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News Release from: Frost and Sullivan | Subject: European automotive interior coatings market
Edited by the Manufacturingtalk Editorial
Team on 25 March 2003
Process technologies drive trim coatings
growth
Novel coatings application technologies are set to expand the European automotive interior coatings market by generating significant opportunities for premium priced, high-performance products.
Novel coatings application technologies are set to expand the European automotive interior coatings market by generating significant opportunities for premium priced, high-performance products Additional momentum to market growth is likely to be provided by the drive towards improved interiors in mid-range and economy passenger cars
This article was originally published on Manufacturingtalk on 28 Apr 2004 at 8.00am (UK)
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Revenue and volume forecasts are upbeat across most product segments.
The overall market comprising liquid coatings for plastic substrates (standard and soft-feel), moulded skins (slush moulded skins and polyurethane spray coatings), leather finishes, coatings for synthetic leather (PVC and polyurethane), and wood coatings is estimated to surge from $256 million in 2002 to $443 million in 2009.
Unit shipments are expected to rise from 78,000 tonnes to 113,000 tonnes over the same time frame.
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Increased OEM purchasing power stemming from consolidation within the automotive industry, combined with their stringent cost cutting measures are squeezing textile manufacturers.
Superior process technologies will be the lynchpin in this expansion.
Dr Brian Balmer, Industry Analyst with Frost and Sullivan (http://chemicals.frost.com) explains: "Novel coatings application technologies - providing considerable cost savings to customers in terms of processing time, product waste, and manpower resources - will be increasingly in demand.
These technologies are key to demand for coatings supplied for the high-volume production of large surface area, complex components such as dashboards and middle consoles." PVC slush moulded and polyurethane sprayed skins and in-mould coatings are among the product segments best placed to profit from these advances.
New application technologies together with the need to conform to EU and local environmental legislation are likely to underpin the shift towards highly efficient, but expensive coatings.
Here, escalating demand for higher price polyurethane and/or water-borne coatings, are anticipated to further swell market revenues.
Another critical market driver will be the trend towards value-added, aesthetically appealing interiors.
This development is likely to stimulate significant increase in demand for coatings, particularly for components supplied to the mid-range and economy car sectors.
As passenger car manufacturers in the mid-range segment strive to improve their product offerings, the demand for soft-feel coatings for plastic substrates, as well as coatings for substrates such as high-quality synthetic leather, natural leather, and wood is projected to flourish.
At the same time, soft-feel coatings and PVC slush moulded skins are set to displace rigid plastics, while enjoying enhanced uptake in the economy range.
Among the various product segments, moulded skins are positioned to turn in a command performance.
Its dominance is reflective of the high growth rates attainable for coatings designed for new application technologies.
In this case, product share growth is likely to be impelled by the sophisticated processing technology of both PVC slush moulded skins and polyurethane sprayed skins.
In 2002, the moulded skins segment accounted for 41 percent of overall market revenues.
By 2009, it is likely to increase revenue generation by an astounding 150 percent and corner 57 percent of revenue share.
Unit shipments too are anticipated to rise from 23 percent to a healthy 37 percent over 2002-2009.
Automotive interior coatings manufacturers face a major challenge in a shrinking Tier 2 customer base.
Price pressures from OEMs have driven Tier 1 companies to substantially reduce the number of suppliers they are ready to deal with.
This, in turn, has caused consolidation in the downstream supply chain.
"Coatings manufacturers will therefore need to manage their businesses on a pan-European level if they are to retain competitive advantage.
The new structure will also exert considerable pressure on prices, and necessitate ever increasing focus on direct technical service, product research and development, quality control, and cost-effective product development, " advises Dr Balmer.
In the final analysis, companies that offer significant cost benefits to customers through new coatings products and novel coatings application technologies will stand to gain the competitive edge and build market share.
Frost and Sullivan is an international marketing consulting company that monitors a comprehensive spectrum of high-tech markets for trends, market measurements and strategies.
This ongoing research is utilised to complement a series of research publications to support industry participants with customised consulting needs.
Interviews and free executive summaries are available to the press.
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