The acrylonitrile market is expected to grow at a CAGR of 4% during the forecast period. Rising demand from the automotive industry, drivers.2, and drivers.3 are some of the significant factors fueling acrylonitrile market growth.
Rising demand from the automotive industry
In South America, Argentina, Brazil, and Colombia, and the Caribbean offer growth opportunities to acrylonitrile vendors. Acrylonitrile manufacturers in the region are focusing on various factors, such as cost-effective labor, low transportation costs, and lenient government regulations, to establish their manufacturing units. The extensive use of acrylonitrile to manufacture ABS and SAN, acrylic fibers, PAM, and NBR will have a considerable influence on the regional acrylonitrile market during the forecast period.
Brazil has the presence of a large number of synthetic fiber manufacturers that contribute significantly to the country’s textile market. Brazil is the leading textile exporter in South America. Despite low per capita income and medical expenditure, the country has the largest economy and one of the fastest-growing textile markets in the region. The textile market in Brazil is expected to grow at a CAGR approximately 5.5% during the forecast period. Large Brazilian cities such as Sao Paulo and Rio de Janeiro account for the highest expenditure on textiles. The increasing consumption of textiles in Brazil is expected to boost the demand for acrylic fibers and acrylonitrile during the forecast period.
In Argentina, the rise in automotive production will drive the consumption of acrylonitrile during the forecast period. The total automotive production in the country was valued at 466,649 units in 2018. Major acrylonitrile products such as ABS and SAN, NBR, and carbon fibers are characterized by lightweight, high impact and strength resistance, and excellent insulating properties.
Brazil, Ecuador, Chile, Peru, Argentina, and Colombia have been severely affected by the COVID-19 pandemic in the region. The number of coronavirus cases in Brazil crossed 189,000 on May 13, 2020, with approximately more than 13,000 deaths. The number of people affected by COVID-19 is increasing exponentially, which has influenced manufacturers of end-products to close their manufacturing units across the region. This will hinder the growth of the acrylonitrile market in the region during the forecast period.
