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Buoyant Brazilian Construction Market Revs up Prospects for Thermal Insulation Materials Finds Frost & Sullivan - Growing environmental consciousness expands scope for the market
Buoyant Brazilian Construction Market Revs up Prospects for Thermal Insulation Materials Finds Frost & Sullivan

 

NewswireToday - /newswire/ - São Paulo, Brazil, 2011/09/01 - Growing environmental consciousness expands scope for the market.

   
 
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The Brazilian construction market for thermal insulation materials is witnessing high growth as the use of insulation in residential, commercial, and industrial buildings starts to increase. Major infrastructure projects underway will ensure that the market will continue on an upward growth trajectory until at least 2014. The low income housing government program, Minha Casa Minha Vida (My home, my life), launched in 2010 is also a key driver for the construction sector, and consequently for the thermal insulation materials.

New analysis from Frost & Sullivan (chemicals.frost.com), Thermal Insulation Materials in the Brazilian Construction Market, finds that the market earned revenues of over $502 million in 2010 and estimates this to reach $833.6 million in 2017.

"As all infrastructure projects need to be completed well before the 2014 FIFA World Cup deadline, construction projects are expected to be on in full swing over the next few years," says Frost & Sullivan Research Analyst Tiago Segantini. "More than R$5 billion will be invested only in stadiums in the 12 host-cities, and more than R$40 billion are expected to be invested on infrastructure projects in airports, railways, and other public transportation."

One million houses have already been approved and the government has set a target for 2 million more by 2014. More than R$70 billion in subsidies will be given by the Brazilian Government. The 2014 FIFA World Cup alone will bring an additional R$142.39 billion to the country from 2010 to 2014, generating 3.63 million jobs per year and R$63.48 billion of income for the population, which will inevitably hike domestic demand for thermal insulation materials.

Apart from the booming Brazilian construction sector, rising environmental awareness has helped stoke growth in this market. Sustainable living and minimizing the carbon footprint are the growing trends among consumers as they grow increasingly conscious of the impact of their lifestyles on the environment. A large number of environmental lobby groups influence consumer perceptions about "greener living."

Governments are also recognizing this with new energy efficiency legislation and national and international commitments. This awareness is an important contributing factor for the need to decrease energy consumption in homes and companies. The market is poised for a demand upsurge for insulation materials; particularly the more efficiently produced sustainable ones.

High cost is a major restraint, as price is the decisive factor for end users. In most instances, the contractors are the final decision makers and they are moderately price sensitive. This is because they are also in a highly competitive market and the homeowner will likely opt for the lowest of the quotes they receive for either renovation or new construction.

"An important strategy that could be used by companies to draw the attention of clients and expand market share is to extend credit facilities to clients," says Segantini. "This would provide elbow room for clients and allow them to purchase the thermal insulation materials, sell the final products, and pay the suppliers almost at the same time they are receiving payment from their consumers."

However, this strategy is only possible for large-scale companies that have the financial wherewithal to advance capital to their clients. Considering the market is preparing for accelerated growth, the ability to deliver products on time and in multiple regions of the country will provide the cutting edge in terms of competitiveness.

If you are interested in more information on this study, please send an email to Tatiana Brull at tatiana.brull[.]frost.com with your contact details.

Thermal Insulation Materials in the Brazilian Construction Market is part of the Chemicals & Materials Growth Partnership Service program, which also includes research in the following markets: construction chemicals, polymers, paints and coatings. All research services included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants.

About Frost & Sullivan

Frost & Sullivan, the Growth Partnership Company, enables clients to accelerate growth and achieve best-in-class positions in growth, innovation and leadership. The company's Growth Partnership Service provides the CEO and the CEO's Growth Team with disciplined research and best-practice models to drive the generation, evaluation, and implementation of powerful growth strategies. Frost & Sullivan leverages 50 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from more than 40 offices on six continents.

Thermal Insulation Materials in the Brazilian Construction Market / N974

 
 
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Buoyant Brazilian Construction Market Revs up Prospects for Thermal Insulation Materials Finds Frost & Sullivan

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Publisher Contact: Tatiana Brull 
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