Chile Construction Industry Output Forecast to Reach US$53.4 billion by 2017

Date: 03-May-2013
RnRMarketResearch.com now offers the new 2013 report "Construction in Chile – Key Trends and Opportunities to 2017" in its online market research reports library.

The report says the Chilean construction industry increased in value at a CAGR of 5.19% during the review period to reach CLP18 trillion (US$36.1 billion) in 2012. This growth was supported by a rapid inflow in foreign direct investment (FDI), low unemployment, reconstruction and modernization work following the 2010 earthquake, and the country’s favorable demographic situation. There were also significant private and public investments in Chilean commercial, industrial, infrastructural and residential construction projects. The growth of the construction industry is expected to remain strong between 2013 and 2017as a result of the government’s commitment to improve the country’s infrastructure, meet rising demand for residential units, and support the mining industry. The infrastructure and residential construction markets together accounted for 71% of the total Chilean construction industry in 2012, and the contributions of these two markets will be significant to the overall Chilean construction industry growth between 2013 and 2017. Timetric expects the Chilean construction industry’s output to record a CAGR of 8.15% over the forecast period to reach a value of CLP26.7 trillion (US$53.4 billion) by 2017.

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During the period between 2008 and 2012, the commercial construction market in Chile recorded a CAGR of 4.23%, largely due to expansion in the office and retail buildings categories. The market is anticipated to achieve a CAGR of 7.61% between 2013 and 2017, reaching a value of CLP3.1 trillion (US$6.1 billion) in 2017. Continuous healthy economic growth, high levels of FDI, rising disposable incomes and the expanding tourism industry will help to drive commercial construction over the forecast period.

 

The industrial construction market is expected to grow at an impressive rate. Chile’s industrial construction market output recorded a CAGR of 3.48% during the review period, primarily supported by the metal industry, with Chile being a leading producer of copper. The expansion of the mining industry and the manufacturing plants category will support the growth of industrial construction output over the forecast period. Consequently, the industrial construction market is expected to register a CAGR of 7.01% over the forecast period, reaching a value of CLP3.1 trillion (US$6.1 billion) in 2017.

 

Infrastructure construction is the largest market in the Chilean construction industry, accounting for 38.8% of the total industry value in 2012. Increased government investment as well as the participation of the private sector through public-private partnerships (PPPs) has helped to boost infrastructure construction activity. Construction work following the earthquake in 2010 has also aided market growth in recent years. The sector is also set to achieve the fastest growth over the forecast period with a CAGR of 8.70%, as a result of continued government and private investment.

 

Institutional construction is the smallest market in the Chilean construction industry, accounting for 5.2% of the overall industry value in 2012. Owing to increased budget allocations to improve the quality of education and healthcare across the country, the institutional construction market is anticipated to grow at a CAGR of 7.87% over the forecast period, up from 4.53% in the review period, and reach an output value of CLP1.4 trillion (US$2.7 billion) in 2017.

Comprehensive Table of Contents and more on the report @ http://www.rnrmarketresearch.com/construction-in-chile-key-trends-and-opportunities-to-2017-market-report.html.