South & Central America Fluoroelastomers Market Forecast to 2030 - Regional Analysis - by Type, Application, and End User

The South & Central America fluoroelastomers market is expected to grow from US$ 81.87 million in 2022 to US$ 124.17 million by 2030. It is estimated to register a CAGR of 5.3% from 2022 to 2030.

Rise in Strategic Initiatives by Major Market Players Fuels South & Central America Fluoroelastomers Market

Many manufacturers in the fluoroelastomers market are entering into a partnership with suppliers, logistics companies, and end users to streamline the fluoroelastomer supply chain. Several manufacturers partnered with material science industries for the development of innovative fluoroelastomer formulations with improved properties. The companies also collaborated with research institutes in order to expand fluoroelastomer applications.

Many companies operating in the fluoroelastomers market are focused on developing advanced manufacturing technologies and improving production processes. In 2022, Solvay SA introduced"Tecnoflon" peroxide curable fluoroelastomers, which are manufactured without the use of fluorosurfactant aids. The company also aims to offer a mass sampling of the developed product to enable testing and adoption of the developed non-fluorosurfactant technology. In 2022, The Chemours Company announced its plan to start process innovation for the production of Advanced Polymer Architecture (APA) grade fluoroelastomers-Viton. The developed sustainable process does not involve the utilization of a fluorinated polymerization aid. In April 2023, Freudenberg Sealing Technologies GmbH and Co developed a fluoroelastomer that met all regulatory standards intended for use in the pharmaceutical and, food and beverages industries. The product complies with all requirements of the European Union as well as the Food and Drug Administration. Therefore, the rise in strategic initiatives by major players creates lucrative opportunities for the fluoroelastomers market growth in the coming years.

South & Central America Fluoroelastomers Market Overview

According to the United Nations Conference on Trade and Development, in South & Central America, FDI rose by 56% (US$ 102 billion) in 2021 compared to 2020, sustained by strong inflows in traditional target industries such as automotive manufacturing, financial & insurance services, and electricity provision, and pushed by record-high investments in information and communication services across the region. Thus, the increasing FDI in the region is anticipated to drive the demand for fluoroelastomers. Further, the fluoroelastomers market growth in South & Central America is attributed to the surging production of vehicles in the region. According to the International Organization of Motor Vehicle Manufacturers (OICA), the total number of vehicles produced in South & Central America grew from 2.7 million in 2021 to 2.9 million in 2022, registering an increase of 9%. The region's automotive industry, which relies mainly on import and export revenue generation, considerably creates lucrative opportunities for fluoroelastomers. Passenger car sales growth is the prime factor driving the fluoroelastomers market. Further, according to the Association of Oil, Gas, and Renewable Energy Companies in Latin America and the Caribbean, countries in South & Central America, such as Argentina, Brazil, Colombia, and Venezuela, dominate the oil and gas production. According to the US Energy Information Administration, more than 90% of Brazil's oil production is extracted from offshore deepwater oil fields. In addition, Brazil has 13 billion barrels in oil reserves, which is the second largest in South & Central America after Venezuela. Fluoroelastomers are widely used to construct and maintain oil wells and drilling equipment. Seals, gaskets, and O-rings made from these materials are crucial for preventing leaks and ensuring the integrity of wellheads and downhole equipment. This is especially important in South & Central America, where offshore drilling is common, and equipment is exposed to challenging environmental conditions, including corrosive seawater and high temperatures. These factors are expected to drive the demand for fluoroelastomers in South & Central America.

South & Central America Fluoroelastomers Market Segmentation

The South & Central America fluoroelastomers market is segmented into type, application, end user, and country.

Based on type, the South & Central America fluoroelastomers market is segmented into fluorocarbon elastomers, fluorosilicone elastomers, and perfluorocarbon elastomers. The fluorocarbon elastomers segment held the largest share of the South & Central America fluoroelastomers market in 2022.

In terms of application, the South & Central America fluoroelastomers market is categorized into O-rings, seals and gaskets, hoses, molded parts, and others. The O-rings segment held the largest share of the South & Central America fluoroelastomers market in 2022.

By end user, the South & Central America fluoroelastomers market is segmented into automotive, aerospace, oil and gas, semiconductors, energy and power, and others. The automotive segment held the largest share of the South & Central America fluoroelastomers market in 2022.

Based on country, the South & Central America fluoroelastomers market is segmented into Brazil, Argentina, and the Rest of South & Central America. Brazil dominated the South & Central America fluoroelastomers market in 2022.

3M Company, AGC Inc, Daikin Industries Ltd, Shin-Etsu Chemical Co Ltd, Solvay SA, and The Chemours Co are some of the leading companies operating in the South & Central America fluoroelastomers market.