A drop in automotive production due to COVID-19 had a significant impact on the flat glass market in 2020. But after the pandemic, more buildings and cars have been made in Brazil, which has increased the demand for flat glass.
- During the forecast period, the market is expected to be driven by more people building homes in the region.
- However, changes in the cost of raw materials are likely to slow the market's growth in the coming years.
- Improvements in the auto industry and more activity in the solar industry are likely to create growth opportunities that will be good for the industry as a whole.
- Brazil is expected to be the market leader and to have the highest CAGR over the next five years.
Latin America Flat Glass Market Trends
Construction Industry to Drive the Demand for Flat Glass
- The construction industry is the largest end-user segment of the market studied. Moreover, the ongoing trend of smart city projects is also anticipated to drive flat glass demand.
- Flat glasses are made of sodium silicate and calcium silicate and are available in 2mm to 20mm thickness ranges for several applications. They have a weight range of 6 kg/m2 to 36 kg/m2. These glasses are often considered building blocks for several types of architectural and interior applications.
- Glass is used a lot in the building industry, including in windows, facades, doors, interior partitions, balustrades, shop fronts, and railings for stairs and balconies, which could be a chance to float glass.
- Body-tinted float glass is a new type of glass in which melted colorants are added for coloring and solar radiation absorption properties. This type of glass saves energy, keeps buildings from getting too hot, and looks very interesting.
- Previously, flat glass was used for smaller windows in domestic housing, since larger windows required toughened glass. Currently, flat glass can also be toughened by putting it through a heating process, which very nearly melts it, and then cooling it to ambient temperatures using a jet of cold air. This glass requires greater pressure to break. This characteristic makes the glass suitable for use in building applications.
- In Brazil, the construction sector is a key contributor to GDP growth, with large cities located in all regions and a vast workforce available to operate in a rapidly expanding market. After a decrease in 2019, the Brazilian construction industry is witnessing a continuous annual increase until 2021, reaching USD 73.3 billion in the year. The construction and services industries also contributed significantly to the Brazilian economy's 1.2% growth in Q2 2022.
- Also, the Brazilian Economic Institute of the Getulio Vargas Foundation (FGV/Ibre) says that the National Construction Cost Index - M (INCC-M) rose by 0.87 percent from March to April 2022 and by 11.54 percent from March 2021 to April 2022.
- Due to all of these factors and the growing construction industry, it is expected that the market for flat glass will grow over the next few years.
Brazil to Dominate the Market
- There are several built-up demands for investments in productive capacity. Brazil is facing problems in the construction industry owing to various situations, such as political and economic corruption in the country.
- Due to corruption and bribery in construction companies, the Brazilian government introduced the 'car wash investigation.' The investigation centered on various construction companies accused of corruption.
- The government of Brazil initiated programs because of the decrease in public financing for infrastructure projects. One such program is the Program of Investment Partnerships (PPI). It helped expand and strengthen the relationship between the private sector and the state through partnership contracts.
- Minha Casa, Minha Vida (My House, My Life) was launched in 2009. This program is funded mainly through the Growth Acceleration Program (PAC), a federal infrastructure-upgrading program.
- Furthermore, growing automotive production and sales in Brazil are also likely to boost the demand for flat glass. Brazil is the world’s seventh-largest economy and the 8th-largest automotive producer. This industry accounts for 5.5% of the country's GDP, contributing BRL 266 billion (USD 49.3 billion).
- Brazil's automotive production stood at 2.25 million units in 2021, which increased by 5.4% to 2.34 million units in 2022. Passenger cars will account for approximately 1.82 million units in 2022, while commercial vehicles will account for 352 thousand units of total vehicle production.
- Popular car makers such as Mitsubishi, Land Rover, Mercedes-Benz, Audi, BMW, Fiat, Citroen, Kia, Volkswagen, Suzuki, Nissan, and Honda have been building factories in Brazil, creating many new job opportunities, lowering the unemployment rate, and boosting the national economy.
- All these factors, in turn, are expected to have an impact on the demand for flat glass in the country during the forecast period.
Latin America Flat Glass Market Competitor AnalysisThe Latin American flat glass market is consolidated in nature. Key players in the market include AGC Inc., Vitro, Saint-Gobain, and SCHOTT AG, among others (not in any particular order).
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Table of Contents1 INTRODUCTION
1.1 Study Assumptions
1.2 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET DYNAMICS
4.1.1 Increasing Construction Activities in the Region
4.1.2 Growing Demand for Electronic Displays
4.2.1 Fluctuating Raw Material Prices
4.2.2 Other Restraints
4.3 Industry Value Chain Analysis
4.4 Porter's Five Forces Analysis
4.4.1 Bargaining Power of Suppliers
4.4.2 Bargaining Power of Consumers
4.4.3 Threat of New Entrants
4.4.4 Threat of Substitute Products and Services
4.4.5 Degree of Competition
5 MARKET SEGMENTATION (Market Size in Value)
5.1 Product Type
5.1.1 Annealed Glass (Including Tinted Glass)
5.1.2 Coater Glass
5.1.3 Reflective Glass
5.1.4 Processed Glass
5.2 End-user Industry
5.2.1 Building and Construction
5.2.3 Solar Glass
5.2.4 Other End-user Industries
5.3.4 Rest of Latin America
6 COMPETITIVE LANDSCAPE
6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Market Share (%)**/Ranking Analysis
6.3 Strategies Adopted by Leading Players
6.4 Company Profiles
6.4.1 AGC Inc.
6.4.2 GUARDIAN GLASS LLC
6.4.4 SCHOTT AG
7 MARKET OPPORTUNITIES AND FUTURE TRENDS
7.1 Rising Initiatives in the Solar Industry
A selection of companies mentioned in this report includes:
- AGC Inc.
- GUARDIAN GLASS LLC
- SCHOTT AG