Global Automotive Chemicals Market to Reach US$4.1 Billion by 2017, According to New Report by Global Industry Analysts, Inc.

Share Article

GIA announces the release of a comprehensive global report on Automotive Chemicals markets. Global market for Automotive Chemicals is projected to reach US$4.1 billion by the year 2017. Demand will be primarily driven by the growth in automobile production especially in developing countries, increase in vehicle population, longer vehicle operating life and ensuing demand for aftermarket solutions and improving technology & competitive pricing.

Automotive Chemicals: A Global Strategic Business Report

Follow us on LinkedIn – The growing importance being given by consumers to vehicle appearance and styling accents has and will continue to benefit the market for automotive chemicals, especially appearance/maintenance chemicals. Given the growing environmental awareness among consumers, innovation in terms of newer and greener environmentally friendly chemical ingredients is forecast to positively benefit the market. With new stringent regulations limiting the amount of ‘Volatile Organic Compounds’ (VOCs), the transition away from petro-based products chemicals is poised grow pronounced in the upcoming years. Poised to benefit are chemical companies critically focused on innovation and material science technology development. Competitive pricing, against a backdrop of rising competition, is expected to drive volume gains in the marketplace. Product variables critical for success in the marketplace will include ease of use and convenience features. For instance, disposable car-cleaning wipes, spray-on car polishes, waterless car wash and water hose connectable wash products, which aid in alleviating time constraints of modern time crunched consumers will score the highest gains in the marketplace.

Increase in automotive leasing as a result of a strong car rentals market has and will continue to positively benefit the automotive chemicals market. Development of tourism, increase in domestic and inbound tourists, recovery in GDP growth, increase in the level of economic activity, and rebound in corporate spending on travel, have been driving up demand for reliable and quality rental services. A stronger car rental market translates into increased car leasing contracts, which in turn increases the frequency of aftermarket repairs and maintenance.

The automotive industry is steadily recovering the world over. Resurgence in new car purchases, recovery in discretionary spends on aftermarket products and solutions and increase in vehicle miles traveled, have all helped put growth back on track. However, the automotive industry in Europe is running into fresh set of challenges. The industry in the region currently continues to vacillate between optimism and fear, marring sentiments in an otherwise recovering market. Nervous over the play out of the sovereign debt crisis drama, the domestic industry is facing immediate hurdles, such as, credit restriction, consumer indecisiveness, fears of slowing vehicle sales, high labor costs, and possible collapse of consumer confidence in the event of escalation in the severity of the debt crisis. The heat raised by the Euro debt crisis in the auto industry in the EU is reflected by the growing concerns voiced by auto majors like Ford, General Motors, Fiat, over the volatile and fluctuating profits being recorded in the region.

Macro themes affecting Europe include the prolonging of the sovereign debt crisis as a result of the half-measures implemented till date in attempts to stave off the crisis, a dysfunctional financial system that is fuelling a slow-motion economic collapse and fears over reduced consumer spending and slower economic growth as a result of austerity measures. At the extreme pessimistic end of the spectrum, bearish market sentiments indicate that multiple defaults by debt ridden economies could trigger a collapse of the Euro as a common currency. The return to local currency, although currently not seen as likely, can spell doom pushing the automobile industry into a complete meltdown like the one witnessed during the 2007-2009 recession.

While nothing remains certain and the potential outcomes of the crisis remain numerous, popular market sentiment currently accumulates at the optimistic end of the spectrum. For instance, guarded optimism prevails over the financial bailout strategies and restructuring measures related to borrowing rules, designed to restore market confidence. While no easy and immediate solutions exist for Europe’s macroeconomic imbalances, current economic data leaves room for hope. For instance, Germany’s relative resilience in handling the euro zone crisis is helping strengthen confidence levels. Given the yet encouraging outlook for the German economy, the largest in the euro zone, it is not all gloom and doom as pessimists might view. Encouraging economic data such as comparatively lower levels of unemployment, better trade surplus accounts, and stable industrial output and manufacturing indices, indicate that the real German economy has not yet been impacted by the crisis as feared.

Against this backdrop, consumer spending which continues to remain a key pillar of growth in the automotive & automotive related industries, which although currently jittery and sensitive to vacillating market sentiments, is nevertheless expected to hold up in the year 2012. Immediate production cutbacks in the region are not seen as likely, given the yet patchy slowdown in auto sales. For instance, pockets of strength continue to exist in the region, such as in Germany and the UK alongside the quarterly weakness witnessed in France, Spain and Portugal. The odds are in favor of the automobile industry given the current guarded optimism over the government’s latest attempts to rein in the debt crisis, which in effect discounts the impact of a possible Eurozone crisis, which is still not confirmed as a technical recession. Also, the 2007-2009 recession inspired adoption of leaner inventory holding strategies and restructured cost bases, and shrewd expansion into developing countries to minimize risk exposure in domestic markets, now has the automotive industry in the region better equipped to weather a possible Eurozone slowdown. Nevertheless, auto makers in the region remain concerned and are continuing to lobby for a quicker intervention of the European leaders in resolving the debt crisis. Currently, however production continues to hold up even in the face of weaker than expected growth and optimism remains with no downgrade in the outlook for auto production.

Although short-termed, concerns of the automobile industry are currently alleviated with news about the governments in EU legislating additional bailouts which in effect kicks the EU debt can further down the road. Although these short-term measures do not provide a permanent solution to the crisis and in reality indicates deferring of conclusive, corrective action, market sentiments are nevertheless encouraged.

As stated by the new market research report on Automotive Chemicals, Europe represents the largest market worldwide. Asia-Pacific however remains the fastest growing with a projected CAGR of 3.3%, over the analysis period. Demand in the region will be driven by developing countries like China and India.

Major players operating in the marketplace include 3M Company, Blue Ribbon Products, Inc., Honeywell International Inc., Illinois Tool Works Inc., Northern Labs Inc., Protect All Inc., Turtle Wax Inc., The Valvoline Company, among others.

The research report titled “Automotive Chemicals: A Global Strategic Business Report” announced by Global Industry Analysts, Inc., provides a comprehensive review of market trends, issues, drivers, company profiles, mergers, acquisitions and other strategic industry activities. The report provides market estimates and projections in US$ Million for major geographic markets including the US, Canada, Japan, Europe Asia-Pacific, Middle East, and Latin America. Product segments analyzed include Waxes/Polishes, Protectants, Wheel and Tire Cleaners and Windshield Washer Fluids.

For more details about this comprehensive market research report, please visit –
http://www.strategyr.com/Automotive_Chemicals_Market_Report.asp

About Global Industry Analysts, Inc.
Global Industry Analysts, Inc., (GIA) is a leading publisher of off-the-shelf market research. Founded in 1987, the company currently employs over 800 people worldwide. Annually, GIA publishes more than 1300 full-scale research reports and analyzes 40,000+ market and technology trends while monitoring more than 126,000 Companies worldwide. Serving over 9500 clients in 27 countries, GIA is recognized today, as one of the world's largest and reputed market research firms.

Follow us on LinkedIn

Global Industry Analysts, Inc.
Telephone: 408-528-9966
Fax: 408-528-9977
Email: press(at)StrategyR(dot)com
Web Site: http://www.StrategyR.com/

###

Share article on social media or email:

View article via:

Pdf Print

Contact Author

Public Relations
Visit website