The Latin America Industrial Explosives Market was valued at US$ 1,172.7 Million in 2021 and is expected to surpass US$ 2,281.6 Million by 2030, registering a CAGR of 7.9% during the forecast period (2022-2030), according to the Latin America industrial explosives Market, By Explosive Type (High Explosives and Blasting Agents), By End-use Industry (Mining (Metal Mining, Non-Metal Mining, Quarrying), Construction and Others), By Country (Chile, Peru, Brazil, Colombia, Mexico, Argentina and Rest of Latin America), published by Coherent Market Insights.
An explosive is a reactive material that is comprised of a massive amount of potential energy and can produce an explosion if it is suddenly released. 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. 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.
The Latin America industrial explosives market was estimated to account for US$ 1,172.7 Million in terms of value in 2021 and is predicted to grow at a CAGR of 7.9% during the forecast period (2022 to 2030).
Key Developments
In November 2022, Orica, a mining and infrastructure solutions provider company, announced the extension of its strategic partnership with Alpha HPA Limited, an ASX-listed specialty metals and technology company, This partnership includes the acquisition of a 5% equity stake and the formation of a non-binding Memorandum of Understanding ("MoU") to look into the viability of launching a new high-purity aluminum manufacturing facility.
Market Driver
Rising transition from open-pit mines to underground mines is expected to boost the Latin America industrial explosives market growth over the forecast period
Mining and exploration companies are focused on extracting minerals from underground mines rather than open-pit mines to reach mineral-rich resources deep inside the earth. Furthermore, open-pit mines require a comparatively bigger sized landmass than underground mines thus transition from open-pit mines to underground mines will spur the demand for industrial explosives. Hence, these factors are expected to drive growth of the Latin America industrial explosives market in the near future. For instance, in 2013, over 80 Australian mining, equipment, technology, and services (METS) companies have established their subsidiaries in Chile to facilitate and invest in underground mining. Furthermore, in 2013, the Mexican mining industry attracted foreign investment of US$ 6.58 Bn.
Latin America industrial explosives Market - Impact of Coronavirus (Covid-19) Pandemic:
Nearly all of Latin America's industries, including mining, manufacturing, and others, were severely impacted by the Covid-19 pandemic, which also reduced demand for industrial explosives this heavily impacted the industrial explosives market in Latin America.
Furthermore, Mining activity dramatically decreased as a direct result of the lockdown since it was difficult to obtain raw materials, which led to the manufacture of industrial explosives being stopped.
However, according to CMI analysis, Latin America Industrial Explosives Market is slowly growing and expected to expand its growth in 2 to 3 years.
To know the latest trends and insights prevalent in this market, click the link below:
https://www.coherentmarketinsights.com/market-insight/latin-america-industrial-explosive-market-3808
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Key Trends and Analysis of the Latin America industrial explosives market:
- Mining companies are increasingly using nitrogen compound-based explosives, owing to their cost-efficiency and their stable behavior. Nitrogen compound based explosives such as ammonium nitrate fuel oil (ANFO) are more stable than other explosives. Moreover, such explosives are cost-efficient and are relatively cheaper than other explosives.
- Major players involved in the mining industry in Latin America are emphasizing more on increasing the depth of underground mines to extract more amount of minerals and are thus deploying large amounts of explosives specially ANFO and bulk explosives. For instance, in March 2015, the Chile El Teniente copper mine underwent an expansion in depth of about 350 meters below the existing undercut level with an investment of US$ 5.4 Bn.
- Major players operating 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.
