Advanced Manufacturing - Industry - South America Market, Share and Trends 2023-2028

Summary of Advanced Manufacturing

Advanced manufacturing is a rapidly evolving sector, particularly in South America. This region has been witnessing significant developments in this field– driven by factors such as technological advancements, government policies and changing market dynamics. The following report provides an overview of the current state of advanced manufacturing in South America.

Advanced manufacturing in South America has experienced significant growth in recent years, with Brazil, Argentina, Chile and Colombia being major players in the region’s industrialization. The industrial sector has made a limited contribution to employment creation in South America and the region’s industrialization has been slow compared to other developing countries.

Over the past decade, South America has emerged as a burgeoning hub for advanced manufacturing. Countries like Brazil, Argentina, Chile and Colombia have witnessed significant investments in sectors such as automotive, aerospace, electronics and renewable energy production.

Advanced technologies like 3D printing, robotics and IoT are enabling manufacturers to boost productivity and quality. However– for the region to realize its full potential, governments will need to address infrastructure gaps and skills shortages through targeted policy interventions.

Recent Trends and Insights

The automotive sector is a major player in the South American advanced manufacturing industry. Major manufacturers such as Stallantis, General Motors, Toyota Motor Corporation, Nissan Group and Volkswagen AG have a significant presence in the region. Between 2021 and 2022 – Toyota led the market with more than 73,000 units of new registrations – followed by Volkswagen with 55,000.

Manufacturing’s contribution to GDP has grown steadily across most South American countries– averaging around 15-20% currently. Foreign direct investment flows into advanced manufacturing sectors have doubled since 2010– with major investments from US, European and Asian firms setting up production bases.

Adoption of Industry 4.0 technologies is gaining momentum. Over 30% of large manufacturers in Brazil, Argentina and Chile have implemented at least one Industry 4.0 solution in their operations as of 2022.

Regional trade blocs like Mercosur and the Pacific Alliance have opened new export markets for South American manufacturers within the continent. However, non-tariff barriers continue to hamper seamless trade.

Product Insights

In the most industrialized countries in South America such as – Argentina and Brazil – the production of foodstuffs, beverages and tobacco products has been significant in the Food, beverages and tobacco.

South America is a major global player in the mining industry, with countries like Brazil and Chile being among the world’s top exporters of minerals and metals. The manufacturing sector in South America has seen substantial growth, particularly in – the output of cement, steel, pig iron, automobiles and household appliances. Brazil, Argentina, Venezuela and Chile are the major manufacturing hubs in the region.

The textile industry has played a significant role in virtually every South American country, contributing to the region’s industrial growth. The construction industry in South America has experienced growth, with high-rise and mid-rise office towers, hotels, commercial structures, and condominiums being built in major cities.

The total annual generation of electricity in South America has increased steadily since the last quarter of the 20th century.

Key Companies

Some major players within this vast domain of industry are

• Embraer
• Tenaris
• Marcopolo
• Braskem
• Ternium
• Teranis
• Globant

Regional Analysis

Automakers in Brazil export heavily to Argentina and Chile– while electronics from Mexico are gaining popularity in Colombia and Peru. With further streamlining of non-tariff measures, intra-regional trade could witness a substantial boost.

With a combined population of over 400 million and rising income levels– South America presents a huge domestic market for manufactured goods. As more people enter the middle class – demand for consumer electronics, automobiles, machinery and durables is projected to grow exponentially in the coming years.

Local manufacturing allows companies to cater effectively to the needs of the population, while also creating local jobs. South America’s industrial competitiveness and integration into the global economy have been areas of concern – with the region facing competitive stresses as it integrates into the global economy. The region’s industrial base – though advanced – has faced challenges in fully tapping the opportunities offered by international trade and investment flows.

South America is a major global player in the mining industry– particularly in the export of minerals and metals. Countries like Brazil and Chile are among the world’s top exporters of minerals and metals. The construction industry in South America has experienced significant growth- with the development of high-rise and mid-rise structures in major cities.

Market Segmentation

By Type:

• Additive manufacturing/3D printing
• Automation/robotics
• Industrial internet of things (IIoT) and industrial analytics
• Plant asset management (PAM)
• Manufacturing execution systems (MES)
• Industrial controls

By End user:

• Manufacturer and Retailer
• Distinct industries like automotive, aerospace, electronics
• Process industries like oil & gas, chemicals, pharmaceuticals
• Energy and utilities
• Food and beverage

By Enterprise Size:

• Large Industries
• Small & Medium Industries

By Countries:

• Brazil
• Argentina
• Columbia

Our Methodology

We have offered a well-founded review of the South America’s advanced manufacturing market along with ongoing trends and upcoming projections to highlight proximate investment opportunities in this report. Moreover, an extensive analysis of any future prospects, challenges, competitors, or navigating aspects is also provided. A methodical detailed regional examination is presented.

Primary Research  

Our multi-pronged research approach includes interviews with industry leaders and a global survey of advanced manufacturing professionals to gain qualitative insights. We utilize our proprietary databases encompassing key performance indicators worldwide in order to collate relevant data points. A multivariate forecasting framework considering historical performance, current dynamics and qualitative factors are utilized to develop market sizing and growth projections through 2029.

We supplement our primary research with a careful examination of secondary materials such as– case studies, news stories and references from other sources. Organizations can benefit from the strategic advice and conclusions offered because they will be better equipped to respond to the dynamic nature of this industry and seize emerging possibilities.

We employ a comprehensive and iterative research methodology focused on minimizing deviation to provide the most accurate market estimates. Our research utilizes a combination of bottom-up and top-down approaches across segments and utilizes databases, primary research insights and industry experts for analysis.

Raw data is obtained from multiple sources and thoroughly filtered to ensure only authenticated and validated sources are considered. We collect data from raw material suppliers, industry associations, technology providers, and buyers to gain a holistic perspective.

Quantitative Analysis

Our market estimates are derived through statistical models, beginning with collection of historical data and analysis of macro- and micro-economic factors influencing the market. Gathered information on market dynamics, technology and pricing trends are utilised to build the models.

Econometric and technological models are applied to project short- and long-term market potential respectively. A bottom-up approach is preferred to minimize errors. Key parameters considered include market drivers and restraints, material pricing trends, regulatory scenarios, and capacity additions.

Weights are assigned to these parameters based on impact analysis and market forecasting is performed via statistical tools and techniques. We believe this methodology results in an accurate and realistic market picture.