Nanotechnology will have a significant impact on the automotive sector, according to new research.

A report from Frost & Sullivan predicts that a drive towards cleaner vehicles and lower production costs will see manufacturers turning to nanotechnology.

While still in its experimental stage, nanotechnology promises significant cost savings specifically in the areas of coatings and catalytic converters.

Nanomaterials are projected to lower the quantity of rare metals, such as platinum, used in catalytic converters and fuel cells.

Frost & Sullivan expects these savings to amount to at least $1 billion per year by 2010.

"Legal challenges such as emissions, recycling and safety are key drivers that have enabled new technology to be incorporated in the automotive sector," remarks Frost & Sullivan analyst Hrishikesh Bidwe.

"These issues have all been addressed by nanotechnology and will provide immense benefits with its potential and innovative solutions for giving a greener and safer vehicle for the future generation."