Published on March 4, 2014
Emerging Opportunities for Chemicals and Materials in Transportation Analyst Briefing 26th March 2014
Our Chemicals Market Approach Focus on end-markets and mega trends Functionality and performance Health and wellness Food Drugs & Cosmetics Transportation Globalisation Construction & Utilities Low carbon economy Source: Frost & Sullivan analysis 2
Chemicals & Materials in Transportation Automotive applications are the largest transportation sector for chemical companies. • For many individual product groups, automotive applications represent 50 to 75% of total usage across all transportation applications. Chemicals and Materials in the Automotive Market: Segmentation by Product Type, Global, 2012 o Other transportation applications include heavy commercial vehicle, bus, rail, aerospace and marine. • The global automotive industry represented a market of approximately $70 billion for chemicals & materials companies in 2013. o Within automotive applications, many products are further subdivided into use by original equipment manufacturers (OEMs) and in the aftermarket. Fuel additives 2.8% TPE 3.3% Engine coolant 2.5% Thermosets for composites 1.8% Lubricant synthetic base oils 3.4% Thermoplastics 25.8% Adhesives and sealants 3.4% Lubricant additives 3.6% Technical textiles 5.2% Tyre rubber and chemicals 19.2% PU foams 5.8% Refinish paint 7.7% OEM paint 15.5% Source: Frost & Sullivan analysis 3
Impact of Mega Trends on Chemicals & Materials in Automotive Each Mega Trend affects the use of chemicals in automotive differently. "Just to maintain sales, you have to have business 'enablers'. You have to be in lightweight; you have to be in low-emissions. But if you want to grow your volumes, the globalisation trends are a very interesting area to look into". Source: Transportation marketing manager, major chemical company Low-carbon Economy Making vehicles lightweight and fuel efficient by using plastics and composites Reducing the carbon footprint of vehicle manufacturing through powder coatings, water-based coatings, high solid solvent borne coatings, emission control catalysts Increasing use of bio-based materials such as bio fuels, bio-based lubricants Globalisation Societal globalisation factors, including urbanisation Globalisation in the automotive industry, such as supply chain globalisation Globalisation in the chemical industry and the ramifications for its relationship with the automotive industry Health and Wellness Safety features, including airbags and wet-grip tyres Comfort features, including noise, vibration and harshness (NVH) materials Health features, such as non TGIC polyester coatings, low-emission materials for car interiors Functionality and Performance Vehicle performance characteristics, such as top speed and longer service intervals Improved engine power densities enabling smaller engines without compromising power output Value-added features, such as rain sensors, infotainment and special effect paints Source: Frost & Sullivan analysis 4
Convergence Between Mega Trends • As recovery requirements for end-of-life vehicles increase, the need to make use of the recovered materials does also. Much uncertainty still surrounds this development, but many chemical companies are responding to the need and creating opportunities: o Stabilising plastic additives that create grades of recyclate polypropylene (PP) with properties approaching those of virgin polymer o Additives that allow the use of recovered tyre rubber in road asphalt, as discussed earlier in the section "Impact of Road Infrastructure Changes" In 2010, the UN launched the Decade of Action for Road Safety. Progress in 2012 included the formation of an NCAP programme in the ASEAN region. Health and Wellness Globalisation Low-carbon Economy Functionality and Performance Countries such as China are the highest-growth markets for luxury car brands, such as Ferrari and Land Rover. In addition to end-of-life issues (see above), low-carbon needs are globalising, with increasing interest in low-carbon and lightweight vehicle design in Asia. Note: NCAP = New Car Assessment Programme ASEAN = Association of Southeast Asian Nations Source: Frost & Sullivan analysis 5
Key Focus Areas of the Presentation Light weighting role of performance plastics in automotive, high heat thermoplastics in automotive, supply chain analysis of carbon fiber composites, impact of bio-based feedstock on automotive lubricants, penetration of powder coatings in automotive applications PU foams for NVH applications, non-TGIC polyesters for powder coatings, water-borne and high solids solvent borne refinish coatings, catalytic converters for automotive emission control Plastics and composites for miniaturization, UV cured coatings, synthetic lubricants for extended drain intervals, high voltage cables for electric vehicles, silicone rubber cables for PHEV Urbanization and infrastructure developments to impact automotive industry, emergence of BRIC and ASEAN countries as automotive majors 6
Register for this Webcast Live Webcast Wednesday, March 26, 2014 10:00am EDT/3:00 pm BST https://www.brighttalk.com/webcast/5561/102277 7
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For Additional Information Liz Clark Corporate Communications (210) 477-8483 Liz.Clark@frost.com Angie Montoya Global Webinar Marketing Coordinator Marketing (210) 247-2435 amontoya@Frost.com 9
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