Brazil Country Commercial Guide
Learn about the market conditions, opportunities, regulations, and business conditions in brazil, prepared by at U.S. Embassies worldwide by Commerce Department, State Department and other U.S. agencies’ professionals
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Advanced Manufacturing
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Overview

Brazil is one of the largest markets for advanced manufacturing technologies in Latin America. Driven by a compound annual growth rate of 20%, the market size is expected to reach US$9 billion by 2030.  Despite this potential, the adoption of new manufacturing technologies has been relatively slow compared to other emerging industrial markets and developed economies.  

Although many local industrial companies have implemented some Industry 4.0 advancements, only a small percentage have embraced and integrated multiple technologies. A recent survey indicated that fewer than 7% of industrial firms in Brazil use 10 or more advanced manufacturing technologies.   

Digital transformation in manufacturing primarily focuses on process optimization and product customization, areas that have seen considerable growth in recent years. However, more sophisticated technologies such as artificial intelligence remain underutilized. Adoption rates also vary significantly based on company size, with larger industrial organizations demonstrating much higher implementation.   

Key benefits realized by Brazilian industries include increased productivity, enhanced product quality, and reduced operational costs. Nonetheless, high implementation costs and a shortage of qualified professionals remain significant barriers to development. Economic challenges, such as exchange rate volatility, customs tariffs, and tax policies further complicate broader adoption of these technologies. 

Leading Subsectors  

Additive Manufacturing 

Brazil boasts the fastest-growing additive manufacturing market in Latin America. The 3D printing ecosystem includes companies involved in software development, prototyping, consulting, modeling, and training. Universities, research institutions, and large corporations serve as the primary drivers of growth in the sector. 

Polymer 3D Printing: By 2022, estimates suggested that the local market had around 300,000 polymer 3D printers, with filament consumption reaching approximately 30 tons per month.  

Metal 3D Printing: Metal additive manufacturing is developing at a slower pace but is gaining traction in Brazil, with wider adoption driven by the aerospace, healthcare, and automotive sectors. The metal 3D printing market alone is expected to triple in size between 2023 and 2027. Currently, most use of metal additive manufacturing is focused on solutions for R&D and prototyping. 

Automation 

Automation and robotics have experienced a relatively strong adoption rate in Brazil, encompassing applications such as logistics automation, automated quality control, and the use of robots in assembly lines. The automotive and electronics industries are at the forefront.  

Sensors, industrial robots, control systems, vision automation and software are categories with the highest potential in the Brazilian automation market. Sensor-based process control is extensively utilized with an estimated adoption rate of around 50% among medium and large companies. Additionally, the use of sensor-based automation for product identification and flexible production lines has grown significantly. This trend is expected to drive the development of customizable products where flexible production lines play a crucial role. 

Best Practices 

U.S. exporters are encouraged to establish strategic partnerships with Brazilian companies, including local distributors, as well as system integrators and technical consultants with established connections in the local industrial market. Understanding the unique characteristics of the Brazilian market is crucial to adapt offerings to local demands. For example, the country has a relatively older industrial infrastructure, which may limit compatibility.  The U.S. Commercial Service can assist companies interested in identifying potential partners in Brazil. 

It is also important to assess the tariff environment and comply with local regulatory standards. Collaborating with local partners to explore innovation incentive programs from key organizations, such as BNDES (Banco Nacional de Desenvolvimento Econômico e Social), FINEP (Financiadora de Estudos e Projetos), and EMBRAPII (Empresa Brasileira de Pesquisa e Inovação Industrial), may enable investments in advanced technologies. In addition, U.S. equipment manufacturers may consider partnering with local industrial innovation centers or universities which develop programs in this field. 

Market Opportunities 

The digitalization and adoption of advanced technologies in the Brazilian industry present numerous possibilities. American companies can offer solutions in automation, AI, Industrial Internet of Things (IIoT), and additive manufacturing. Product categories such as sensors, industrial and desktop printers and materials, and software have high potential.

Trade Shows 

Resources 

Content Sources

  • Sondagem Especial
  • Plastico Brasil
  • Grand View Research
  • McKinsey & Company 
     

For more information, please contact the U.S. Commercial Service Industry Specialist at Moacir.Rodovalho@trade.gov.