ENGINEERING PLASTICS
Latin American market forecast to grow 4.4% annually to 2015 / Strong growth in automotive sector
The Latin American engineering plastics market is expected to expand by an average of 4.4% annually to USD 2.5 bn between 2008 and 2015, driven by sustained growth in industrial sectors and technical improvements, according to international market research company Frost & Sullivan (London / UK; www.chemicals.frost.com). Engineering plastics revenues in the region grew 5.4% to USD 1.9 bn in 2008 thanks to strong growth in the automotive sector, particularly in Brazil. However, the economic downturn and increased raw material prices resulted in a deceleration in 2009.
With the slowdown in the automotive industry globally, engineering plastics suppliers are pursuing new markets and applications to diversify their end-uses and maintain margins. "Companies are aiming to reach new markets and applications in the medium- and long-term, so as to not be so dependent on the automotive industry," says Frost & Sullivan research analyst Alessandra Lancellotti. "However, technical developments and partnerships to develop a new application can take anywhere between six months to two years."
The Latin American engineering plastics market is mainly concentrated in Brazil and Mexico and the main products, by revenue, are ABS, polyamide and PC. The automotive sector is the main end use market in the region, followed by electronics.
Although engineering plastics have largely replaced metals in Latin America, the focus on metal replacement is still a prominent factor influencing market dynamics. "The automotive and electronics segments are constantly seeking new ways for product improvement, for instance, replacing PP," says Frost & Sullivan research analyst Johanna Duenas. "Commodity plastics have been supplanted by ABS, which is priced lower than other engineering plastics and has enhanced properties for greater performance."
Competition from traditional materials and other polymers remains a constraint to growth. Latin America imports a sizeable portion of plastic resins and rising prices have encouraged substitution by commodity materials, Frost & Sullivan says. Therefore, cost reduction will be central to engineering plastics companies’ short-term strategies. Materials with multiple functionality are likely to remain competitive. Frost & Sullivan cites as an example a polyamide that can be used to replace metals in a car, is high-impact resistant, contains UV protection and does not require painting.
Environmental concerns are also helping to shape the development of new products. Companies are developing biopolymers and recyclable engineering plastics and are increasingly adopting sustainable production processes.
e-Service:
Executive summary of the report on the Latin American engineering plastics market as a PDF document (246 KB)
With the slowdown in the automotive industry globally, engineering plastics suppliers are pursuing new markets and applications to diversify their end-uses and maintain margins. "Companies are aiming to reach new markets and applications in the medium- and long-term, so as to not be so dependent on the automotive industry," says Frost & Sullivan research analyst Alessandra Lancellotti. "However, technical developments and partnerships to develop a new application can take anywhere between six months to two years."
The Latin American engineering plastics market is mainly concentrated in Brazil and Mexico and the main products, by revenue, are ABS, polyamide and PC. The automotive sector is the main end use market in the region, followed by electronics.
Although engineering plastics have largely replaced metals in Latin America, the focus on metal replacement is still a prominent factor influencing market dynamics. "The automotive and electronics segments are constantly seeking new ways for product improvement, for instance, replacing PP," says Frost & Sullivan research analyst Johanna Duenas. "Commodity plastics have been supplanted by ABS, which is priced lower than other engineering plastics and has enhanced properties for greater performance."
Competition from traditional materials and other polymers remains a constraint to growth. Latin America imports a sizeable portion of plastic resins and rising prices have encouraged substitution by commodity materials, Frost & Sullivan says. Therefore, cost reduction will be central to engineering plastics companies’ short-term strategies. Materials with multiple functionality are likely to remain competitive. Frost & Sullivan cites as an example a polyamide that can be used to replace metals in a car, is high-impact resistant, contains UV protection and does not require painting.
Environmental concerns are also helping to shape the development of new products. Companies are developing biopolymers and recyclable engineering plastics and are increasingly adopting sustainable production processes.
e-Service:
Executive summary of the report on the Latin American engineering plastics market as a PDF document (246 KB)
14.10.2009 Plasteurope.com [214516]
Published on 14.10.2009