The Global Market for Automotive Aftermarket Appearance Chemicals is Projected to Reach US$4.6 Billion by 2020
Consumer Focus on Appearance Care Boosts Demand for
Automotive Aftermarket Appearance Chemicals, According to a New Report by Global Industry Analysts, Inc.
GIA announces the release
of a comprehensive global report on Automotive Aftermarket Appearance
Chemicals. The
global market for Automotive Aftermarket Appearance Chemicals is projected to
reach US$4.6 billion by 2020, driven by the growing consumer focus on appearance
care, and the desire to preserve the resale value of vehicles.
The large global base of
vehicle fleet is expected to benefit demand for automotive aftermarket appearance
chemicals. Growth in the world's vehicle fleet can be put into perspective by
the fact that the transportation industry currently accounts for over 50% of
the world’s oil production, most of which is consumed in the form of motor
fuel. Given that the vehicle fleet size is directly proportional to the
population of a region, China and India which are already the most important
automotive markets in the world, will emerge as strong markets for aftermarket
products including appearance chemicals. Also poised to spur future growth in
the market are non-BRIC emerging markets grouped under multiple acronyms such
as CIVETS, MIST, Next 11, and MINT. These markets are characterized by rapidly
growing domestic consumption, strong financial systems unencumbered by fiscal
deficits, expanding base of middle class consumers, and favourable demographics
such as, a large base of young, affluent and employed population, unlike the
aging, retiring baby boomers in the developed countries. Robust growth in
vehicle ownership is therefore forecasted in these markets in the medium to
long term period.
The growth in the number
of ‘Do-it-Yourself’ customers is benefiting demand for aftermarket appearance
chemicals. The rise in the number of female DIYers is especially poised to
support sales of waxing & polishing products, and cleaning & washing
fluids. Also encouraging growth is the growing trend among aging baby boomers to
restore their classic cars. The growing number of car wash centres, against a
backdrop of a growing 'Do-It-For-Me' (DIFM) services market, will help drive
sales of car shampoos and wheel cleaners. Financial austerity practiced by
consumers is leading to a rise in demand for pre-owned cars and leased vehicles.
Popularity of pre-owned vehicles is especially high in the United States and
Europe. The scenario is fuelling demand for appearance chemicals as maintaining
vehicles in good condition and retaining their appearance is a major
competitive strategy for professional rental and leasing service companies.
Also retaining or enhancing appearance of a vehicle is critical for gaining
higher resale value in the market.
As stated by the new
market research report on Automotive Aftermarket Appearance Chemicals, Europe represents the largest market worldwide. Asia-Pacific is forecast to emerge as the fastest
growing market with a CAGR of 5% over the analysis period. Growth in the
region is driven by rising car ownership rates, huge commercial vehicle fleet,
soaring demand for used vehicles, and increase in the number of luxury car
owners in China and their higher propensity to spend on vehicle care and
maintenance.
Key players covered in the
report include 3M Company, 3M Automotive Aftermarket Division, Meguiar's Inc.,
Armored AutoGroup Inc., Blue Ribbon Products Inc., Illinois Tool Works Inc.,
Auto Wax Company, Permatex Inc., Northern Labs Inc., Protect All Inc., Turtle
Wax Inc., and The Valvoline Company, among others.
Comments
Post a Comment