INTRODUCTION
STUDY GOALS AND OBJECTIVES
The goal of this report is to provide a detailed and comprehensive multi-client study of the global market for friction products and materials in light vehicles, medium- and heavy-duty trucks, aircraft, and other industrial applications, as well as potential business opportunities in the future. Greater detail, however, is provided for North America. The report covers both original equipment (OE) markets and the aftermarket. Its objectives include a thorough coverage of the underlying economic issues driving the friction products and materials business, as well as assessments of new and potential products that companies are developing. Social, political, and regulatory issues are also covered, as are international markets. Another important objective is to provide realistic market data and forecasts for friction products and materials.
REASONS FOR DOING THE STUDY
It has been 3 years since BCC Research’s last technical market study on friction products and materials. The main reason for doing this study is that the market in North America is continuing to undergo significant changes. Many of the end-use markets collapsed in the early years of the decade and with increased globalization, customer industries are moving offshore, in particular to China.
Moreover, the friction materials industry is still relatively secretive, and as such it is very difficult to obtain solid information on how much of these materials are being sold and where. There are very few sources concerning friction materials, and they have presented a most incomplete picture. Estimates for the size of the friction materials market have been few and far between, although a number of companies have shown interest in the market.
INTENDED AUDIENCE
Audiences for this study include marketing executives, business unit managers, and other decision-makers in friction products and materials companies. Technology suppliers, suppliers of plastic resins and other materials, and other companies peripheral to this business also represent a key audience.
SCOPE OF REPORT
The scope of this report is comprehensive, covering the present status of and future prospects for OE/aftermarket friction materials and products in North America. As defined in this report, North America includes the United States and Canada. The report includes diverse segments such as light vehicles, medium- and heavy-duty trucks, the automotive aftermarket, aircraft/aerospace, construction and other off-road equipment, and various industrial applications. These are analyzed in detail as well as technology developments, market conditions and opportunities, and 5-year forecasts. The role of new technologies is reviewed in this comprehensive report. This BCC Research study analyzes the current North America market in detail and identifies the most promising market opportunities for the next 5 years for both OE and aftermarket applications. The markets in Western Europe, Japan, China, India, and other global markets are covered as well.
In order to generate the information necessary to construct a reasonable future market for friction materials, it is necessary to undertake an examination of the advantages and disadvantages of the various types of materials. In particular, environmental concerns are very significant for some types of friction materials. This report covers two types of friction materials:
- Dry friction materials, such as non-asbestos organic (NAO), semimetallic low-metallic, and asbestos friction materials
- Wet-friction materials such as paper products
In addition to various friction materials and products, it also covers the many issues concerning the merits and future prospects of the business, including corporate strategies, technologies, and the means for providing these products and service offerings. It also covers in detail the social, political, regulatory, and economic issues that so many regard as critical to the industry’s current state of change. The report provides a review of the friction materials and products industry and its structure, and the many companies involved in providing these materials and technologies. The competitive position of the main players in the market and the strategic options they face are also discussed, as well as such competitive factors as marketing, distribution, and operations.
The values presented in the forecast tables represent the value of the friction products purchased by the OE manufacturers and other industrial companies. These measure value at the point of apparent consumption, regardless of where the friction product was manufactured. For materials, the values represent those paid by the friction product manufacturers. The volume data represent the consumption of these materials by the friction product manufacturers at the point of manufacture for these products, regardless of where the product is sold and used. As a result, the tables representing materials consumed and the tables representing friction products are not comparable at the national and regional level. Consumption of these materials and the value of the friction products are, of course, comparable at the global level.
In this report, the term revenue is equivalent to and is used interchangeably with the terms purchases, demand, and sales. All growth rates mentioned in the tables and in the text are based on the compound annual growth rate (CAGR) from 2009 through 2014. In most cases, the actual quantity or volume (in pounds) is measured and the calculated growth rates are easy to comprehend. Because (2009) dollar measures are used to measure revenues, these growth rates reflect the growth in volume or real growth as well as the effects of price changes and changes in product/service mix. Readers should also be advised that with 2009 featuring a synchronized recession that has adversely affected all end-use markets for friction materials, sales activity is down significantly from 2008, and forecasts to 2014 reflect a strong cyclical component in a recovery in addition to expected structural changes. As a result, the growth rates may appear high because of this cyclical recovery.
INFORMATION SOURCES
The research methodology was qualitative in nature and employed a triangulating approach, which aids validity. Initially, a comprehensive and exhaustive search of the literature on friction materials and products was conducted. These secondary sources included automotive and related journals and books, trade literature, marketing literature, other product/promotional literature, annual reports, security analyst reports, and other publications.
In a second phase, a series of semistructured interviews were conducted with marketing executives, engineers, business unit managers, design engineers, and other personnel at the friction materials and products companies. Other sources included academics, technology, and materials suppliers, technical experts, trade association officials, government officials, and consulting companies. These were rich sources of data. Subsequent analysis of the documents and interview notes was iterative.
AUTHOR’S CREDENTIALS
The author has more than 25 years of experience in competitive intelligence, industrial market research, planning and marketing at major corporations, market research consultancies, and think tanks. He advises and briefs management about economic and industry conditions, strategic developments, and the effects of proposed developments in plastics, metals, and other materials. The author has employed scenario analysis to investigate and research the future of industry to identify the impact of globalization, consolidation, demographics, changing industry structure, and technological innovation. His particular interest lies in the interaction of strategy, economic and industry developments, and innovation. He holds a BA and a MS degree in industrial economics, and has completed other studies in business administration.
RELATED BCC WORK CREDENTIALS
Founded in 1971, BCC Research is known throughout the world for its technical-economic reports and services. The company has studied major market, economic, environmental, and technological developments that have characterized industry during the past two decades to produce reports, newsletters, and conferences. In the process, BCC has focused on advanced materials, high-technology systems and components, and novel processing methods since the development and marketing of these phenomena assert a profound influence on manufacturers and users on a worldwide scale.
BCC Research clients include almost every major corporation in the United States, Canada, Western Europe, and Japan.
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DISCLAIMER
The information developed in this report is intended to be as reliable as possible at the time of publication and of a professional nature. This information does not constitute managerial, legal, or accounting advice; nor should it serve as a corporate policy guide, laboratory manual, or an endorsement of any product, as much of the information is speculative in nature. The author assumes no responsibility for any loss or damage that might result from reliance on the reported information or its use.
Report Code: AVM028D, Published: August 2009, Analyst: Calvin Swift
