SAO PAULO, July 6, 2015 /PRNewswire/ -- Although the biggest revenue segments for the Mexican petrochemicals market in 2014 were acrylonitrile-butadiene-styrene (ABS) (381.7 million) and styrene butadiene rubber (SBR) (332.6 million), poly butylene terephthalate (PBT) and styrene-butadiene-styrene (SBS) markets are expected to grow at the highest compound annual growth rate (CAGR) from 2014 to 2020, at 11.3 percent and 8.7 percent, respectively. The main reason for this growth is the steady stream of investments by automotive, electronics, and appliance companies, which are attracted to Mexico's low production costs and strategic geographic location.
New analysis from Frost & Sullivan, Mexico Petrochemical Market Opportunity Analysis (https://www.frost.com/q294473800), finds that the Mexican petrochemicals market earned revenues of $1.06 billion in 2013 and estimates this to reach $1.64 billion in 2020.
If you are interested in more information on this study, please send an e-mail to Francesca Valente, Corporate Communications, at email@example.com.
"While higher vehicle production is the main market driver for the petrochemical market, there is a marked trend toward making vehicles lighter to enhance movement and save fuel," said Frost & Sullivan Energy & Environmental Industry Analyst Mariana Guercia. "This translates to higher demand for plastic materials to replace metal parts, but simultaneously, it also decreases the amount of rubber required per car."
The influx of participants, especially from Asia, is intensifying competition in the market and thereby, lowering the average price of resins. The volatility of raw material prices is further constricting profit margins, as it is turning the market toward price-based competition.
However, the market has considerable Government backing, which makes it financially viable to do domestic business and keeps the market buoyant in spite of the falling prices.
"As Mexico has signed multiple trade agreements with various nations, manufacturers from most countries do not have to pay import taxes," noted Guercia. "The low costs of establishing business stimulate foreign investments, especially in new plants and factories of automotive, appliances and electronics industries, which are the main end users of these resins."
Overall, due to the favorable environment created by the Government and the country's advantageous location, the petrochemical market in Mexico is expected to grow at a steady pace.
Mexico Petrochemical Market Opportunity Analysis is part of the Oil & Gas (http://ww2.frost.com/research/industry/energy-power-systems/oil-gas) Growth Partnership Service program. Frost & Sullivan's related studies include: North American Enhanced Oil Recovery Market, Annual Global Power and Energy Outlook 2014, Global Oil and Gas (O&G) Outlook 2014, and Investment Opportunities in the Marginal Oil & Gas Fields in Southeast Asia. All studies included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants.
About Frost & Sullivan
Frost & Sullivan, the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today's market participants.
Our "Growth Partnership" supports clients by addressing these opportunities and incorporating two key elements driving visionary innovation: The Integrated Value Proposition and The Partnership Infrastructure.
- The Integrated Value Proposition provides support to our clients throughout all phases of their journey to visionary innovation including: research, analysis, strategy, vision, innovation and implementation.
- The Partnership Infrastructure is entirely unique as it constructs the foundation upon which visionary innovation becomes possible. This includes our 360 degree research, comprehensive industry coverage, career best practices as well as our global footprint of more than 40 offices.
For more than 50 years, we have been developing growth strategies for the global 1000, emerging businesses, the public sector and the investment community. Is your organization prepared for the next profound wave of industry convergence, disruptive technologies, increasing competitive intensity, Mega Trends, breakthrough best practices, changing customer dynamics and emerging economies?
Mexico Petrochemical Market Opportunity Analysis
Corporate Communications – Latin America
P: +54 11 4777 5300
F: +54 11 4777 5300
SOURCE Frost & Sullivan