falling car production in both Western
and Eastern Europe. The second important reason underpinning the relative flatness of the market is that the major car
manufacturers are trying to reduce costs,
which implies improving efficiency in the
application of sealants.
DIY applications remain a growth
market, although overall growth in this
application is forecast to slow to about
1.7 percent p.a. Growth has slowed in the
UK, Spain, Switzerland and other countries, and the DIY market is still relatively
small in other country markets.
Consumption of sealants in Western
and Eastern Europe is affected by
European regulations including norms on
the usage of products containing isocyanates and their labelling, and standards
for sealed unit manufacture.
The general trend towards reduction
of vehicle weight allowing for reduction
in fuel consumption is also related to
environmental legislation. Nowadays,
customers tend to look for products
which are environmentally-friendlier
and “greener.”
MS Polymers and hybrid production
is becoming more and more optimized,
so that manufacturers can achieve per-
formance specifications closer to the
replaceable PU sealants. MS Polymers’
share is growing due to a number of
benefits that they possess. Over time,
they have taken some of the market
share from PU sealants. However, they
will not replace PU sealants to a high
extent. The highest growth in demand
for these sealants is forecast for trans-
port applications.
Global Renewable
Chemicals Market to Reach
$66.1 Billion by 2018,
Predicts GIA
GIA released a comprehensive global
report on Renewable Chemicals mar-
kets. Global market for renewable
chemicals is projected to reach $66.1
billion by 2018, driven by spiraling
petroleum prices, rising de-
mand for eco-friendly prod-
ucts and growing focus on
environmental protection.
According to the report, over the
last century, fossil fuels have been contributing significantly to environmental
damage. Production of chemicals using
fossil feedstocks releases high concentration of hazardous gases into the atmosphere, the repercussions of which
the world is facing in the form of global
warming and ozone depletion. Rapidly
depleting fossil fuels and escalating energy consumption coupled with rising
environmental awareness among nations has led to increased focus on alternate viable eco-friendly and renewable
energy sources. The transition towards
renewable energy is presenting immense
opportunities for renewable chemicals.
Growing efforts of governments and organizations directed towards building a
bio-based economy is further driving
gains in the market.
