Sheet Molding Compound SMC Market

Growing demand for bio-based materials in the automotive industry is driving the market growth

Market CAGR for sheet molding compound (SMC) is driven by the growing demand for bio-based materials in the automotive industry. Automotive Original Equipment Manufacturers adopt sheet molding compounds to reduce weight and fuel consumption. Sheet molding compound (SMC) are lightweight and tough, and resistant to aluminum sheets. Automotive manufacturers utilize sheet molding compound (SMC) compounds for protection against impact dings, dents, and rust compared to traditional steel decks. According to European Automobile Manufacturers' Association (ACEA), 79.1 million motor vehicles were produced worldwide in 2021, with an increase of 1.3% compared to 2020.

Sheet molding compound (SMC) are procured for manufacturing Electric Vehicle (EV) battery enclosures.

Furthermore, several leading automotive companies focus on using sustainable materials and adopting bio-based sheet compounds to make concept cars. For instance, in August 2022, Ford Motors and John Deer collaborated to build a gator UTV concept. The tolerable roofing parts consist of bio-based sheet molding compound (SMC). These product innovations are projected to drive the sheet molding compound (SMC) market revenue over the forecast period.

Sheet molding compound (SMC) are highly utilized in transportation applications due to properties such as lightweight and good mechanics. They are corrosion, fire, and stain resistant and exhibit electrical insulation. As a result of several unique perceived benefits, SMC and BMC are being preferred over traditional materials such as steel, iron, and aluminum. With the rise in demand for solid compounds and lightweight materials, automobile manufacturers are likely to reduce their dependence on steel and are shifting toward adopting sheet molding compound (SMC).

Moreover to the inherent limitations of metals as well as an increase in prices, various manufacturers use thermoset composites as a replacement for metal for high-performance applications, which, in turn, promotes the growth of the sheet molding compound (SMC) market. The directly proportional relationship between the weight of the materials used in manufacturing and the consumption of fuels has shifted the preference of many manufacturers toward lightweight materials.

The Global Sheet Molding Compound (SMC) Market Industry is on a trajectory of growth, with projections indicating a compound annual growth rate (CAGR) of 4.19% from 2025 to 2035. This growth is driven by various factors, including the increasing demand for lightweight materials across multiple sectors, advancements in manufacturing technologies, and the expanding applications of SMC in renewable energy and construction. The market is expected to reach 1.65 USD Billion by 2024 and further expand to 2.59 USD Billion by 2035. These figures reflect the growing recognition of SMC as a versatile material that meets the evolving demands of modern industries.

The Global Sheet Molding Compound (SMC) Market Industry is experiencing a surge in demand from the automotive sector, driven by the need for lightweight materials that enhance fuel efficiency. SMC is increasingly utilized in manufacturing components such as body panels and structural parts. This trend is particularly evident as automotive manufacturers aim to reduce vehicle weight, thereby improving performance and lowering emissions. The global automotive industry is projected to grow significantly, with SMC playing a crucial role in this transformation. As a result, the market for SMC in automotive applications is expected to expand, contributing to the overall growth of the Global Sheet Molding Compound (SMC) Market Industry.

Emerging economies are becoming pivotal in the growth of the Global Sheet Molding Compound (SMC) Market Industry. Countries in Asia-Pacific and Latin America are experiencing rapid industrialization and urbanization, leading to increased demand for SMC in various applications, including automotive, construction, and consumer goods. The rising middle class in these regions is driving consumption patterns that favor lightweight and durable materials. As infrastructure development accelerates in these economies, the adoption of SMC is likely to rise, contributing to the overall market growth. This trend suggests a robust future for the Global Sheet Molding Compound (SMC) Market Industry, as it adapts to the evolving needs of these burgeoning markets.

The Global Sheet Molding Compound (SMC) Market Industry is poised to benefit from the increasing adoption of renewable energy technologies. SMC is utilized in the production of components for wind turbines and solar panels, where its lightweight and durable properties are advantageous. As countries worldwide commit to reducing carbon emissions and transitioning to sustainable energy sources, the demand for SMC in these applications is likely to rise. This shift towards renewable energy is expected to drive the market growth, with projections indicating that the Global Sheet Molding Compound (SMC) Market Industry could reach 1.65 USD Billion by 2024, reflecting the material's critical role in supporting sustainable development.

The Global Sheet Molding Compound (SMC) Market Industry is witnessing an expansion in applications within the construction sector. SMC is favored for its strength, durability, and resistance to environmental factors, making it suitable for various construction components, including panels, facades, and roofing materials. The construction industry is increasingly focusing on sustainable building practices, and SMC aligns well with these goals due to its recyclability and low environmental impact. As urbanization continues to rise globally, the demand for innovative construction materials like SMC is expected to grow, further propelling the Global Sheet Molding Compound (SMC) Market Industry towards a projected value of 2.59 USD Billion by 2035.

Innovations in manufacturing processes are significantly influencing the Global Sheet Molding Compound (SMC) Market Industry. Advances such as automated production techniques and improved curing methods enhance the efficiency and quality of SMC products. These technological improvements allow for greater precision in component design and production, which is essential for meeting the stringent requirements of various industries. As manufacturers adopt these advanced techniques, the overall production capacity and quality of SMC are expected to improve, thereby attracting more industries to utilize SMC. This trend indicates a promising future for the Global Sheet Molding Compound (SMC) Market Industry, as it aligns with the growing demand for high-performance materials.

By region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The Asia Pacific sheet molding compound (SMC) market area will dominate this market over the forecast period. The region is known as an automotive original equipment manufacturer hub with the presence of prominent industry leaders such as Toyota, Suzuki, Nissan, and Tata, among others. This region is majorly contributing to exports, driving demand for consumer goods and the production of automobile components.

Moreover, the China sheet molding compound (SMC) market held the largest market share, and the India sheet molding compound (SMC) market was the fastest-growing market in the Asia Pacific region.

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

Figure 2: SHEET MOLDING COMPOUND (SMC) MARKET SHARE BY REGION 2022 (%) 

Source: Secondary Research, Primary Research, Market Research Future Database, and Analyst Review

Europe sheet molding compound (SMC) market accounts for the second-largest market share due to the rapid adoption of sheet molding compound (SMC) in an electric vehicles is driving market revenue growth in this region. Sheet molding compound (SMC) are utilized as an enclosure for an electric vehicle battery. Further, the German sheet molding compound (SMC) market held the largest market share, and the UK sheet molding compound (SMC) market was the fastest-growing market in the European region.

The North America sheet molding compound (SMC) market is expected to grow at the fastest CAGR from 2023 to 2032. This is due to the increasing adoption of sheet molding compound (SMC) in the automotive and energy industries is driving market revenue growth in this region. Moreover, the Canada sheet molding compound (SMC) market held the largest market share, and the US sheet molding compound (SMC) market was the fastest-growing market in the North America region.

Leading market players are investing heavily in research and development to expand their product lines, which will help the sheet molding compound (SMC) market grow even more. Market participants are also undertaking several strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, the sheet molding compound (SMC) industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics manufacturers use in the sheet molding compound (SMC) industry to benefit clients and increase the market sector. Major players in the sheet molding compound (SMC) market, including POLYTEC Holding AG, IDI Composites International., Polynt, TEIJIN LIMITED., Premix Group, MENZOLIT, Huayuan Advanced Materials Co., Ltd, Core Molding Technologies., Changzhou City Jiangshi Composite Technology Co. Ltd., and others, are attempting to increase market demand by investing in research and development operations.

Japan Composite Co., Ltd. was founded in 1997. The company manufactures and sells agarwood, a synthetic biomass resin material for industrial and architectural purposes. They also work on processing synthetic biomass resins such as garbage bags, rice bags, and kitchen bags. In August 2020, Japan Composite Co., Ltd. agreed to acquire the sheet molding compound (SMC) and molding operations of DIC Kako Inc. The two companies signed the contract for the deal and started their operations on December 1, 2020.

GE Renewable Energy is an American wind turbine manufacturer division of General Electric focusing on producing energy from renewable sources. Its portfolio of products such as wind, hydroelectric, and solar (concentrated and photovoltaic) power-generating solutions. In April 2021, GE Renewable Energy's Grid Solutions business and Hitachi ABB Power Grids Ltd announced an agreement on using an alternative gas to sulfur hexafluoride (SF₆) for use in high-voltage equipment. The company also revealed that the partnership would help accelerate using fluoro nitrile-based eco-efficient insulation and switching gas in high-voltage equipment as an alternative to SF₆ gas.