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Innovative Technology and Environment-friendly Trends Drive the Market for Chemicals Used in Transportation Finds Frost & Sullivan - Even as the market for chemicals used in transportation recovers from the economic downturn, technologies that reduce costs, enhance performance and differentiate vehicles continue to be in high demand
Innovative Technology and Environment-friendly Trends Drive the Market for Chemicals Used in Transportation Finds Frost & Sullivan

 

PRZOOM - /newswire/ - London, United Kingdom, 2010/03/31 - Even as the market for chemicals used in transportation recovers from the economic downturn, technologies that reduce costs, enhance performance and differentiate vehicles continue to be in high demand.

   
 
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Additionally, materials and components for electric vehicles are a priority as this new market sector gains momentum.

New analysis from Frost & Sullivan (chemicals.frost.com), A CEO 360 Degree View of Chemicals used in Transportation, finds that electric vehicles, bio lubricants, advanced composites and automotive plastics will penetrate the market in the next 5 years.

"Light weighting of vehicles is a key market driver," says Robert Outram, Frost & Sullivan’s Global Programme Manager - Transportation Chemicals. "The development of more fuel efficient vehicles with reduced emissions spurs the demand for innovative materials and technologies."

Automotive plastics and composites help lower the weight of the vehicle, while increasing the ability to recycle materials at the vehicle’s end of life.

Legislative requirements also drive demand for more fuel-efficient vehicles, lower emissions and for the use of sustainable and recyclable materials during construction. For example, the need to limit carbon dioxide emissions will drive the market for precipitated silica systems in tyres and weight reducing fillers in vehicles. Similarly, the 2010 European Pedestrian Impact Phase 2 standard will encourage the use of malleable steel, polyurethane foams and other energy absorbing materials in automotive bumper systems to meet pedestrian lower-leg impact requirements. Furthermore, the EU End of Life vehicle legislation, which will increase recyclability requirements from 80 per cent to 85 per cent in 2015, will increase demand for more plastics and new adhesives.

Although progressive legislation, together with customer demand for more fuel-efficient vehicles, add impetus to the market, the economic recession has had an adverse effect on the automotive sector - much more than on any other manufacturing industry. Several plants have closed down, and big automotive companies are taking financial assistance from the government.

"Plummeting car sales and lack of cash flow have impelled automotive companies to implement new technologies, which have affected chemical companies that are now struggling to sell their recently developed products and technologies to such a troubled market," explains Outram.

Innovative strategies must be devised to overcome such challenges. For example, in the high-performance fillers market, customer focus is vital. A close relationship between high-performance filler manufacturers and customers is mutually beneficial, as the customer can obtain advice on the products, while the manufacturer receives feedback on potential improvements or an insight into new applications.

"Developing technologies which help auto original equipment manufacturers (OEMs) reduce production costs while increasing the performance and enhancing differentiation will be the key to penetrating a tough market," concludes Outram. "Focusing on helping auto OEM’s meet mandatory legislation requirements will also be desired."

If you are interested in more information on this study, please email Monika Kwiecinska, Corporate Communications, at monika.kwiecinska[.]frost.com, with your full name, company name, title, telephone number, company email address, company website, city, state and country.

A CEO 360 Degree View of Chemicals used in Transportation is part of the Chemicals & Materials Growth Partnership Services programme, which also includes research in the following markets: Global Markets for Plastics in Passenger Vehicles, 2009, Impact of Global Automotive Trends on the Chemical Industry, 2009, European Bio lubricants Market, 2007, and North American Bio lubricant Markets, 2009. 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, the Growth Partnership Company, enables clients to accelerate growth and achieve best-in-class positions in growth, innovation and leadership. The company's Growth Partnership Service provides the CEO and the CEO's Growth Team with disciplined research and best-practice models to drive the generation, evaluation, and implementation of powerful growth strategies. Frost & Sullivan leverages over 45 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from 40 offices on six continents.

A CEO 360 Degree View of Chemicals used in Transportation / M45D

 
 
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Innovative Technology and Environment-friendly Trends Drive the Market for Chemicals Used in Transportation Finds Frost & Sullivan

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Contact: Monika Kwiecinska 
+48 22 390 4127 monika.kwiecinska[.]frost.com
 
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