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Increased Investment in High Speed Rails to Push Demand for HSR Composites Says Frost & Sullivan - Benefits like superior fuel efficiency, impact resistance, and design flexibility to promote wider usage - Chemicals.Frost.com
Increased Investment in High Speed Rails to Push Demand for HSR Composites Says Frost & Sullivan

 

PRZOOM - /newswire/ - London, United Kingdom, 2013/04/09 - Benefits like superior fuel efficiency, impact resistance, and design flexibility to promote wider usage - Chemicals.Frost.com.

   
 
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Increased investment in new high speed rail (HSR) lines is creating exciting growth opportunities for HSR plastics and composites manufacturers. Demand levels are rising significantly due to expansion plans in some of the major HSR networks globally, especially China. In Europe, Spain is expected to provide impetus to market expansion.

New analysis from Frost & Sullivan (chemicals.frost.com), Global Opportunities for Plastics and Composites in High Speed Rail, finds that the market earned revenues of $31.4 million in 2012 and estimates this to reach $35.7 million in 2018.

"Amidst concerns over their high costs, the greater penetration of composites in new high speed rolling stocks is an encouraging development," remarked Frost & Sullivan’s Chemicals & Materials Industry Analyst Sandeepan Mondal. "It is expected that more than 60 percent of new HSR development will take place in Asia and Europe."

Growing confidence about their advantages is encouraging wider use of composites in new rolling stock. OEMs are likely to incorporate larger quantities of composites due to benefits including lower life-time cost, significant weight reduction potential and higher strength-to-weight ratio.

"Much like the automotive industry and commercial aviation, the primary concern of the HSR industry has been high operational costs which is directly related to fuel- efficiency and weight," noted Mondal. "Composites not only enable HSR OEMs to overcome these challenges, but also promote passenger safety since they enable high impact resistance in HSR rolling stock structures. In addition, high design flexibility, which translates to complex part manufacturability at competitive throughput rates, is also motivating OEMs to look at composites as better alternatives to metal."

However, high cost (as compared to metals), lack of proper joining techniques, absence of standardisation (in terms of material grade), and poor reparability and recyclability all threaten to limit the penetration of composites in HSR applications. These factors are making OEMs and Tier-I suppliers wary of incorporating larger amounts of composites in HSR primary and secondary structures.

For the short-term, market participants should concentrate on strengthening their current product portfolio and engaging existing HSR OEMs/Tier-I suppliers on a larger-scale. Existing competitors can also acquire composite manufacturers (either downstream or in the same part of the value chain as they are present) whose revenues are mostly dependent on the HSR market.

"In the longer-term, as the global economy recovers, market participants should focus on investing in new capacities, pushing product innovation and getting involved in joint development activities with OEMs," concluded Mondal.

If you are interested in more information on this research, please send an email to Chiara Carella, Corporate Communications, at chiara.carella[.]frost.com, with your full name, company name, job title, telephone number, company email address, company website, city, state and country.

Global Opportunities for Plastics and Composites in High Speed Rail is part of the Chemicals & Materials Growth Partnership Services programme. Frost & Sullivan’s related research services include: Global Aviation Composites Market, European Composite Resins Market in Public Transport, and Supply Chain Analysis of the Automotive Carbon Fibre Composites Market. All research services included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants.

About Frost & Sullivan
Frost & Sullivan (frost.com), 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 organisation 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?

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Global Opportunities for Plastics and Composites in High Speed Rail / M91A-39

 
 
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Increased Investment in High Speed Rails to Push Demand for HSR Composites Says Frost & Sullivan

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