Market Trends of Low Friction Coating Industry
Increasing Demand for Low Friction Coating in the Automotive and Transportation Industry
- Low-friction coatings possess extremely low coefficients of friction (COF), excellent release properties for resistance to galling, fretting, and sticking, high corrosion resistance, and many other benefits.
- Therefore, there is an increasing demand for low-friction coatings in the Automotive and Transportation Industry driven by the need for improved fuel efficiency, reduced emissions, and enhanced performance, as well as the adoption of new technologies like electrification and autonomous vehicles.
- Moreover, the rising volume of vehicle production globally is propelling the demand even further. For instance, according to the Organisation Internationale des Constructeurs d'Automobiles (OICA), automotive production globally increased from 84.83 million units in 2022 to 93.54 million units in 2023, representing a growth of 17% year-on-year.
- Furthermore, according to the European Automobile Manufacturers Association, in the first three quarters of 2023 (January 2023 to September 2023), the total production of cars in Europe increased by almost 14% compared to the same period in 2022. This substantially boosted the demand in the low-friction coating market.
- The automotive industry is expected to grow significantly over the coming years. Evolving digital technology, changes in customer sentiment, and economic health have played a vital role in non-commercial business practices of manufacturing vehicles.
- For instance, various automotive manufacturing companies such as Hyundai Motor Group, BMW Group, Toyota, Honda, Ford Motor Company, and General Motors have announced investments in electric vehicle manufacturing in North Carolina, Michigan, Ohio, Missouri, Kansas, and other states. This is likely to boost automotive manufacturing, thereby increasing the demand for low-friction coating.
- Hence, the automotive and transportation industry is projected to exhibit the highest demand for low-friction coating during the forecast period, solidifying its dominance in the market.
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Asia-Pacific to Witness the Fastest Growth
- Asia-Pacific is expected to dominate the market during the forecast period. The rising demand for low-friction coatings, combined with the growing automotive and healthcare industry in countries like China and India, is expected to drive the demand for low-friction coatings in this region.
- The largest producers of low-friction coating are based in Asia-Pacific. Some of the leading companies in the production of low-friction coating are VITRACOAT, Daikin Industries, The Chemours Company, Dow, and ASV Multichemie Private Limited.
- China is the world's largest automobile market in terms of production and sales. According to the China Association of Automobile Manufacturers (CAAM), vehicle production in China reached 30.16 million units in 2023, growing 11.6% compared to the previous year.
- Furthermore, according to the Society of Indian Automotive Manufacturing (SIAM) data, in the financial year 2023, India manufactured 4.58 million vehicles, marking a notable increase from the 3.65 million produced in 2022—a growth rate of about 25%.
- According to the Boeing Commercial Outlook 2021-2040, in China, around 8,700 new deliveries will be made by 2040, with a market service value of USD 1,800 billion.
- Furthermore, the construction sector of Malaysia grew in 2023, with a total of 9,144 projects successfully implemented until September 2023, according to Public Works Minister Datuk Seri Alexander Nanta Linggi. In addition, there has been an increase in the country's investments in various commercial construction projects. For instance, Google invested around USD 2 billion in developing the country’s first data center and a Google Cloud hub in May 2024. The new hubs will be developed at a business park in central Malaysia’s Selangor state to meet the growing demand for IT services and artificial intelligence literacy programs for Malaysian students and educators.
- Given the above-mentioned facts and factors, the demand for low-friction coatings is expected to increase at the fastest rate in the Asia-Pacific market during the forecast period.
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