The global market for caps and closure is expected to be catapulted to stratospheric heights during the next few years due to its expansive end-use applications in areas pertaining to food and beverage, healthcare (pharmaceuticals), personal care (cosmetics), among others. Moreover, the high rate of investments in research and development that is leading to a variety of product innovation is also another factor that is expected to influence the upward trajectory of caps and closures market.
The core factors which are a supply-side centric and are known to propel the market growth are as follows: the need for ensuring safety and security to preserve the contents’ quality, to extend consumer convenience by facilitating more functionality; to increase the brand visibility of products and gain competitive advantage by disseminating information that resonates with consumer preferences and values as well as incorporate cap and closure solutions that act as an enabler of carbon footprint reduction measures as well as most importantly reduce vulnerabilities which the entire range of supply chain, wherein the incorporation of technology has emerged and is poised to be a sort of new normal in the caps and closure industry. Further growing affluence, premiumization of beverages, and increasing proclivities to shift away from traditional consumption behavior in the emerging economies are also factors that are expected to drive the caps and closure market.
Food & Beverage Segment Occupies a Significant Share of the Caps and Closure Market
Within the ambit of the food and beverage, an important consideration is that of the supply chain where transparency and the lack thereof have been the greatest concern. For example, in the case of wines and spirits, for the most part, products are susceptible to counterfeiting that adversely impacts consumer confidence which ultimately restricts brand equity. Albeit bearing most of the responsibility, distillers, brewers, and vintners have minimal visibility in their respective value chains. Also, the need for passing the geographical certification, among others, makes the aspect of compliance extremely important. In view of above, the UK based independent technology firm Everledger Ltd, which with the aid of AI, blockchain, IoT, and other security technologies reportedly assists a variety of industries to securely achieve clarity and communicate the same to various stakeholders, has launched a new ranged of anti-tamper bottle closures for wine and spirits industry in April 2020.
These intelligent caps have NFC (Near Field Communication) tags and blockchain integrated with them. With such a latest anti-tamper measure, the data concerning the chain of custody can be captured with the aid of blockchain technology. Later, at the consumers' end with a simple tap of their smartphone, the consumers can connect with the products' entire journey. Therefore, providing advanced means to enable wine and spirt market players to realize their strategic imperative of achieving transparency, protect their authenticity as well as aid them in expanding their brand equity. This is an example of the most recent development in the packaging industry where both preservation of product integrity and brand promotion have been simultaneously achieved through the means of technological intervention, which is estimated to pave the path for more product development leading to the growth of the market.
Final Consumption Expenditure of Households – Food and Non-Alcoholic Beverage (Current Prices, Million Euro)
Source: EUROSTAT
Stringent Government Regulation and the Consequent Need for Compliance Will Drive Market Growth
Another aspect that is expected to drive the caps and closure market is that of the increasing trend of food and beverage manufactures to subscribe to the ethos of growing environmentally-conscious customer base as well as to comply with various government regulations. For instance, the Council of European Union had in the first quarter of 2019, reportedly adopted a directive on single-use plastics that bans the use of certain throwaway plastic products and reduce the use of most frequently used littered plastic products agreeing to achieve 90% collection target for plastic bottles by 2029 and ensure that plastic bottles will comprise of at least 30% recycled content by 2030. Another is that of AB 319 California legislation, under the purview of which January 1, 2020, onwards, a retailer would be prohibited, from facilitating a sale or selling a beverage container made out of single-use plastic with a cap that is not contiguously affixed or tethered to a beverage container.
This has steered the organizations engaged in consumer-packaged goods, in general, to look towards solutions that simultaneously cater to both the aforementioned aspects. For example, in April 2019 a US-based provider of a variety of dispensing, packaging, and sealing solutions, AptarGroup, Inc. (NYSE: ATR) had reportedly launched tethered closures namely, FLIP LID closure that is intended for bottled water, drinkable dairy, juices, sports & energy drinks, and other beverages. Since the closure remains attached to the bottle it not only provides consumers the much sought-after convenience, which is also another factor that is driving the caps and closure market but also promotes post-use recycling by making the closure go through the recycling process at the same time. During August the same year, it was announced that AptarGroup, Inc. and Nippon Closures Co., Ltd. a leading Japanese bottle closures company had reportedly entered into an exclusive partnership to cross-license technology for tethered beverage closures, endeavoring to create beverage closure solutions that will simultaneously seek to improve drinking experience as well as remain environment friendly.
Besides there is an upswing in more eco-friendly innovation as exemplified by collaboration in August 2018, between an international manufacturer of caps and closures called UNITED CAPS and Braskem (B3: BRKM3, BRKM5, BRKM6; BMAD: XBRK; NYSE: BAK), which is a leading petrochemical company based in Brazil. The rationale behind this collaboration is to deliver plastic caps and closure that are derived from sugar cane. The initial offering of two standard closures that have been manufactured using bioplastic resin from Braskem comprises of The VICTORIA closure that is designed for still beverages and PROFLSTSEAL, which are ideal for dairy products and still beverages.
The Market Share of Metal Caps and Closure Segment Is Expected to Substantially Expand
Metal caps and closure are a means for beverage manufacturers to market their products as sustainable. Also, aluminum has reportedly better scrap value compared to other recycled materials making it the most accepted material at the recycling plants, compared to others. Another aspect that is expected to drive this segment is consumer convenience. For example, in June 2019 it was reportedly announced by the Italian wine brand Cavit that it’s range of still white wines that include Moscato, oak zero chardonnay, pinot grigio, Riesling, are slated to undergo a transition and will come with screwcap closures.
Automotive Refrigerant – New Developments Are Driving the Growth
Thought ArticlesAutomotive refrigerants are used in the air-conditioning systems of automobiles. These refrigerants further help in the proper functioning of the air-conditioning systems in vehicles. Refrigerants are considered to be the most integral part of automotive air systems.
The market is poised to witness a nominal growth over the course of the next five years primarily on account of burgeoning demands of the automotive users regarding the comfort in their vehicles. The trend of the installation of aftermarket air conditioning systems in vehicles is also a key factor that plays a significant role in shaping up the automotive refrigerants market growth over the course of the next five years. Furthermore, the demand for vehicles has been increasing over the past years especially in the developing economies of the world such as India, China, and Vietnam among others due to the growing disposable income and rising middle-class population further provides an impetus for the market to grow in the near future. Additionally, the participation of key market players in the development of new products and facility expansions is also fuelling the global automotive refrigerant market growth throughout the forecast period.
Furthermore, the various regulations regarding the proper emissions from vehicles and the use of approved refrigerants is also a prime factor that is expected to positively impact market growth during the coming years. However, the recent advent of COVID-19 has led to a decline in the demand as well as the production of vehicles in some countries is anticipated to inhibit the growth moderately during the short run. The graph below represents the global maternity wear market size from 2019 to 2025.
Global Automotive Refrigerants Market, Forecasts From 2019-2025, in US$ Billion
Source: Knowledge Sourcing Intelligence Estimates
The Growing Deployment of Electric Cars Is Positively Influencing the Growth
Governments across the globe are taking necessary steps to meet the growing needs of vehicles that utilize greener technologies is a key factor supplementing the adoption of electric vehicles. Several initiatives are being taken by the governments of both developed and developing economies for the setting up of the necessary infrastructure for the easy deployment of electric vehicles. For instance, Electric Vehicle Initiative, a multi-government policy which was launched under the Clean Energy Ministerial (CEM), a high-level dialogue among the Energy ministers of the major economies across the globe. The main aim of this policy is to accelerate the introduction and adoption of electric vehicles worldwide. Also, in June 2017, EV30@30 by the CEM for the with the goal of accelerating the deployment of electric vehicles by 30% by the year 2030. The growth in the deployment of the electric vehicle fleet also shows the propelling business growth opportunities for the manufacturers of refrigerants over the next five years. The deployment of electric vehicles reached 3.29 million units by 2018 from only 0.23 million units in 2013 (Source: IEA).
Electric Car Deployment – World, 2013 to 2018, in Million Units
Source: IEA
Thus, it can be clearly seen that the deployment of electric cars has increased exponentially for the past five years. The developing economies are also increasingly putting their efforts into setting up the necessary charging infrastructure further aiming towards the smooth deployment of electric cars. For example, in November 2018, Indian giants such as DLF, ABB India, and Delta Electronics, and EV Motors India announced their strategic partnership for setting up around 6500 EV charging stations throughout the country over the course of the next five years. Also, the integration of new market players in the electric vehicle segment aiming the middle-income segment population is also providing an impetus for the market players to expand their market share throughout the course of the next five years.
Stringent Regulations
The market for automotive refrigerants is also poised to witness a growth on account of the stringent regulations regarding the use of refrigerants in the vehicles. Several regulations such as the regulations laid down by the United States Environmental Protection Agency further promoted the use of approved refrigerants which is anticipated to positively impact the market growth during the next five years. The requirements such under section 609 of the Clean Air Act (CAA), while two additional sections of the CAA, 608, and 612 also play a significant role in shaping up the market growth through the forecast period.
COVID-19
The recent outbreak of the novel coronavirus disease is expected to inhibit the market growth to some extent especially during the short period of the next six to eight months. The government measures to minimize the spread of the disease have led to a temporary suspension of the manufacturing activities across the automotive sector. Many companies have shut down their plants, which has further led to a downfall in the demand for automotive refrigerants by the manufacturers, thus anticipated to restrain the market growth to some extent.
Participation by Market Players
The constant participation by the key market players in the form of facility expansions, product launches, mergers, and partnerships with an aim to expand their market share further shows the potential of the global automotive refrigerant market to grow in the near future. For instance, in June 2018, Honeywell International Inc announced the launch of its latest product, Solstice® N41, which is a non-inflammable and a low global-warming potential refrigerant for the air conditioning systems. Also, in June 2017, Honeywell International Inc and Chemours announced the opening of their manufacturing facilities for the production of HFO 1234yf. Also, in May 2017, the company announced the launch of Convenient R-1234yf Service Can especially for technicians across the automotive industry.
The global automotive refrigerant market has been segmented on the basis of refrigerant type, vehicle type, sales channel, and geography. By refrigerant type, the market has been classified on the basis of R-134a and R-1234yf. By the vehicle type, the segmentation of the market has been done into passenger vehicle and commercial vehicle. On the basis of the distribution channel, the market has been distributed as online and offline. Geographically, the market has been segmented into North America, South America, Europe, Middle East and Africa, and Asia Pacific.
Display Panel Market Trend – Enabling a World View Through the Looking Glass
BlogThe display panel market is estimated to be propelled to unprecedented heights primarily because virtually every accessible consumer electronics are made commercially available with display panel integrated with them. Rising affluence, declining prices, growing R&D investments and product innovations as well as increasing demand from emerging makers such as India and especially China where eCommerce has penetrated almost every consumer segment demographically as well geographically, are a few of the core factors that are expected to drive the growth of the display panel market.
Besides, display panels have emerged as the go-to medium of enticing prospective consumers and for disseminating information of products and services. They are ere also being increasingly deployed in public places for notifying the public about various aspects related to traffic and weather conditions, stock market information, and so on. Albeit the current downward draft in public events due to the prevalent lockdown measure which has been enforced by national governments because of COVID 19, the recent development of a vaccine and a plausible normalization of business activities will lead to a surge in concerts and other such events where display panels are an inseverable component, which is also expected to facilitate the market growth. From the perspective of consumers electronics, wall-mounted television units, cellular phones, as well as notebooks, among others are poised to further drive the growth of the market, especially during present times due to COVID19 where work-from-home, video conferencing, eCommerce activities and availing entertainment through web streaming services have surged to an unprecedented level.
The Led Type of Display Panels and Its Variants Like Oled Is Expected to Occupy a Significant Share of the Market
From automotive to handheld devices, the LED type of display panel and its variants are expected to reach stratospheric heights due to its benefits like lightweight, superior image quality, and better form factor. For example, in February 2020, it was announced that the large 2021 Cadillac Escalade SUV, which is packed with enticing features have added the much-awaited 38-inch curved display, which is reportedly the largest monitor in the automotive industry by employing OLED technology which as per the organization has the twice the pixel density of 4K TVs. On the other side of the spectrum, Samsung Display has reportedly launched an optimized OLED display for smartphones enabled with 5G claiming that the display features, less blue light emissions and will consumer comparably less power. The display has been reportedly certified by SGS SA (SIX: SGSN), which is a swiss based multinational company headquartered in Geneva, that provides inspection, verification, testing, and certification service. Earlier in May 2019, it was announced that renowned fabless display drivers and semiconductors manufacturer, among others Himax Technologies, Inc. (NASDAQ: HIMX), has reportedly launched its flexible OLED automotive display driver and timing controller for China’s largest display manufacturer, BOE Technology Group Co., Ltd.,
The Rising Volume in Technology Goods Trade and Recent Trade Agreements Are Poised to Drive the Display Panel Market
The semiconductor industry has witnessed and facilitated the value of trade in the international import of ICT goods (information and communications technology) (reaching above 2 trillion USDs, in 2017) has been spurred by the demand of electronics components, which is increasingly being integrated with IoT (Internet-of-Things) device applications. Among the myriad of ICT products, trading in electronic components continued to expand, which was just below consumer electronics subsequently translating to the fact of swift transitioning to digitization and growing affordability. In 2018, sales of eCommerce [both B2B (business-to-business) and B2C (business-to-consumer)] had hit just above 25 trillion USD mark which was up by 8% from 2017 and was equivalent to 30% of the GDP (global gross domestic product) that particular year. Further due to the global pandemic to which the world has succumbed, there will be an upswing in digital solutions, services, and tools.
Share of Ict Goods as Percentage of Total Trade, Imports
Source: UNCTAD
Moreover, as of 1st June 2020, there are reportedly 303 regional trade agreements in force. The most recent being the European Union Vietnam Free Trade Agreement (EVFTA) & EU-Vietnam Economic Integration Agreement (EVIPA) between EU and Vietnam, whereby 65% of duties on EU exported to Vietnam will be eliminated while the remaining will be phased out gradually in coming 19 years. On the other hand, 71 % of duties on exported originating from Vietnam will be eliminated while the remaining be eliminated over seven years. Being an ambitious agreement that seeks to eliminate almost 99% of customs duty between the EU and Vietnam, it is expected to facilitate investments in electronics, among others, in which EU investors have been most active. Whereas for Vietnam the elimination of tariff will benefit key export industries which also include those engaging in the manufacturing of smartphones and electronic products which is yet to extensively develop.
Investment Policies in Emerging Economies Are Expected to Bolster the Display Panel Market Growth
For instance, with respect to India under National Policy on Electronics 2019 (NPE 2019) that envisages placing India as the global hub for ESDM (Electronics System Design and Manufacturing), the government of India has proposed Production Linked Incentive Scheme (PLI) for Large Scale Electronics Manufacturing which was notified in April 2020. Under this scheme, the incentive has been linked with production to bolster domestic production and attract large investments in mobile phone manufacturing and specified electronic components. This has resulted in organizations like the Taiwanese multinational electronics contract manufacturer Foxconn (TWSE: 2317) (the trading name of Hon Hai Precision Industry Co., Ltd) and Wistron Corporation (TWSE: 3231) which is a major original design manufacturer in Taiwan, along with local handset makers Dixon, Karbon and Lava to reportedly apply for the production-linked incentive (PLI) scheme. These investments are expected to spur the activities and increase more engagements in the consumer electronic industry thereby facilitating the growth of the display panel market. Besides, after launching the world’s largest mobile factory in India in 2018, with plans to reportedly double the current capacity for mobile phones in Noida from 68 million units a year to 120 million units a year, as of January 2020, it was reported that the company has plans to invest in a smartphone display manufacturing plant in the state of Uttar Pradesh.
Surface Mount Technology: A Major Contributor to the Growing Miniaturization Trend
Thought ArticlesSurface Mount Technology (SMT) is referred to as an area of electronic assembly utilized for mounting electronic components onto the surface of a printed circuit board (PCB). Earlier, development engineers used to insert components via holes in conventional assembly.
As the level of automation rose for the PCB assembly, the utilization of traditional components with leads did not work well for PCB assembly. Hence, the advent of surface mount technology reduced the manufacturing costs and helped in making efficient utilization of PCB space. With the use of surface mount technology, it is now possible to make highly complicated electronic circuits with increasing miniaturization of devices. The soaring miniaturization trend is further contributing to enhancing market growth. The components can be designed to a much smaller size and can be mounted on the PCB much closer together than the traditional leaded counterparts. This has further led to achieving a greater level of functionality within the integrated circuits.
Through SMT, it has become quite convenient for the components to be soldered directly onto the board. Today, almost all of the electronic equipments are manufactured utilizing the surface mount technology.
The growing demand for consumer electronics is contributing to fueling the growth of the surface mount technology market, with a rise in consumer electronics manufacturing. This growth in demand is further supported by the increasing urbanization, increasing purchasing power of the consumers who are willing to spend on premium consumer electronic products such as kitchen appliances as this helps in saving time and provides convenience to people following a busy schedule. The women entering the main workforce has also contributed to the manufacturing of sophisticated electronic devices. The Asia Pacific region, mainly India and China are considered to have a substantial market share in the global consumer electronics industry due to high consumerism owing to a large population base coupled with increasing disposable and family income. As per the National Bureau of Statistics, China, the per capita disposable income increased by 5.8% y-o-y to reach 30,733 yuan in 2019.
Source: National Bureau of Statistics China, per capita disposable income in Yuan
There is an availability of different types of package for different types of surface mount component. In general, package styles are categorized into three categories namely, passive components, transistors and diodes, and integrated circuits. According to the level of adoption of surface mount technology, a variety of components are available in market, this is mainly driven by the high demand for these components in comparison to traditional leaded forms. Nonetheless, the basic components such as transistors and numerous logic and analogue ICs are usually available in both the formats, traditional leaded component and as a surface mount component.
One of the main reasons for the adoption of surface mount technology lies in providing great improvement in speed, reliability, and cost for the printed circuit board process in a manufacturing facility. This has further put a strong impact for technology adoption and also impacted the designing and development of novel electronic circuits and equipment. Hence, this shift has contributed to improvement in circuit development and performance.
SMT is extensively utilized for the PCB assembly and manufacture as it is possible to pack more electronic components in a much smaller space using this technology. Surface mount components are quite smaller in size and are known to offer a better level of performance. Additionally, these can be utilized with an automated pick and place machine in the assembly process, further reducing human intervention and avoiding chances of error. Hence, with growing industrial automation in the semiconductor industry along with other industries, the market will continue to grow at a significant pace at present and in the future.
It has been noticed that in several industries where PCB assembly takes place, there is still a requirement of manual intervention, however, this is continuing to fall with time. With advancements in PCB designing, currently, printed circuit boards are manufactured to an extent that the surface mount components utilized are capable of being placed automatically. Additionally, this has provided an opportunity for the component manufacturers to develop specialized surface mount versions of components, offering complete automated assembly for most PCBs, further contributing to the market growth.
Amid the novel coronavirus infection scenario, it is predicted that the consumer electronics industry was the worst hit due to the lockdown measures resulting in movement restrictions. The trend was closely followed by the industrial and automotive industry as well. Disruptions in the supply chains causing shipment delays for the manufacturers of the electronic products were noticed on a large scale. Hence, it has contributed to causing an adverse impact on the market growth as well. This is further attributed to the mass migration of employees to work remotely, also, due to the preventive measures taken in order to avoid gatherings and break the chain, many manufacturing units were forced to shut down. Furthermore, the COVID-19 pandemic has put enormous pressure on the sectors that are dependent on imports from China for their production. This is due to the fact that the country is a hub of factories for many countries in the world. However, not all the electronic industries are suffering from the global pandemic. This is attributed to the increase in sales of electronic goods and equipment required for gearing up with the adoption of work-from-home. It is being observed that consumers are buying electronic products in order to support their shifting to adopting new methods of interaction like video conferencing, additionally, they are also taking initiatives regarding the enhancement of their home entertainment experience amid COVID-19. Apart from this, the demand for medical devices also surged at a significant pace. Tracking and logistics have become busier than before as food packaging companies are speeding up in order to keep pace with the high demand. Furthermore, the demand for electronic devices that are allowing companies to continue to work even during lockdown is adding to surge the surface mount technology market growth.
Besides, the advantages offered by the surface mount technology, there are certain disadvantages as well. There is always a scope of improvement for any technology, SMT also has its own limitations. For example, high-power/voltage parts SMT are not ideal, that is why there is a provision of holes and SMT on the same device. Also, components that generate a lot of heat or carry a high electrical load are not suitable for surface mount technology. This is due to the fact that solder can melt under high heat and it is not capable of adapting to mechanical stress. Hence, inspite of the fact that surface mount technology is utilized on a large scale, it does not hold suitability in all cases.
ABOUT THE AUTHOR:
Vibha Saklani is a Market Research Analyst at KSI, working on the estimates and global reports on multiple industries spanning from IoT to food and beverages, with a special knack for healthcare, medical devices, and related markets. With the addition of her formal education in Biotechnology and having a research background, she is able to shed more light on the detailed analysis of the story. To read more articles by her, and for more information regarding multiple global markets, visit www.knowledge-sourcing.com.
Bioceramics Market Trend – Revolutionizing Human Diseases and Debilitation Treatment
BlogBioceramics are essentially a part of biomaterials which are inclusive of but not limited to applications pertaining to implants like bone plates, dental implants, heart valves, intraocular lenses, joint replacements, ligaments, sutures, vascular grafts, etc. as well as medical devices artificial hearts, biosensors, blood tubes, pacemakers, are widely employed to restore and /or replace the function traumatized or degenerated organs or tissues to aid and expedite the healing process, enhance the functions, rectify the abnormalities thereby facilitating the overall improvement of the quality of patients.
Applications wise it has emerged integral to orthopedic, dental, biomedical, cardio-vascular solutions, among others. In applications pertaining to orthopedic many kinds of bioceramics are employed and the choice of bioceramics is governed by the kind of defects that it rectifies. Further, the employment of nanoscale bioceramics to fabricate various usable products has revolutionized the manner in which bioceramics have been used in orthopedic surgery due to the widely acknowledged effectiveness of nanomaterials in osseointegration and osseoconduction as well as its capability to provide a porous network of precise nature that is determinant of bone repair rate.
Factors That Are Fostering Various Strategic Initiatives and Driving the Growth of Bioceramics Market
To this end its important to note that the chemicals and materials industry has made significant strides and has witnessed prolific engagement in research and development activities bringing about a sea change in the capabilities of bioceramics. For instance, in March 2018, Dimension Inx, which is a biofabrication company that leverages the capabilities of patented 3D-printing biomaterials design and the platform to manufacture had reportedly commercialized a regenerative medical product that has fundamentally changed the way human diseases and debilitation have been treated thus far, called Hyperelastic Bone™. It is composed of less than 90 wt.% hydroxyapatite, which is the same mineral found in bones and teeth. The unique aspect that makes it a path-breaking product innovation in the bioceramics market is that despite being mostly mineral it retains flexibility and can be printed at room temperature, which either can be shaped generically or printed to the specifics matching with a particular patient. As of March 2020, the issuance of U.S. Patent No. 10,584,254, was reportedly announced by the company that covers its proprietary biomaterials design and 3d-printing manufacturing system.
Delving further into bioceramics market, rising occurrences of osteoarthritis; availability of low-cost alternatives facilitating preventive care; properties of certain bioceramics like bioinertness; high abrasion resistance and tensile strength; the increasing rate of biocompatibility with the needs of patients as well as the demand for biocompatible materials which reduces post-surgical occurrences of infection are few of the core factors that are poised to drive the growth of the bioceramics market trend. Furthermore, another factor that is poised to augment the growth of the market is the growing pool of aging population in developed countries. To this end, it may be noted that according to the United Nations (UN) it is estimated that 1 out of 6 people will be over 65 years of age by 2059 which is an increase of 16% from 1 in every 11 individuals I.e. 9% (2019 estimates). Moreover, 1 out of every 4 individuals living in North America and Europe could be over 65 years of age. Furthermore, the year 2018 marked a historical event, wherein for the first time the total number of people over 65 years of age and above had exceeded the number of children under 5 years of age globally. Before all foregoing, the number of people who are 80 years of age and above is projected to triple in 2050 accounting for a population of 426 million from 143 million in 2019.
Population Aged 65+ of High Income Countries (Forecast in Thousands)
Source: United Nations, Department of Economic and Social Affairs, Population Division
Further, irresponsible consumption proclivities that necessitate the requirement of dental crowns, among others, have led to the expansion of the market share of dental applications of bioceramics. This is also another factor responsible for the growth of the global bioceramics market. Thus, when it comes to the segment of dental applications, the bioceramics market has been awash with quite a few strategic moves made by the market players in recent years. For example, in July 2018 it was reported that Institut Straumann AG (Straumann Group) has acquired 30% stake in its biomaterials partner botiss biomaterials GmbH ( botiss biomaterials) facilitating the expansion of the latter’s global distribution network of the former’s products as well as further deepen the collaboration that has proved beneficial in driving dental biomaterials segment. botiss biomaterials is a globally renowned international supplier of products pertaining to oral tissue regeneration. Again in 2018, it was reported that Henry Schein, Inc (NASDAQ: HSIC), which is a globally renowned health care company catering to animal health, medical, and office-based dental practitioners had made three investments with the rationale to advance the company’s business pertaining to dental implants. Out of which, the acquisition of Intra-Lock International, a provider of solutions for dental restoration that includes biomaterials among others, is a noteworthy mention pertinent to the bioceramics market.
The Category of Biomaterial That Is Going to Occupy a Significant Market Share
Progressing to the segments of types and materials, the bioinert kind of bioceramics is expected to hold a significant share of the market due to its unique characteristics of retaining its physical and mechanical properties after implantation. The other aspect is that of its non-carcinogenicity and lack of biological response. Their usefulness in gliding function is widely acknowledged that stems from the property of its excellent wear. Further, a bioinert type of bioceramics is also known for its capability to maintain excellent biocompatibility and high strength concomitantly adjust conductivity and lubricity. Zirconia is one such material that is anticipated to be catapulted to stratospheric heights due to the increasing advancements and profusion of zirconia-based restorations in dental care as well as due to its preference in hip prostheses. Its favorable physical properties and comparatively lesser production costs are also other factors that are expected to drive the share of zirconia in the bioceramics markets in the next few years. Further, emerging markets like that of India and China have policies in place that are favorable for propelling the growth of bioceramics markets Viz. the national drug pricing regulator of India which is called National Pharmaceutical Pricing Authority (NPPA) has reportedly notified in August 2019, that prices for orthopedic knee implants, on which price control measures were institutionalized two years ago, will be monitored till mid of August 2020, unless revised. Under the aegis of this pricing control measure, the cost of knee implants has been reportedly reduced to 69% leading to a national saving of Rs. 1,500 crore p.a. for consumers.
Everything to Know About 3d Nand Flash Memory
Thought ArticlesThe 3D NAND flash memory technology has come in recent years due to a continuous increase in demand for data storage by various end-user industries, it offers a larger data storage and has a faster processing speed that too at a cheaper cost. Since the existing technologies are not able to fulfill the desired requirements there is a significant demand for this technology. Besides, 3D NAND is a next-gen flash memory technology where memory cells are collected vertically to increase the capacity and thereby providing higher storage density and lower cost per gigabyte.
Growing In-Vehicle Electronics
Technological advancement in the semiconductor industry has led to the development of 3D NAND flash memory that is used, particularly in the automotive industry. There is an increasing demand for electronic systems in vehicles owing to increasing attention towards the vehicle to vehicle and vehicle to infrastructure communications, convenience as well as onboard safety which is anticipated to drive the growth of the market during the forecast period. The adoption of electronic systems is growing as technology becomes more widely available on mid-range and entry-level cars which are considered as good news for semiconductor suppliers as analog ICs, MCUs, and other different sensors are used for many of the automotive systems.
Automotive Electronic Content Growth, Electronic Cost as % of Total Car Cost, 1990 to 2030
Source: NXP Semiconductors industrial report
In addition, due to benefits of smart sensor like high reliability, low power consumption and failure detection couple also boost the demand for vehicle electronics which is further expected to propel the market growth opportunities for 3D NAND flash memory manufactures and vendors in the coming years. As regulations are becoming more stringent and consumers are increasingly demanding for comfort, connectivity, safety, and efficiency in-vehicle electronics continue to control over new and existing functions in vehicles also wireless connectivity allow the car to become a platform for the drivers and passengers to use their transient time for personal work all such advancement leads to increasing demand for in-vehicle electronics. Furthermore, rising electronic cost as a percent of total car cost is a sign of growing adoption of in-vehicle electronics which is anticipated to augment the 3D NAND flash memory market growth opportunities for automotive capacitors vendors and manufacturers. For instance, according to NXP Semiconductors, electronic cost as a percent of total car cost has increased from 30% to 50% in 2030.
Industry 4.0
Industry 4.O is the combination of several major innovations in digital technology and storage platforms and all poised to transform the consumer electronics and communication sector. Industry 4.0 is being implemented at a rapid rate worldwide, Industrial companies from all sectors around the globe are getting down to business with industry 4.O and are digitalizing essential functions within their internal value chain. The main focus of increasing investment in Industry 4.O is expected to be on digital technologies like sensors or connectivity devices along with the software's that fuel up the growth of the high storage options available like 3D NAND flashes memory during the forecast period. Today more and more applications that used to be mechanical are now changing to fully electronic control offering higher efficiency, increased reliability, and improved regulation standards, and higher storage offer extremely fast response times with higher measurement accuracy. Increasing adoption of automation in industrial and other sectors also expands the market growth opportunities for manufacturers and vendors during the forecast period.
End-User Industry Update
By the end-user industry, 3D NAND flash memory market is segmented into automotive, consumer electronics, communication, and others. The consumer electronics sector is holding a significant share in the market and with the growing automation coupled with the changing mobility, it is expected to witness exponential growth in the region. Also, the consumer electronics sector in the Asia Pacific region is rapidly evolving and has entered a promising time in countries like China and India where digital technologies are transforming the way the companies are consumer electronics and selling products. In addition, the market for the automotive segment is showing a promising growth with the growing demand for high-end customer experience at a low level of operating cost. Furthermore, increasing the use of information and communication technologies in the education sector is boosting the growth of the 3D NAND flash memory market in the coming years.
Regional Market Outlook
Europe is a home of the most advanced markets for advanced flash memory operations in the world and is also considered as the hotspot for leading information and communication technology companies. As the 3D NAND flash memory reduces costs steadily, its adoption has been gradually increasing by organizations in the region focusing on expanding their business while managing their operation cost which is expected to drive the growth of the market for communication and technology segment during the forecast period. In addition, the concept of smart homes is growing in the forecast period due to the growing concerns regarding high safety and high variable cost is coming up, propelling the demand for the latest advanced storage technology in the efficient power management of home appliances. This further aids in providing remote operating of the appliances, hence reducing human efforts. Furthermore, with the growing adoption of advanced technologies such as the internet of things, 3D NAND flash memory technology holds immense potential in connecting the smart home devices and its efficient management. The growing home security concerns are further propagating the market demand over the next five years.
ABOUT THE AUTHOR:
Rajat Sudan is a Market Research Analyst at Knowledge Sourcing Intelligence, working on estimates and global/regional specific reports on multiple industries ranging from healthcare to automotive, with a special knack for semiconductor. With the addition of his formal education in Economics, Commerce, and Finance, he is able to provide more light on the macro aspects of the story. To read more articles by him, and for more information regarding multiple global markets, visit www.knowledge-sourcing.com.
Caps and Closures Market Trend – An Overview
BlogThe global market for caps and closure is expected to be catapulted to stratospheric heights during the next few years due to its expansive end-use applications in areas pertaining to food and beverage, healthcare (pharmaceuticals), personal care (cosmetics), among others. Moreover, the high rate of investments in research and development that is leading to a variety of product innovation is also another factor that is expected to influence the upward trajectory of caps and closures market.
The core factors which are a supply-side centric and are known to propel the market growth are as follows: the need for ensuring safety and security to preserve the contents’ quality, to extend consumer convenience by facilitating more functionality; to increase the brand visibility of products and gain competitive advantage by disseminating information that resonates with consumer preferences and values as well as incorporate cap and closure solutions that act as an enabler of carbon footprint reduction measures as well as most importantly reduce vulnerabilities which the entire range of supply chain, wherein the incorporation of technology has emerged and is poised to be a sort of new normal in the caps and closure industry. Further growing affluence, premiumization of beverages, and increasing proclivities to shift away from traditional consumption behavior in the emerging economies are also factors that are expected to drive the caps and closure market.
Food & Beverage Segment Occupies a Significant Share of the Caps and Closure Market
Within the ambit of the food and beverage, an important consideration is that of the supply chain where transparency and the lack thereof have been the greatest concern. For example, in the case of wines and spirits, for the most part, products are susceptible to counterfeiting that adversely impacts consumer confidence which ultimately restricts brand equity. Albeit bearing most of the responsibility, distillers, brewers, and vintners have minimal visibility in their respective value chains. Also, the need for passing the geographical certification, among others, makes the aspect of compliance extremely important. In view of above, the UK based independent technology firm Everledger Ltd, which with the aid of AI, blockchain, IoT, and other security technologies reportedly assists a variety of industries to securely achieve clarity and communicate the same to various stakeholders, has launched a new ranged of anti-tamper bottle closures for wine and spirits industry in April 2020.
These intelligent caps have NFC (Near Field Communication) tags and blockchain integrated with them. With such a latest anti-tamper measure, the data concerning the chain of custody can be captured with the aid of blockchain technology. Later, at the consumers' end with a simple tap of their smartphone, the consumers can connect with the products' entire journey. Therefore, providing advanced means to enable wine and spirt market players to realize their strategic imperative of achieving transparency, protect their authenticity as well as aid them in expanding their brand equity. This is an example of the most recent development in the packaging industry where both preservation of product integrity and brand promotion have been simultaneously achieved through the means of technological intervention, which is estimated to pave the path for more product development leading to the growth of the market.
Final Consumption Expenditure of Households – Food and Non-Alcoholic Beverage (Current Prices, Million Euro)
Source: EUROSTAT
Stringent Government Regulation and the Consequent Need for Compliance Will Drive Market Growth
Another aspect that is expected to drive the caps and closure market is that of the increasing trend of food and beverage manufactures to subscribe to the ethos of growing environmentally-conscious customer base as well as to comply with various government regulations. For instance, the Council of European Union had in the first quarter of 2019, reportedly adopted a directive on single-use plastics that bans the use of certain throwaway plastic products and reduce the use of most frequently used littered plastic products agreeing to achieve 90% collection target for plastic bottles by 2029 and ensure that plastic bottles will comprise of at least 30% recycled content by 2030. Another is that of AB 319 California legislation, under the purview of which January 1, 2020, onwards, a retailer would be prohibited, from facilitating a sale or selling a beverage container made out of single-use plastic with a cap that is not contiguously affixed or tethered to a beverage container.
This has steered the organizations engaged in consumer-packaged goods, in general, to look towards solutions that simultaneously cater to both the aforementioned aspects. For example, in April 2019 a US-based provider of a variety of dispensing, packaging, and sealing solutions, AptarGroup, Inc. (NYSE: ATR) had reportedly launched tethered closures namely, FLIP LID closure that is intended for bottled water, drinkable dairy, juices, sports & energy drinks, and other beverages. Since the closure remains attached to the bottle it not only provides consumers the much sought-after convenience, which is also another factor that is driving the caps and closure market but also promotes post-use recycling by making the closure go through the recycling process at the same time. During August the same year, it was announced that AptarGroup, Inc. and Nippon Closures Co., Ltd. a leading Japanese bottle closures company had reportedly entered into an exclusive partnership to cross-license technology for tethered beverage closures, endeavoring to create beverage closure solutions that will simultaneously seek to improve drinking experience as well as remain environment friendly.
Besides there is an upswing in more eco-friendly innovation as exemplified by collaboration in August 2018, between an international manufacturer of caps and closures called UNITED CAPS and Braskem (B3: BRKM3, BRKM5, BRKM6; BMAD: XBRK; NYSE: BAK), which is a leading petrochemical company based in Brazil. The rationale behind this collaboration is to deliver plastic caps and closure that are derived from sugar cane. The initial offering of two standard closures that have been manufactured using bioplastic resin from Braskem comprises of The VICTORIA closure that is designed for still beverages and PROFLSTSEAL, which are ideal for dairy products and still beverages.
The Market Share of Metal Caps and Closure Segment Is Expected to Substantially Expand
Metal caps and closure are a means for beverage manufacturers to market their products as sustainable. Also, aluminum has reportedly better scrap value compared to other recycled materials making it the most accepted material at the recycling plants, compared to others. Another aspect that is expected to drive this segment is consumer convenience. For example, in June 2019 it was reportedly announced by the Italian wine brand Cavit that it’s range of still white wines that include Moscato, oak zero chardonnay, pinot grigio, Riesling, are slated to undergo a transition and will come with screwcap closures.
Online Clothing Rental Market: Staying Stylish Was Never This Affordable
Thought ArticlesAs a practice, clothing rental has been popular among people for a fairly long time now and its popularity does not seem to diminish any time soon. Clothing rental gives people freedom to wear what they want to wear without actually owning a piece of clothing. The traditional approach to staying in line with current fashion trends involves selecting a piece of clothing, which seems good to an individual, and buying it by paying upfront the price of that clothing. Although this method is still very popular across the globe and accounts for a major chunk of the global clothing sales, it has a downside to it. Premium brands often price their clothing at a price which does not fit well into the budget of a fairly large share of global customer base. Although such brands continue to lay a major share of their focus on a specific income group, they often fail to attract customers from other income groups.
On another front, people buying clothes often end up owning a piece or multiple pieces of clothing which they do not see themselves, or the person they’re intended to be worn by, wearing for long enough either because of changes in people’s physique or because the clothes lose their charm on being worn a couple of times. Some pieces of clothing, which are meant to be worn only on some special occasions, often land in closets after being worn only a couple of times, and stay there until they are discarded after some time. These downsides to this conventional approach have been pushing many people to look for alternative ways of staying in trend. Clothing rental is known to unhook people from these risks and offer them freedom to pay for what they want to wear and till they want to wear. This has been increasing its popularity across the globe, and this trend is expected to continue over the medium and long term.
Online clothing rental is an improvement to the conventional clothing rental practice as it adds another layer of convenience to it. People can browse through a wide array of clothing options being made available to them by various brands, and rent the desired designs whenever and wherever they want. The trend is being partially fuelled by increasing penetration of internet across the globe. The figure given below shows the increase in penetration of internet into all regions worldwide:
Global Internet Penetration, % of Population
Source: The World Bank Group
Increasing penetration of internet across the globe is opening doors to immense growth opportunities for various industrial sectors in many new markets. As the number of people having access to the internet continues to increase, the number of uses of internet are also witnessing a continuous increase. Rapid growth of e-commerce worldwide and its increasing contribution to the global GDP explains how internet penetration is adding momentum to the growth of global retail industry. The size and growth of the global e-commerce industry can be estimated by looking at the inflow of investments into many of its sectors. The figure given below shows the flow of investments into e-commerce analytics across the globe:
Global E-Commerce Analytics Market, in US$ Billion
Source: Knowledge Sourcing Intelligence Estimates
As impressive as the growth of this market seems, the global e-commerce sector is also showing a very robust growth. For the online clothing rental market players, this offers them required infrastructure to drive their business growth. The market growth is also being driven by continuous expansion in global middle class population with improving disposable income. Net National Income has, for long, been seen as a fairly reliable indicator for standard of living of people. Improving global net national income per capita means points towards improving standard of living of people. Although inflation also plays a key role in determining the disposable income or spending capacity of people, Net National Income can give a good idea of the trend. According to a data from the World Bank Group, adjusted Net National Income per capita stood at $4,487.474 (in current US$) in the first year of the century i.e. year 2001. This number has been showing a good growth since then and it is evident from where it stood in the year 2018. According to the data, the adjusted net national income per capita, over this period, increased by around 106% as it stood at $9,254.894 (current US$) in 2018. As people are witnessing an improvement in their standard of living, the desire to look stylish can also be seen strengthening its roots. Since renting clothes is easy, affordable and cost-efficient, people are gradually moving towards it. This, coupled with increasing number of hours people spend on internet, is driving the growth of online clothing rental market.
Geographically, the online clothing rental market can be segmented into North America, South America, Europe, Middle East and Africa, and Asia Pacific. North America and Europe together account for a dominant share in this market and the market growth in these regions is majorly attributed to high disposable income of people in countries like the United States, the United Kingdom, Canada, and France among others. Furthermore, presence of a good number of market players in these regions, which offer tailored packages for diverse needs of people, is also fuelling the market growth. Rent the Runway, for instance, offers multiple plans with exciting features to attract people of different income groups to its platform. Asia Pacific remains a lucrative market for many market players and the regional market is witnessing a continuous inflow of investments by them.
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.
Nev Taxi Market- When Shared Mobility Meets Sustainable Development
Thought ArticlesWith the rapid development of the automobile industry, the development of new energy vehicles (NEVs) has become a prime focus of auto manufacturers as energy crisis and environmental pollution have become prominent evils in social development. On the other hand, advancement in technologies such as energy, IoT (Internet of Things), and electronics and their deep integration with automobile manufacturing has further boosted the development of highly efficient and environmental-friendly new energy vehicles (NEVs). Although in the short and medium term, plug-in hybrid and hybrid electric vehicles are going to enjoy the growing market share of electric vehicles in the global automotive industry, the pure electric drive technology including battery and fuel cell will be the ideal technology in the long-term, providing direction for the future of new energy vehicles. NEVs (new energy vehicles) are vehicle which are partially or fully powered by electricity. New energy vehicles can be broadly classified into four categories: pure electric vehicles (battery electric vehicles), hybrid vehicles, fuel cell vehicles and solar electric vehicles. The below figure depicts the market size of global NEV taxi market for the year 2019 and 2025:
New Energy Vehicle (Nev) Taxi Market Size, Us$ Billion, 2019 and 2025
Source: Knowledge Sourcing Intelligence Analysis
Faced with increasingly serious energy and environmental problems, many developed as well as developing countries or regions have begun to seek industrial transformation by way of reducing the production of fuel vehicles with an agenda of new energy vehicles phasing out the conventional energy vehicles. For this, countries have implemented several policies and initiatives to ramp up the adoption of new energy vehicles. For instance, the United States encourages people to buy new energy vehicles through the establishment of supporting facilities such as charging stations, electricity fee reduction and the provision of driving and parking facilities for people owning NEVs. Germany, as the well-established powerhouse in the global automobile industry, has also announced that it will ban the sale of conventional internal combustion engine vehicles from 2030 or so. France has also plans to ban all sales of fuel cars by 2040 as a part of its agenda to achieve carbon balance by 2050 and become a carbon-neutral country.
However, the major driver of the global NEV taxi market is the implementation of policies and measures in China which has attached a great importance to the development of new energy vehicles (NEVs) as a national strategy. The country’s Ministry of Industry and Information Technology (MIIT) finalized the New Energy Vehicle (NEV) mandate policy on September 27, 2017. This policy is a modified version of California’s Zero Emission Vehicle (ZEV) mandate, aiming at the promotion of new energy vehicles (NEVs) while providing additional compliance flexibility to the existing fuel consumption regulation. This policy applies only to passenger cars and formally took effect on April 1, 2018. China has now become the largest market for new energy vehicles (NEVs), accounting for 50.40 per cent of the global NEV volume sold in 2017, followed by the United States with a share of 17.3 per cent, according to the statistics provided by the Internal Energy Agency and Huajin Securities Research Institute.
New Energy Vehicle (Nev) Sales Volume in China, in Million Units, 2011-2017
Source: Electric Vehicle (EV) sales and the China Passenger Car Association (CPCA)
One of China's major cities, Shenzhen reached an environmental milestone, with 99 per cent of the 21,689 taxi fleet being entirely electric-powered in 2018. These electric taxis are equipped with an on-board terminal which shows where taxis are in short supply, such as the airport, train station or any other location. It also clearly displays the fare as well as the route, which help prevent drivers from overcharging or taking a round-about route. According to the city’s transport committee, Shenzhen's 20,000-plus electric taxis are projected to reduce carbon emissions by about 850,000 tons a year. The high-tech hub southern China still had 7,500 gasoline-powered taxis on the road during the same year although electric ones far outnumbered them. The northern China city of Taiyuan was the only city in the country which had electric taxis since 2016. Shenzhen is one of the pilot cities promoting alternative and sustainable-energy public transport in order to reduce smog. While Beijing and other cities in China are served by massive fleet of electric scooters, bicycles and three-wheeled delivery vehicles that help reduce emissions, Shenzhen’s bus-fleet has been all-electric since 2017. The city also invested heavily on the expansion of network of about 20,000 public charging stations to support the use of NEV taxi fleet since the lack of charging station infrastructure is the major hurdle in the growing adoption of NEVs across different regions and countries.
With the rapid rise in the adoption of new energy vehicles, the development of various ancillary supporting facilities is still the key challenge to the NEV market. Infrastructure construction is a necessary prerequisite for the large-scale application of new energy vehicles across the globe. That is, further rise in sales of NEVs does require heavy investment in the charging station infrastructure for the large-scale operation of new energy vehicles (NEVs). This not only requires huge capital investment but also large areas of land within the heavily-congested urban structure which is another great challenge in itself, thus acting as a constraint for the NEV taxi market growth.
To sum up, with the global standards of vehicle emissions becoming more and more stringent, the development of new energy vehicles is also becoming more and more important around the world. However, many technologies still need to be incorporated and many practical factors that are still hindering the growth of NEV market still need to be tackled in order to realize the all-round adoption of NEVs in the near future.
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.
Engine Oil – The Most Essential Lubricant for Automobiles
Thought ArticlesEngine oil is the most essential lubricant that is used in a vehicle this oil is used to lubricate the internal combustion engine as it prevents wear and tear by lubricating the internal parts of the engine and allowing them to run smoothly by cleaning the sludge of the engine.
The market for automotive engine oils is poised to witness a nominal growth over the course of the next five years. The key factor supplementing the growth includes the increasing concerns of the vehicle owners towards the faster deterioration of engine components due to wear and tear. The rising adoption of enhanced quality lubricants is bolstering market growth until the end of the forecast period. The constantly increasing disposable income and the rapid urbanization in the various developing economies around the globe have led to an increase in the sales of automobiles, which is further providing an impetus for the market to grow in the near future. Also, the growing use of synthetic products is also propelling the business opportunities for the manufacturers to expand their market share during the forecast period.
Furthermore, the rising requirements to meet stringent regulations regarding vehicle emissions and safety are also projected to expand the automotive engine oil market during the coming years. The graph below represents the market size of automotive engine oil that shows the market reached US$12.866 billion by 2025 from US$9.931 billion in the year 2019. However, the volatility in the prices of oil and petroleum is projected to restrain the market growth to a certain extent.
Global Automotive Intercooler Market, Forecasts From 2019-2025, in US$ Billion
Source: Knowledge Sourcing Intelligence Estimates
Rising Automobile Sales
One of the key factors augmenting the market growth includes the constantly increasing sales of automobiles around the globe. The rapid urbanization, growing disposable income, and the growing middle-class population are the major factors that have led to an increased standard of living especially for those people who live in developing economies such as Brazil, India, and China among others. Since automotive engine oil is an important part of the maintenance and smooth functioning of the engines, the rise in the automotive vehicle sales is projected to positively drive the automotive lubricants market in the coming years.
Total Automotive Sales, 2010 to 2017, in Million Units
Source: International Organization of Motor Vehicle Manufacturers
The graph above represents the total sale of automotive units from 2010 to 2019. It states that the total automotive sales reached 91 million units by the year 2019 from 75 million units in the year 2010 (Source: OICA). In addition to this, there is a constant rise in the demand for commercial vehicles for both passenger and goods transport which is further fueling the demand for automotive vehicles globally. Moreover, the rising import and export activities combined with the budding e-commerce sector have also contributed positively to the growing vehicle sales, in turn budding the automotive engine oil market during the forecast period.
Recent COVID-19 Outbreak
The recent COVID-19 outbreak is anticipated to show a slight downfall in the demand for automotive engine oils due to the declining sale of automobiles as well as a decline in the production of automobiles. The recent advent of COVID has led to a temporary halt in the manufacturing activities across several industries as the government regulations such as social distancing and lockdowns have led to a decline in the production activities in various industries. Also, the disruption of the economic growth in various countries has led to a slight decline in the sales of vehicles as well. Thus, the advent of COVID-19 is expected to moderately impact the market growth especially during the short period of the next six to eight months. Also, the suspension of vehicle sports events and adventure sports due to the outbreak of novel coronavirus disease is also expected to negatively impact the demand for performance engine oils, thereby hampering the global automotive engine oil market growth during the short run.
Participation of Key Market Players
The participation by the key market players in the form of R&D for product portfolio expansions, partnerships, mergers, and acquisitions play a major role in shaping up the market growth as it further shows the potential for the market to grow in the near future. For instance, in July 2019, IndanOil announced the launch of a new range of high-performance lubricant products, SERVO SuperMile Plus and SERVO SuperMile for the new generation cars. Also, in June 2018, Shell plc and Maserati announced their collaboration for the induction of a brand new co-branded motor oil known as Shell Helix Ultra Maserati 10W-60, this will be considered as the only oil recommended on all the Maserati’s 2018 models that will be equipped with the V6 gasoline engines.
Segment Overview:
The global automotive engine oil market has been segmented on the basis of type, engine type, vehicle type, sales channel, and geography. By type, the market has been segmented as synthetic oil, synthetic blend oil, and conventional oil. By engine type, the market has been classified into petrol and diesel. By vehicle type, the market has been segmented on the basis of passenger vehicle and commercial vehicle. By the sales channel, the segmentation of the market has been done as online and offline. Geographically, the market has been distributed into North America, South America, Europe, Middle East and Africa, and Asia Pacific.
The Asia Pacific to Hold a Decent Market Share
Geographically, the Asia Pacific region is anticipated to hold a substantial share in the market throughout the forecast period due to the growing demand for passenger vehicles in major developing countries such as India, China, and Indonesia among others. The rapid urbanization, growing middle-class population are some of the factors bolstering the high demand for vehicles in the APAC region, thereby supplementing the automotive engine oils market growth during the next five years. Also, the stringent government regulations regarding vehicular emissions is also a major factor playing a significant role in shaping up the market growth in the APAC region over the course of the next five years.
Online Clothing Rental Market – Why Buy When You Can Rent
BlogMillennials are not interested in buying anything, be it property, entertainment, or even expensive clothes. According to the Institute of Fiscal Studies, renting figures have trebled since the 1990s. We are living in an age of virtual libraries where we stream music and films online, without needing to own any of them. People are using the same concept when it comes to their wardrobe. This ‘generation rent’ does not want to spend money on high-end global brand clothes which, in the era of social media, get ‘old’ and ‘non-reusable’ just with a click of one photo. Gone are those days when renting clothes and jewellery was only reserved for the rich and famous for a shoot or any red carpet event. There are plenty of rental fashion sites that are offering premium branded clothing line on rent for a fraction of the retail price. As people are socializing more often, they are preferring to ‘hire’ fine-quality branded dresses instead of paying the retail price for just one-time use.
Growing popularity of online shopping portals, supported by rising internet penetration and proliferation of smartphones is the prime reason of booming online clothing rental market. The advancement in technologies such as artificial intelligence (AI) has further driven the demand for online shopping by making the process even more convenient for people. Growing middle class population in developing economies is further contributing to the market growth of online clothing rental.
Global Internet Penetration, Percentage of Population, 2012 to 2017
Source: The World Bank Group
Rising use of social media platforms such as Twitter, Facebook, Snapchat, and Instagram has surged the demand for rented clothes, especially among women. Rapidly emerging popularity of fashion vlogs across these social media platforms is also contributing to the market growth of online rental clothing globally. Increasing number of red carpet events, both across movie and television industry, is further augmenting the demand for clothes on rent for short duration, and thereby positively impacting the market growth of online clothing rental.
Global Online Clothing Rental Market Size, US$ Billion, 2019 and 2025
Source: Knowledge Sourcing Intelligence Analysis
Another reason for emerging popularity of using rented clothes instead of buying new ones is the rising awareness regarding environmental sustainability. Clothing companies are encouraging people not to throw away their used clothes and re-use them as ‘fashion pollution’ is having detrimental effects on the environment. Clothing generates its own carbon and water footprint, with the fashion industry’s CO2 emissions expected to rise to more than 2.5 billion tonnes per year by 2030. According to the figures from the United Nations Environment Programme (UNEP), it takes 3,781 litres of water to make one pair of jeans from the production of the cotton to the delivery of the final product to the store. This is equal to the emission of nearly 33.4 kilograms of carbon equivalent. As a result, consumers as well as companies are bringing up the concept of not buying something new and expensive while diminishing the environmental footprint. With the rise of online clothing rental platforms, the reduction in the amount of new clothes in circulation will eventually help to maintain the environmental sustainability. The idea of minimalism and the option of renting clothes also offers people more opportunities to be creative and constantly changing their fashion style without even buying more expensive clothes.
Growing number of fashion-conscious individuals who lack finances to purchase clothes of their choice which are expensive are anticipated to make use of online clothing rental platforms to the fullest since renting a dress is always cost-efficient, especially in today’s world when the trend keeps changing with a blink and people do not want themselves to be seen wearing the same outfit on different occasions. As a result, the global online clothing rental market will continue to boom during the forecast period.
Rapidly growing e-commerce sector, especially in the Asia Pacific region is expected to propel the market growth during the next five years. Consumers in countries like India and China are increasingly opting for rented clothes including runway-ready outfits and haute couture fashion for various events and occasions. With social media playing a crucial role in the success and failure of brands, fashion rental startups are attracting primarily millennials who are aware of the latest trends and the best designers. Rentals help consumers save money, time and the headache of storage and maintenance of a huge pile of clothes.
Companies in online clothing rental industry are constantly trying to provide clothes on rent both accessible and affordable and are launching new clothing rental platforms in order to make a strong position in this emerging industry. In 2019, for instance, etailer My-Wardrobe.com launched a website called MyWardrobe HQ where users can buy and rent clothing and accessories. Rental costs are agreed between the renter and the owner or brand. In 2018, the country’s largest, the first and only official online rental platform for designer outfits as launched- BChu Runway-offering outfits from over 150 world-class brands. In the United States, a healthy clothing rental economy has also emerged with brands like Gwynnie Bee and Le Tote offering clothes on rent. Canada is also a home to various online rental companies including Atelier Privé, Rent Frock Repeat, and dresst.
The future of fashion is expected to move beyond traditional model with a keen focus on accessibility, affordability, and environmental sustainability. With more and more efforts are being put across various industries in saving the planet, the market for online rental clothing will continue to thrive during the forecast period.
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.