Market Size of South America Surface Treatment Chemicals Industry
Study Period | 2019 - 2029 |
Base Year For Estimation | 2023 |
Forecast Data Period | 2024 - 2029 |
Historical Data Period | 2019 - 2022 |
CAGR | > 3.50 % |
Market Concentration | Low |
Major Players*Disclaimer: Major Players sorted in no particular order |
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South America Surface Treatment Chemicals Market Analysis
The South American surface treatment chemicals market is projected to register a CAGR of over 3.5% during the forecast period (2022-2027).
The sporadic outbreak of the COVID-19 pandemic in 2020 and the first half of 2021 profoundly impacted manufacturing operations, with prices collapsing and demand falling in South American countries. Transportation, construction, and industrial activities had been drastically curtailed due to imposed government bans and restrictions. However, with the contraction of pandemic impacts in the latter half of 2021, commercial and public transportation revived from lackluster, the construction sector witnessed the launch of new projects while industries enhanced their capacity utilization with the return of workforce and the increasing number of orders from the downstream sectors. Though still falling behind the pre-pandemic levels owing to the pressure due to a protracted growth rate, these industries are expected to pick up a faster pace in two-three years, thereby creating a stronger demand for the studied market in the forecast period.
- Over the medium term, the expanding automotive sector in South America is the major driving factor augmenting the market's growth. Furthermore, the increasing adoption of chemical plating in industries relying on metal substrates is expected to surge the consumption of surface treatment chemicals in the forecast year.
- On the flip side, the adverse impacts of surface treatment chemicals on the environment that are raising concerns among environmental advocates is the key factor anticipated to restrain the market growth.
- Nevertheless, the growing awareness and the consequent demand for bio-based and chromium-free surface treatment chemicals are likely to create lucrative growth opportunities for the market.
- Brazil is expected to dominate the market during the forecast period. This growth is attributed to the ample developments in the region's automotive, industrial, and construction sectors leading to bullish demand for surface treatment chemicals applications.
South America Surface Treatment Chemicals Industry Segmentation
Surface treatment chemicals encompass a range of formulations that are applied on a material/substrate surface for improving surface characteristics, such as imparting properties of rust and wear resistance, wettability, improved adhesion, and enhanced decorative appeal. Applying surface treatment chemicals on metals, glass, plastics, or other components used in various end-user industries enable the optimization of production processes and enhances the finished products' service life and performance properties.
The surface treatment chemicals market is segmented by chemical type, base material, end-user industry, and geography. The market is segmented by chemical type: plating chemicals, cleaners, conversion coatings, and other chemical types. By base material type, the market is segmented into metals, plastics, and other base materials. By end-user industry, the market is segmented into automotive & transportation, construction, electronics, industrial machinery, and other end-user industries. The report also covers the market size and forecasts for the surface treatment market in 2 countries across South America. For each segment, the market sizing and forecasts have been done based on value (USD Million).
Chemical Type | |
Plating Chemicals | |
Cleaners | |
Conversion Coatings | |
Other Chemical Types |
Base Material | |
Metals | |
Plastics | |
Other Base Materials |
End-user Industry | |
Automotive & Transportation | |
Construction | |
Electronics | |
Industrial Machinery | |
Other End-user Industries |
Geography | |
Brazil | |
Argentina | |
Rest of South America |
South America Surface Treatment Chemicals Market Size Summary
The South American surface treatment chemicals market is poised for growth, driven by the recovery of industries such as automotive, aerospace, and construction following the disruptions caused by the COVID-19 pandemic. The market is expected to benefit from the resurgence of commercial and public transportation, the initiation of new construction projects, and increased industrial capacity utilization. Despite the lingering effects of the pandemic, these sectors are anticipated to accelerate their growth, thereby boosting the demand for surface treatment chemicals. The automotive sector, in particular, is a significant contributor to this demand, with the need for corrosion protection and paint adhesion in vehicle manufacturing and repair driving the consumption of these chemicals. Additionally, the adoption of chemical plating in metal substrate industries is expected to further enhance market growth.
Brazil is expected to lead the market due to its robust industrial infrastructure and advancements in automotive, aerospace, and construction sectors. The country's position as a major automotive manufacturer and its growing electric vehicle market underscore its potential to drive demand for surface treatment chemicals. The aerospace industry in Brazil, with companies like Embraer at the forefront, also contributes to this demand through the use of various surface treatment products. However, environmental concerns regarding the use of these chemicals pose challenges to market growth. Nonetheless, the increasing awareness and demand for bio-based and chromium-free alternatives present lucrative opportunities. The market is characterized by partial fragmentation, with key players like BASF, Henkel Corporation, and PPG Industries actively participating in the region. Recent acquisitions, such as MKS Instruments' acquisition of Atotech, highlight the strategic moves by companies to strengthen their market presence in South America.
South America Surface Treatment Chemicals Market Size - Table of Contents
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1. MARKET DYNAMICS
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1.1 Drivers
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1.1.1 Increasing Demand from the Automotive and Transportation Sector
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1.1.2 Increasing Adoption of Chemical Plating in Metal Industries
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1.2 Restraints
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1.2.1 Adverse Impact of Surface Treatment Chemicals on Environment
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1.2.2 Other restraints
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1.3 Industry Value-Chain Analysis
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1.4 Porter's Five Forces Analysis
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1.4.1 Bargaining Power of Suppliers
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1.4.2 Bargaining Power of Buyers
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1.4.3 Threat of New Entrants
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1.4.4 Threat of Substitute Products and Services
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1.4.5 Degree of Competition
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2. MARKET SEGMENTATION (Market Size in Value)
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2.1 Chemical Type
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2.1.1 Plating Chemicals
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2.1.2 Cleaners
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2.1.3 Conversion Coatings
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2.1.4 Other Chemical Types
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2.2 Base Material
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2.2.1 Metals
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2.2.2 Plastics
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2.2.3 Other Base Materials
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2.3 End-user Industry
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2.3.1 Automotive & Transportation
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2.3.2 Construction
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2.3.3 Electronics
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2.3.4 Industrial Machinery
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2.3.5 Other End-user Industries
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2.4 Geography
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2.4.1 Brazil
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2.4.2 Argentina
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2.4.3 Rest of South America
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South America Surface Treatment Chemicals Market Size FAQs
What is the current South America Surface Treatment Chemicals Market size?
The South America Surface Treatment Chemicals Market is projected to register a CAGR of greater than 3.5% during the forecast period (2024-2029)
Who are the key players in South America Surface Treatment Chemicals Market?
BASF, Henkel Corporation , PPG Industries, Solvay and 3M are the major companies operating in the South America Surface Treatment Chemicals Market.