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.
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.
The Rising Popularity of Nev Taxis
BlogNEV refers to the new energy vehicles that are either fully or partially powered by electric power such as Battery Electric Vehicles (BEVs) or Plug-in Hybrids (PHEVs). These taxis further have low running and maintenance costs and cause less or no harm to the environment. These are some of the key factors that are augmenting the adoption of new energy vehicles as taxis in various countries.
Global Nev Taxi Market, Forecasts From 2019 to 2025, in US$ Billion
Source: Knowledge Sourcing Estimates
The graph mentioned above represents the market size of the global NEV taxi market which shows that the market is poised to witness a strong growth throughout the forecast period by reaching US$55.558 billion by the year 2025 from US$11.674 billion. The major factors that are anticipated to augment the market growth for NEV taxi include the several initiatives taken by the government of both developed and developing economies regarding the protection of the environment. The booming adoption of electric vehicles as a sustainable mode of commuting is also a key factor that plays a significant role in shaping up the growth of the global NEV taxi market throughout the course of the next five years. Furthermore, the rapid penetration of new market players in the electric vehicle industry with an aim to expand their market share and gain a competitive edge over other players also shows the potential for the market to grow in the near future.
The market is also expected to grow on account of several government initiatives in the developing economies to promote the use of NEVs as taxis as public transport is considered to be a major contributor to carbon emissions. For instance, the Indian Government announced its plans in 2019 in which it is expected that the government may mandate the deployment of around 40% of electric feet by the various taxi providing companies throughout the country. Also, increased funding in the country received by taxi providers for the promotion of the electric fleet also shows the potential for the market to grow in the near future. For instance, in March 2019, Ola announced its spin-off Electric Business as a separate business unit and received funding worth US$56 million from Tiger Global and Matrix India.
Segment Overview:
The global NEV taxi market has been segmented on the basis of vehicle type and geography. By the vehicle type, the market has been segmented on the basis of Battery Electric Vehicle (BEV), Plug-in Hybrid Electric Vehicle (PHEV), and Fuel Cell Vehicle (FCV). Geographically, the segmentation of the market has been done on the basis of North America, South America, Middle East, and Africa, Europe, and Asia Pacific.
The battery-electric vehicle (BEV) segment is anticipated to hold a decent market share throughout the forecast period on account of the presence of a vast number of vehicles under this segment. The plug-in hybrid segment is projected to show a notable growth during the next five years as the entry of new market players under the plug-in hybrid segment is a major factor supplementing the growth of plug-in hybrid electric taxis over the course of next five years. Also, Plug-in hybrid electric vehicles are those electric vehicles that use batteries for powering up the electric motor and also use an alternative fuel such as gasoline or diesel for power the other propulsion source such as an internal combustion engine. These vehicles can run on electricity and on fuel also offers a higher fuel economy in comparison with conventional vehicles.
Geographically, the North American region is anticipated to hold a substantial share in the market on account of early technology adoption of the presence of a well-established electric vehicle charging infrastructure in the countries like the United States and Canada. The European region is expected to hold a good amount of share in the market on account of the presence of a considerable large number of automotive manufactures across several countries of the region. Furthermore, the market in the APAC region is expected to witness a healthy growth on account of the presence of the fastest-growing economies such as India and China among others, and transport is considered as the backbone of these economies. The constantly growing pollution coupled with the increasing government budgets towards the setting up of necessary infrastructure for the easy deployment of electric feet further bolster the market growth in the APAC region. For instance, in November 2018 EV Motors India in partnership with DLF, ABB India, and Delta Electronics plans to set up 6500 electric vehicles (EC) charging stations across the country over the next five years.
The Recent Outbreak of COVID-19
The market is projected to witness a slight downfall especially in the short period of the next six to eight months due to the intense outbreak of the novel coronavirus disease. The outbreak of the disease has led to a ban on travel across may countries. There is a temporary halt in the activities across the tourism sector that has led to a decline in the demand for taxi services. Also, various government measures to reduce the spread of the disease such as social distancing, and lockdowns has also led to a decline in the traveling activities also. Moreover, the temporary halt in manufacturing activities is also anticipated to moderately inhibit market growth during the short run.
Government Initiatives Regarding the Promotion of EVS
Increasing the need to use vehicles that utilize greener technologies is driving the growth of electric vehicles throughout the globe. The governments of various countries in both developing and developed economies of the world are implementing numerous strategies and taking numerous initiatives for the promotion of electric vehicles is expected to significantly drive the NEV taxi market growth during the next five years. Also, the increase in the deployment of electric vehicles has also grown exponentially in the past years, this also shows the growth potential for the global electric sports market to grow during the course of the next five years.
Electric Car Deployment – World, 2013 to 2018, in Million Units
Source: IEA
Fingerprint Sensors – Have They Become Obsolete or Are They Here to Stay?
BlogThe global identity and access control landscape is witnessing a continuous evolution. Application of biometrics, which, for more than a decade, had remained confined to some high-end applications which included expensive solutions, can now be seen extending even to low end applications. A good number of biometric technologies like iris recognition, gesture recognition, facial recognition and identification are available in the market today. Although iris recognition started gaining traction in the markets lately, it has been able to gain immense traction in a short period on account of high levels of reliability and security offered by it. Since iris scans cannot be easily duplicated, risk of security breach remains low. Facial recognition and identification also offers significantly high security and reliability and continuous advancements in technologies are making this technology more robust. Apple, for instance, has remained a key innovator in this segment. With launch of Iphone X along with other variants of iphone in 2017 , Apple Inc. also showcased its all-new facial recognition and identification technology. Samsung is also another key innovator in this landscape. However, since the performance and security of contactless identification and access control technologies rely on the quality of other hardware components, these technologies are still witnessing some challenges when it comes to widespread adoption across all sectors and end users. Limitations of contactless access control technologies have been strengthening the presence of contact-based technologies like fingerprint recognition among end users, thus boosting their market growth. Continuous advancements in fingerprint sensing technologies are making these solutions more robust and breach-proof. Optical fingerprint sensors, which entered the market when the concept of fingerprint sensing came to light, work by shedding a light on a fingerprint, when finger is placed on the scanner, and capturing a digital image of it.
This image goes to the light-sensitive microchip, which then analyses it based on the pattern of ridges and valleys found in the image of fingerprint, and creates a unique identification code for the user by converting ridges into 1’s and valleys into 0’s. This information is captured for all users initially and stored in a database. Now when a user places the same finger on the scanner, the system again converts the fingerprint into a series of 0’s and 1’s and looks for the code it creates in the database. By matching the code to the list of codes in the database, the system either identifies the user or does not identify the user, and decides whether to grant access or not to grant access accordingly. However, high security risks associated with this approach is driving it out of the market and giving way to other approaches like capacitive fingerprint sensing among others. Capacitive fingerprint sensors have, in a very short duration, managed to hold very high traction in the market.
This technology uses miniaturized capacitor array circuits which perform the analysis of fingerprints. The working principle of capacitive fingerprint sensors is is that charge in a capacitor changes at points where ridges of fingerprints come in contact with the conductive plate, and charge in capacitor remains unchanged at points where valleys are present on the fingerprint. The system leverages an analog-to-digital converter, which records the changes in charge in capacitor at all points and converts them into an array of 0’s and 1’s. All points where the charge changes are considered as 1s by the amplifier integrator circuit while the points where the charge remains unchanged are considered as 0’s. Since this type of fingerprint sensing is very reliable, its popularity is increasing across a wide range of end users. The global fingerprint sensors market growth is majorly being driven by robust growth of smartphone market across the globe. Although the market growth seems flat in many developed economies on account of already high penetration of smartphones in such countries, the market growth is high in many developing and under-developed countries on account of huge investments being pumped into business expansion by smartphone manufacturers. For instance, on July 9, 2018, Samsung, a leading smartphone manufacturer, opened its world’s largest facility for smartphone manufacturing in Noida, India. This expansion is a part of the company’s ‘Make for the World’ initiative, under which the smartphone giant carried out this phase-wise expansion in Noida.
The company pumped around INR 4,915 crore in this facility, and seeks to double the annual manufacturing capacity in Noida from 68 million units earlier to 120 million units. Furthermore, recent removal of a clause from its Production-Linked Incentive (PLI) scheme by the government of India have opened doors to immense growth opportunities. Under this clause, the plant and machinery of smartphone manufacturers, which they would bring to the country, used to be valued at 40% of its value.Since this clause posed huge risks to manufacturers and raised up the barriers to exit for them, it witnessed huge criticism from many of them. Removal of this clause by the government of India, as it seeks to fuel smartphone manufacturing within its borders when the country is struggling with the COVID-19 pandemic, and offering of lucrative financial incentives of around INR 500 billion to smartphone manufacturers, the government anticipates inflow of huge capital investments into this sector. Similarly, countries across regions with favorable business environment for smartphone companies are witnessing a surge in the inflow of capital investments into smartphone manufacturing, thus adding impetus to smartphone manufacturing. Moreover, smartphone manufacturing is also increasing on account of increasing penetration of internet worldwide. The figure given below shows the trend:
Global Internet Penetration, % of Population, 2012 to 2017
Source: The World Bank Group
With increasing internet penetration across the globe, we are witnessing an increase in demand for devices which enable people to harness the benefits of internet connectivity. This is increasing the demand for smartphones across the globe, thus driving with it the demand for components like fingerprint sensors. The demand for fingerprint sensors is also being driven by rapid growth of smart hospitality market worldwide. The figure given below shows the expected growth of global smart hospitality till 2025:
Global Smart Hospitality Market, in US$ Billion
Source: Knowledge Sourcing Intelligence Estimates
Since security occupies a strong position in the overall smart hospitality infrastructure, incorporation of fingerprint sensing capability among solutions is increasing, thus augmenting the fingerprint sensors market growth.
Understanding the importance of Algaecides
BlogAlgaecides are often called biocide (chemical) which is generally used for killing and preventing the growth of algae. It is difficult task to kill black algae due to its waxy coating; hence most algaecides are designed to remove black algae. Algaecides include chelated copper, copper sulfate, and quaternary ammonia, among others.
Growing environmental awareness of nutrient pollution
Nutrient pollution is one of the most widespread, costly, and challenging environmental problems that the world is facing today and is caused by surplus nitrogen and phosphorous in the water. Rapid Industrialization across the globe is causing nutrient pollution in the water bodies, thus forming algae in them. Nutrient pollution can lead to serious problems such as a low level of oxygen dissolved in the water. Severe algal growth not only blocks the light that is needed for plants such as seagrasses to grow but also when the algae and seagrasses die, they decay. In the process of decay, the oxygen in the water is used up and leads to a low level of dissolved oxygen in the water which in turn can kill fish, crabs, and other aquatic animals. Environmental awareness of nutrient pollution is the key driving factor that is boosting the algaecides market growth. For instance, Environmental Protection Agency (EPA) is working diligently with its partners to combat nutrient pollution and prevent algae formation in the United States water bodies. These agencies are also working on regulatory programs such as reviewing and approving state water quality standards that contain numeric nutrient criteria under the Clean Water Act and publishing strict guidelines for industrial and municipal discharges that may contain nutrient-related limits.
Rising demand for high agricultural productivity
Population pressure is continuing to be the deciding factor against proper land and water management in many developing countries. Agriculture production is critical for any form of suitable future but focusing on the agriculture industry alone without regard for other important factors that influence and increase food production is certainly not the way to tackle the problems of food security. The application of algaecides is not causally related to the production of crops, instead, it helps in contributing towards agricultural production which includes weed and pest control outside the farm buildings, nurseries, greenhouse, and other growing operations. In addition, Growing demand for increased crop cultivation owing to the rising population requires the use of algaecides as it covers the treatment of agricultural farm equipment such as sprinklers, drip irrigation systems, and tube wells among others, located in the fields to control algal growth. With the rise in population growth and limitation to the usage of natural resources, there is an increasing demand for high agricultural productivity. A high level of productivity needs to accompany the growing demand for food and agricultural products which are considered as the driving factor for the growth of the algaecides market.
Regulatory issue
The restriction for using algaecides in the aquatic or water environment is defined on the manufacturer’s product label and may include restrictions for water use after algaecide application. Rules and regulations set by the governing bodies are expected to hinder the market growth during the forecast period. Some states require applicators of algaecides to be licensed and certified and expect to have much understanding about the whole process of algaecides along with the environmental concerns. For instance, algae control approaches within National Pollutant Discharge Elimination System (NPDES) framework have certain guidelines like the discharge of residual algaecides must meet the applicable water quality standards; it must meet basin plan narrative objectives for floating material, suspend material and toxic pollutants among many others. Following the conditions of regulatory authorities and aquatic pesticide monitoring requirements may not be considered as the cost-efficient tool for the manufacturers and vendors before applying algaecides in the water bodies thus is expected to restrain the favourable algaecides market trend in the coming years.
Segment Overview
The algaecides market has been segmented based on type, application, and geography. On the basis of type, the segmentation is done based on copper-based, quaternary ammonia, others. By application, the segmentation is done into agriculture, aquaculture, surface water treatment, others. Geographically, the global algaecides market is segregated into the Americas, Europe Middle East and Africa, and the Asia Pacific. The Americas is projected to hold a noteworthy share in the global algaecides market. As per the data published by the Food and Agriculture Organization (FAO), the U.S. is the third-largest marine capture producer with the total production valued at 4.72 million tons in 2018. Furthermore, the country remained one of the major exporters of fish and fish products globally and witnessed a significant increase in exports in recent years. The rising number of hotels and restaurants in the country coupled with increasing expenditure on amusement and recreation facilities will increase the number of swimming pools, thereby adding to the demand for algaecides in the country. Furthermore, companies are increasing their research and development expenditure to introduce a new product in the market, thereby augmenting the demand for algaecides. In Canada, economic growth and favorable long-term economic outlook of the Canadian economy will continue the trend of increasing aquaculture expenditure. Rising residential construction investment will bolster the number of swimming pools and fountains in the country owing to the improvement in the standard of living and rising disposable income. This will boost the demand for algaecides in Canada over the next five years.
Asia Pacific region is anticipated to witness exponential growth in the coming years and an increasing number of tourists arriving in countries like China and India will boost the expenditure for restaurants and hotels offering luxury amenities such as a swimming pool for tourists and ponds & fountains for providing an aesthetic appeal. The booming number of swimming pools and fountains in hotels coupled with rising construction expenditure in the region will drive the demand for algaecides over the forecast period.
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 agriculture, with a special knack for agriculture sector. 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.
Electric fuses and shock!
BlogAn electric fuse is an electrical safety device that operates to provide the over-current protection and is generally used as a conduit between an electrical power source and an electrical component. Electric fuses are the essential part of electrical systems in cars, motorcycles, trucks and other types of vehicles and they function to stop electricity from flowing to a particular component as a result of the unsafe electrical condition. Today, automobiles require a lot of electrical fuses for essential activities such as passenger safety and electric car charging stations resulting in a higher demand for electric fuses in the automotive manufacturing industry. The market for electric fuse is expected to increase due to growing industrialization, automobile sector revolution, rising domestic power demand, increasing demand for power transmission equipment.
Growing in-vehicle electronics
Technological advancement in the semiconductor industry has led to the development of electric fuse technologies that are used particularly in the automotive industry. There is an increasing demand for electronic systems within the automotive industry owing to increased attention towards the vehicle-to-vehicle and vehicle-to-infrastructure communications, convenience as well as onboard safety, thus driving 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, providing another avenue for electric fuse manufacturers to generate higher revenues. In addition, due to the benefits of smart sensors like high reliability, low power consumption and failure detection also boost the demand for vehicle electronics which is further expected to propel the market growth opportunities for the electric fuse market in the coming years.
Significant growth of the world’s electricity transmission and distribution industry
With a growing population, the demand for energy demand continues to increase which is expanding the scope of electric fuse adoption in electricity transmission and distribution. The power delivery system today represents one of the most asset-intensive industries on the planet and a shift of government focus to reinforce the power T&D system in developing countries like India and China also opens up profuse opportunities for the electric fuse market. For instance, the government of India is encouraging investment in transmission and distribution system through schemes such as Deen Dayal Upadhyaya Gram Jyoti Yojana (DDUGJY) that aims to provide power for every village.
Impact of COVID19 pandemic in overall electric fuse market
The disruption in the manufacturing industry due to COVID-19 has severe social, financial, and operational consequences which are forcing manufacturers to reassess risk management and contingency plans and new ways of working opportunities, all at the same time. Also, the current COVID-19 pandemic has drastically affected the consumer electronics industry from initial supply and manufacturing disruptions to upcoming demand shock with the uncertainty of the recovery timeline. Besides, the overall impact of global production shutdowns and collapsing demand coupled with the challenges with components supply will have a major economic impact in the short and medium run. Furthermore, the outbreak has dampened the demand for oil resulting in falling prices and declining production especially in the middle of Russia-OPEC price war. Such trend of falling prices is also observed in the electricity sector as the pandemic caused a tremendous drop in electricity consumption globally as businesses and industrial activities are halted, all such situations have drastically impacted the energy and power industry in the region which is further expected to restrain the growth of the market in short term.
Segment Overview
The electric fuse market has been segmented based on voltage, material, end-user, and geography. On the basis of voltage, the segmentation is done as, medium and low. By material, the segmentation is done into copper, silver, and bronze. Based on the end-user industry the classification has been done into energy and power, automotive, manufacturing, consumer electronics, construction, and others. Geographically, the market is segmented into North America, South America, Europe, the Middle East and Africa, and the Asia Pacific.
By the end-user industry, the automotive segment is projected to show decent growth during the forecast period on account of increasing investment by major market players. Also, advancement leads to increasing demand for in-vehicle electronics which is further expected to boost the market for electric fuse during the forecast period. In fact, it is estimated that the cost of electronics as a percentage of the overall vehicle cost is expected to increase from 30% in 2005 to 50% in 2030 (source: NXP Semiconductors). However, slowing growth of the automotive industry and a sharp downturn in production and sales from 2018 because of a slump in demand in the world’s biggest market China is expected to slow the growth of the market in short term. Furthermore, the current COVID-19 pandemic has drastically affected the industry from initial supply and manufacturing disruptions to upcoming demand shock with the uncertainty of the recovery timeline.
Geographically, the Asia Pacific region is projected to hold a noteworthy share in the global electric fuse market on account of expanding the automotive and construction industry and the presence of major market players in countries like China who is the world’s manufacturing center and constitute a significant share in global manufacturing output. Furthermore, the growing investment in the manufacturing and energy and power industry also supports the electric fuse market growth in the region throughout the forecast period. In addition, increasing product launches in the European region by major players shows a sign of development and growth in the region. For instance, recently, Mersen announced the launch of Modulostar® fuse-disconnector for application with power cylindrical low voltage fuses.
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 semiconductor to food and beverages, with a special knack for automotive and 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.
3D Motion Capture System – A Revolution for Media and Entertainment
BlogMotion Capture or mocap is a process in which the movement of people is digitally recorded. 3D motion capture systems are those systems that enable the users to capture those movements with the help of cameras and sensors then processing of those images or videos with the help of processing software. These systems are used across numerous industry verticals ranging from media & entertainment, healthcare, military and defense, sports and, others.
The growing applications of these systems across these industries is considered to be one of the prime factors which is propelling the market growth significantly during the next five years. These systems allow users to capture the real-time motion of humans and objects for attaining the required level of animation. The development of new games coupled with the decent growth in the gaming population is projected to significantly boost the adoption of these systems and thus, augment the market growth in the coming years. The development of VR games for gaming consoles along with the booming adoption of these games will further bolster the market growth.
Segment Overview
The 3D motion capture system market has been segmented on the basis of system, industry vertical, and geography. On the basis of system the 3D motion capture system market has been segmented into optical and non-optical. On the basis of industry vertical, the market has been classified into media and entertainment, healthcare, and others. Geographically, the market is segmented into the Americas, Europe Middle East and Africa, and Asia Pacific.
By system, the optical 3D motion capture system segment is projected to witness a substantial market share throughout the forecast period primarily on account of its wide application across the media and entertainment industry. The burgeoning growth in the making of 3D and high-tech animated movies is driving market growth in the near future. Furthermore, the booming investments by various production houses in 3D studios is further propelling the opportunities for the market to surge in the near future. Also, the rapid advancements in image capturing and processing technologies have enabled a significant increase in the demand for various solutions, thus resulting in the 3D motion capturing systems market growth in the coming years. In addition to this, the growing demand for augmented and virtual reality technology has also resulted in an increasing requirement for 3D capturing technologies, thus further augmenting the market growth in the coming years.
By industry vertical, the media and entertainment industry is anticipated to hold a considerable market share throughout the forecast period. The major factors that bolster the significant share of this segment during the next five years include the high adoption of these systems across the film making and game development sectors due to the rapid growth in the adoption of 3D gaming consoles and movies. Furthermore, the booming investments by developers and filmmakers in the adoption of the latest and advanced technologies further amplify the demand for these systems across this sector. The healthcare sector is projected to witness rapid growth during the next five years burgeoning adoption of these systems across the healthcare sector for the on account of technology adoption technology and investments in healthcare infrastructure in the major developing economies of the world is projected to be a key factor driving the growth of this segment during the next five years. Additionally, the emergence of wireless technologies has led to the development of personalized healthcare systems. This evolution has resulted in the fast global adoption of wearable devices that aids in an uninterrupted transmission of health-related information to service providers. The communication between patient and doctor is clear and precise and is devoid of ambiguities. This is one of the factors which is furthering enabling the growth of wearable display 3D motion capture system market.
Geographically, the North American region is anticipated to hold a major market share on account of the early adoption of technology and well-established semiconductor industry in countries like the United States and Canada among others. Furthermore, the presence of key market players in the region is also supplementing the 3D motion capture system market growthin the North American region during the next five years. The Asia Pacific region is projected to witness a noteworthy CAGR throughout the forecast period on account of rising investments in the up-gradation of healthcare infrastructure and the military and defense sector.
Competitive scenario
The growing investments by key market players as well as small players in the market in the form of R&D for developing new products and expanding the product portfolio along with facility expansions and acquisitions and partnerships in order boost the production to cater to the rising market demand and also to tap the potential that the market holds further shows the potential for the market to surge during the next five years.
ABOUT THE AUTHOR:
Rachit Gulati is a Market Research Analyst at Knowledge Sourcing Intelligence, working on estimates and global/regional specific reports on multiple industries ranging from automation to food and beverages, with a special knack for automotive and healthcare. 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 https://www.knowledge-sourcing.com.