Latin America’s industrial construction pipeline is valued at $267.5bn, with Brazil accounting for the largest share – 43.8% – equivalent to $117.2bn. Chile follows with $63bn, while Mexico’s pipeline totals $38.6bn.
Much of Latin America’s recent investment has been concentrated in primary industries. In February 2025, the Brazilian Mining Association (IBRAM), a private non-profit, announced that Brazil’s mining sector is expected to attract $64.4bn in investments between 2025 and 2028. The month prior, Brazil’s National Bank for Economic and Social Development (BNDES) and Finep – an agency under the Ministry of Science and Technology – unveiled a $922.9m package to fast-track strategic mineral projects focused on lithium, rare earth elements, nickel, graphite and silicon. This initiative is designed to strengthen Brazil’s critical minerals supply chain, foster domestic and international partnerships and align with the country’s industrial and ecological transition strategies – cementing its role in the global clean energy shift.
In March 2025, the Brazilian government also committed $276.9bn to expand steel production facilities nationwide, aiming to raise annual output by 250,000t.
Mexico’s construction sector is forecast to contract by 5.9% in 2025 due to 25% bilateral tariffs, currency depreciation, high material costs and weakening investor confidence – a trend compounded by the end of the 90-day trade pause with the US. Across the wider region, investment remains constrained by fiscal tightening and inflationary pressures.
Nonetheless, certain markets are bucking the trend. Ecuador and Peru are both expected to grow by 3.8% in 2025, supported by infrastructure, industrial, energy and utilities projects. Peru’s construction sector is underpinned by a $64.1bn mining pipeline and infrastructure upgrades. In Colombia, progress on projects such as the Bogotá Metro is helping offset challenges from a high fiscal deficit and political uncertainty.
By contrast, Bolivia faces a sharp downturn, with collapsing construction permits, soaring material costs, and macroeconomic instability driving a steep contraction. While short-term volatility remains high across the region, targeted infrastructure, industrial and energy investments – combined with looser monetary policy to stimulate the economy – are creating pockets of growth in an otherwise constrained fiscal environment.
- GlobalData is tracking $267.5bn worth of industrial construction projects across Latin America, with early stage developments dominating – 78.3% (by value) are in preplanning or planning phases.
- Private capital drives most of the market in Latin America, funding 84.9% of projects by value. Public-private partnerships account for 9.1%, while the public sector funds the remaining 6%.
- The largest project in the region’s industrial pipeline is the $16bn H2 Magallanes Plant Development. This includes a hydrogen plant with an annual capacity of 800,000t of H2, an ammonia facility capable of producing 4.4 million tonnes of NH3 annually, and related infrastructure.
