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South America Fiber Cement Market - Forecast(2023 - 2028)
South America Fiber Cement Market Overview
The South America Fiber Cement Market size is estimated to reach US$1.5 billion by 2027, after growing at a
CAGR of 4.4% during the forecast period 2022-2027. Fiber cement is a composite
material that is primarily used in roofing and facade products due to its
strength and durability excellence properties over other construction materials. It includes thermal insulation and sepiolite. Due to their fire and impact
resistance, fiber cement products such as boards, panels and siding are widely
used in the construction of residential and commercial buildings, thereby
driving the South America Fiber Cement Market. The growth of fiber cement in
residential construction is driven by the rising demand for private dwellings
as well as investments in housing projects. The COVID-19 pandemic majorly
impacted the South America Fiber Cement Market due to restricted production,
supply chain disruption, logistics restrictions and a fall in demand. However,
with robust growth and flourishing applications across major industries, the South America Fiber Cement Market size is anticipated to grow rapidly during the forecast
period.
South America Fiber Cement Report Coverage
The “South America Fiber
Cement Report – Forecast (2022-2027)” by IndustryARC, covers an in-depth
analysis of the following segments in the South America Fiber Cement industry.
By Raw Material: Silica,
Portland Cement, Limestone, Fibers and Others.
By Production Process: Hatsheck
Process, Extrusion Process, Perlite Process and Others.
By Fiber Type: Polypropylene,
Polyvinyl Alcohol, Steel, Glass, Cellulose, Specialty Fiber, Natural Fiber and Others.
By Application: Roofing,
Floors, Ceilings, Siding, Cladding, Walls, Pre-fabricated Shelters, Roof Tile
Underlay, Duct Covering and Others.
By End-use Industry:
Residential (Private Dwellings, Row Houses and Apartments), Commercial
(Hospital, Airports, Offices, Retail and Others), Industrial (Manufacturing
Facilities, Warehouses and Others), Infrastructural (Roads, Bridges, Highways,
Dams & Tunnel and Others).
By Country: Brazil,
Argentina, Colombia, Chile and the Rest of South
America.
Key Takeaways
- Brazil dominates the South America Fiber Cement Market size. The increase in demand from end-user sectors, such as residential, commercial, industrial and others, is the main factor driving the region's growth.
- The increase in the number of construction projects in South America is one of the primary reasons driving the growth of the South America Fiber Cement industry.
- Housing innovation and demand for fireproof and soundproof walls in many industries are factors influencing the South America Fiber Cement Market growth.
- However, the market's expansion is projected to be hampered by high labor costs.
South America Fiber Cement Market Segment Analysis – by Fiber Type
The polypropylene segment held
the largest share in the South America Fiber Cement Market share in 2021 and is
forecasted to grow at a CAGR of 4.6% during the forecast period 2022-2027.
Polypropylene fibers have a variety of properties that are beneficial for fiber
cement, including compressive and tensile strength, workability, crack
properties and others. These excellent properties are driving the fiber
cement market in various industries. Thus, due to tremendous advantages and availability
over material types, the demand for polypropylene is growing
for application in major industries, thereby boosting the growth opportunities
for the South America Fiber Cement industry in the projected years.
South America Fiber Cement Market Segment Analysis – by End-use Industry
The Residential segment held the
largest share in the South America Fiber Cement Market share in 2021 and is
forecasted to grow at a CAGR of 4.9% during the forecast period 2022-2027. this is due to the sepiolite quality and significant use of fiber cement in the
residential sector. Fiber cement is a composite material and is preferred over
other construction materials for the exteriors of residential buildings since it is more durable. Increased government support for residential construction
in South American countries is increasing demand for the fiber cement industry
in South America. According to the
National Institute of Statistics and Censuses (INDEC), the value added by the residential industry
increased by 37.1 percent in the first three quarters of 2021. With the
rise in commercial projects across South America, the demand for fiber cement
is anticipated to rise for various applications. This is projected to boost
the market growth in the residential industry during the forecast period.
South America Fiber Cement Market Segment Analysis – by Country
The Brazil segment held the largest share in the South America Fiber Cement Market share in 2021 and is forecasted to grow at a CAGR of 4.7% during the forecast period 2022-2027. The fueling demand and growth of fiber cement in this region are influenced by flourishing demand from construction industries, along with rising construction activities across Brazil. For Instance, according to the International Trade Association (ITA), in 2021, Brazil planned to make concessions worth approximately $50 billion by upgrading airports, ports, highways and railways. The Brazilian government implemented the Casa Verde e Amarela housing program, under which the government would provide housing financial assistance to 1.6 million low-income families by 2024. With the rise in commercial projects across Brazil, the demand for fiber cement is anticipated to rise for various applications. This is projected to boost the market growth in the residential industry during the forecast period.
South America Fiber Cement Market Drivers
Bolstering Growth of the Commercial Industry:
Fiber
Cement products such as boards, panels and siding are widely used in
commercial building construction. The expansion of commercial
construction in South America such as hotels, hospitals and healthcare,
offices and others is driving up demand for fiber cement. Argentina
has proposed a commercial building proposal of $428 million dollars. According
to International Trade Administration, Chile's annual healthcare expenditure
amounts to about 5% of GDP. Public healthcare spending was expected to reach
$13.5 billion by the end of 2021, representing an 8.9 percent increase over
2020. With the rise in commercial projects across South America, the demand for
fiber cement is anticipated to rise for various applications such as roofing,
flooring and others. This is projected to boost the South America Fiber Cement Market growth in the commercial industry during the forecast period.
Rapid Development of the Infrastructure Construction:
The
infrastructure development projects such as roads, highways, pavement, runways
and parking lots are increasing demand for the Fiber Cement industry in South
America. Fiber cement is a composite material and is widely used in
infrastructure development projects in South America over other construction materials
because it is a strong, long-lasting material and sepiolite quality. These factors are driving the growth of the South America Fiber Cement Market. According to
International Trade Administration, for highway infrastructure, the Colombian
government allocated COP 12 trillion (USD 3.1 billion) in 2021 for the
construction of buildings. According to International Trade Administration, the
Ministry of Public Works awarded contracts for $5 billion in projects in
2021, including paving 4,660 miles of highway, repairing and building 150
bridges, irrigation works covering 346,000 hectares and others. With the rise
in infrastructure projects across South America, the demand for fiber cement is
anticipated to rise for various applications such as roofing, flooring and
others. This is projected to boost the South America Fiber Cement Market
growth in the infrastructure industry during the forecast period.
South America Fiber Cement Market Challenges
High Labor Cost and Availability of Substitute Materials:
The labor cost
for fiber cement installation is high because skilled labor is needed to
handle Fiber Cement with care. Besides, the heavy weight of fiber
cement increases labor costs. Fiber cement substitutes are less expensive than
asbestos-based building materials. This has an impact on the expansion of the
fiber cement market. Additionally, the fiber cement siding needs upkeep and
regular painting, which drives up the cost of maintenance. This presents a
challenge for the South America Fiber Cement Market due to the high cost of
fiber cement and other available options.
South America Fiber Cement Industry Outlook
Technology launches, acquisitions
and R&D activities are key strategies adopted by players in the South
America Fiber Cement Market. The top 10 companies in the South America Fiber Cement Market are:
- Etex Group NV
- James Hardie Industries PLC
- Evonik Industries AG
- Compagnie de Saint Gobain SA
- Toray Industries Inc
- CSR Limited
- The Siam Cement Public Company Limited
- Nichiha Corporation
- Plycem Corporation
- Cembrit Holding A/S.
Recent Developments
- In October 2021, Jogani Reinforcement introduced poly fiber 3S new generation concrete and construction fiber for long-lasting and crack-free infrastructure in India.
- In September 2021, Ambuja Cements launched the Concrete Futures Laboratory (CFL), a one-stop solution for the community of architects, engineers and construction professionals (AEC).
- In April 2019, Cembrit introduced new fiber cement cladding. Cembrit introduced a new cladding board to complement the original Patina, with its directional grain surface, to provide architects and specifiers with a desirable choice of premium cladding for a wide range of external applications.
Relevant Reports
Report Code: CMR 1113
Report Code: CMR 1200
Report Code: CMR 0324
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