Jan 26 2009
After witnessing significant growth in the past three years, composites industry in Brazil is bracing for a slowdown in face of global economic downturn. However, opportunities exist for composites industry in Brazil because of low penetration level and domestic demand. The composites industry is expected to reach USD $2.5 billion at a CAGR of 9% in 2013. The annual growth rate would be moderate in 2009 and thereafter will gather momentum according to a new market study conducted by Lucintel.
Lucintel, a leading global management consulting and market research firm with over 700 clients worldwide has analyzed opportunities for composites in the Brazil market to develop a comprehensive research report entitled “Opportunities in Brazil Composites Market 2008-2013: Trend and Forecast Analysis”.
As per the study, auto companies and aircraft manufacturers are giving more stress on fuel-efficiency and are substituting metal by composites. Composites being light in weight and with greater life-cycle are finding greater use in these sectors. Also, Brazilian government’s PROINFA program has led to good deal of investment in wind energy farms in Brazil. As a result composite materials that are used to make wind mill structure would see increased demand.
According to Lucintel, preparation for World Cup football in 2014 will see a lot of civil construction activities in Brazil. Besides, government spending for housing program and automotive industry’s demand for lighter weight and greater fuel-efficiency cars would provide the necessary boost to the composites industry. Other than the key sectors like transportation and construction, sectors that would have high growth rate in composites application are pipe and tanks, wind energy, aerospace and electrical and electronics.
According to Lucintel, better economic situation like improved consumer confidence, tax cuts, better credit terms, falling inflation and economic stability gave a boost to increased consumer spending and strong domestic demand. Good opportunity exists for composites industry in sectors like power poles, civil construction, marine industry and advantage of early move would certainly be there.
This 100-page research report discusses market size, opportunities, trends, drivers and forecasts for the Brazilian composites market.