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Mass Production & Commercialization Critical to Reduce Prices and Generate Greater Demand for Carbon Nanotubes

PALO ALTO, Calif.--(BUSINESS WIRE)--Aug. 3, 2004--With application segments demanding commercial access to reasonably-priced materials, carbon nanotube (CNT) companies are realizing the importance of expanding their manufacturing capacity to enjoy the benefits of greater demand through reduced prices.

New strategic analysis from Frost & Sullivan (www.semiconductors.frost.com), An Assessment on the Future of Carbon Nanotubes, reveals that revenue in this industry totaled $35 million in 2003 and is projected to reach $540 million by 2007.

"Limited capital, uncertainty of incremental demand and ambiguity clouding the return on investment delayed the initial decision to increase production capacity; however, positive signals on CNT adoption from various application segments are encouraging companies to strive for refinement in manufacturing processes and maximize their production yields," explains Frost & Sullivan Senior Research Analyst Deepa Doraiswamy.

Mass production faces the challenges of complexity and costs, the impact of which is felt more in the single walled carbon nanotubes (SWCNT) market than in multi walled carbon nanotubes (MWCNT) market. Despite its higher price margins, SWCNT are gaining prominence in applications that demand high purity and faster response times.

Thus CNT companies are propelled toward improving the different synthesis procedures such as chemical vapor deposition, arc discharge, and catalytic methods for efficient manufacturing. Some companies have even developed proprietary manufacturing processes and license their technology to others.
Additionally, as the application sectors for CNT demand high quality, CNT companies are taking active steps to monitor quality and ensure reproducibility.

Though mass production, reduced costs, and greater demand are critical to complete CNT's transition from the laboratory to the open market, the true success of the lab-to-fab transition lies in the commercial success of the products that incorporate the CNT material.

"The successful commercialization of CNT-based products in the open market asserts the accuracy of the research findings pertaining to the capabilities and structural efficiency of CNT thereby stimulating further market penetration," says Doraiswamy.

CNT manufacturers that collaborate with the application developers are likely to have an edge over those restricting their roles to being mere material suppliers. Such partnerships enable CNT suppliers to leverage their expertise in gaining partial control over product development and commercialization, thereby influencing CNT's increased penetration into varied application markets.

An Assessment on the Future of Carbon Nanotubes, part of the Total Semiconductor Subscription, evaluates the SWCNT and MWCNT market in detail to provide individual insights in terms of market and technology trends, application analyses, growth rates, competition, and future market conditions. Strategic recommendations back the key market drivers and challenges, allowing participants to shape their marketing and production efforts. Executive summaries and interviews are available to the press.

Frost & Sullivan's "Strategic Analysis Service" is the newest tool aimed at equipping the C-level and senior executives of CNT companies with cutting edge research, strategic planning, and structured advisory services. Additionally, as a part of this service, the client will have an opportunity to communicate directly with our consulting team on any issue related to the industry. Enhanced marketing and growth capabilities coupled with strategic leadership have become critical tools for companies striving to increase growth and profitability against a backdrop of shifting marketplace conditions. As an added value, Frost & Sullivan encourages one-on-one interaction between client and consultant through this service.

If you are interested in an analysis overview which provides manufacturers, end-users and other industry participants an overview, summary, challenges and latest coverage of An Assessment on the Future of Carbon Nanotubes, then send an email to Julia Paulson - North American Corporate Communications at jpaulson@frost.com with the following information: Full name, Company Name, Title, Contact Tel Number, Contact Fax Number, Email. Upon receipt of the above information, an overview will be emailed to you.


 
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