Industrial explosives are essential materials used for mining and construction activities to break, shift or blast rocks and gravels. The range of explosives includes ammonium nitrate explosives, nitroglycerin based explosives and dynamite among others. These explosives are known for their energy, efficiency and precision in breaking hard rock formations. The demand for metals and minerals has boosted exploration and mining operations across Latin America.
The global Latin America industrial explosives Market is estimated to be valued at US$ 1572 million in 2024 and is expected to exhibit a CAGR of 3.8% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
One of the primary trends driving the growth of the Latin America industrial explosives market is increasing mining activities in the region. According to the World Bank, Latin American and Caribbean countries collectively hold around 30% of global mineral reserves and 13% of fossil fuel reserves. Countries such as Chile, Peru and Brazil are among the top producers of copper, lithium, gold and iron ore globally. There has been significant foreign direct investment in mining projects aimed at expanding production capacity of essential metals and minerals. Rising mineral extraction is positively impacting the consumption of explosives which are necessary for activities such as blasting, rock excavation and mining. Furthermore, ongoing investments in infrastructure development projects involving road construction, railway lines, dams and ports are augmenting the demand for industrial explosives.
The Latin America industrial explosives market is dominated by blasting agents sub segment. Blasting agents like ammonium nitrate fuel oil (ANFO) find wide application in mining and construction activities. They account for over 60% of the total industrial explosives consumption in the region owing to their easy availability and cost effectiveness. The mining industry is the largest end-user of industrial explosives in Latin America due to presence of large mineral reserves.
The Global Latin America Industrial Explosives Market Demand is estimated to be valued at US$ 1572 million in 2024 and is expected to exhibit a CAGR of 3.8% over the forecast period 2024 to 2031.
Regional analysis: Brazil dominates the Latin America industrial explosives market with a share of over 35% in 2024. Rise in mining and infrastructure development projects in the country is driving the demand for explosives. Mexico and Peru are other major countries expected to witness high growth during the forecast period supported by increasing foreign investments in mining and construction sectors.
Key players: Key players operating in the Latin America industrial explosives market are Orica Limited, MAXAM, AEL Mining Services, Austin Powder Company, and ENAEX. Orica Limited is one of the dominant players in the region on account of its well-established distribution network and wide product portfolio including bulk explosives, packaged explosives, and blasting accessories.
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it