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                                  Home Press Releases

                                  LATIN America Fiber Cement Market Size Forecast to Reach $1,639.45 Million by 2027

                                  admin by admin
                                  March 18, 2022
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                                  (EMAILWIRE.COM, March 18, 2022 ) Latin America Fiber Cement Market size is forecast to reach US$1,639.45 million by 2027, after growing at a CAGR of 4.5% during 2022-2027. Fiber cement is a composite building and construction material employed in many construction activities. Due to fiber cement’s good strength and durability, it is used in roofing and facade products, which are resulting in market growth. Moreover, the government initiatives in Latin America such as “Casa Verde e Amarela Housing Program” and ‘74bn-peso Felipe Ángeles International Airport (AIFA)’ are flourishing in the residential and infrastructural building sector, and is anticipated to play a key role in driving the Latin America fiber cement market during the forecast period. However, rising concerns about the use of portland cement and a growing emphasis on the use of eco-friendly concrete could pose a substantial challenge for the Latin American fiber cement market growth.

                                  COVID-19 Impact

                                  Due to the strict imposition of lockdown, the COVID-19 pandemic in Latin America had an impact on the fiber cement market in 2020. Construction activities in the Latin American region were hampered by a shortage of workers caused by social distancing norms. For instance, according to the Confederation of International Contractors’ Association (CICA), in the first quarter of 2020, the Brazilian construction industry saw a downfall of 2.4% in comparison with 2019. This decline in construction activities impacted the fiber cement market growth in Latin America. Moreover, in starting months of 2021 when COVID-19 cases started increasing government-imposed restrictions but this time the construction activities were not impacted because the number of laborers allowed at the job was reduced. It is anticipated by mid-2022 the impact of COVID-19 will be entirely curbed out and it will lead to the Latin American fiber cement market situation back to pre COVID-19 state.

                                  The portland cement segment held the largest share in the Latin America fiber cement market in 2021. Owing to its low cost and easy availability of the material such as shale used in portland cement, making its wide usage of raw material over other types of cement. Due to its higher compressive strength and rate of strength gain, it gives the advantages of higher later age strength. Apart from that, it is commonly utilized in the manufacture of fiber cement because of its benefits of reduced shrinkage and lower heat generation. As a result of these benefits, portland cement is increasingly being utilized in the production of fiber cement, which is expected to boost demand for Latin American fiber cement over the projected period.

                                  Latin America Fiber Cement Market Segment Analysis – By Production Process

                                  The hatschek process segment held the largest share in the Latin America fiber cement market in 2021. The cellulose fibers are re-pulped in water and refined before being mixed with silicon, cement, and other additives. To form a cement board sheet the mixture is deposited onto a wiring substrate, vacuum de-watered and cured. The advantage of this process for fiber cement is that it is well suited for the production of roofing products and all applications where the sheets directly come in contact with harsh weather conditions. Moreover, filtration systems are utilized to limit the amount of wastewater produced throughout the process, which saves water. Due to these factors, the hatschek process is anticipated to drive the growth of the Latin American fiber cement market in the forecast period.

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                                  Latin America Fiber Cement Market Segment Analysis – By Fiber Type

                                  The polypropylene segment held the largest share in the Latin America fiber cement market in 2021. The fibers of polypropylene have a variety of properties such as compressive and tensile strength, workability, crack properties, and others, which are beneficial for fiber cement. Due to its properties, it helps the structure to withstand weathering action, abrasion, chemical attacks, and other corrosion processes and it requires limited maintenance, this gives the advantage of increased lifespan for fiber cement. Moreover, it gives the advantage of mechanical characteristics and economic benefits of construction. There are certain limitations of polypropylene material such as the brittle behavior of a material. However, to overcome this constraint the Production of Polypropylene Fiber-reinforcement Concrete (PFRC) has established a technical framework. Thus, due to the advantages of polypropylene fiber material, it is widely used in the production of fiber cement, which is anticipated to drive the growth of the Latin American fiber cement market in the forecast period.

                                  Latin America Fiber Cement Market Segment Analysis – By Product Type

                                  The corrugated sheets segment held the largest share in the Latin America fiber cement market in 2021, owing to its increasing use in applications such as roofing and cladding. Compared to other types of sheets, corrugated sheets are easy to fix, fire-resistant, and cost-effective, which has resulted in their increased use in the Latin America fiber cement market. Corrugated sheets repetitive folds on their surface that results in enhanced strength and offers years of reliability. As a result of these factors, the corrugated sheets segment is anticipated to drive the growth of the Latin America fiber cement market in the forecast period.

                                  Latin America Fiber Cement Market Segment Analysis – By Application

                                  The cladding segment held the largest share in the Latin America fiber cement market in 2021 and is growing at a CAGR of 3.7% during 2022-2027. Internal and external fiber cement cladding is used in the constructions of residential, and commercial. It can withstand multiple environmental conditions such as salty air, due to this advantage the lifespan of exterior walls increases. 90% of the compositions of the materials used in fiber cement cladding are not flammable, due to this the structure becomes heat resistant and can hold strong. Thus, due to these advantages, the cladding sector is expected to fuel the expansion of the Latin American fiber cement market growth in the projected period.

                                  Latin America Fiber Cement Market Segment Analysis – By End-Use Industry

                                  The residential segment held the largest share in the Latin America fiber cement market in 2021 and is growing at a CAGR of 5.8% during 2022-2027. Fiber cement is used over other construction materials in the exteriors of residential construction because it gives the advantage of better durability. The increased government support in Latin American counties towards residential construction is leading to the increase in the demand for the fiber-cement industry in Latin America. For instance, in the year 2020 the Chilean government launched a construction plan called Paso a Paso Chile se Recupera (the Employment and Reactivation Plan), under it, US$13 billion will be invested for the residential construction. Thus, the growing demand for the residential construction activities in Latin American countries is anticipated to drive the growth of the Latin America fiber cement market in the forecast period.

                                  Latin America Fiber Cement Market Segment Analysis – By Country

                                  Brazil region held the largest share in the Latin America fiber cement market in 2021 up to 59.2%, owing to its increasing construction activities in the region. In Brazil, the infrastructure development projects are working on a public-private partnership (PPP) model. The construction activities related to upgrading the existing infrastructure and developing the new one have increased in the region, which has resulted in the Brazilian construction growth, and it is accelerating the fiber cement market growth in Latin America. For instance, according to International Trade Association (ITA), in 2021 Brazil has planned concessions of about US$50 billion, by upgrading the airport, ports, highways, and railways. Moreover, the increasing government initiatives for residential construction in Brazil are fueling fiber-cement industry growth in Latin America. For instance, the government of Brazil has implemented the Casa Verde e Amarela housing program, under it, the government will serve 1.6 million low-income families with a housing financial scheme by 2024. Thus, the growing demand for infrastructure construction and residential construction activities in Brazil is anticipated to drive the growth of the Latin America fiber cement market in the forecast period.

                                  Latin America Fiber Cement Market Drivers

                                  Rapid Development of the Infrastructure Construction

                                  The infrastructure development projects such as roads, highways, pavement, runway, and parking are accelerating the demand for the Latin America fiber-cement industry. Fiber cement is widely used over other materials in infrastructure development projects in the Latin American region because it gives the advantage of strong and long-lasting material. The infrastructure development projects of Columbia are accelerating fiber-cement industry growth in the Latin America region. For instance, the ongoing La Dorada-Chiriguana Railway Corridor Project, which involves the maintenance, repair, and operation of the train corridor connecting the Columbian regions of Ladorada and Chiriguana. Moreover, the Mexican government is increasing its spending on key infrastructure projects. In October 2020, the Mexican government along with the private sector announced working on 147 infrastructure projects, in different areas of energy, rail, road, and other infrastructure such as ‘Maya Train Project’, ‘74bn-peso Felipe Ángeles international airport (AIFA)’, and ‘Tehuantepec isthmus rail corridor’ with a total investment of about US$14 billion. As a result, the rise of infrastructure development projects in Latin American countries is expected to propel the Latin America Fiber Cement Market forward throughout the forecast period.

                                  Growth of Commercial Construction

                                  Fiber cement is widely used over other materials in the commercial construction of Latin American countries because it enhances the exterior look and appeal of the building. The growth of commercial construction such as hotels, hospitals and healthcare, offices, and others is accelerating the demand for fiber cement in the Latin America region. The growing sports stadium construction in the Latin America region is increasing the demand for the fiber-cement industry. For instance, in 2021 the construction of Yucatan Sports Stadium begins in Yucatan, Mexico, and it will probably be completed by 2023. Moreover, the new airport construction projects are also accelerating the fiber cement market growth in the Latin America region. For instance, in September 2021, the government of Peru announced the second stage of construction of Chinchero Cusco International Airport in Cusco, Peru, which will include the construction of a terminal building, runway, and control tower. Thus, the growing commercial construction activities in Latin American countries are anticipated to drive the growth of the Latin America Fiber Cement Market in the forecast period.

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                                  Latin America Fiber Cement Market Challenges

                                  High labor Cost and Availability of Substitute Materials

                                  The labor cost for the installation of fiber cement is high because skilled labor is required to handle it with care. Apart from that, labor costs go up because of the bulky weight of fiber cement. Asbestos-based building materials are the substitutes that are available at cheaper rates in comparison with fiber cement, which has impacted the fiber cement market growth. Moreover, the fiber cement siding requires maintenance, requires regular paints which adds to the higher maintenance cost. Thus, the high cost of fiber cement and other available options poses a challenge for the Latin America fiber cement market.

                                  Latin America Fiber Cement Industry Outlook

                                  Technology launches, acquisitions, and R&D activities are key strategies adopted by players in this market. Latin America Fiber Cement top 10 companies include:

                                  CEMEX

                                  Etex

                                  Infibra

                                  Elementia S.A.B. DE C.V

                                  Saint Gobain

                                  Plycerm

                                  LOMA NEGRA

                                  Abastecedora Maxima SA De CV

                                  ETERNIT ARGENTINA S.A.

                                  LOMA NEGRA

                                  Acquisitions/Technology Launches

                                  In August 2020, YgauazuCementos acquired 51% stakes in LOMA NEGRA, to reach the high standards of fiber cement production and profitability.

                                  Key Takeaways

                                  Brazil region dominates the Latin America Fiber Cement market, owing to an increase in the construction activity in the region. For instance, in 2021, Brazil is working on the Public-Private Partnership (PPP) for its infrastructure construction activities.

                                  Cement-based on fibers such as polypropylene fiber, lignocellulose fiber, synthetic fibers, cellulosic fibers, and other fibers are often employed in the manufacturing of fiber cement.

                                  The rising middle-class population in the Latin American countries, coupled with increasing disposable incomes, has increased demand for new or updated residential construction.

                                  Moreover, the Latin American countries are prone to the harsh environment, due to this the use of fiber cement siding is increasing which gives the advantage of wear and tear resistance.

                                  Relevant Reports

                                  Fiber Cement Market

                                  https://www.industryarc.com/Report/209/Global-Fiber-Cement-Industry-Market-Analysis-Report.html

                                  For more Chemicals and Materials related reports, please click here

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