COMPOSITE MARKET ANALYSIS

The Global Composites Market market size was valued at US$ 93.4 billion in 2022 and is anticipated to witness a compound annual growth rate (CAGR) of 7.3% from 2023 to 2030. Composites are produced using a combination of fibers and matrices. Matrices are generally made of resins including thermoplastics, epoxy, or polyester. One of the major advantages of high-performance composites is their lower mass content as compared to steel and iron. Due to this, a fewer number of materials such as fasteners and joints are required to hold the product together.

Global Composites Market: Regional Insights

Based on geography, the global composites market is segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa.

In 2022, the Asia Pacific region dominated the market and contributed 46.0% of worldwide composites demand's revenue. Throughout the forecast period, the Asia Pacific composite market is expected to expand rapidly. Due to the presence of important manufacturers from important economies like China, India, and Japan, the region is among the most profitable locations for manufacturers of automobiles, buildings, aerospace, and electronics.

Figure 1. Global Composites Market , By Region, 2022

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Global Composites Market Drivers:

INCREASING DEMAND FOR LIGHTWEIGHT MATERIALS IN AUTOMOTIVE INDUSTRY

Increasing demand for composites in the automotive industry is anticipated to boost the market growth over the forecast period. Rising fuel prices have triggered the need for fuel-efficient vehicles. Composites are most widely utilized as the replacement for aluminum, wood, and steel on account of their higher strength to weight ratio. Growing environmental concerns and stringent regulations regarding pollution control have forced automotive manufacturers to enhance their technologies and develop vehicles having low pollution. One of the most important factors affecting fuel efficiency and vehicular pollution is the overall weight of the vehicle. The presence of stringent environmental regulations in Europe and the U.S. has forced automotive manufacturers to include composites in automotive production. Globally, especially in Europe, regulations are forcing OEMs to significantly reduce the CO2 emissions caused by vehicles.

 For instance, in Europe, regulations to reduce the annual average emission from vehicles about 140 g of CO2 per km to 95 g CO2 per km is expected to benefit the adoption of composites. The U.S. Environmental Protection Agency (EPA) and the Department of Transportation National Highway Traffic Safety Administration (NHTSA) have also set standards to reduce automotive greenhouse gas emissions and increase fuel efficiency which is expected to drive the industry growth.

GROWING UTILIZATION OF COMPOSITES IN INDUSTRIAL SECTORS

Composites are produced using a combination of fibers and matrices. Matrices are generally made of resins including thermoplastics, epoxy, or polyester. One of the major advantages of high-performance composites is their lower mass content as compared to steel and iron. Due to this, a fewer number of materials such as fasteners and joints are required to hold the product together. This not only decreases the overall weight of the product but also increases its stiffness, making it stronger.High-performance composites are characterized by a low CTE (coefficient of thermal expansion), which means their performances are not impacted by extreme temperatures and pressures. This property is of particular importance in industrial applications where machines are subjected to extremely high temperatures.

The commercial aviation industry has increased the utilization of composites to around 50% of the total aircraft weight. For instance, Airbus A350 is built utilizing 52% CFRP, while Boeing 787 Dreamliner is built using 50% CFRP by weight. The surge in demand for commercial aviation is expected to drive the global market over the forecast period.

Global Composites Market Opportunities:

The automotive industry's increasing use of carbon fibre parts, particularly in the electric vehicle category, is anticipated to present the composites market with several opportunities. Electric vehicles are becoming more popular and in demand on the worldwide automobile market. By significantly decreasing car pollution, renowned automakers want to adhere to environmental regulations and emission requirements. As a result, battery-powered vehicles like automobiles and small trucks are becoming more and more popular all over the world.

The global production of electric vehicles witnessed a significant growth of 19.3% in 2019 with a production of over 2 million units and a growth of 22.7% in 2020 with a production of over 2.4 million units and is expected to rise at a considerable rate over the forecast period, which is expected to drive the demand for composites used in niche applications and car parts.

Global Composites Market Trends:

Increasing Demand from the Aerospace Industry to Shape New Opportunities

The usage of composites in the aerospace industry has been grown, the Aircraft Manufactures are taking steps to enlarge the primary Structures in thermoplastics both for business jets as well as commercial aircraft. . Thermoplastics also provide a high level of toughness, which translates into lower-weight structures with improved damage tolerance. For example, in February 2020, Marshall Advanced Composites won a £9.5 million contract from Lockheed Martin to manufacture cockpit trim panels (Nomex honeycomb core) for its C-130J Super Hercules airlifted for the next five years.

Global Composites Market Restraints:

HIGH MANUFACTURING AND PROCESSING COST

CFRP finds usage across several applications in the automotive and aerospace sectors. The need for fuel-efficient vehicles and aircraft has triggered the demand for composites in these sectors. The established and proposed governmental regulations regarding pollution caused by automobiles are expected to propel the demand for composites in the automotive sector. Despite the extraordinary benefits offered by composites, their high cost has restrained their penetration in various application segments.

 High raw material cost directly reciprocates the total CFRP cost as CFRP manufacturing is an energy- intensive process. The conversion process involves non-conventional manufacturing processes, which add up to the total cost of CFRP. In the best case, 2 kg of PAN yields 1 kg of carbon fiber, which gives a conversion efficiency of only 50%. Lower raw material conversion efficiency has been a major factor adding up to the total cost.

Lack of recycling processes

Lack of recycling processes is also expected to restrict the large-scale adoption of composites. For example, the End of Life Vehicle Directive limits the usage lifetime of a vehicle and mandates around 85% of the vehicle to be recycled. The absence of a commercially viable recycling process is expected to emerge as a major challenge for the growth the product usage in the automotive industry.

Figure 2. Global Composite Market By Product 2023

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Global Composites Market Segmentation:

The Global Composites Market report is segmented into By Product, By Manufacturing Process, By End-Use and Region

Glass fiber composites accounted for the largest revenue share (59%) in 2023as is expected to maintain its dominance over the forecast period. Wide application demand from construction, wind energy, electrical & electronics and automotive & transportation industries is expected to ascend the demand for glass fibers. Technological developments for enhancements in strength and durability of these composites have increased penetration in pipe manufacturing application. Moreover, rise in demand for high strength materials in automotive and aerospace industries are expected to support the market in the estimated time.

Global Composites Market :Key Players

The Global Composites Market is highly competitive. Moreover, key players are adopting various business growth strategies in order to expand their presence on regional as well as global basis. Some of the key Companies de , Saint-Gobain S.A., Momentive Performance Materials, Inc., Kineco Limited, Veplas Group, China Jushi Group Co., Ltd., Braj Binani Group, Guardian Fibre Glass.

*Definition: A composite material can be defined as a combination of two or more materials that results in better properties than when the individual components are used alone.