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Market Trends of brazil sealants Industry
Supportive government policies for residential projects to aid the construction industry
Brazil's construction industry is projected to register a CAGR of about 4.28% during the forecast period (2022 - 2028). The construction industry registered a weak recovery in 2019 after a continuous decline of Y-o-Y growth for about 20 quarters. The country spends only 2% of its GDP on infrastructure, while the average percentage of GDP countries spend worldwide is 4%. The construction projects did not shut down in most of Brazil's 27 states, including Rio de Janeiro, São Paulo, and Minas Gerais, its three largest economies. An estimated 88% of housing, infrastructure, and industrial building projects remain in progress, according to Brazil’s Building Construction Syndicate. Measures of physical distance and hygiene were adapted at job sites. According to São Paulo city officials, in 2020, 4,000 subsidized housing units linked to the Minha Casa Minha Vida (My House, My Life) housing program were planned for construction on the land and pending the release of funds from the federal government. The government further auctioned 44 infrastructure projects in 2020. Out of the 44 projects, 22 are airports conceded to the private sector. The government aimed to attract USD 24.6 billion in investments in these projects. Moreover, there are several multi-family housing construction projects came into the picture. Projects such as Jundiai Reserva Alta Vista Residential Complex, Nex One Alto da Boa Vista Residential Complex, Itapema Shard Tower Residential Complex, and Indianopolis Ibira Mixed-Use Complex started in 2021 and are expected to complete by 2023. These factors tend to increase the demand for adhesives and sealants in the country.
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Increasing demand for electric vehicles will augment the industry’s growth
Brazil has a GDP of 8,570 USD per capita, with a growth rate of 0.8% Y-o-Y in 2022. The automotive industry sector contributes around 5.5% of the GDP. Brazil is the 8th largest producer of automotive vehicles in the world and the 2nd largest producer in Latin America after Mexico. The vehicle production comprised 76% passenger vehicles, 16% light commercial vehicles, 7% heavy trucks, and 1% buses in 2021. The economic slowdown in the country was observed in 2020 because of the COVID-19 impact. This results in a reduction in vehicles in terms of production, sales, and exports. The production sharply decreased by 31%, and exports decreased by almost 25% in 2020 compared to 2019. The supply chain disruptions, lockdowns in the country, and chip shortage are the major reasons behind this decline in production. Despite these situations, Brazil is able to secure the 8th position in vehicle production in the same year. The company has shown recovery in 2021 and onwards since the economy came back to normal through the regular supply of raw materials, imports and exports, and the opening of lockdowns. The production and exports increased by 10% and 29%, respectively, in 2021 compared to the year 2020. Electric vehicle registrations also increased by 77% in 2021 in Brazil, and it is expected to increase further in the coming years, which shows the future connectivity trend. The production of automobiles is going to increase further due to the investments of multinational automotive manufacturers, such as BMW, Mercedes-Benz, Audi, and Volkswagen, in Brazil.
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OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT
Growing demand for logistics and transportation in Brazil will likely boost the aerospace industry
Brazil Sealants Market SIZE & SHARE ANALYSIS - GROWTH TRENDS & FORECASTS UP TO 2028
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