Composites Market

SURGE IN DEMAND FROM THE AUTOMOTIVE INDUSTRY

Composites are widely used in automotive manufacturing in body panels and frames, structural underbody closures, floors, front and rear trunks, induction ducts, rear surround frame, bulkhead (mid-window frame), service doors in the rear trunk, and curved bumper beams. In terms of volume, the top applications for composites in automotive are under-the-hood components, exteriors, and interiors. Suspension components and drive shafts are other expanding markets.

Some common examples of composites by key producers include Ford Motor Co.'s rear suspension knuckle, Marelli's Advanced SMC steering knuckle, Saint Jean Industries' Hybrid carbon fiber/aluminum suspension knuckle using Hexcel prepreg, IFA Composite's CFRP stabilizer bars, and Dynexa's CFRP output shaft. Composites are commonly used in motorsports and low-volume, high-end or luxury vehicles, which prefer continuous carbon fiber materials.

For the more cost-sensitive market of mid- and high-volume production models, composites continue to grow steadily and incrementally through continuous glass fiber-reinforced polymers (GFRP) in applications such as leaf springs, as well as chopped fiber molding compounds such as SMC body panels and frames, BMC housings and support structures, and injection molded thermoplastics for bumper frames, lift gauges, and suspension components.

Moreover, Another driving factor for composites in the automotive industry is the push to achieve zero emissions by 2050, resulting in increased development and production of electric vehicles (EVs). Thus, the high demand for composites in automobiles are likely to drive the growth of the Composites market revenue.

GROWTH OF THE CONSTRUCTION INDUSTRY

Bridges, waterfronts, and other structures require rehabilitation and replacement as a result of aging infrastructure. Composites provide corrosion resistance and durability, which contribute to low maintenance and long service life for structures, resulting in life cycle cost savings and a long-term economic advantage over traditional materials such as steel and concrete. Many promoters in the composites industry, from material suppliers to fabricators, are working to raise awareness about the advantages advanced materials offer for updating infrastructure around the world.

The main applications of composites in architecture include cladding, domes, roofing, structures, bridge decks, full-bridge structures, bridge enclosures, masts and towers, pipes, modular structures, tanks, access covers, water control structures, housings, and refurbishment.

The growing construction industry in developed nations, with increasing investments in residential construction and infrastructure development. This market growth can be attributed to the increase in residential construction with the growing need for single-family dwellings. Moreover, with the European construction companies focusing on vertical integration to gain a competitive edge and expand their presence in other regions, the construction industry is expected to grow significantly during the review period. The construction market is expected to grow by USD 6.4 trillion in 2020 and reach USD 14.4 trillion by 2030.

Sub-Saharan Africa is expected to have the fastest growth in regional construction, followed by emerging Asia. China, India, the United States, and Indonesia account for 58.3% of construction growth. Thus, growth of construction industry is likely to drive the growth of the Composites market revenue.

The Global Composites Market Industry experiences a notable surge in demand for lightweight materials, particularly in the aerospace and automotive sectors. As manufacturers strive to enhance fuel efficiency and reduce emissions, composites offer an attractive solution due to their high strength-to-weight ratio. For instance, the aerospace industry increasingly adopts composite materials to construct aircraft components, contributing to a projected market value of 139.6 USD Billion in 2024. This trend is expected to continue, with the market anticipated to reach 331.9 USD Billion by 2035, indicating a robust growth trajectory.

By Region, the study segments the market into North America, Europe, Asia-Pacific, Latin America and Middle East & Africa. Asia-Pacific Composites market accounted for USD 43.71 billion in 2021 and is expected to exhibit an 8.47% CAGR during the study period. This is attributed to growth in the aerospace & defence, and electrical & electronics industry in the region.

Further, the major countries studied are: The U.S, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 3: COMPOSITES MARKET SHARE BY REGION 2021 (%)Source: Secondary Research, Primary Research, Market Research Future Database and Analyst Review

Europe Composites market accounts for the second-largest market share due to the EU proposal for tightening its 2030 target for new car CO2 emissions to 50% below 2021 levels, up from 37.5 per cent. Automobile manufacturers impose various requirements such as resistance to temperature changes, vibration resistance, operational reliability at different temperatures, and durability on the power electronics systems based on an electric vehicle's application scenario. Moreover, Germany Composites market held the largest market share and was the fastest-growing market in the European region

The North America Composites Market is expected to grow at a CAGR of 7.46% from 2022 to 2030. This is due to growth in the automotive & transportation industry. Further, the USA Composites market held the largest market share and was the fastest-growing market in the region.

The Composites market is characterized by the presence of , regional, and local players. The market is highly consolidated, with all the players competing to gain significant market share. The key market players of Composites compete based on cost, product quality, availability of raw materials, and durability of the product. There has been substantial revenue growth for selected composite companies, particularly those located in Asia or those with major operations in Asia. This is the result of an increased domestic demand within Asian countries, as well as an overall rise in composite demand across the globe.

However, some major companies produce more than one of the composites. A clear example is Teijin, which produces carbon fiber as well as aramid fiber.

PPG Industries, Inc. (US), Hexion (US), Jushi Group Co., Ltd (China), Toray Industries Inc. (Japan), Owens Corning (US), Teijin Limited (Japan), Hexcel Corporation (US), SGL Carbon (Germany), Mitsubishi Chemicals Corporation (Japan), Solvay (Belgium), and Huntsman International LLC (US) are the key players operating in the Composites market. The Composites market remains highly fragmented with the majority of tier-1 players, with leaders, including PPG INDUSTRIES INC, Teijin Limited, Mitsubishi Chemical Corporation, Solvay, and Toray Industries Inc., accounting for the largest market share. Players in this market adopted various strategies to expand their footprint and augment their market share.

PPG Industries, Inc. (PPG), a leader in transportation and industrial coatings, is engaged in the production and distribution of a broad range of paints, coatings, and specialty materials. It caters to customers operating in a wide array of end-use industries, including automotive, aerospace, marine, and construction. PPG operates through two business segments, namely, performance and industrial coating. PPG manufactures an extensive portfolio of coatings systems through 156 manufacturing facilities and has a presence in over 39 countries across the globe and sales in more than 70 countries.

The company offers flooring coating products under the protective coating solutions offered by its performance coatings business segment.

Also, Hexion is engaged in the manufacturing of advanced specialty chemicals and performance materials. It is a leading manufacturer of adhesives and epoxy resins, and coatings. It operates through business segments, namely epoxy, phenolic and coating resins, and forest products resins. The epoxy, phenolic, and coating resins segment accounted for around USD 2,052 million by the end of 2017. The company serves diverse markets, such as architectural and industrial paints, packaging, consumer goods, automotive coatings, aviation, energy, oil & gas, and electrical composites.

Hexion has a worldwide network with production facilities in more than 90 countries severing to over 3,000 customers. Its customers include Akzo Nobel N.V., 3M, BASF, Bayer, Dow, Monsanto, PPG Industries, Owens Corning, Valspar, and Weyerhaeuser.