The escalating demand for high
efficiency, high performance materials coupled with stricter legislation
regarding emissions and safety has underlined the importance of
nanotechnology in the global automotive market. Increasing affordability and
the ability to offer cost-effective solutions are further motivating the
adoption of nanotechnology by automotive manufacturers.
Nanotechnology is providing the automotive industry novel and effective
means to reduce costs, particularly in the case of paints, coatings and
catalytic converters. For instance, the efficiency of a single layer of
nanomaterial-based coating is comparable to that of three layers of
conventional coatings. Nanomaterials are also projected to lower the quantity
of highly expensive rare metals used in catalytic converters and fuel cells,
yielding a saving of at least $1 billion per year by 2010.
Moreover, nanomaterials can be customised with accurate properties,
uniform shapes and sizes, thus reducing the rate of rejected parts per
million of material due to inherent material deformities. This holds the
prospect of not only saving the automotive industry an estimated $2.25
billion annually, but also supporting improvements in quality.
Stringent requirements for environmental protection and reduced energy
consumption have spurred demands for high performance, lightweight materials.
Research reveals that the use of nanomaterials in aluminium and magnesium
effects a significant weight reduction of nearly 25 per cent with related
improvements in fuel economy and energy consumption.
At the same time, incorporating nanomaterials as fuel additives is set to
increase fuel and engine efficiency to significantly higher levels than those
achieved by conventional fuel filters.
"Legal challenges such as emissions, recycling and safety are key drivers
that have enabled new technology to be incorporated in the automotive
sector," remarks Frost & Sullivan (http://frost.com) Analyst Hrishikesh
Bidwe. "These issues have all been addressed by nanotechnology and will
provide immense benefits with its potential and innovative solutions for
giving a greener and safer vehicle for the future generation."
Hailed as the next big thing, nanotechnology is expected to generate
$1.11 billion in the automotive sector in 2004. Currently, however, this
nascent market has few commercial products.
Low levels of end-user awareness about the potential benefits of
nanotechnology such as aesthetics, better functionality and improved product
features have constrained uptake. However, declining prices and increased
awareness are expected to intensify penetration rates and encourage wider
adoption.
"Due to lack of economies of scale, nanotechnology-based products are
higher priced than conventional ones," notes Mr. Bidwe. "As the acceptance of
these products starts increasing in the industry, the prices are slated to
come down and the application scope is likely to become much wider."
Accordingly, the total penetration of nanotechnology into automotive
applications is expected to be about 70 per cent in 2015 with revenues
reaching around $6.46 billion.
Paints and functional surfaces are currently exhibiting promise of rapid
development. Over the long term, pigments, paints and functional surfaces are
projected to be the highest revenue contributors and have the potential to
become the first real application to lead the market outside the long
existing market for carbon black in tyres.
Another key revenue generator is anticipated to be the use of
nanotechnology in lightweight structures, some of which are already available
as optional components in vehicles produced by GM. While still mostly in the
research stage, applications in fuel cells, catalysts, hydrogen storage
components and fuel additives are also set to generate substantial profits.
The market for nanomaterials in electronic applications in vehicles is likely
to gain momentum by 2008.
While the North American nanotechnology market is likely to be the most
high profile and most lucrative, Europe is expected to be the leading
contributor in terms of coatings, paints and fuel additives. Germany, in
particular, is emerging as a centre for nanotechnological innovations with
nanoelectronics and nanomaterials development attracting sizeable funding.
As manufacturers converge to conduct research on a common platform, the
market is set to experience consolidation. Alliances between research centres
and industry participants are expected to play a central role in developing
and commercialising nanotechnology in the short term.
"Collaboration with promising and potential start-ups will also be useful
and prove to be a win-win situation both for the established companies and
the start-ups," remarks Mr. Bidwe. "The move would give a boost to the
start-up companies in marketing their nanotechnology-based products, and the
established companies would have a completely new technology for further
growth and development."
If you are interested in a summary of this research service providing an
introduction to the Global Analysis of Nanotechnology in the Automotive
Market, please send an email to Magdalena Oberland, Corporate Communications
at magdalena.oberland@frost.com with the following information: full name,
company name, title, country, contact telephone number, email. Upon receipt
of the above information, the summary will be emailed to you.
Title: Global Analysis of Nanotechnology in the Automotive Market
Code: A816
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