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(USGovernment-News.Com, March 30, 2019 ) Failure to cater the right packaging solution across the value chain of automotive manufacturing could incur huge costs to the customers, as well as the manufacturers leading to overall cost additions. Hence, it is mandatory for the automotive industry to have a high quality packaging solution that can deliver high protection and thereby deliver higher value goods as well as parts. APAC region is one of the most important global automotive hubs. China accounts for approximately 30% of the passenger car produced globally. Lower cost of labor wages and availability of skilled workmen in the region hands competitive advantage to the region for manufacturing of automobiles. Moreover, the Government in countries such as China and India that are two important manufacturing destinations for automotive OEMs have been rolling out favorable policies that have attracted significant foreign direct investments in the automobile and technology sector. Such a large automotive hub presents higher opportunities for the components manufacturer and suppliers by forming partnerships with the OEMs. The prosperity of these industries augurs well for the advancements in the automotive bushing components. Rising disposable incomes of consumers in these countries opens a wide potential market for packaging solution suppliers for this region.
The global automotive parts packaging market accounted to US$ 2.18 Bn in 2018 and is expected to grow at a CAGR of 4.1% during the forecast period 2019 - 2027, to account to US$ 3.12 Bn by 2027.
The major companies offering automotive parts packaging market include CMTP Packaging Pty Ltd, DS Smith Plc., Encase Ltd., JIT Packaging, Nefab group, Pacific Packaging Products Inc., Pratt Industries Inc., Sealed Air Corporation, Smurfit Kappa Group, and Sonoco Products Company among others. Several other companies are also offering these solutions to automotive industry which is facilitating the market to propel over the years.
The global market for automotive parts packaging market is segmented on various parameters such as product type, packaging type, component, and geography. Based on product type, crates segment dominate the automotive market heavily and is expected to continue its dominance throughout the forecast period from 2019 - 2027. On the basis of component, electrical segment is expected to witness a significant growth rate in the coming years. Key players operating in the market are introducing attractive solutions and are acquiring the small companies which is helping them to gain customer traction.
The aftermarket or replacement market plays an important role in automotive parts packaging market. With the increasing awareness of preventive maintenance as well as scheduled servicing of vehicles, consumers today are focusing in maximizing the lifespan value of their existing vehicles. This has significantly bolster the growth of aftermarket parts and services demand globally and has generated new revenue opportunities for an extensive number of players operating in the automotive aftermarket industry. Moreover, increasing spending capacity of people to pay for comfort and luxury is propelling the demand for head-up displays, better audio and video system, lights, comfortable seats, and decorative interiors and exteriors among others. Further, the demand for replacement of vehicle tires over a period of time due to safety reasons is bolstering the aftermarket growth. The overall increase in the sales of aftermarket automotive parts is bolstering the automotive parts packaging market growth.
The automakers globally are observing substantial demand for advanced safety related technologies in their vehicles. This has led the automobile manufacturers to continuously focus on innovating, designing and developing autonomous cars which have already attracted a fair percentage of customers in major automotive manufacturing countries. Pertaining to the consumers' demand and attraction toward smart and fully-autonomous cars, more advanced components are expected to become an integral part of the innovations in the automotive industry in the coming years. This factor is expected to trigger the growth of the automotive electronic component market in the coming years. The substantial thrust in autonomous driving is foreseen to further accentuate the demand for advanced electronic systems in a vehicle including, electric power steering, anti-lock brakes, engine control, and electronic throttle control. This would increase the market for electrical and electronic component packaging.
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