In a vehicle, fuel and air produce power within the engine through combustion. However, only a portion of the total generated power is used by the engine while the rest is wasted in the form of heat and exhaust. It is crucial to remove this excess heat to prevent the engine temperature go too high which result in overheating and viscosity breakdown of the lubricating oil, making metals of the overheated engine part weak, thus resulting in quicker wear of the engine. To keep the engine cool, a cooling system is used to remove the excess heat. Most cooling systems that are used in automobiles consist of the following components- water pump, radiator, radiator pressure fan, electric cooling fan, radiator pressure cap, and thermostat. Of these components, radiator is one of the most prominent part of the cooling system as it transfers heat. Radiators are also known as heat exchangers which cool down the internal combustion engine of vehicles. Coolant liquid is added to the radiator and it transfers the heat from the fluid inside to the air outside and thereby cools down the engine.

The global automotive radiators market is projected to grow at a substantial CAGR during the forecast period. Rising purchasing power and living standards, especially in developing countries such as China and India is encouraging people to buy their own vehicles. Booming logistics industry is another driver of the global automotive radiators market. Furthermore, global automakers are continuously expanding their production facilities across the globe in order to capture a major share in the automotive market, thereby driving the global automotive radiators market growth. Supportive government policies to boost the domestic automotive production will further continue to bolster the growth of automotive radiators market during the next five years. For example, in March 2019, the government of São Paulo created a tax incentive program called IncentivAuto to protect car manufacturers in Brazil from global competition. As per the program, a car manufacturer will have to invest at least 1 billion R$ and create atleast400 new jobs in order to receive a discount of upto 25%. Projects that qualify for the tax cuts include new production lines or new plants.

Stringent vehicle emission regulations being implemented across different economies is also a factor that is contributing significantly to the growth of the global automotive radiators market since Auto manufacturers are using various technologies in order to reduce the vehicle’s fuel combustion level. In European Union (EU) region, for instance, regulation (EC) 443/2009 sets mandatory emission reduction targets for new cars. On April 17, 2019, the European Parliament and the Council adopted Regulation (EC) 2019/631 which introduces CO2 emission performance standards for new vans and new passenger cars for 2025 and 2030. This new Regulation replaced and repealed Regulation (EC) 443/2009  and came in effective from January 1, 2020.  

Growing Adoption of Electric Vehicles Restraining the Market Growth

Growing focus on electric vehicle (EV) production and adoption is likely to hinder the growth of the global automotive radiators market during the forecast period. Governments as well as global organizations are making continuous efforts towards environmental sustainability and reduction in greenhouse gas (GHG) emission. For instance, In the United States, as of 2019, 23 states and the District of Columbia have implemented statewide greenhouse gas emission target to reduce emissions 26 to 28 per cent below 2005 levels by 2025.In 2019, the British government announced its target to cut the country’s greenhouse gas emissions to almost zero by 2050 as a way to tackle climate change. As such, there have been investments being funnelled in the EV sector with governments taking several initiatives and implementing favourable policies to increase their adoption. The figure below represents the global BEV (battery electric vehicle) stock for the period 2010-2019:

Global Electric Car Stock, From 2010 to 2019, in Million Units

Source: IEA (International Energy Agency)

Electrification of vehicles will affect revenues of many auto part manufacturing companies. Components and parts like turbos, intercoolers, oil filters, engine parts, and other ICE-related products are going to face declining growth rates since electrically-powered components have fewer moving parts. Although the current share of EV segments is quite small in the global automotive industry, this continuous increase in EV stock will continue to decline the market growth of automotive radiators in the coming years. Even automakers are increasing their production volume of electric vehicles to gain a competitive edge in this booming segment. In 2018, Mahindra & Mahindra won a contract to supply 1,000 EVs to the Bengaluru-based transport firm, Baghirathi Travel Solutions Pvt. Ltd.

Market Segment Overview:

The global automotive radiators market has been segmented by material type, vehicle type, end-user, and geography. On the basis of material type, the market has been classified into copper and brass, and aluminum. By vehicle type, the segmentation of the global automotive radiators market has been done as passenger vehicle, light commercial vehicle, and heavy commercial vehicle. By end-user, the market has been segmented as OEMs and aftermarket. Geographically, the global market has been classified as North America, South America, Europe, Middle East and Africa, and Asia Pacific.

Aluminum Segment Accounts for a Significant Market Share

By material type, the aluminum segment held a significant share in 2019 on account of its wide adoption across passenger vehicle business segment. Higher efficiency of aluminum-based radiators as compared to copper-based radiators contributes to the growth of this segment during the forecast period. Other advantages of aluminum-based radiators include lighter weight and longer lifespan, thereby driving the market growth. However, copper and brass segment is projected to witness a decent CAGR during the forecast period on account of growing demand for heavy vehicles across the global logistics sector.   

Declining Light Commercial Vehicle Production

By vehicle type, the passenger vehicle segment is poised to witness a slow growth during the forecast period since the production as well as sales of passenger cars has been witnessing a steep decline from the past two years.

Global Passenger Car Sales Volume, in Million Units, 2015 to 2019

Source: OICA (International Organization of Motor Vehicle Manufacturers)

The recent COVID-19 global pandemic outbreak has also severely impacted the both production and sales of vehicles by disrupting the global supply chain, temporary halt on production to maintain social distancing, and weakened economic growth with declining income and rising unemployment. 

ABOUT THE AUTHOR:

Anjali Joshi is a senior market research analyst at Knowledge Sourcing Intelligence. She oversees a team of analysts and is known for the quality of market intelligence she delivers to the clients which range from start-ups and Non-profit Organizations to Fortune 500 companies. Anjali’s keen understanding of international business and market dynamics, coupled with her years of experience working in this industry, allows her to analyse current and future trends across both global and clients’ target markets and help them in making informed decisions.

Logical Security is a cluster of software and services which work together in order to shield an enterprise’s infrastructure from security breaches. Data center logical security is a combination of solutions and services which protects data center infrastructure from any cyberattack. Continuous expansion of the global data center network is the major factor behind the growing demand for data center logical security solutions and services. As the global communication and technology industry across various regions/countries is growing at a remarkable rate with rising global IT spending, the expansion of global data center network is bolstering the market growth of data center logical security. The figure given below shows the year-on-year increase in global IT spending for years 2018 and 2019:

Global It Spending, in US$ Trillion

Source: Knowledge Sourcing Intelligence Analysis

As the penetration of digital technologies is accelerating across all major industry verticals including media and entertainment, retail, and BFSI, enterprises of all sizes are investing heavily into their IT infrastructure. This, in turn, leading to a continuous rise in the volume of big data generated per day across the globe. Since very high volumes of data packets travel through networks every day, this rise in big data volume is creating demand for more storage space which can offer high degrees of data availability and security. As a result, enterprises across the globe are increasing their spending on data centers.

With high proliferation of smartphones and better internet connectivity, number of people of all age groups using different social media platforms is also increasing, creating huge volumes of data. As a result, these social media companies are funnelling huge investments in data centers to store this massive amount of big data. Social media giant, Facebook, for instance, owns more than 300 PB of data, which it stores in its huge data centers.

However, with growing adoption of digitalization across various industries, the threat of cyber-attacks such as phishing attacks and SQL Injection attacks has also surged causing companies huge financial as well as goodwill loss. For instance, in March, 2019, Capital One, one of the key players in the BFSI sector in the United States, suffered a severe data breach as part of which, around 106 million records got compromised (Source: NortonLifeLock Inc.). As part of this breach, personal information like names, phone numbers, ZIP codes, self-reported income, credit scores, bank balance, credit limits, and transaction history among others of many customers got hacked by hackers. Although Capital One cleared that details like credit card account numbers and log-in credentials of customers were not compromised, this breach turned out to be very costly for the company. From examples of Equifax, which had to pay around $700 million to the regulators for the breach it suffered in 2017, and social media giant Facebook, which reportedly paid $5 billion to the FTC over its much talked about Cambridge Analytica scandal, it is clear that security breaches can turn out to be very shattering for enterprises. Interestingly, threats like these are witnessing a continuous increase year over year. According to the Kaspersky, its web antivirus platform identified 24,610,126 malicious objects in 2019, up from 2018 by 14 per cent. As more and more of these incidents are taking place, especially across BFSI and healthcare sector, across the globe, adoption of advanced and breach-proof logical security solutions and services for data centers is increasing among them, thus propelling the market growth.

The increasing risk of getting hit by a cyber-attack is also being contributed to by growing popularity of cloud across the globe. The figure given below shows the impressive growth we are expecting the cloud storage market to witness till the year 2022:

Global Cloud Storage Market, in US$ Billion

 

Source: Knowledge Sourcing Intelligence Analysis

These estimates do not include the impact of COVID-19 on the market growth. As pandemic continues to affect businesses across the globe, businesses are increasing the adoption of digital technologies which can provide them enough scalability and flexibility to survive the pandemic. Increasing adoption of cloud across the globe is increasing the risk of data on cloud getting accessed by unauthorized users. As a result, cloud growth is driving with it the adoption of robust data center logical security solutions and services by customers, thus propelling the market growth.

Geographically, the North America and Europe markets have remained key contributors to the global market and the market share these regions hold is expected to remain significant over the period 2020-2025. One of the primary reasons for the market growth is stringent regulations regarding data security in these regions and strict enforcement of these laws by enforcement bodies. Enforcement of GDPR, for instance, has remained solid till now and as its scope includes every enterprise which stores information about European customers, regardless of its country of incorporation, adoption of logical security solutions for data centers has also shown an impressive increase since this law came into effect. As many countries in these two regions have environment which is favourable for setting up data centers, they are witnessing inflow of investments into them, thus contributing to the market growth. Asia Pacific holds a lot of potential in this market and the regional market is poised to show a good growth over the medium and long term. Rapid growth of industries in this region, supported by continuous investments by enterprises which see growth potential here, coupled with increasing adoption of practices like data center colocation is increasing the need for robust logical security solutions and services for data centers. This is increasing the adoption of these solutions and services, thus fuelling the market growth.

About the Author:

Dhiraj Kumar Sharma is a Market Research Analyst at Knowledge Sourcing Intelligence. He combines his outright understanding of technologies with years of experience working in the industry to deliver actionable information to clients who span across industries and geographies. Dhiraj often works closely with clients in order to better understand their requirements and is known for the quality of market insights he delivers to them.

Kosher salt is witnessing an impressive increase in demand from customers across the globe. The Kosher Salt Market growth is majorly attributed to continuously increasing jewish population in many countries worldwide. The figure given below shows the trend:

Global Core Jewish Population, 2014 to 2017

Source: Berman Jewish Databank, A Project of the Jewish Federation of North America

Clearly, global jewish population is witnessing a continuous expansion, and strict adherence of Jews to Kosher laws is driving the demand for kosher food among them. For a food item to be labelled as kosher, it must comply with stringent guidelines stated by Jewish laws associated with their dietary patterns. The scope of these Jewish laws extends far beyond from outlining which food items are allowed or forbidden, to outlining practices associated with production, processing and preparation of foods. One of these laws states that meat, which is to be consumed as part of Kosher meal, should be clear of any traces of blood. Since coarse texture and larger grain size of Kosher salt befits the purpose of pulling out all traces of blood from meat without adding too much saltiness to it, its demand is increasing at an impressive rate across Jewish households. Availability of this salt across a good number of stores worldwide is increasing its adoption among people with various religious beliefs, thus boosting the market growth in this segment.

The market growth is also being driven by a large number of food and beverage manufacturers who seek to tap the immense growth potential this business holds. Changing lifestyle of people in many parts of the globe changing with them the taste preferences of people. Since the global food and beverage industry is very competitive on account of presence of a very large number players, inability to change or adapt to the evolving tastes and choices of people can wipe a player out of the market. This is pushing many food and beverage manufacturers to make huge investments into research and development and in effective marketing of new products in order to push their adoption deeper into their target customer base. For instance, according to a data from FoodDrinkEurope, a confederation in the EU which includes national federations, associations and companies associated with food and beverage industry, around 60 out of leading 2500 companies (based on R&D private investments) are from food and beverage industry. In the year 2017-18, total spending into research and development by these companies stood at around €8 billion a major chunk of which was held by the European Union, the United States and Japan. Interestingly, most of these investments were aimed at aligning well with ethics and improving customers’ health. The figure given below shows the breakdown of EU’s F&B research and development investments by key focal points:

Key Drivers of Innovation in Food & Beverage Manufacturing, Europe, %, 2017 and 2018

Source: Food Drink Europe

Similar trend can be seen in other regions like North America, Asia Pacific and the Middle East among others. Increasing efforts by F&B manufacturers to cater to a wider customer base with diverse taste and religious beliefs is increasing the adoption of kosher salt among them for use in various products, thus boosting the market growth.

Geographically, North America Dominates the Global Kosher Salt Market

In 2019, North America held around 38% share in the global Kosher salt market followed by Europe and Asia Pacific which held around 25% and 20% market share respectively. Based on Knowledge Sourcing Intelligence estimates, North America is expected to dominate this market throughout the projected period 2020-2025. In this region, U.S. accounted for around 89.92% market share in 2019 and this share is expected to jump to 91.37% by 2025. This dominance is partially attributed to increase demand for kosher-labelled products in the country. Currently, there are more than 12 million kosher consumers present in the U.S. Moreover, more than 40 per cent of packaged food and beverage items sold in the country are kosher, with labels bearing the logo of a trusted kosher-certifying agency such as Star-K and Orthodox Union. Many supermarkets are also routinely stocking large kosher sections. Since only 2 per cent of the American population is Jewish, this high demand for kosher foods signifies that the market growth is being driven primarity due to increasing inclination of people towards cleaner and healthier options. Rising concerns among people in this country regarding the consumption of high amount of sodium is shaping the market growth. The U.S. Food and Drug Administration (FDA) recommends that Americans should consume no more than 2,300 mg of sodium each day as they currently consume 3,400 mg of sodium per day on an average. Excess intake of sodium is associated with the increased risk of high blood pressure which is a leading cause of heart disease and stroke. According to the American Diabetes Association, people are recommended to limit their sodium to 1,000 mg daily in order to reduce blood pressure. This trend is fueling the drift of people towards kosher salt, thus propelling the market growth.

Asia Pacific is one of the fastest growing markets for kosher salt throughout the globe. The market growth in this region is also attributed mainly to rising concerns among people regarding levels of sodium intake in the form of salt. China, for instance, which accounts for a significant market share, has been witnessing very high levels of sodium intake by people. According to a recent research study conducted by the Queen Mary University of London, the salt intake in China has been among the highest in the world over past four decades. This is mainly because Chinese adults consume around 10 grams of salt per day. This is much higher than the WHO recommendation. Since these levels are alarming, many Chinese are moving towards kosher salt. To seize this growth opportunity, many players are entering this market, thus fueling the market growth. Middle East and Africa Kosher salt market is expected to show the highest growth rate among all regional markets. High jewish population in this region is one of the major factors responsible for this growth.

Self-drive car rental refers to the services provided by numerous car rental companies to their customers by offering different types of cars on rent for a short as well as long period depending on the user’s needs.

Global Self-Drive Car Rental Market, Forecasts From 2019-2025, in US$ Billion

Source: Knowledge Sourcing Intelligence Estimates

The chart above represents the size of the global self-drive car rental market from 2019 to 2025 which shows that the market reached US$86.589 billion by the year 2025 from US$59.280 billion in 2019. The market is projected to show a considerable growth owing to the fact the propensity of consumers to spend on self-drive cars is increasing due to more convenience and comfort. Furthermore, the availability of a wide range of vehicles from economy cars to super-luxury cars is another factor that has led to an inclination of customers rented cars rather than opting for ride-hailing services and chauffeur driven services among others. One of the major factors that is propelling the business opportunities for the major market players globally is the constantly growing tourism sector around the globe. Also, medical tourism has also been increasing in many parts of the world in which people stay in a country for some days only for treatment purposes, this, in turn, is also augmenting the adoption of rented self-driven cars for their own luxury and comfort. The disposable income and the middle-class population is on the verge of increase especially across the developing economies of the world, this, has further led to an increase in the spending done by the people on vacations and short trips which is also playing a major role in shaping up the market growth during the forecast period. The pickup points for these cars can also be chosen by the customers as per their convenience and waiting times are also less. Furthermore, the growing penetration of the internet has further propelled the business growth opportunities to capture a greater market share and tap the growing potential of the market throughout the course of five years.

However, the market is expected to be restrained by the fact that the availability of substitutes such as ride-hailing, chauffeur-driven services, and availability of cheaper public transport due to which people tend to get reluctant towards driving in other countries, states or cities. The recent advent of COVID-19 is expected to slow down the market growth during the short period as numerous government restrictions have been imposed in many countries that have led to a ban on the interstate as well as international travels. Thus, a temporary halt or a slump in the tourism sector is expected to slow down the market growth to some extent in the short run. Since the duration of this pandemic is still unclear, we expect the demand for these services to remain low for a period of ten to twelve months. However, the restrictions are being lifted in many countries and traveling has been allowed in some countries. This, combined with participation by market players by offering clean and sanitized cars to attract the customers is a key factor that is expected to be responsible for the positive outlook of the market in the coming times.

Tourism Industry

One of the major factors responsible for the global self-drive car market growth is the globally expanding tourism industry. With the rapid globalization, the travel and tourism sector is on a rise around the globe. The growing disposable incomes and the increasing middle-class population especially in the developing economies of the world play a major role in bolstering the travel and tourism sector globally. Tourism is considered as one of the major contributors to the GDP in many countries of the world. the self-drive car rental market is heavily dependent on the booming travel and tourism industry in that country. This is expected to support the growth of the car rental market as travelers prefer booking cars in advance for their trips for the sake of convenience.

International Tourists Arrival to the U.S., by Country, 2014-2018 (in Millions)

Source: U.S. Department of Commerce, ITA

Also, the people spend enormously and goods and services on their trips which further shows the potential of the market to witness good growth during the forecast period. For instance, according to the International Trade Administration, Chinese tourists spent around US$35 billion on travel and tourism-related goods and services in the United States in the year 2017.

Segment Overview:

The global self-drive car rental market is segmented on the basis of vehicle type, mode of booking, and geography. On the basis of vehicle type, the segmentation of the market has been done into economy car and luxury car. On the basis of mode of booking, the market has been classified as online and offline. Furthermore, on the basis of geography, the market has been distributed into North America, South America, Europe, Middle East and Africa, and Asia Pacific.

Luxury Cars to Witness Considerable Growth

By vehicle type, the economy car segment is expected to hold a substantial market share throughout the course of the next five years owing to the fact these cards have economical rented prices and are comparatively cheaper than luxury cars. Also, an abundance of the fleet of economical cars is available with companies that further supports the significant share of this segment during the next five years. Moreover, the companies are investing heavily in the adoption of the additional fleet to meet their growing business requirements. For instance, in December 2019, Blue Bird Group announced an addition to its fleet by adding 200 electric cars to its existing fleet as a part of its strategy and commitment towards sustainable development. Furthermore, the luxury car segment is anticipated to show promising growth throughout the next five years. The growing availability of luxury fleet by companies along with the growing propensity of consumers to spend on luxury fleet is also bolstering the growth of this segment during the next five years.