Infrastructure - Industry - South America Market, Share and Trends 2023-2028

Summary of Infrastructure

The infrastructure industry in South America has seen increasing activity and investments in recent years, although the COVID-19 pandemic did cause certain projects to be delayed or cancelled. Key drivers of infrastructure growth include— rising populations, urbanization trends, integration efforts between countries and increasing government expenditure.

Brazil and Colombia lead infrastructure spending in the region. Major initiatives are underway in transport sectors like highways, railways, ports and airports. Investments in energy generation and distribution infrastructure are also substantial, given the region’s abundant renewable energy resources.

Based on our estimates, we can say that the South American infrastructure industry is forecasted to be a $1767.18 billion industry in 2029 from $1170 billion in 2023 with a CAGR of 6.63 %.

Public-private partnerships are gaining prominence for financing large-scale projects. And sustainability considerations are coming to the forefront with goals to mitigate environmental impact and leverage green technologies.

However—challenges remain in terms of political and economic uncertainties, regulatory complexities as well as shortage of technical skills. Overall, South America is still underinvested in infrastructure compared to other emerging economies.

Targeted policy reforms, transparent procurement mechanisms and adoption of digital technologies can help unlock the region’s tremendous potential. With growing urbanization and rising middle class populations, South America is likely to see continued momentum in infrastructure development.

Recent Trends and Insights

Countries are formulating policies like contract standardization and risk sharing frameworks to attract private investors into public infrastructure projects, especially through Public-Private Partnerships (PPPs). Colombia and Peru lead in PPP adoption.

Governments and funding agencies are emphasizing sustainability standards in infrastructure planning and development, especially for energy, transport and water projects. Environmental and social impact assessments are on the rise.

Digital and automated solutions are being incorporated across various infrastructure sectors to enhance efficiency and resilience. Investments into smart grids, intelligent transport systems and smart cities are rising substantially.

Multilateral initiatives like IIRSA (Initiative for the Integration of the Regional Infrastructure of South America) are driving large-scale transport and energy networks across the continent to enhance connectivity and regional cooperation.

Funding for South American infrastructure from global agencies like World Bank, Inter-American Development Bank as well as development funds from China, Europe and Japan has grown considerably, catalyzing mega projects.

While these highlight the increased prioritization of infrastructure advancement in the region, challenges around political transitions, corruption, high costs and skills shortages persist, requiring concerted efforts to address.

Product Insights

Eco-friendly construction materials like – recycled steel, high-performance concretes, alternative aggregates and composites are being used in green building projects across the region. 3D printing applications are also emerging.

Advancements in smart meters, grid management systems, microgrid solutions with integration of renewable energy and battery storage as well as electric vehicle supporting infrastructure are on the rise in cities and communities across South America.

With water scarcity an urgent concern, the deployment of cutting-edge industrial wastewater treatment systems, seawater desalination solutions, smart irrigation techniques and leak detection technologies is increasing substantially.

South American cities are adopting modern traffic management systems including electronic toll collection, real-time traffic analytics, intelligent transportation system (ITS) solutions and smart parking technology to address congestion and mobility issues.

Automated container port terminals, cargo tracking systems, airport services optimization software as well as sophisticated warehousing and distribution hubs are emerging to enhance freight movement and bolster regional and international trade flows.

The pandemic has also highlighted the need for contactless and automated solutions leading to deployments of touchless access control and remote asset monitoring systems across the region. Overall, South American infrastructure is becoming more technology-driven.

Key Companies

Some major players within this vast domain of industry are

• Sidgo Koppers
• Sacyr
• Carso Infraestructura y Construcción
• Mota-Engil E&C
• Techint Ingeniería y Construcción
• MRV Engenharia
• OAS S.A
• IDEAL,S.A.B. de C.V.
• Cyrela Brazil Realty S.A.
• Andrade Gutierrez S.A.
• Somague-Engenharia

Regional Analysis

While Brazil and Mexico dominate infrastructure investments in Latin America currently, countries like Colombia, Chile, Peru and Argentina are also focusing on accelerating project development.

Brazil accounts for 50% of South America’s infrastructure spending presently. With rising urbanization, key focus areas are: developing metro systems, roads, airports, ports as well as smart cities to improve living standards and connectivity. Energy investments are also substantial.

Colombia outpaces the region in infrastructure growth – it invests 5% of its GDP annually. Major road, rail, port and airport projects are underway, in addition to hydropower, renewable energy investments and drinking water infrastructure to support growth.

Chile’s National Infrastructure Plan outlines US$50 billion investments in highways, tunnels, airports and ports to bolster connectivity. Developing energy infrastructure as well as data centres and telecom networks are also priorities given its stable business climate.

Peru has over US$70 billion worth projects in the pipeline, with opportunities in transport, water, sanitation and energy sectors. Line 2 of the Lima Metro, Chinchero International airport and major port terminal expansions are among key undertakings.

Argentina has lagged historically but is now making concerted efforts to advance infrastructure to revive growth. Key initiatives are centered around pipelines, renewable energy farms, transport networks and logistics infrastructure while adopting PPP models to attract investors.

Market Segmentation

By Type:

• Transportation Infrastructure
• Energy Infrastructure
• Water and Sanitation Infrastructure
• Communication Infrastructure
• Social Infrastructure

By End User:

• Government
• Private Sector
• Public-Private Partnerships (PPP)
• Industrial Sector
• Residential Sector

By Enterprise Size:

• Large Industries
• Small & Medium Industries

By Countries:

• Brazil
• Argentina
• Columbia

Our Methodology

We have offered a well-founded review of the South American regional Infrastructure Industry market along with ongoing trends and upcoming projections to highlight proximate investment opportunities in this report. Moreover, an extensive analysis of any future prospects, challenges, competitors, or navigating aspects is also provided. A methodical detailed regional examination is presented.

Primary Research  

Our multi-pronged research approach includes interviews with industry leaders and a global survey of advanced manufacturing professionals to gain qualitative insights. We utilize our proprietary databases encompassing key performance indicators worldwide in order to collate relevant data points. A multivariate forecasting framework considering historical performance, current dynamics and qualitative factors are utilized to develop market sizing and growth projections through 2029.

We supplement our primary research with a careful examination of secondary materials such as– case studies, news stories and references from other sources. Organizations can benefit from the strategic advice and conclusions offered because they will be better equipped to respond to the dynamic nature of this industry and seize emerging possibilities.

We employ a comprehensive and iterative research methodology focused on minimizing deviation to provide the most accurate market estimates. Our research utilizes a combination of bottom-up and top-down approaches across segments and utilizes databases, primary research insights and industry experts for analysis.

Raw data is obtained from multiple sources and thoroughly filtered to ensure only authenticated and validated sources are considered. We collect data from raw material suppliers, industry associations, technology providers, and buyers to gain a holistic perspective.

Quantitative Analysis

Our market estimates are derived through statistical models, beginning with collection of historical data and analysis of macro- and micro-economic factors influencing the market. Gathered information on market dynamics, technology and pricing trends are utilised to build the models.

Econometric and technological models are applied to project short- and long-term market potential respectively. A bottom-up approach is preferred to minimize errors. Key parameters considered include market drivers and restraints, material pricing trends, regulatory scenarios, and capacity additions.

Weights are assigned to these parameters based on impact analysis and market forecasting is performed via statistical tools and techniques. We believe this methodology results in an accurate and realistic market picture.