In the modern wave of
industrialization pertaining to lightweight automotive, complex designed and energy-efficient
infrastructures, and convenient packaging for various logistics owing to
rampant e-commerce, numerous
adjacent industries across the global market has leveraged such
developments, and generated wholesome revenue. According to latest business intelligence report
by IndustyARC, Latin America adhesives market is gaining substantial traction
owing to wide range of applications of adhesives
in automotive, construction, marine, aviation, energy, and electronics industries. Large scope of
application is set to drive the market size as $5.4 billion by 2023 and volume
of production is calculated to escalate from 1,043 KT in 2018 to 1,268 by 2023.
As quoted by the analyst, “In Latin America adhesives market, Brazil,
Mexico and Argentina are the frontrunners in application of adhesives. Mexico
is leading owing
to its export value of automotive followed by ongoing construction and
refurbishment projects. Rapidly growing flexible packaging industry in Latin America is also a disruptive
force aiding the growth of packaging adhesives.” All these factors have influenced the market
to be progressing at a CAGR of 3.87% during the forecast period 2018-2023.
The report is titled,
“Latin America Adhesives Market: By Raw Materials (Natural, semi synthetic and
synthetic); By Type (Structural adhesives, pressure sensitive adhesives,
reactive adhesives); By Component (one component, two component); By
Formulation (water based, solvent based, radiation cured, hot melt based,
solvent less, others); By Substrate (polymer, composites, metals, wood,
others); By End Use (automotive and transportation, industrial assembly,
packaging and paper, building, construction and furniture) & By Country -
Forecast (2018-2023).” The report comprises of forecast of market size, an overview of competitive structure, market
share of competitors, recent trends, demands, drivers, and challenges and
others.
Latin America Adhesives
Market – Leading Segments:
Automotive Industry in
Mexico, Brazil and Argentina to be the Principal Growth Factor –
Economies all over the
globe are bound to reassess their automotive manufactory and R&D to inhibit
the dependency of transportation on petroleum. With OEMs diverting towards
lightweight to diminish carbon footprints and escalate fuel efficiency,
application of plastic in automotive parts has increased, further augmenting
the use of adhesives in automotive. Hence, Mexico with cars, vehicle parts and
trucks as its top 3 export subjects, is a lucrative country in terms of revenue
in Latin America adhesives market. Similarly, delivery trucks are the 4th most exported item from Argentina and cars in Brazil are the
5th most exported product. As
per the OEC (The Observatory of Economic Complexity), in terms of global
exports of cars, Mexico holds the 5th position with
value recorded to be $45.1 billion in 2017. According
to the analyst, Mexico adhesives market will have a revenue of $1.6 billion by
2023.
Analyzing the market in terms of revenue from end-user verticals, Latin America adhesives market is dominated by packaging & paper and, building, construction & furniture industry. Both these industries are in an avid competition to secure the lead with an estimated revenue of $1.4 billion and $1.6 billion respectively by 2023. The dominance of these sectors is attributed to the investments made by China in Latin America in various verticals such as contsruction, transport and energy. According to Americas Quarterly Organization, lending by the China Development Bank and China’s Eximbank to Latin America has remained bigger than lending from the World Bank, Inter-American Development Bank (IDB) and CAF Development Bank of Latin America combined. Previously, as Chinese investors were channeling resources towards construction, modern investors are in pursuit of opportunities in transport, finance, electricity generation and transmission, and alternative energy services.
Latin America Adhesives
Market Growth Drivers and Trends:
· Renewables
Sector Renewing Demand:
Bourgeoning renewable energy sector in Latin America is a major growth driver disrupting the adhesives market, owing to application of adhesives in wind turbines and blades, photovoltaic, solar thermal and concentrating solar power systems. International Renewable Energy Agency is supporting Latin America with several favorable policies such Clean Energy Corridor of Central America (CECCA) and Renewables Readiness Assessment (RRA). Total investment in renewable energy of this region reached almost $120 billion in 2015, with further foreign investors as mentioned earlier, the segment will flourish.
· Monetary Assistance by World’s Economic
Superpowers (China and United States):
Latin America is witnessing a constant influx of
funds and sanctions from elite organizations such as the World Bank,
Inter-American Development Bank (IDB) and CAF Development Bank of Latin
America. Well, the incoming of fund is not just restricted to organizations but
several super economies such as the U.S and China are also investing in Latin
America. For example, for FY 2017, the U.S. Government allocated $1.7 billion
to this region by its State Department and the U.S. Agency for International
Development (USAID). These funds have clearly impacted industrialization,
making room for progress in several sectors such as construction, mining and energy directly
influencing the adhesives market. Several projects funded by China in Latin
America includes, Chauchari solar plant (largest in the region), Space mission
control in Bajada del Agrio, Marcona iron mine and Las Bambas copper mine.
Latin America Adhesives
Market – Competitive Landscape:
Major market players
dealing in adhesives in Latin America are Henkel AG & Co. Avery Dennison,
3M Company, Arkema Group (Bostik), H.B.Fuller Company, DOWDupont Inc., Huntsman
Corporation and Avery dennsion Corporation.
Company Developments-
· H.B Fuller, one
of the foremost participant in the adhesives market acquired Adecol Ind.
Química, Limitada, a manufacturer of quality adhesive technologies in Brazil,
and has strengthened its Latin America adhesive segment, and hence, its
outreach.
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Related Reports:
A. South
America Laminating Adhesives Market
https://industryarc.com/Report/18928/south-america-laminating-adhesives-market
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