Global warming is the major factor that is endangering the environment and human health, jeopardizing national security, and threatning other basic human needs. Record high temperatures, rising sea levels, and severe flooding and droughts have already become common catastrophic events, causing chaos across the globe. As a result, there have been growing concerns  regarding environmental sustainbilty while reducing greenhouse gas emissions. According to the World Health Organization (WHO) 2016 report, air pollution is estimated to contribute toward 7 million premature deaths every year, with 92 per cent of the global population is estimated to breathe toxic air quality. Also, in financial terms, premature deaths due to air pollution cost about US$5 trillion in welfare losses worldwide. Moreover, some places/regions have air pollution levels that are several times higher than those considered safe by the WHO Air Quality guidelines.

Global transportation sector, which includes cars, trucks, trains, planes, freight, and ships, is one of the biggest sources of global warming. Governments as well as global organizations have set targets to reduce the carbon footprint by incorporating advanced technologies across various industries. A greenhouse gas emissions target refers to the emission reduction levels that countries set out to achieve by a specified time. In 2019, the UK government announced its target to cut the country’s greenhouse gas emissions to almost zero by 2050 to tackle climate change. In the United States, as of 2019, 23 states and the District of Columbia have implemented statewide greenhouse gas emission target to reduce emissions 26 to 28 per cent below 2005 levels by 2025.

Across the transportation sector, stringent vehicle emission regulations have also been implemented in the past and have been constantly reviewed in order to achieve these set targets. In European Union (EU) region, for instance, regulation (EC) 443/2009 set mandatory emission reduction targets for new cars. On April 17, 2019, the European Parliament and the Council adopted Regulation (EC) 2019/631 which introduces CO2 emission performance standards for new vans and new passenger cars for 2025 and 2030. This new Regulation replaced and repealed Regulation (EC) 443/2009  and came in effective from January 1, 2020. 

With stringent vehicle emission regulations being implemented across different economies, auto manufacturers are using various technologies to reduce the vehicle’s fuel combustion level. Automotive intercoolers are among one of those technologies that have been used in vehicles to reduce vehicle emissions. These are mechanical devices which are required in a vehicle for cooling down gases after compression. These intercoolers perform the function of heat exchangers and are primarily used in vehicles equipped with turbocharged and supercharged engines. As the oxygen content in the air increases with the rise in air density caused by intercooler, the ability of air to accommodate more fuel increases. This helps to ensure better fuel combustion which, in turn, results in reduced vehicle emission content.  

The chart below depicts the market size of the global automotive intercooler market for the year 2019 and 2025:

Global Automotive Intercooler Market, Forecasts From 2019 to 2025,

In US$ Billion

Source: Knowledge Sourcing Intelligence Estimates

According to the Knowledge Sourcing Intelligence analysis, the global automotive intercooler market is poised to grow at a CAGR of 8.77% between 2020 and 2025. Growing middle class population has boosted the sales of passenger cars, especially in developing economies. With vehicle emission standards getting stricter, the demand for automotive intercooler is augmenting across the global automotive industry. Another factor that is driving the global automotive intercooler market growth is the booming logistics industry. As the number of online retail transactions have been growing at a speedy rate, the growing e-commerce sector is also surging the demand for light commercial vehicles to make timely deliveries to their customers. This, in turn, is spurring the demand for automotive intercooler thereby, driving the overall market growth.

Rise in Global Ev Stock

The rapid shift towards electric vehicles (EVs) is certainly hindering the global automotive intercooler market growth at present. The figure below shows the global BEV (battery electric vehicle) stock for the period 2010-2019:

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

Source: IEA (International Energy Agency)

Electrification of vehicles is going to affect many companies involved in the manufacturing of different auto parts and components. Items like oil filters, engine parts, turbos, intercoolers, and other ICE-related products will face declining growth rates since electrically-powered components have fewer moving parts. Although EV segment still holds a very small share in the global automotive sector, this continuous rise in EV stock, supported by favourable government policies and initiatives to ramp up their adoption, will continue to decline the market growth of automotive intercoolers in the coming years.

Impact of COVID-19

The global automotive industry is one of the worst affected industries due to global economic crisis caused by COVID-19 pandemic outbreak. A drastic fall in the global economic activity has reduced the demand for vehicles, both passenger and commercial.  On the supply side, temporary shut down of automobile production facilities across different regions/countries due to mandatory lockdowns and social distancing measures have further disrupted the growth of this industry, and is likely to cause annual decline in both production and sale of automobiles. Global auto giants such as Ford, Volkswagen Group, Tesla, Fiat Chrysler, BMW, and General Motors have already suspended production. Furthermore, the coronavirus pandemic has forced to either cancel or postpone major automotive events around the world, including Australian Grand Prix, New York International Auto Show, and 2020 Geneva Motor Show. As the production as well as sale of automobiles are likely to witness a downward-sloping curve in both short- and medium-term, this will also have a negative impact on revenues of companies manufacturing automotive intercoolers and other auto parts.

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.

Increasing disposable income and changing lifestyles are the core factors that are driving the color cosmetics market. With disposable income arises literacy and higher education which further drives the consciousness of aesthetics and personal care. An epic proportion of investments in advertisement campaigns over social media as well as traditional media which are being increasingly endorsed not only by mainstream celebrities but also by a new breed of social media influencers, which are facilitating the brand visibility to a greater degree resulting in increased brand awareness among the global consumers.

Another driver of the color cosmetic industry is the omnipresence of digital marketing whereby manufacturers are increasingly collaborating with social influencers as part of their business strategy. Moreover, the unrestrained torrent of digital marketing campaigns that consumers all over the world are subjected to irrespective of their internet browsing behavior steers the consumers towards a myriad of eCommerce portals, that influences their consumption patterns as well as meets their demand for color cosmetics concomitantly enabling companies to ensure repeat business.

Essential Oils and Resinoids; Perfumery, Cosmetic or Toilet Preparations, Exports (In Thousands of Us Dollars)

Source: International Trade Centre

Further, the rising demand for products that are derived organically, which in turn is fueled by the increasing awareness of animal welfare as well as of negative externalities to the environment is responsible for driving the global market for color cosmetics in the coming years. Also, the growing awareness of the harmful health effects is steering global consumers to cosmetics that feature the aforesaid attributes. Moreover, the onset of COVID 19 and the following period which witnessed lockdown measures institutionalized by various nations have led to an upswing of engagements that ranges from new ways of the congregation, like that of on-nomi; (????) a Japanese word for online drinking, which was reportedly set up on Zoom chat by a group of women of Japan’s Kanagawa Prefecture to online video conference, cookery shows, fitness, and health, have incentivized the consumers all over the world to revisit how color cosmetics should be employed leading to a further surge in the demand for color cosmetics resulting in the growth of color cosmetics market.

Increasing Global Population and Rural to Urban Migrations Are Poised to Impact the Color Cosmetics Growth

In light of the above the gradual global population growth, along with rapid urbanization and adoption of new trends is anticipated to further drive the need for color cosmetics, in part because of rural to urban migration and the consequent increase in disposable income. This has resulted in a shift away from the traditional way of living and adopting the means of living that are normally endemic to urban areas. In view of the above, it should be noted that 1.7 billion people i.e. around 23% of the world population lived in a city and 45 % of the world’s population resided in rural areas which are expected to fall by 40% by 2030 as per United Nations (UN). Furthermore, the growing female population has led to a higher purchase of color cosmetics in both developing and emerging economies procured through offline and online channels.

Thus, contributing to an increased sale over eCommerce channels which were already to the tune of 25 trillion USD in 2018 and was, according to UNCTAD, equivalent to 30% of the GDP (global gross domestic product) that particular year. The value of B2B eCommerce was $21 trillion I.e. 83% of all eCommerce and that of B2C eCommerce was $4.4 trillion. The top three countries which occupied B2C sales were China, the United States, and the United Kingdom. Further, the estimated cross border B2C e-commerce sales amounted to $404 billion in 2018. The effects of rapid urbanization also translate into the receipt of better education which automatically results in the capacity of high-income generation as well as a conscientious investment in personal grooming efforts through the means of personal care products leading to a surge in color cosmetics among others.

Rural Population (% of Total Population)

Source: World Bank

Emerging economies and promising online retail infrastructure are expected to augment the sales of color cosmetics during the next few years

The consumer goods industry of newly industrialized countries is witnessing an increased presence of online retailers that are facilitating the growth of the cosmetics market apart from factors like the growing middle-income group and the rising population of working women. In the case of China, in comparison with their predecessor’s today’s consumers are seeking out the quickest and the most convenient methods to meet their demands facilitated by the ability to purchase through mobile payment apps like AliPay and WeChat Pay. Besides, global companies with data-driven operations are leveraging consumer preference data, which are obtained from various digital platforms to better understand customer segments and consequently target the same which has driven better placement of products and marketing strategies satisfactorily meeting customer expectations. Moreover, a high degree of competition stemming from data-driven innovations is driving retailers to integrate their brick & mortar stores and online portals with social media marketing platforms. Further, there are increasing investments in launching mobile apps as well as partnering with companies that provide augmented reality (AR) enabled platforms.

Albeit both are strategic initiatives to extend the reach of the organization, the latter has emerged as the most viable endeavor since along with eCommerce capabilities it offers makeover filters and facilitates virtual makeup, successfully converting browsers to shoppers since consumers, in general, are increasingly averse to visit stores and try out various products. To this end certain key market developments like the acquisition of ModiFace a global name in augmented reality and artificial intelligence applications pertaining to the beauty industry, registering over 30 patents, by L'Oréal (Euronext Paris: OR) that was announced in March 2018, which is in accordance with digital acceleration strategy of the organization. As a result of the acquisition, ModiFace was slated to be integrated with L'Oréal's Digital Services Factory and collaborate with L'Oréal's Advanced Research ultimately empowering L'Oréal’s 34 international brands with the most innovative technology. Again in 2018, Coty Inc (NYSE: COTY) had reportedly announced the launch of its app less augmented reality experience enabling a virtual try-on experience available directly in the browser on most modern smartphones featuring full looks from its COVERGIRL's spring '18 collection. After trying out new looks prospective customers could conveniently purchase then new COVERGIRL products that were integral to each beauty look from the featured assortment on Walmart.com with which Coty Inc also reportedly partnered with to extend a seamless shopping experience.

The importance of pharmaceutical packaging cannot be understated, especially during the time when the disease outbreaks are becoming increasingly more frequent. Approximately 7,000 signals of potential outbreak occur every month, which leads to 30 investigations, 300 follow-ups, and 10 risk assessment (source: World Health Organization – WHO). Moreover 12,012 outbreaks, cumulatively causing 40 million cases globally have been recorded between 1930 and 2013 (source: WHO). Simultaneously, 48 new drugs were drugs approved by the Food and Drug Administration in 2019, following 59 drugs in the previous year. The number of new drugs approved has grown at a CAGR of 9.62% between 2010 and 2019.

Number of Drug Approvals by the FDA – USA

Source: FDA Center for Drug Evaluation and Research

As such, the role of pharmaceutical packaging has been amplified in recent decades in order to ensure that the quality of the medicines is maintained while also providing information for the proper dosage and storage information. Furthermore, continuous evaluation of packaging guidelines has been instrumental in driving the innovation, with the pharmaceutical packaging market size estimated to grow at a CAGR of 5.29% to reach US$110.654 billion in 2025 from US$81.898 billion in 2019

Focus on Blister Packs

Pharmaceuticals require speedy and reliable packaging solutions that ensure quality along with the combination of being tamper-proof while also ensuring that the required information is easily visible to the customer. The demand for blister packs has been particularly supplemented by the simultaneous increase in the healthcare industry. In addition, the packaging companies are innovatively strategizing in order to take advantage of the growing revenue generation opportunity while simultaneously improving their market position. In October 2018, Merck – as a part of the €1 billion investment plan aimed at transforming its Darmstadt site, invested approx. 63 million Euros that deal specifically with the packaging of the company’s pharma products. Similarly, in July 2017, Bilcare Research, one of the leading manufacturers of blister packaging and shrink film solution, entered into a partnership with Linerpac & Unipac de Mexico SA de CV according to which Bilcare’s blister and shrink sleeves film will be available in Mexico through Linterpac.

Simultaneously, the popularity of cold form-based blister packs has been increasing. Cold-formed packages utilize a high proportion of packaging material in comparison to the thermoform packaging technology which results in effective protection against the light, moisture, and gases to the product. The conventionally used films for manufacturing cold form blister packages are PVC and Bi-axially Oriented Polyamide (BOPA). The growing focus on peel through and child & adult resistance packaging for medicines to ensure that it meets the required necessary standards has been instrumental in boosting the demand for blister packaging solutions based on cold-form technology. Moreover, it also allows surface and reverse printing which tends to improve the aesthetic appeal to the consumer, thus, leading to its growing popularity as a packaging technology. As a result, players such as Constantia Flexibles, Amcor, Essentra, Uflex, and others are introducing cold-formed blister foils that provide anti-counterfeiting options which are regulatory and pharma GMP compliant. Also, increased focus towards introducing new material for blister forming such as Alu-Alu blister foils is further accelerating the cold-formed blister film market growth. Furthermore, the rising spending on research and development in Alu-Alu blister foil manufacturing is expected to boost the adoption of cold-form based blister packs. In December 2018, FlexFilms was granted the United States patent for formable films that include BOPET layers which are used in Alu Alu blister packaging.

However, the thermoformed packs are still the most prevalent form of blister packaging that is currently used globally as the thermoformed packaging technology is relatively cost-effective and has the ability to perform packaging process more quickly than the cold-form method. Moreover, manufacturers are continuously working towards introducing enhanced thermoform films. For instance, in February 2019, Honeywell has expanded in the Aclar film range, a thermoformable barrier film for pharmaceutical packaging in order to address the industry's need for faster production and delivery by extending product shelf life and providing advanced barrier protection.

Asia Pacific to Drive the Revenue Generation Opportunity

China is the most populated country in the world and with the rise in the proportion of the geriatric population in the country, there is an increasing investment in the pharmaceutical industry which is expected to propel the market growth opportunities. According to the World Bank, health spending in China would increase in real terms from 3.5 trillion Yuan in 2014 to 15.8 trillion Yuan in 2035, an increase of 8.4 percent per year. Moreover, increasing investment by market players through product launches in the country is also anticipated to drive the growth of the market during the forecast period. For instance, in March 2019, Romaco China opens an 840 sq meter processing laboratory for solid pharmaceuticals, which is fitted with latest generation laboratory equipment like Romaco Noack NBP 950 that is a blister machine for pharmaceutical applications. Similarly, in India, expanding the pharmaceutical industry and rising government initiative by making amendments in foreign direct investment (FDI) inflow in the pharmaceutical industry is anticipated to boost the pharmaceutical packaging market. For instance, the allocation to the Ministry of Health and Family Welfare by the Government of India has increased by 13.1 percent to US$ 8.98 billion in Union Budget 2019-20.  Moreover, the Government of India also revealed: “Pharma Vision 2020” aimed at making India a global leader in drug manufacture. However, the COVID-19 pandemic is likely to impact the market in 2020 as the manufacturing capacity was operating at a reduced capacity. The medicines sales in May 2020 reached just 60% of the routine target in India (source: Secretary – All India Organization of Chemists and Druggists (AIOCD). Moreover, the labor shortage and supply chain disruption caused by the government’s lockdown measures in order to contain the spread of the virus led to firms reducing their output, with domestic manufacturing companies operating at 40%-50% capacity. However, it is anticipated that the production will resume to full scale in 2021, with the recovery of an industry projected to initiate in the second half of 2020. 

ABOUT THE AUTHOR

Siddharth David is a Senior Market Research Analyst at Knowledge Sourcing Intelligence LLP. Siddharth’s expertise lies in offering predictive analysis and an all-inclusive outlook of different industry verticals from both the macro and micro point of view, with the special knack in market sizing and delivering key strategic insights. To read more articles by him, and for more information regarding multiple global markets, visit www.knowledge-sourcing.com.

Electron microscopes are those type of microscopes that uses a beam of accelerated electrons primarily as a source of illumination. Electron microscopes are considered as special devices as they offer images with extremely high resolution and also magnifies the object to nanometres. The market for electron microscopes is poised to witness a healthy growth over the course of the next five years due to the constantly growing imaging requirements across various industries such as nanotechnology, semiconductor, and life sciences among others. The increasing health spending is also expected to propel the market growth for electron microscope as the countries across the globe are increasing their investments to upgrade the healthcare infrastructure. Furthermore, increasing investments in cell research due to the rising prevalence of diseases is also expected to be a major factor that is anticipated to positively impact the demand for electron microscopes, thus playing a significant role in shaping up the market growth over the next five years.

Additionally, the growing number of research labs globally is also a key factor that is providing ample opportunities for the key market players throughout the forecast period. Moreover, the growing investments in the semiconductor industry is also a key factor driving the demand for these microscopes as these are widely used for semiconductor inspection and testing. For instance, Microelectronics from Germany – Driver of innovation for the digital economy” is an initiative taken by the government in which EUR 1 billion was to be invested in the chip industry of the country by the year 2020. However, the market may be restrained by the fact that there are strict regulatory procedures through which these devices have to pass for commercialization.

The figure below represents the size of the global electron microscope market which is evaluated at US$2.399 billion for the year 2019 and is estimated to reach US$3.484 billion by the year 2025.

Global Electron Microscope, Forecasts From 2019-2025, in US$ Billion

Source: Knowledge Sourcing Intelligence Estimates

Segment Overview:

The market has been segmented on the basis of product type, application, and geography.

Scanning Electron Microscopes to Witness a Healthy Growth

By the product type, the classification of the market has been done into scanning electron microscope, transmission electron microscope, and reflection electron microscope. The scanning electron microscope segment is poised to show a healthy growth throughout the course of the next five years on account of its wide uses across several applications due to its capability of offering a 3D view of the specimen. Booming applications across the chemical and life sciences sector coupled with the rapid participation of major market players in the development of new and enhanced scanning electron microscopes further support the growth of this segment until the end of the forecast period. The transmission electron microscope segment is expected to hold a substantial market share throughout the forecast period due to its wide applications and study of bacteria and viruses.

Life Sciences to Hold a Decent Share

By application, the segmentation of the market has been done into material sciences, life sciences, and nanotechnology. The booming adoption of nanotechnology across various industries is projected to bolster the growth of this segment throughout the course of the forecast period. The wide adoption of nanotechnology across the healthcare sector is observed in the coming years as it offers lucrative opportunities for work the same scale of several organic molecules, cellular mechanisms, and biological processes among others. This further provides an imputes for rapid innovations in the healthcare sector for medicines, biosensors, implantable devices, and imaging technologies among others. This can be backed up by the fact that the nanotechnology in the healthcare market has grown significantly between 2018 to 2024. For instance, the market size reached US$154.809 billion by 2024 from US$89.783 billion in the year 2018 (Source: Knowledge Sourcing Intelligence).

Nanotechnology in Healthcare Market, Forecasts From 2018 to 2024, US$Billion

Source: Knowledge Sourcing Intelligence Estimates

Also, there are wide applications of these microscopes in the life sciences industry especially in the field of clinical trials, disease diagnostics, and pathology labs among others. Thus, the growth in the number of clinical trials on account of the growing oral healthcare demand coupled with a significant increase in the number of pathology labs around the globe are the major factors bolstering the growth of this segment throughout the forecast period.

Apac to Witness Noteworthy Growth

Geographically, the market has been segmented on the basis of North America, South America, Europe, Middle East and Africa, and Asia Pacific. The North American region is projected to grow substantially over the forecast period. The early adoption of technology coupled with the presence of a well-established healthcare and research infrastructure in countries like the United States and Canada among others are some of the key factors supplementing the electron microscope market growth in the North American region. Furthermore, the presence of a number of key market players in the region further supplements the significant share of the market in the North American region. Furthermore, the European region is expected to hold a noteworthy share in the market due to the presence of a well-established life sciences and material sciences industry in many countries across the region. Furthermore, the presence of a well-established semiconductor industry in the region is also playing a key role in shaping up the market growth in the European region during the next five years. However, the Asia Pacific region is poised to witness a notable growth throughout the forecast period. The major factors supporting the market growth in the APAC region include the presence of the fastest-growing economies such as India and China among others. The constantly growing health spending across these countries for the up-gradation of the healthcare infrastructure coupled with the growing medical tourism throughout the region are some of the major factors bolstering the demand for electron microscopes in the APAC region, thereby positively influencing the growth in the coming years. Furthermore, the booming R&D industry in major emerging countries such as India, China, and Vietnam is also expected to augment the growth during the next five years.