April 10, 2002 -- A business that, at one time, considered sales of 15 million vehicles a benchmark, has seen sales volumes reach record levels, with 1999 being a high-water mark. However, many of the country''s best selling vehicles, such as sport utility vehicles, fall far short of current gas standards as measured by their combined average highway and city miles per gallon. Automotive OEMs pledged voluntary mileage gains for SUVs and claim that they will soon launch more efficient models, requiring increasing use of plastics.
According to a soon-to-be-released study from Business Communications Company, Inc., RP-174: Dynamics of Auto Exteriors: Plastics, Elastomers, Coatings, the automotive exterior plastics market is currently estimated at almost 1.2 billion pounds. It is expected to grow at an AAGR (annual average growth rate) of 3.0% to almost 1.4 billion pounds by 2006. This estimate includes five major resin/elastomer groups, namely, thermosets, TPEs (thermoplastic elastomers), engineering resins, commodity thermoplastics, and alloys and blends.
Thermosets comprise the largest market with a volume of 365 million pounds with a corresponding market share of about 30%. This market will also experience the largest annual growth over the forecast period at 4.4%.
Engineering resins comprise the second largest market with a current estimate of 317 million pounds in 2001. They, however, are expected to experience the lowest growth rate over the next five years.
Several conflicting objectives and marketing practices characterize this market. Among them are the drive for lighter weight vehicles in which plastics and aluminum are favored and the difference between resin/elastomer and steel costs that depends on the number of units sold. The higher number of units favors steel but there is a difference of opinion on the number required to force a decision. Finally, there is the drive for recyclability that can hold back resin/elastomer penetration.
With regard to applications, bumper systems clearly are the area where plastics/elastomers have made the most significant penetration, with TPOs (thermoplastic olefins) being the dominant material. Side trim/moldings, transparent lenses, headlamp/signal light housings, and body panels are the other key product areas that have seen the most progress by plastics/elastomers.
The anticipated flat growth rate of future automotive sales, a long-term possibility of increased Corporate Average Fuel Economy standards (CAFE), the emergence of modular plastic-based composite exterior body panels, and the ever-present specter of recycling are the key areas that automotive OEMs and plastic/elastomers suppliers are carefully monitoring.