Product Innovation Holds the Key to Faster Growth for Plastics in Automotive Applications

    LONDON--Sept. 17, 2001--Resin suppliers, together with OEMs and processors, must continue to introduce innovative products and technologies to drive the development of new applications for engineering plastics in the automotive market, reveals a new study from Frost and Sullivan.
    Technologies that are credible alternatives to traditional materials such as metal and glass will open up new market opportunities.
    "Lower growth is predicted for engineering plastics in the automotive industry during the period 2001-2007 because of the downturn in European car production," says Frost & Sullivan Industry Analyst David Platt. "This is also due to the growing market maturity for plastics in a number of automotive applications."
    "Car producers will continue to strive for lower costs, weight reduction and fuel economy, while introducing more comfort and safety features into their products," says Platt. "These requirements, combined with technological innovation, will drive the development of new applications for engineering plastics in passenger cars."
    Some of the most notable examples of new technologies being developed to create opportunities for plastics in the automotive market are:

--	GE Plastics Noryl products based on blends of polyphenylene oxide have the advantages of better heat resistance and conductivity, which has led to their replacement of other polymers in bumper systems.
--	Bayer's "hybrid technology," binding plastics and steel, which lowers weight and module costs and creates a high load-bearing capacity while allowing high energy absorption has led to its use in components for doors, seats, front ends and bumper brackets.
--	Exatec's automotive glazing systems based on polycarbonate are thought to give a weight saving of around 40% compared with glass. Developments are focussed on the rear and side windows, which should be ready for market testing in 2002.

    In 2000, 1.4 million tonnes of engineering plastic was used in passenger cars, by 2007, the study forecasts that this will have risen to 1.7 million tonnes, representing a 2.6 % compound annual growth rate. This is significantly lower than the previous 4 years when unit rate growth averaged nearly 6% per annum. Use of plastics in electrical and lighting systems and under the bonnet will show the fastest growth rates, whilst the market shares for both interior and exterior plastics will decline.