Latin America Conveyors Market Size

Latin America Conveyors Market Analysis

The Latin America Conveyors Market is expected to register a CAGR of 4.42% over the forecast period from 2020 to 2025. The Latin American region is expected to witness significant growth in the conveyors market, especially in emerging economies, such as Brazil and Mexico, where the industrial sector is booming. However, the region still lags significantly behind the GDP growth compared to other developing economies. To remain competitive, small and medium enterprises (SMEs) in the area are expected to start adopting automated conveyors.

• Latin American region is expected to witness steady gains for bulk handing material applications. The region offers enormous financial potential and is especially appealing to foreign investors because of its propelled industrialization, political steadiness, and high crude materials reserves. In March 2020, Dos Santos International (DSI) commissioned two Sandwich belt, high angle conveyors, for Continental Gold's Buriticá project in Antioquia, Colombia. The DSI Sandwich high angle conveyors will act as transfer conveyors elevating crushed pebble ore, each operating at an incline angle of 45° and a rate of 135 tph. 
• Airports witness complex processes that are deployed around the clock and need thoughtful planning and coordination. Such demands prompt companies to offer products exclusively for airports such as Belt Conveyor, Tilt-Tray Sorter, and Baggage Tray System. According to the International Air Transport Association (IATA), aviation witnessed a significant role in Latin America's economy, employing 7.5 million people and supporting USD 156 billion in GDP in 2019. According to Trading Economics, industrial production in Brazil increased 7.10 % year-on-year in May 2019, rebounding from a 3.9% gain in the previous month. This indicates the expanding scope for automation in Brazil.
• The food and beverage sector is one of the most significant economic contributors to the region. In August 2020, Key Technology, one of the members of the Duravant family of operating companies, announced a partnership with Bem Brasil, the largest potato processor in Brazil, to add a new potato strip processing line to Bem's Perdizes facility. This multimillion-dollar purchase includes an ADR EXOS automatic defect removal system, six VERYX digital sorters, three Sliver Sizer Removers, and 57 Iso-Flo vibratory conveyors on a line designed to process 30 metric tons of frozen french fries per hour. Bem chose to partner with Key to maximize food safety and consistently meet final product quality specifications while improving its operating efficiencies and yield.
• With the continued spread of COVID-19 through Latin America, at the end of May 2020, the region became one of the pandemic's global epicenters. The manufacturing sector in the region, which was steady before the current crisis, is one of the sectors most affected by economic activity's shutdown. According to the United Nations Industrial Development Organization (UNIDO), the figures for March 2020 show a 4.8% drop in manufacturing output in Mexico compared with the previous month. In Brazil, production in March sank by 9.9% in the month. On a year-on-year basis, manufacturing output fell by 6.4% and 9.1% respectively in each country, which is expected to impact the conveyor market in the region negatively.