The commercial industrial gas market in Brazil generated revenues of just over $2.2 billion in 2014. The country’s market represents the largest in the South American region, yet has faced year-on-year decline since its record revenues in 2011.
This decline has been heavily linked to the well-documented fall of the Brazilian Real since 2011, and increased domestic and international pressures on the market’s key end users.
The Brazilian industrial gases market is dominated by the wholly owned subsidiary of Praxair, White Martins. The company has a strong presence in all lines of business in the country, and is estimated to achieve a market share of 58% in 2014. Air Liquide has been active in the country since 1945, and operates a strong number of cylinder filling plants, alongside a high number of distributors around the country. This has enabled the availability of Air Liquide’s packaged products in over 80% of the country’s vast territory. In 2014, we estimate that the company held a market share of just over 17%.
The largest share of revenues in Brazil are generated through deliveries of bulk product – totalling just over $850 million in 2014. The packaged gases business contributes the second largest share of revenues to the industrial gases markets. Packaged gas revenues have been decreasing since 2012, alongside an increase in bulk revenues. This is an indicator of the Brazilian market becoming more developed, with more customers increasing their demand, and opting for bulk supply over the traditional use of packaged gases.
Onsite supply schemes generate an important share of revenues for the Brazilian industrial gases market. Much of this originates from sales to metallurgical facilities, located in the four main industrial regions of Minas Gerais, Espirito Santo, Rio de Janeiro and Sao Paulo. The steel industry has received no less than 10 new onsite ASUs since 2010. Large international companies, such as Arcelor Mittal and ThyssenKrupp, are increasingly investing in a variety of applications to improve efficiency, amidst the global steel crisis.
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