Monday, January 11, 2010

Global Market for Friction Products and Materials worth More Than $15 Billion By 2014

According to a technical market research report, The Friction Products and Materials Market (AVM028D) from BCC Research (, the global friction products business is expected to reach $15.7 billion by 2014. Its 5-year compound annual growth rate (CAGR) from 2009 to 2014 is projected to be 8%.

The friction materials and products industry represents a $10.7 billion global business. This BCC study finds that, while the global recession has exacerbated the difficulties facing the business, including increased competition in North America and Western Europe due to overcapacity, mature demand, and other factors, during the next 5 years, cyclical recovery will figure prominently in the environment for friction materials.

Beyond the cyclical rebound, the mature ground transportation segment will feature slow growth in the long term. This is especially the case in developed nations, but in emerging markets, light-vehicle applications offer opportunities. A recovery of global air transportation in the long term heralds an improved outlook for friction products in this segment. Increased defense spending also may play a role.

Other applications present a mixed picture. Increasing global income and the rise of middle classes in developing nations offers opportunities for friction materials in appliances. An eventual recovery of capital spending in combination with rapid industrialization also will provide business opportunities for friction materials in industrial machinery. Oil well, construction machinery, railway, and other industrial applications will offer more modest opportunities.

Among the report’s findings are the following:

  • The ground transportation segment of the friction products and materials market was worth more than $5.8 billion in 2008. That was expected to decline slightly to $5.5 billion in 2009, but rise to 8.1 billion in 2014, for a 5- year CAGR of 8%.
  • The aircraft/aerospace market is the smallest of the segments, but is expected to rise slightly from 2008 to 2009, $938 million to $941 million, and increase at a CAGR of 7.7% to reach nearly $1.4 billion in 2014.
  • The industrial segment, combined with other smaller segments, amounted to nearly $4.7 billion in 2008, but is expected to decline to less than $4.3 billion in 2009. A rebound is projected for 2014, however, to nearly $6.3 billion, for a CAGR of 8%.

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