Brazilian Process Automation Market Recovering
Will Reach $2B by 2021
The Global Automation Research LLC 2017 Global Market Forecast shows that the Brazil Process Instrumentation and Automation (PI&A) market is recovering and will show annual growth of 3 to 5 percent over the next 5 years, reaching $2 Billion by 2021. The cumulative 5-year market value gain will be almost $400 million.
Paul Rasmusson, President, Global Automation Research LLC said, “Exploiting the PI&A market opportunities in Brazil and capturing a portion of the $400 million increase will require a good understanding of Brazil’s process industry segments and the geographic distribution of PI&A market.”
The Brazilian PI&A market is geographically spread across a country almost the size of the United States (much larger if you exclude Alaska). At 210 Million, its population is two-thirds that of the United States. The process industries account for about 25 percent of the Brazil GDP versus about 6 percent in the United States.
The 2017 Brazil ReMaP™ program shows that while about 40 percent of the process automation market is concentrated in the Southeast region of Brazil, the remainder of the PI&A market covers all 27 Brazilian States.
For example, ethanol/sugar processing has concentrations in the northeast, mining in the central area, refining and food processing in the south region, and onshore oil & gas production in the north and northeast Brazil.
The 2016 Brazilian PI&A market value is $1.64 Billion. By 2016, the market will reach $2.0 Billion, a 5-year CAGR of 4.2 percent. This period of forecasted growth follows three years of steep declines due to the Brazilian economic recession combined with business scandals in Petrobras. On-going problems such as government red tape, inflation, Petrobrasmanagement, and lack-luster foreign direct investment remain to challenge the recovery.
However, underlying drivers for growth include the global recovery of oil prices, substantial increases in both onshore and offshore oil production, infrastructure spending, and significant demand for delayed maintenance, repair, and turnarounds in the refining and chemicals industry. Cement, iron ore and sugar exports will drive new processing facilities with associated Process Automation demand.
ReMaP™* is a program designed to provide Clients with a much more granular or local estimate of the market size for Process Instrumentation and Automation (PI&A) products. Sales, Marketing, and Service Executives now can identify sales opportunities at, and within, individual sales and service territories. ReMaP™ programs are available for the United States providing individual Process Automation product or ser-vice market size and industry segmentation for about 900indi-vidual 3-digit zip code areas. Programs for Canada, Mexico, Brazil and Chile are also available. *Regional Market Potential
About Global Automation Research LLC
Research is the core of Global Automation Research LLC. We've developed research techniques, technical expertise, and in-house databases that provide our Process Automation clients with services to address their most critical marketing and planning needs. Our core competencies are our concentration in the Process Instrumentation and Automation Industry; investment in bringing the most effective, modern market research methods to the PI&A Industry and Research Associates with rich experience in sales, marketing, and planning gained from previous positions with major PI&A suppliers.