At 2.8% CAGR, South & Central America Petrochemicals Market is Projected to be Worth US$ 16.34 Billion by 2031, says Business Market Insights

According to Business Market Insights' research, the South & Central America petrochemicals market was valued at US$ 13.09 billion in 2023 and is expected to reach US$ 16.34 billion by 2031, registering a CAGR of 2.8% from 2023 to 2031. Development of biodegradable petrochemical-based products and surge in demand for polymers across various end-use industries are among the critical factors attributed to the South & Central America petrochemicals market expansion.

Governments of various countries have increased investments in aerospace-related research, including defense and ballistic protection, owing to a rise in security risks and the need to enhance national border security. In May 2023, the Brazilian government announced an investment program aimed at advancing innovation and technology in the aerospace sector. This initiative focuses on developing a new satellite designed to enhance the monitoring of environmental crimes in the Amazon rainforest. Luciana Santos, Brazil's Minister of Science, Technology, and Innovation, stated that the government plans to invest US$ 72 million in this project to bolster the aerospace sector as well as innovation and technology. Also, in April 2024, Embraer and ENAER (National Aeronautical Company of Chile) announced two agreements for industrial and service cooperation, focusing on the A-29 Super Tucano and C-390 Millennium defense aircraft, as well as commercial aircraft. This collaboration will enhance Embraer's network of suppliers and services in Chile and foster the integration of the aerospace industries in both Brazil and Chile. The cooperation is the result of an agreement between Embraer, ENAER, and the Chilean Air Force. ENAER will begin manufacturing components and will serve as a designated maintenance center for the Chilean Air Force's fleet of 22 A-29 Super Tucano aircraft. This agreement is connected to the planned expansion of the A-29 Super Tucano fleet in the country. Additionally, the collaboration aims to enhance ENAER's role as a supplier and to increase Embraer's presence in Chile. Petrochemicals and petrochemical-derived products are used in lubricants, greases, aviation fuels, and aerospace components. Thus, the rising investments in the aerospace & defense industry are expected to create lucrative opportunities for the petrochemicals market growth during the forecast period.

On the contrary, fluctuations in the crude oil prices hamper the growth of South & Central America petrochemicals market.

Based on type, the South & Central America petrochemicals market is segmented into ethylene, benzene, propylene, xylene, and others. The ethylene segment held 32.5% market share in 2023, amassing US$ 4.25 billion. It is projected to garner US$ 5.34 billion by 2031 to register 2.9% CAGR during 2023-2031.

In terms of application, the South & Central America petrochemicals market is categorized into polymers, paints and coatings, solvent, rubber, adhesives, surfactants, and others. The polymers segment held 61.1% share of South & Central America petrochemicals market in 2023, amassing US$ 8.00 billion. It is projected to garner US$ 10.33 billion by 2031 to expand at 3.2% CAGR during 2023-2031.

In terms of end-use industry, the South & Central America petrochemicals market is segmented into packaging, automotive, construction, electrical and electronics, healthcare, agriculture, aerospace and defense, and others. The packaging segment held 28.5% share of South & Central America petrochemicals market in 2023, amassing US$ 3.73 billion. It is projected to garner US$ 4.94 billion by 2031 to expand at 3.6% CAGR during 2023-2031.

Based on country, the South & Central America petrochemicals market has been categorized into Brazil, Argentina, and the Rest of South & Central America. Our regional analysis states that Brazil captured 69.0% share of South & Central America petrochemicals market in 2023. It was assessed at US$ 9.04 billion in 2023 and is likely to hit US$ 11.61 billion by 2031, exhibiting a CAGR of 3.2% during 2023-2031.

Key players operating in the South & Central America petrochemicals market are Shell Plc, LyondellBasell Industries NV, INEOS Group Holdings SA, Saudi Basic Industries Corp, BASF SE, Dow Inc, Chevron Phillips Chemical Company LLC, China Petroleum & Chemical Corp, Mitsubishi Chemical Group Corp, and Exxon Mobil Corp., among others.

• In May 2024, INEOS Oxide and LyondellBasell (LYB) completed the sale of LYB's Ethylene Oxide & Derivatives (EO&D) business and associated production facilities located in Bayport, Texas to INEOS.
• In October 2023, In line with its customer-focused corporate strategy, BASF has expanded capacities for ethylene oxide and ethylene oxide derivatives at its Verbund site in Antwerp, Belgium. The investment adds about 400,000 metric tons per year to BASF's production capacity for the corresponding products.

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