112.8 billion Dollar market Increasing demand in emerging economies in composite market
According to a new market research report the composites market size is expected to grow from 74.0 billion Dollar in 2020 to 112.8 billion Dollar by 2025, at a CAGR of 8.8 percent during the forecast period.
The composites industry is growing due to the increase in the demand for high performance materials with properties such as high strength to weight ratio, good tensile strength, electrical conductivity, among others. However, the composites business of these companies is severely affected due to the outbreak of Covid-19 pandemic. Reduced demand for composites from several OEMs and disruption in the supply chain have compelled the composites manufacturing companies to operate at partial capacities.
However, several composite manufacturers have focused their concentration on new product development. These developments, coupled with end-use industries resuming their operations at full capacities, would create demand for composites during the forecast period. For instance, Toray Industries has designed high tensile modulus carbon fiber and thermoplastic pellets that enable efficient production of complex rigid and lightweight parts in various composites end-use industries.
Over the past years, companies have strengthened their position in the global composites market by adopting expansions, partnerships, agreements, new product/technology launches, joint ventures, contracts, and mergers & acquisitions. However, owing to lockdown announced by several countries in 2020, the demand for composites from wind turbine installations, automotive and aircraft manufacturing, and construction sectors has declined sharply. For instance, the demand for composites from two major commercial aircraft manufacturers, Boeing and Airbus, has decreased drastically due to zero orders for new aircraft in January and February, respectively. In the wind energy sector, international and domestic travel bans are creating problems in the routine maintenance, operations, and procurement of materials and related equipment, thereby reducing composites demand.
Glass fiber composites comprise major share
The glass fiber composites have superior attributes, such as strength, flexibility, durability, stability, lightweight, and resistance to heat, temperature, and moisture. Owing to its properties, glass fiber is used in different end-use industry segments, such as construction, wind, pipe & tanks, marine, and transportation.
The thermoset composites accounted for the largest market share in the global composites market during the forecast period in terms of value and volume. In thermoset composites, thermoset resin is used as a matrix with fibers, including glass fiber, carbon fiber, natural fiber, and others. Currently, thermoset resins are widely used for manufacturing composites, as when uncured, they are in a liquid state at room temperatures. This unique property of thermoset resin allows for the convenient impregnation of reinforcing fiber. But, because of the lockdown situation occurred due to Covid-19, many floor workers are unable to work in manufacturing facilities, which has resulted in the reduction in output of several resins, such as epoxy resins. Thus, the demand for thermoset resins is expected to decline during the forecast period.
The lay-up manufacturing process holds a significant revenue share in the global composites market during the forecast period. The lay-up process offers advantages such as a low-cost method of quickly depositing fiber & resin, tooling, and ease of operation. The lay-up process is used mostly for designing simple enclosures and lightly loaded structural panels. Besides, its demand is huge from the aerospace & defense, construction & infrastructure, wind, and marine end-use industries.