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The South African Market for Automotive Plastics is Poised for Significant Growth Finds Frost & Sullivan - Plastics are continuously replacing metal and glass in automobile applications in South Africa as they are light-weight, inexpensive, and can be blended and moulded for most applications
The South African Market for Automotive Plastics is Poised for Significant Growth Finds Frost & Sullivan

 

PRZOOM - /newswire/ - Cape Town, South Africa, 2010/08/16 - Plastics are continuously replacing metal and glass in automobile applications in South Africa as they are light-weight, inexpensive, and can be blended and moulded for most applications.

   
 
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The integration of plastics has been instrumental in the automotive industry's ability to develop high performance vehicles with improved safety features and fuel economy.

New analysis from Frost & Sullivan (chemicals.frost.com), South African Market for Automotive Plastics, finds that the market earned revenues of $157.3 million in 2009 and estimates this to reach $207.7 million in 2016. The plastic types covered in this analysis are polypropylene (PP), polyurethane (PU), polyamides (PA), acrylonitrile-butadiene-styrene (ABS), and polycarbonate (PC).

If you are interested in more information on this study, please send an email to Patrick Cairns, Corporate Communications, at patrick.cairns[.]frost.com, with your full name, company name, title, telephone number, company email address, company website, city, state and country.

"The most significant driver for automotive plastics is the cost-reduction implication as a result of using plastics instead of its more expensive metal and glass counterparts," notes Frost & Sullivan Industry Analyst Laura Peinke. "Since consumer buying power is still low due to the global economy emerging from the recession, low-cost vehicles will ensure increased vehicle sales."

Structural reinforcements are able to combine the functionalities of metal with the weight reductions offered by plastics, resulting in weight shedding of up to 50 per cent. Other safety features such as seat belts, air bags and air bag containers have also been developed. Safety features will continue to drive innovation in plastics applications, providing a sustained impetus for the inclusion of engineering plastics in the production of automotive vehicles.

However, the economic crisis of 2008 and 2009 has resulted in the automotive sector significantly reducing production. Despite the economy gradually stabilising, consumer buying power remains low, resulting in sluggish growth in the automotive sector and a consequent low demand for automotive plastics.

"Although the automobile industry is expected to suffer low demand as a result of decreased purchasing power in the short-term, the automobile production and innovation processes will drive demand through the long term," notes Research Analyst Dilshaad Booley.

Greater use of plastics in vehicles to substitute metals and glass is vital to reduce the manufacturing costs and subsequently the cost of the vehicle.

"The market allows for easy entry with low capital costs," concludes Booley. "Manufacturers who keep abreast of the latest technological advancements and applications will be the suppliers of choice."

South African Market for Automotive Plastics is part of the Chemicals & Materials Growth Partnership Services programme, which also includes research in the following markets: South African Market for Commodity Plastics and South African Engineering Plastics 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, 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.

South African Market for Automotive Plastics / M59C

 
 
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The South African Market for Automotive Plastics is Poised for Significant Growth Finds Frost & Sullivan

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