MERCOSUR: Public Works Machinery Market 2024

Public Works Machinery Market Size in MERCOSUR

In 2021, after two years of decline, there was significant growth in the MERCOSUR public works machinery market, when its value increased by 93% to $X. In general, consumption, however, continues to indicate a pronounced setback. The level of consumption peaked at $X in 2012; however, from 2013 to 2021, consumption failed to regain momentum.

Public Works Machinery Production in MERCOSUR

In value terms, public works machinery production soared to $X in 2021 estimated in export price. Over the period under review, production enjoyed a strong increase. The pace of growth was the most pronounced in 2016 with an increase of 134% against the previous year. The level of production peaked at $X in 2018; however, from 2019 to 2021, production stood at a somewhat lower figure.

Public Works Machinery Exports

Exports in MERCOSUR

In 2021, overseas shipments of machinery for public works and building increased by 1.9% to X units, rising for the second year in a row after four years of decline. Over the period under review, exports, however, saw a abrupt descent. The pace of growth was the most pronounced in 2015 with an increase of 101%. As a result, the exports attained the peak of X units. From 2016 to 2021, the growth of the exports remained at a somewhat lower figure.

In value terms, public works machinery exports shrank remarkably to $X in 2021. In general, exports, however, showed a abrupt contraction. The most prominent rate of growth was recorded in 2017 when exports increased by 22% against the previous year. As a result, the exports reached the peak of $X. From 2018 to 2021, the growth of the exports failed to regain momentum.

Exports by Country

Brazil prevails in exports structure, reaching X units, which was near 91% of total exports in 2021. The following exporters - Chile (X units) and Paraguay (X units) - together made up 5.8% of total exports.

Exports from Brazil decreased at an average annual rate of -10.2% from 2012 to 2021. Paraguay and Chile experienced a relatively flat trend pattern. While the share of Chile (+2.5 p.p.) increased significantly, the shares of the other countries remained relatively stable throughout the analyzed period.

In value terms, Brazil ($X) remains the largest public works machinery supplier in MERCOSUR, comprising 44% of total exports. The second position in the ranking was taken by Chile ($X), with a 22% share of total exports.

From 2012 to 2021, the average annual growth rate of value in Brazil totaled +2.1%. In the other countries, the average annual rates were as follows: Chile (-5.8% per year) and Paraguay (-18.6% per year).

Export Prices by Country

The export price in MERCOSUR stood at $X per unit in 2021, shrinking by -25.9% against the previous year. Overall, the export price, however, continues to indicate a pronounced increase. The pace of growth was the most pronounced in 2017 an increase of 119%. Over the period under review, the export prices reached the peak figure at $X per unit in 2019; however, from 2020 to 2021, the export prices failed to regain momentum.

Prices varied noticeably by country of origin: amid the top suppliers, the country with the highest price was Chile ($X per unit), while Brazil ($X per unit) was amongst the lowest.

From 2012 to 2021, the most notable rate of growth in terms of prices was attained by Brazil (+13.7%), while the other leaders experienced a decline in the export price figures.

Public Works Machinery Imports

Imports in MERCOSUR

In 2021, purchases abroad of machinery for public works and building was finally on the rise to reach X units for the first time since 2018, thus ending a two-year declining trend. Overall, imports continue to indicate modest growth. Over the period under review, imports reached the peak figure at X units in 2014; however, from 2015 to 2021, imports stood at a somewhat lower figure.

In value terms, public works machinery imports skyrocketed to $X in 2021. Over the period under review, imports, however, saw a abrupt curtailment. Over the period under review, imports reached the maximum at $X in 2012; however, from 2013 to 2021, imports remained at a lower figure.

Imports by Country

In 2021, Brazil (X units) was the main importer of machinery for public works and building, generating 46% of total imports. Chile (X units) took the second position in the ranking, followed by Peru (X units) and Argentina (X units). All these countries together took near 44% share of total imports. The following importers - Colombia (X units), Paraguay (X units) and Ecuador (X units) - together made up 7.7% of total imports.

Brazil experienced a relatively flat trend pattern with regard to volume of imports of machinery for public works and building. At the same time, Peru (+16.0%), Argentina (+9.2%), Paraguay (+4.8%), Chile (+4.1%) and Ecuador (+2.7%) displayed positive paces of growth. Moreover, Peru emerged as the fastest-growing importer imported in MERCOSUR, with a CAGR of +16.0% from 2012-2021. By contrast, Colombia (-10.4%) illustrated a downward trend over the same period. While the share of Peru (+10 p.p.), Argentina (+5.3 p.p.) and Chile (+4 p.p.) increased significantly in terms of the total imports from 2012-2021, the share of Colombia (-5.5 p.p.) and Brazil (-6.8 p.p.) displayed negative dynamics. The shares of the other countries remained relatively stable throughout the analyzed period.

In value terms, the largest public works machinery importing markets in MERCOSUR were Chile ($X), Peru ($X) and Colombia ($X), together comprising 59% of total imports. Argentina, Brazil, Ecuador and Paraguay lagged somewhat behind, together comprising a further 35%.

Paraguay, with a CAGR of +14.0%, saw the highest rates of growth with regard to the value of imports, in terms of the main importing countries over the period under review, while purchases for the other leaders experienced more modest paces of growth.

Import Prices by Country

In 2021, the import price in MERCOSUR amounted to $X per unit, with an increase of 7.9% against the previous year. Over the period under review, the import price, however, showed a abrupt shrinkage. The pace of growth was the most pronounced in 2015 when the import price increased by 65% against the previous year. Over the period under review, import prices attained the peak figure at $X per unit in 2012; however, from 2013 to 2021, import prices failed to regain momentum.

Prices varied noticeably by country of destination: amid the top importers, the country with the highest price was Colombia ($X per unit), while Brazil ($X per unit) was amongst the lowest.

From 2012 to 2021, the most notable rate of growth in terms of prices was attained by Paraguay (+8.8%), while the other leaders experienced a decline in the import price figures.

Source: IndexBox Platform