The 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 1^st 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.

Bioceramics 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.

Automotive engines have been undergoing an evolution since their origin. Huge investments into research and development are bringing about significant changes in engine designs and their performance. Throughout the evolution of automotive engines till now, engine oils have continued to play a key role. Engine oils, irrespective of their type, are meant to offer required lubrication to engines as their continuous exposure to changing temperatures makes them more prone to wear and tear, which affects their lifespan. As temperature inside the engine remains in a state of continuous change, depending on the state of the vehicle, friction between mechanical parts of engine, and environmental conditions, their cooling becomes an essential part of ensuring their efficient functioning. Furthermore, combustion of fuel is known to oxidation and, therefore, rusting of engine parts. Capability of engine oils to slow down this process and keep it under control, along with providing additional benefit of preventing clogging inside an engine, gives engines a longer lifespan, which is one of the major reasons vehicle owners should look for good engine oil for their vehicles.

The demand for automotive engine oils is closely tied to the growth of automotive industry. Although declining automotive sales might seem a red flag for this market, the market is still performing well despite the slump in automotive sales in recent years. According to a data from the International Organization of Motor Vehicle Manufacturers, year 2018 and 2019 witnessed a decline in automotive sales. This was the first time after the global recession which kicked in in the year 2007 and remained very significant till 2009. The figure given below shows the trend in automotive sales from 2006 to 2019:

Global Automotive Sales, 2006 to 2019

Source: International Organization of Motor Vehicle Manufacturers

A blow to people’s spending power in the year 2008 and 2009 acted like a speed-breaker for the global automotive sector as the automotive sales showed a consecutive decline over these two years. This time it is not the spending power of people, but the penetration of vehicles which is a major reason for the shrinkage in sales. Mature economies in the North America and Europe have high penetration of passenger cars which is slowing down the sales of new cars among people. But, since there are already a good number of vehicles on road, the automotive aftermarket is witnessing a good growth. Increasing awareness among people regarding the importance of regular servicing of vehicles and how this can extend the useful life of vehicles is driving up the number of people taking their vehicles for servicing each year. This trend is driving the demand for automotive parts which often require replacement due to wear and tear. This, as a result, is increasing the demand for engine oils, thus fuelling the market growth. However, declining automotive production in many parts of the world is offsetting the contribution of this growth to global automotive engine oil market to some extent. A data from the International Organization of Motor Vehicle Manufacturers shows that year 2018 and 2019 saw a continuous decline in automotive production, and this was the first time in this decade when the production of vehicles showed a downturn. The figure given below shows the trend:

Global Automotive Production, 2011 to 2019

Source: International Organization of Motor Vehicle Manufacturers

This dip, which was majorly attributed to shrinking automotive sales worldwide, has now become even greater as the outbreak of the novel coronavirus disease in Wuhan, China, in the first quarter of 2020, and its exponential spread across the globe gave another blow to the sector. Disruptions in global supply chains, which are result of closing of borders by countries as part of their efforts to contain the spread of the virus, have brought many automotive production facilities to a halt. Although automotive production will see some recovery as the situation improves, it won’t be enough to aid the sector in recouping the slump. Unless some disruptive trends gain traction in the sector, it is expected to show a slow growth. This is expected to continue contacting the demand for automotive engine oils among OEMs, thus affecting the overall market growth. Yet, increasing focus of governments on preserving the environment will continue to add some impetus to the market growth. Since vehicular emissions are key contributors to environmental pollution, engine oil manufacturers are being expected to manufacture oils which minimize harm to the environment. Manufacturing of eco-friendly engine oils is also part of manufacturers’ responsibility towards a cleaner word. Huge investments by market players into research and development are bringing engine oils, which facilitate lower fuel consumption and CO₂ emission, into the market. Overusing of engine oils, which happens when they are not replaced soon enough, or when their level in an engine goes below the recommended level due to constant heating, leads to an increase in friction between moving parts of engine thus affecting the efficiency. Higher fuel consumption due to this low efficiency is becoming a concern for many governments where per capita ownership of vehicles is high. To combat this issue, manufacturers are manufacturing eco-friendly engine oils which cost a little more than conventional oils. Increasing sales of these engine oils is contributing to the growth of the overall market.

Geographically, the report, titled Global Automotive Engine Oil Market, segments the market into North America, South America, Europe, Middle East and Africa, and Asia Pacific. The Asia Pacific automotive engine oil market is anticipated to show a good growth over the projected period. North America and Europe are expected to continue holding a significant market share till 2025.

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.

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.