Impact Analysis of Covid-19

The complete version of the Report will include the impact of the COVID-19, and anticipated change on the future outlook of the industry, by taking into the account the political, economic, social, and technological parameters.

Market Overview

An explosive refers to a reactive substance that is comprised of a vast amount of potential energy that can produce a massive explosion if released suddenly. It is usually accompanied by light, sound, and pressure. The process of initiation of explosives is termed as detonation. One unit of explosives when initiated can expand up to 1,000 units within several milliseconds creating high pressure in the blasthole and gaining temperatures ranging from 1,500°C to 4,000°C and an approximate velocity of 2,500–8,000 meters/second. Explosives are categorized on the basis of speed of their detonation. Moreover, another parameter that classifies them is the intensity of detonator used in imitation of the explosive. Industrial explosive is used in various application areas such as mining, construction, and more.

The Latin America industrial explosives market is estimated to account for US$ 1,888.38 Mn in terms of value by the end of 2027.

Market Dynamics- Drivers

  1. Rising mining activities are expected to drive growth of the Latin America industrial explosives market during the forecast period

Increasing demand for metals, non-metals, and stones in Latin America has increased mining activities thereby boosting the overall demand for industrial explosives. Growing inclination of foreign investors in the Latin America mining industry has led to a boost in the demand for explosives such as blasting agents and high explosives in the region. According to Coherent Market Insights’ analysis, Investments in the mining sector in Latin America had risen by over 50% from 2010 to 2014. According to the same source, Total investment in the mining sector in Mexico reached US$ 14.6 Bn collectively in both 2012 and 2013. Hence, these factors are expected to drive growth of the Latin America industrial explosives market in the near future.

  1. Increasing number of industrial tunnel construction and road development projects are expected to propel the Latin America industrial explosives market growth over the forecast period

The demand for robust public transport facilities has increased, which includes roadways and railways thereby resulting in intensive tunneling and road development projects being initiated in relatively developed countries of Latin America such as Brazil and Mexico. This, in turn, is expected to propel the Latin America industrial explosives market growth over the forecast period. According to Coherent Market Insights’ analysis, investment in construction and infrastructural activities in Brazil rose from 2.5% of GDP to 4% of GDP from 2011 to 2015.

Statistics:

Chile held dominant position in the Latin America industrial explosives market in 2019, accounting for 28.9% share in terms of value, followed by Peru, Colombia, Brazil, and Mexico respectively

Figure 1: Latin America Industrial Explosives Market Share (%), in terms of Value, By Country, 2019

Latin America Industrial Explosive  | Coherent Market Insights

Market Dynamics- Restraints

  1. Rising raw material prices are expected to restrain growth of the Latin America industrial explosives market during the forecast period

Various raw materials are used in the production of explosives including ammonium nitrate. Such materials have witnessed a rapid hike in terms of prices in the recent past due to increasing demand for explosives in mining, construction, and quarrying activities. Moreover, natural gas being a primary material used in the production of ammonia, a raw material further used in the production of explosives, which is witnessing high prices hikes. Hence, these factors are expected to hinder the Latin America industrial explosives market growth in the near future. For instance, in November 2015, prices of ammonium nitrate rose by 4%. Moreover, the prices of natural gas rose by 75% in 2012.

  1. Stringent government regulations regarding the use of explosives are expected to hinder the Latin America industrial explosives market growth over the forecast period

Explosives lead to adverse effects on the environment as it releases toxic gases such as carbon dioxide and nitrogen oxide during explosions and dangerous hazards related to the storage of such unstable explosives. As a result of this, governments of various countries in Latin America are enforcing strict regulatory regulations on the use of storage of industrial explosives, which in turn, is expected to hamper the Latin America industrial explosives market growth during the forecast period.

Market Opportunities

  1. Rise on construction activities in Latin America can present major growth opportunities

Construction activities in Latin America region have increased massively in the recent past with rising construction of public infrastructure. According to the Association of Equipment Manufacturers (AEM), the regional construction industry is expected to witness a CAGR of 2.6% during the forecast period with Peru, Columbia, and Brazil holding leading position.

  1. Higher demand for blasting agents can provide lucrative business opportunities

Blasting agents have witnessed massive demand in Latin America in mineral extractions and infrastructural projects. A blasting agent is a material or mixture that consists of fuel and oxidizer, which is intended for blasting. Many key players in the market can provide blasting agents and gain a competitive edge in the market.

Figure 2: Latin America Industrial Explosives Market Value (US$ Mn), 2016 - 2027

Latin America Industrial Explosive  | Coherent Market Insights

The Latin America industrial explosives market was valued at US$ 1,050.70Mn in 2019 and is forecast to reach a value of US$ 1,888.38 Mn by 2027 at a CAGR of 7.6% between 2020 and 2027.

Market Trends

  1. Rising use of explosives owing to increasing depth of underground mines

Major companies involved in the market are focused on increasing the depth of underground mines, in order to extract more amount of minerals and are thus deploying a large amounts of explosives specially ANFO and bulk explosives. For instance, in April 2014, ‘KGHM Polska Mied?’ started a new project called ‘Deep Glogow’ for the extraction of copper and silver. The depth of the mine is 1,200 meters and is expected to yield minerals for a span of 40 years.

  1. Growing utilization of blasting agents for tunneling rather than mechanical drills

Majority of companies are more inclined towards the use of explosives for tunneling of roads and railway tracks instead of mechanical drilling. For instance, Orica, an Australian explosives manufacturer, offers over 15 denominations of explosives (ANFO, emulsions, etc.) to be used in tunneling projects.

Competitive Section

Major companies involved 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.

Key Developments

  1. Key companies in the market are involved in capacity and business expansion, in order to enhance the market presence. For instance, in October 2019, MAXAM inaugurated its state-of-the-art manufacturing facility in Pingyi, China.
  2. Major market players are focused on mergers and acquisitions, in order to gain a competitive edge in the market. For instance, in February 2020, Orica Limited, an Australia-based explosives provider, acquired Exsa SA, a Peru-based explosives company.

An explosive refers to a reactive substance that is comprised of a vast amount of potential energy that can produce a massive explosion if released suddenly. There are three classes of namely low explosives, industrial explosives, and military explosives. Industrial explosives find applications in mining such as metal mining, quarrying, and non-metal mining and in construction such as tunneling and blasting older buildings for reconstructions. It is usually accompanied by light, sound, and pressure. The process of initiation of explosives is termed as detonation. One unit of explosives when initiated can expand up to 1,000 units within several milliseconds creating high pressure in the blasthole and gaining temperatures ranging from 1,500°C to 4,000°C and an approximate velocity of 2,500–8,000 meters/second.  Major uses of explosives are in fireworks, mining, blasting rock masses for tunneling, construction activities, quarrying, hydroelectric power projects, military wars, mineral extraction, and the oil & gas industry, to name a few.

Market Dynamics

Latin America region is witness increase in number of mining activities in recent past owing to increase in demand of metal and non-metal components. Furthermore, region also witness growing inclination of foreign investors it led to a boost in the demand for explosives such as blasting agents and high explosives in the region. According to Coherent Market Insights’ analysis, Investments in the mining sector in Latin America had risen by over 50% from 2010 to 2014. According to the same source, Total investment in the mining sector in Mexico reached US$ 14.6 Bn collectively in both 2012 and 2013. Hence, these factors are expected to drive growth of the Latin America industrial explosives market in the near future.

Moreover, Latin America region mainly contributed by developing economies such as Brazil, Chile and many other. These countries are going through rapid infrastructure changes and investing heavily in infrastructure market during the forecast period. According to Coherent Market Insights’ analysis, investment in construction and infrastructural activities in Brazil rose from 2.5% of GDP to 4% of GDP from 2011 to 2015. Thus these factors are expected to drive the global market.

Market Taxonomy

This report segments the Latin America industrial explosives market on the basis of Explosive Type, End-use Industry, and Country.

On the basis of Explosive Type, Latin America industrial explosives market is segmented into Mining, Construction and Others.

On the basis of country, Latin America industrial explosives market is segmented into Chile, Peru, Brazil, Colombia, Mexico, Argentina and Rest of Latin America.

Key features of the study:

  • This report provides an in-depth analysis of the Latin America industrial explosives market and provides market size (US$ million) and compound annual growth rate (CAGR %) for the forecast period (2020-2027), considering 2019 as the base year
  • It elucidates potential revenue opportunities across different segments and explains attractive investment proposition matrix for this market
  • This study also provides key insights about market drivers, restraints, opportunities, new product launches or approval, regional outlook, and competitive strategy adopted by leading players
  • It profiles leading players in the Latin America industrial explosives market based on the following parameters – regulatory landscape, company overview, financial performance, product portfolio, geographical presence, distribution strategies, key developments and strategies, and future plans
  • Key companies covered in the Latin America industrial explosives market includes 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.
  • These key market players are focusing on collaboration strategy with other market leaders to innovate and launch new products to meet the increasing needs and requirements of consumers.
  • Insights from this report would allow marketers and management authorities of companies to make informed decision regarding future product launches, technology upgradation, market expansion, and marketing tactics
  • The Latin America industrial explosives market report caters to various stakeholders in this industry including investors, suppliers, distributors, new entrants, and financial analysts
  • Stakeholders would have ease in decision-making through the various strategy matrices used in analyzing the Latin America industrial explosives market.

Detailed Segmentation:

  • Latin America industrial explosives Market, By Explosive Type:
    • High Explosives
    • Blasting Agents
  • Latin America industrial explosives Market, By End-use Industry:
    • Mining
      • Metal Mining
      • Non-Metal Mining
      • Quarrying
    • Construction
    • Others
  • Latin America industrial explosives Market, By Country:
    • Chile
    • Peru
    • Brazil
    • Colombia
    • Mexico
    • Argentina
    • Rest of Latin America
  • Company Profiles
    • MAXAM*
      • Company Overview
      • Product Portfolio
      • Financial Performance
      • Key Strategies
      • Recent Developments
      • Future Plans
    • AEL Mining Services Ltd.
    • EXSA SA
    • Enaex
    • Austin International
    • Orica Limited
    • Keltec Energies
    • Economic Explosives
    • IBP Co.,
    • Noble Explochem
    • Accurate Energetic Systems, LLC.
    • Detotec North America Inc.

*Browse all the market data tables and figures on “Latin America industrial explosives Market- Forecast to 2027”

Table of Contents

  1. Research Objectives and Assumptions
    • Research Objectives
    • Assumptions
    • Abbreviations
  2. Market Purview
    • Report Description
      • Market Definition and Scope
    • Executive Summary
      • Market Snippet, By Explosive Type
      • Market Snippet, By End-use Industry
      • Market Snippet, By Country
    • Coherent Opportunity Map (COM)
  3. Market Dynamics, Regulations, and Trends Analysis
    • Market Dynamics
      • Drivers
      • Restraints
      • Market Opportunities
    • Regulatory Scenario
    • Industry Trend
    • Merger and Acquisitions
    • New system Launch/Approvals
  4. Latin America industrial explosives Market, By Explosive Type, 2017-2027 (US$ Million)
    • Introduction
      • Market Share Analysis, 2019 and 2027 (%)
      • Segment Trends
    • High Explosives
      • Introduction
      • Market Size and Forecast, 2020–2027, (US$ Million)
    • Blasting Agents
      • Introduction
      • Market Size and Forecast, 2020–2027, (US$ Million)
  5. Latin America industrial explosives Market, By End-use Industry, 2017-2027 (US$ Million)
    • Introduction
      • Market Share Analysis, 2019 and 2027 (%)
      • Segment Trends
    • Mining
      • Introduction
      • Market Size and Forecast, 2020–2027, (US$ Million)
        • Metal Mining
        • Non-Metal Mining
        • Quarrying
    • Construction
      • Introduction
      • Market Size and Forecast, 2020–2027, (US$ Million)
    • Others
      • Introduction
      • Market Size and Forecast, 2020–2027, (US$ Million)
  6. Latin America industrial explosives Market, By Country, 2017-2027 (US$ Million)
    • Introduction
      • Market Share Analysis, By Country, 2019 and 2027 (%)
    • Latin America
      • Country Trends
      • Market Size and Forecast, By Explosive Type, 2020–2027 (US$ Million)
      • Market Size and Forecast, By End-use Industry, 2020–2027 (US$ Million)
      • Market Size and Forecast, By Distribution Channel, 2020–2027 (US$ Million)
      • Market Share Analysis, By Country, 2019 and 2027 (%)
        • Chile
        • Peru
        • Brazil
        • Colombia
        • Mexico
        • Argentina
        • Rest of Latin America
  7. Competitive Landscape
    • Company Profiles
      • MAXAM
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • AEL Mining Services Ltd.
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • EXSA SA
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • Enaex
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • Austin International
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • Orica Limited
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • Keltec Energies
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • Economic Explosives
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • IBP Co.,
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • Noble Explochem
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • Accurate Energetic Systems, LLC.
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • Detotec North America Inc.
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
  8. Section
    • References
    • Research Methodology
    • About us and Sales Contact

*Browse XX market data tables and XX figures on “Latin America industrial explosives Market-forecast to 2027”.

Frequently Asked Questions

The Latin America industrial explosives market size was valued at US$ 1,050.70 million in 2019 and is estimated to exhibit a CAGR of 7.6% between 2020 and 2027.
Metal Mining segment held the major market share in 2019 owing to Rising mining activities during the forecast period.
• Major factor driving the growth of Latin America industrial explosives market during the forecast period are rising mining activities are expected to drive growth of the Latin America industrial explosives market during the forecast period • Increasing number of industrial tunnel construction and road development projects are expected to propel the Latin America industrial explosives market growth over the forecast period
Major factors hampering the growth of the industrial explosives market during the forecast period constitutes of • Rising raw material prices are expected to restrain growth of the Latin America industrial explosives market during the forecast period • Stringent government regulations regarding the use of explosives are expected to hinder the Latin America industrial explosives market growth over the forecast period.
Chile industrial explosives market is expected to generate the highest revenue during the forecast period.
Some of the key players operating in the 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.
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