country's transport infrastructure, as well as the energy and utilities sectors. Under the National Plan 2018-2024, the new government, led by Andres Manuel Lopez Obrador (AMLO), seeks to attract more private investment to finance construction projects. The government also plans to develop the tourism sector and reconstruct earthquake damages.
The industry's output value in real terms is expected to rise at a compound annual growth rate (CAGR) of 2.75% over the forecast period, compared to 0.61% during the review period (2013-2017).
GlobalData's "Construction in Mexico-Key Trends and Opportunities to 2022", 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.
- GlobalData expects the infrastructure construction market to retain its leading position over the forecast period, and account for 28.2% of the industry's total value in 2022. Over the forecast period, the market's growth will be driven by the government's focus to develop the country's road infrastructure. Under the National Plan 2018-2024, the government aims to develop, modernize and maintain the country's road network by 2024. The government also plans to invest MXN132.6 billion (USD 7.0 billion) through public private partnership to develop and maintain toll free roads.
- Forecast-period growth in the energy and utilities construction market will be driven by the government's plan to increase the share of renewable energy in terms of total energy mix, and encourage investment in renewable energy infrastructure projects. The government aims to generate 35% of the electricity from clean energy sources by 2024. It plans to attract MXN45.4 billion (USD 2.4 billion) of investment in renewable energy projects by 2020-2021.
- GlobalData expects the residential construction market to register a forecast-period CAGR of 10.71% in nominal terms, driven by the government's focus to address the country's housing deficit and reconstruct damaged properties by the earthquakes. The country's growing population and urbanization is also expected to support the market's growth. In order to reduce the housing deficit and to promote the construction of new social housing in the country, the government passed the new housing law in December 2016. Moreover, in 2017, the government announced plans to build 20,000 low-cost housing units in the Mexico City with a total estimated investment of MXN26.0 billion (USD 1.2 billion).
- Forecast-period growth in the commercial construction market will be driven by public and private sector investments in the leisure and hospitality sector. In 2017, the Mexican tourism ministry announced plans to invest MXN15.4 billion (USD 816.0 million) to develop tourism-related infrastructure in the state of Quintana Roo. Moreover, in July 2018, Apple Leisure Group announced plans to invest an estimated MXN19.1 billion (USD 1.0 billion) in building six new hotels and resorts in Quintana Roo, which will add 2,000 rooms to the tourism sector by 2020-2021.
- The total construction project pipeline in Mexico-as tracked by GlobalData, and including all mega projects with a value above USD 25 million-stands at MXN3.3 trillion (USD 176.5 billion). The pipeline, which includes all projects from pre-planning to execution, is skewed towards late-stage projects, with 64.2% of the project pipeline by value being in the pre-execution and execution stages as of January 2019.
This report provides a comprehensive analysis of the construction industry in Mexico. It provides-
- Historical (2013-2017) and forecast (2018-2022) 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 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
1. EXECUTIVE SUMMARY 2
2. CONSTRUCTION OUTLOOK: AT-A-GLANCE 3
3. LATEST NEWS AND INDICATORS 9
4. KEY DRIVERS AND RISKS 11
4.1. Economic Performance 11
4.2. Political Environment 11
4.3. Demographics 12
4.4. Risk Profile 13
5. CONSTRUCTION OUTLOOK 14
5.1. All Construction 14
5.1.1. Outlook 14
5.1.2. Project analytics 16
5.2. Commercial Construction 19
5.2.1. Outlook 19
5.2.2. Project analytics 21
5.3. Industrial Construction 23
5.3.1. Outlook 23
5.3.2. Project analytics 25
5.4. Infrastructure Construction 27
5.4.1. Outlook 27
5.4.2. Project analytics 29
5.5. Energy and Utilities Construction 31
5.5.1. Outlook 31
5.5.2. Project analytics 33
5.6. Institutional Construction 35
5.6.1. Outlook 35
5.6.2. Project analytics 37
5.7. Residential Construction 39
5.7.1. Outlook 39
5.7.2. Project analytics 41
6. KEY INDUSTRY PARTICIPANTS 43
6.1. Contractors 43
6.2. Consultants 45
7. APPENDIX 47
7.1. What is this Report About? 47
7.2. Definitions 47
8. ABOUT GLOBALDATA 51
8.1. GlobalData at a Glance 51
8.2. GlobalData Construction 52
8.3. Disclaimer 53
8.4. Contact Us 53
List of Figures
Figure 1: Key Markets, Construction Output Growth Matrix and Risk Matrix 3
Figure 2: Mexico, Construction Projects Pipeline by Sector (MXN Billion) 3
Figure 3: Gross Fixed Capital Formation (MXN Billion) 9
Figure 4: Mexico, Risk Review 13
Figure 5: Mexico, Risk Comparison 13
Figure 6: Mexico, Construction Output Value (Real, USD billion, 2017 prices and exchange rate) 14
Figure 7: Mexico, Construction Output Value, Growth Matrix 15
Figure 8: Mexico, Construction Output Value, by Sector (MXN Billion), 2013-2022 15
Figure 9: Mexico, Construction Projects Pipeline, Projected Annual Spending by Stage (MXN Billion), 2017-2022 16
Figure 10: Mexico, Construction Projects Pipeline, Value by Stage (MXN Billion) 16
Figure 11: Mexico, Commercial Construction Output by Project Type (MXN Billion), 2013-2022 20
Figure 12: Mexico, Commercial Construction Projects Pipeline, Value by Stage (MXN Billion) 21
Figure 13: Mexico, Commercial Construction Projects Pipeline, Projected Annual Spending by Stage (MXN Billion) 22
Figure 14: Mexico, Industrial Construction Output by Project Type (MXN Billion), 2013-2022 24
Figure 15: Mexico, Industrial Construction Projects Pipeline, Value by Stage (MXN Billion) 25
Figure 16: Mexico, Industrial Construction Projects Pipeline, Projected Annual Spending by Stage (MXN Billion) 25
Figure 17: Mexico, Infrastructure Construction Output by Project Type (MXN Billion), 2013-2022 28
Figure 18: Mexico, Infrastructure Construction Projects Pipeline, Value by Stage (MXN Billion) 29
Figure 19: Mexico, Infrastructure Construction Projects Pipeline, Projected Annual Spending by Stage (MXN Billion) 30
Figure 20: Mexico, Energy and Utilities Construction Output by Project Type (MXN Billion), 2013-2022 32
Figure 21: Mexico, Energy and Utilities Construction Projects Pipeline, Value by Stage (MXN Billion) 33
Figure 22: Mexico, Energy and Utilities Construction Projects Pipeline, Projected Annual Spending by Stage (MXN Billion) 34
Figure 23: Mexico, Institutional Construction Output by Project Type (MXN Billion), 2013-2022 36
Figure 24: Mexico, Institutional Construction Projects Pipeline, Value by Stage (MXN Billion) 37
Figure 25: Mexico, Institutional Construction Projects Pipeline, Projected Annual Spending by Stage (MXN Billion) 38
Figure 26: Mexico, Residential Construction Output by Project Type (MXN Billion), 2013-2022 40
Figure 27: Mexico, Residential Construction Projects Pipeline, Value by Stage (MXN Billion) 41
Figure 28: Mexico, Residential Construction Projects Pipeline, Projected Annual Spending by Stage (MXN Billion) 42
Figure 29: Mexico, Headquarters of Key Contractors (% of Total Project Pipeline) 44
Figure 30: Mexico, Headquarters of Foreign Contractors (% of Project Pipeline with Foreign Contractor) 44
Figure 31: Mexico, Headquarters of Key Consultants (% of Total Project Pipeline) 46
Figure 32: Mexico, Headquarters of Foreign Consultants (% of Project Pipeline with Foreign Consultants) 46
List of Tables
Table 1: Construction Outlook 3
Table 2: Mexico, Key Economic Indicators 11
Table 3: Mexico, Construction Output Value (nominal, MXN Billion) 17
Table 4: Mexico, Construction Output Value (nominal, USD Million) 18
Table 5: Mexico, Top Commercial Construction Projects by Value 22
Table 6: Mexico, Top Industrial Construction Projects by Value 26
Table 7: Mexico, Top Infrastructure Construction Projects by Value 30
Table 8: Mexico, Top Energy and Utilities Construction Projects by Value 34
Table 9: Mexico, Top Institutional Construction Projects by Value 38
Table 10: Mexico, Top Residential and Mixed-Use Construction Projects by Value 42
Table 11: Mexico, Key Contractors 43
Table 12: Mexico, Key Consultants 45
Table 13: GlobalData Construction Market Definitions 48
Table 14: Construction Risk Index Ratings and Scores 50
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