Market Trends of South America Sealants Industry
Increasing Demand from Building and Construction Sector
- Sealants have been extensively used in the building and construction industry owing to their characteristics and physical properties.
- Sealants can stop liquids and other substances from passing through material surfaces, joints, or openings in construction. They can act as a fire-stopping component and block airflow, sound, dust, insects, and others.
- They are used in the residential, commercial, and infrastructure segments, including various on-site and off-site applications such as sub-flooring, finish flooring, wall roofing, structural glazing, panels such as composite bonding (FRP panels), drywall lamination, repair of large cracks insulated glass, doors and windows, HVAC, and prefabricated housing.
- Building and construction is the highest consumable sector of sealants. For instance, in Brazil, sealant consumption in the building and construction sector nearly accounted for 55% of total sealant consumption.
- There are several construction projects going on in the region, which are likely to increase the consumption of sealants in the construction sector. For instance, in Argentina, the construction of the first phase of the President Néstor Kirchner gas pipeline of worth USD 3 billion is expected to be completed by June or August 2023.
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Brazil to Dominate the Market
- Brazil dominates the demand for sealants from the South American region due to its comparatively larger area and population than other countries like Argentina and Colombia.
- Brazil was the largest automotive market in the South American region. Due to the COVID-19 pandemic, the country saw a significant drop in yearly car production for FY 2020. However, following the relaxation of government sanctions, the market has re-entered a growth phase and appears promising for the projection term.
- For instance, in 2021, about 1.97 million light vehicles were sold in the country, about 2% more than in 2020. Owing to the slow rise in demand, the number of cars sold is expected to increase in the upcoming years, hence driving the market of sealants in the region.
- Furthermore, silicone sealants are also used in structural glazing due to their higher bond strength and durability. Structural glazing is generally used to reduce energy consumption, mainly in commercial buildings.
- Currently, Brazil has over 1,400 certified green buildings. This is expected to grow as Brazil has pledged to reduce emissions by 43% by 2030.
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