by The global Latin America Industrial Explosives Market is estimated to be valued at US$ 1365.31 Mn in 2023 and is expected to exhibit a CAGR of 7.9% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Industrial explosives are chemical mixtures used as blasting agents in various industrial applications like construction, mining, and quarrying. They decompose rapidly to generate large volumes of gases. The expansion of gases acts as a propellant to break or move large rock masses for excavation purposes. Industrial explosives offer benefits such as enhanced productivity, efficient and controlled fragmentation, flexibility to carry out operations in difficult terrains, and cost-effectiveness. Their demand is driven by growth in end use industries like mining, construction, and other infrastructure development projects across Latin America.
Market key trends:
One of the key trends in the Latin America industrial explosives market is growing mineral extraction activities. Countries like Brazil, Chile, and Peru are witnessing rising mineral production due to increasing investments in mining projects. For example, Chile is the largest copper producer globally accounting for over 28% of total world copper production. Growth in mining output is anticipated to fuel demand for explosives for quarrying and excavation activities. Another trend is development of eco-friendly explosives. Manufacturers are focusing on developing green explosive formulations with reduced nitrogen oxide emissions and lower carbon footprint to meet stringent environmental regulations.
Porter’s Analysis
Threat of new entrants: The threat of new entrants in the Latin America industrial explosives market is relatively low due to the presence of established players and requirements of high initial investments and technological expertise.
Bargaining power of buyers: The bargaining power of buyers is moderate due to the availability of a wide range of industrial explosive brands to choose from and switching costs being relatively low.
Bargaining power of suppliers: The bargaining power of suppliers is moderate as there are no major manufacturers who dominate the market and suppliers of raw materials have limited differentiation in their products.
Threat of new substitutes: The threat of substitutes is low as industrial explosives have few alternatives that can achieve similar results economically and effectively for large-scale construction projects.
Competitive rivalry: Competition in the Latin America industrial explosives market is high owing to the presence of numerous global and regional players.
Key Takeaways
The Global Latin America Industrial Explosives Market Demand is expected to witness high growth, exhibiting CAGR of 7.9% over the forecast period, due to increasing mining and infrastructure development activities in the region.
Regional analysis
Brazil dominates the Latin America industrial explosives market due to significant mining and infrastructure projects underway in the country. The industrial explosives market in Brazil is estimated to reach US$ 653.12 Mn by 2030, expanding at a CAGR of 7.4% during the forecast period. Rapid urbanization and government investments in transportation and power sectors are fueling the demand for industrial explosives in Brazil.
Key players
Key players operating in the Latin America industrial explosives market are MAXAM, AEL Mining Services Ltd., EXSA SA, Enaex, Austin International, Orica Limited, Keltec Energies, Economic Explosives, IBP Co., Noble Explochem, Accurate Energetic Systems, LLC., and Detotec North America Inc. MAXAM and Orica Limited collectively account for over 35% of the market share in the region.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
