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.
