Automotive Encapsulation Market
- Automotive engine encapsulation is a technique in which the engine of the vehicle is isolated from the external environment to maintain the temperature of the engine and also improve fuel efficiency.
- According to Nissan, engine encapsulation cuts CO2 emissi0ns by 2.5g/kg and reduces exterior noise by 5db(A). Encapsulation helps the engine to lower the engine cooling rate and provides first heat during the starting of the engine.
- Thus, it helps reduce the friction between the engine parts and provides short warm-up time for the engine. Automotive glass encapsulation has evolved from the original design function where more and more glass elements can be introduced into a single window.
- This is responsible for reducing the overall cost of the vehicle and also improve the design aesthetics of the car.
- The global Automotive encapsulation market was worth XX billion in 2018 and is forecasted to reach XX billion by 2026, growing at a CAGR of XX% during the forecast period (2018-2025).
- Stringent emission norms and the need to reduce the overall automobile noise has pushed the manufacturers to incorporate automotive encapsulation techniques which can result in decreasing the total emissions of the vehicle and also reduce the noise.
- Major countries of the world imposing stringent norms on automobile emissions is one of the major driving factors of this automotive encapsulation market.
- According to the Euro 5b tier, which was approved on September 2011 by the European emission standards, the permissible levels of NOx emissions for diesel vehicles were 0.180 g/kg, and particulate matter was 0.005 g/kg. Due to increasing levels of environmental pollution, it has recently launched the Euro 6d mandated which will be approved in January 2020.
- According to the Euro 6d emission mandates, the allowable limit for NOx emissions are 0.080g/kg and particulate matter emissions are 0.0045 g/kg. Bharat Stage emission standards (BSES) are emission mandates approved by the Government of India to control the emissions of vehicles sold in India.
- The first emission norms, India 2000 were introduced in the year 2000, and they have improved progressively throughout the years keeping in mind the regulation of environmental pollutants. The recent emission standards Bharat Stage VI will be approved in the year 2020.
- This will serve as a significant opportunity for the global engine manufacturers to make necessary design changes in the engine by incorporating encapsulation techniques. Key market drivers include stringent emission norms, the need for improved fuel efficiency and demand for low noise producing vehicles.
- According to the International Energy Agency, 2017 witnessed global record sales of 1.1 million electric cars. The sales of electric vehicles have increased by more than 50% in 2017 and China has accounted for nearly half of the sales. The global stock of electric vehicles surpassed 3 million in 2017.
- This increasing demand for electric vehicles is one of the primary factors hampering the growth of the global automotive encapsulation market. Key market restraints include increasing demand for electric cars, the high cost of Encapsulation.
- Materials used for encapsulation like carbon fiber and polyurethane are costly and are widely used for encapsulating luxury vehicles. The present cost of a pound of carbon fiber is 10 whereas steel, on the other hand, costs less than a dollar. Reducing the cost of encapsulation materials may pose as a significant challenge for manufacturers of encapsulation materials.
Market Segmentation Analysis
- The global automotive encapsulation market has been segmented by type, material, fuel type, application, and geography.
Carbon fiber is an expensive material due to its excellent sound absorbing and thermal insulation properties.
- Therefore, carbon fiber finds its primary application in the luxury light vehicles segment. In 2017, China accounted for 32% Of the global luxury car sales when compared to 29% in 2016. As the demand for luxury vehicles is increasing around the globe, especially in developing countries like China and India, carbon fiber continues to remain the dominant segment in encapsulation materials.
- The global Automotive encapsulation market is segmented into North America, Europe, Asia Pacific, South America and Rest of the world.
- The increasing sales of light-duty automobiles in the Asia – Pacific region drives this segment to dominate the global automotive encapsulation market geographically.
- According to the 2017 International Organization for Motor Vehicle Manufacturers (OICA) sales statistics, 40.7 million passenger cars were sold in the Asia- Pacific region compared to 17.9 million vehicles in Europe.
- Developing nations like Japan, China and India are majorly responsible for automobile encapsulation market expansion and the presence of well-established Original Equipment manufacturers (OEM’s) in these regions will help them to upgrade to high-performance encapsulation technologies. China accounts for nearly 61% of the vehicles in the Asia Pacific region followed by Japan and India. New product developments and highly increasing R&D capabilities will help the Asia Pacific region to dominate this market for a significant time frame in the future.
- The major players in the global automotive encapsulation market include Fritz Holding GmbH, AGC Inc, Saint – Gobain Corporation, Trocellen GmbH, Polymer Process Development L.L.C, Rochling Group, Continental AG Corporation, Erling Klinger, Adler Pelzer, Autoneum, Greiner Foam International and SA Automotive.
Some of the major players in this market incorporate competitive strategies like mergers and acquisitions to retain their position in the market and also contribute to the growth of their companies.
- For instance, in November 2018, Rochling Group acquired Scharwtz GmbH Technical plastics advancing its growth strategy with new technologies of large format cast parts from polyamide. Furthermore, in April 2018, Adler group and FSI announce the signing of a binding contract for partnership focused on further development of the Adler group by planning a joint venture with Hayashi Telempu in Japan to support new energy vehicle acoustic and thermal solutions.
New product launches and expansion of facilities are some other vital strategies adopted by most of the companies to contribute to the growth of the company and improve their market growth rate. Polymer Process Development L.L.C(PDLC), USA has extended its production methods in July 2017 to produce smart and switchable encapsulating glass materials. PDLC is one of the few companies in the world to adopt this new emerging technology. In April 2017, Autoneum Group opened several new facilities around the globe to promote its growth in the field. Some of its new facilities opened up in Hungary, Czech Republic, China, and other countries.
The scope of the Report:
- The report covers the factors impacting the market, Porter 5 Forces, Market Share Analysis, Price trend analysis, Product Benchmarking, and company profiles. The Global Automotive Encapsulation Market is segmented based on the product type as body-mounted type, and Engine mounted type.
- Based on the material the market is categorized as carbon fiber, glass, polyurethane, Polypropylene, foam, Poly Vinyl Chloride, and others.
- Based on the fuel, the market is segmented as – Diesel, Petrol, and Gasoline.
- Based on the application, the market is segmented as – Light Commercial Vehicles (LCV), Heavy Duty Vehicles (HDV), Heavy Commercial Vehicles (HCV) and commercial Vehicles (EV). Based on geography the market is segmented into – North America, South America, Europe, Asia Pacific and the Middle East and Africa.
Why Purchase the Report?
• Visualize the composition of the Global Automotive Encapsulation market across each indication, regarding type, application, material and function highlighting the critical commercial drivers, restraints and market players.
• Identify business opportunities in Global Automotive Encapsulation market by analyzing trends and co-development deals.
• Excel data sheet with thousands of data points of the Global Automotive Encapsulation market – level 4/5 segmentation.
• PDF report with the most relevant analysis cogently put together after exhaustive qualitative interviews and in-depth market study.
• Product mapping in excel for the principal products of all major market players
• Equipment Suppliers/ Buyers
• Service Providers/ Buyers
• Industry Investors/Investment Bankers
• Education & Research Institutes
• Research Professionals
• Emerging Companies
1. Methodology and Scope
1.1. Research Methodology
1.2. Scope of the market
2. Industry Trends
2.1. Key Trends and Developments
3. Market Outlook
3.3. Porter’s Five Forces Analysis
4. Market Segmentation Analysis
4.1. BY PRODUCT TYPE
4.1.1. Body Mounted
4.1.2. Engine Mounted
4.2. BY MATERIAL TYPE
4.2.1. Carbon Fiber
4.2.3. Poly Urethane
4.2.4. Poly Propylene
4.3. BY FUEL
4.4. BY APPLICATION
4.4.1. Light Commercial Vehicles (LCV)
4.4.2. Heavy Duty Vehicles (HDV)
4.4.3. Heavy Commercial Vehicles (HCV)
4.4.4. Commercial Vehicles (CV)
5. Regional, Country-level Analysis
5.1. Geographic Overview
5.2. North America
5.2.1. The U.S.
5.3.2. The U.K.
5.3.6. Rest of Europe
5.4. South America
5.4.3. Rest of South America
5.5. Asia Pacific
5.5.5. Rest of Asia Pacific
5.6. Rest of World
6. Competitive Analysis
6.1. Competitive Scenario
6.2. Key strategies adopted by manufacturers
6.3. Product Benchmarking
7. Company Profiles
7.1. Fritz Holding GmbH
7.2. AGC Inc, Saint – Gobain Corporation
7.3. Trocellen GmbH
7.4. Polymer Process Development L.L.C
7.5. Rochling Group
7.6. Continental AG Corporation
7.7. Erling Klinger
7.8. Adler Pezler
7.10. Greiner Foam International
7.11. SA Automotive