Increase in Efficiency Of Manufacturing Units
Cold cast elastomers aid the manufacturing units to increase the production efficiencies owing to its ability to facilitate production at room temperature. These factors, along with, technological advancements have paved way for innovations and increased utilization of these elastomers. These factors are estimated to support the growth of the cold cast elastomers market.
Rising Demand of Cold Cast Elastomers
Rise in demand of cold cast elastomers across the industries, on the back of its diverse applications, specifically automobile industry is one of the notable key drivers that is predicted to boost the growth of the cold cast elastomers market over the forecast period. Moreover, rapid industrialization and conducive manufacturing environment with substantial consumption is fueling the demand of cold cast elastomers over the forecast period.
Cold cast elastomers market is anticipated to witness significant opportunities and is estimated to grow at a moderate CAGR over the forecast period i.e. 2019-2027. Cold cast elastomers market is segmented by type into two component and three component, out of which, two component elastomers are anticipated to grow at the highest CAGR on account of its increased utilization of these high performance elastomers in various industries pertaining to heavy duty load areas. On the basis of application, it is segmented into automotive & transportation, consumer goods, industrial, oil & gas and others, out of which, automotive & transportation is expected to hold the largest share in the global cold cast elastomers market over the forecast period, on account of their ability to increase the efficiency and productivity of automobile manufacturing units around the globe. Further, the growing demand of automobiles is expected to propel the demand of cold cast elastomers. According to OICA, a total of 70498388 cars and 25136912 commercial vehicles were produced during 2018.
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Changing Government Regulations
Changing government regulations on account of rising environmental concerns from the manufacturing units producing the cold cast elastomers and fluctuating input cost are anticipated to hamper the growth of the market over the forecast period.
Our in-depth analysis of the cold cast elastomers market includes the following segments:
On the basis of regional analysis, the cold cast elastomers market is segmented into five major regions including North America, Europe, Asia Pacific, Latin America and Middle East & Africa region, out of which, the market in North America is anticipated to grow at highest growth rate over the forecast period on the back of increase in investment and expansion of manufacturing units by existing key players in the market. These factors, along with technological advancements in the region is anticipated to propel the growth. The cold cast elastomers market in Europe is further expected to grow at an incremental rate on account of increased focus on improving productivity and efficiency of cold cast elastomers and also, increase in production of automotive parts in the region. Furthermore, the market in Asia Pacific is anticipated to hold the largest market share on account of the increase in production capacity of existing manufacturing units pertaining to increase in demand from industrial sectors and launch of new products in elastomers market. Moreover, increase in consumption of elastomers pertaining to emerging economies and industrialization is anticipated to support growth of the market in the region over the forecast period.
The cold cast elastomers market is further classified on the basis of region as follows:
In 2023, market players might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain.
Controlling Inflation has become the first priority for global economies from last quarter of 2022 and to be followed in 2023. With skewed economic situations, rise in interest rate by governments to control spending and inflation, spiked oil and gas prices, high inflation, geo-political issues including U.S. & China trade war, Russia-Ukraine conflict to intensify the global economic issues.
The interest rates in the U.S. may be less sensitive in 2023 as compared to 2022; sigh of relief for businesses. Positive business sentiments, healthy business balance sheets, growth in construction spending (private construction value in 2022 stood at $1,429.2 billion, 11.7 percent (±1.0 percent) above the $1,279.5 billion spent in 2021, Residential construction in 2022 was $899.1 billion, up by 13.3 percent (±2.1 percent) from $793.7 billion in 2021, non-residential construction touched $530.1 billion, 9.1 percent (±1.0 percent) above the $485.8 billion in 2021.) showcases minimal impact of recession in the country.
Similarly, spiked spending in the European and major Asia economics including, India, China & Japan to showcase less impact on the global demand.