Thermoplastic Composites Market

INCREASING DEMAND IN AEROSPACE INDUSTRY

The aircraft industry has seen a significant increase in the use of thermoplastic composite materials in recent years. The primary factors are their benefits, which include long storage life, strong resistance to physical and chemical degradation, quick production rate, and recyclability. Thermoplastic composites have become popular in many aircraft applications as a lightweight building material. Furthermore, a range of research and development (R&D) endeavours have been executed to expand its application and enhance its potential within the aerospace sector.

The aerospace segment is expected to be the largest end-user of thermoplastic composites during this period, driven by the increasing demand for lightweight and fuel-efficient aircraft. The aerospace industry is experiencing a period of robust growth and transformation, fuelled by several key factors. These include a surge in air travel, a growing middle class in emerging markets, and increasing demand for more fuel-efficient and environmentally friendly aircraft. This anticipated growth is driving a significant uptake in advanced materials, particularly thermoplastic composites, which offer numerous advantages over traditional materials like metals.

INCREASINGLY STRINGENT ENVIRONMENTAL REGULATIONS AND FUEL EFFICIENCY STANDARDS

Global governments are imposing more strict limitations of greenhouse emissions and consumers are leaning towards eco-sensitive transport via air or road, thus demanding green cars. In response, a relentless pursuit for lighter aerodynamic designs with low fuel consumption is underway and this is where thermoplastic composites come into play for sustainability.

The EU has set gradually stringent CO2 emission regulations for automobiles. By 2030, new vehicles must emit 37.5% less CO2 than in 2021, and vans must meet a 31% reduction target. This is driving automakers to implement lightweight materials like thermoplastic composites in their vehicles to achieve these targets. Also, the International Civil Aviation Organization (ICAO) has formed a Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA), planning to control or curb CO2 emissions from international aviation at 2020 levels.

By enabling significant weight reduction in aircraft, thermoplastic composites contribute to the industry's efforts to comply with CORSIA and mitigate its environmental impact.

RISING DEMAND FOR RECYCLED AND LIGHTWEIGHT MATERIALS

Thermoplastic composites can take advantage of this trend and reduce weight, satisfying the needs of recycling. Increased environmental consciousness, strict exhaust standards for cars and trucks and more demanding fuel efficiency regulations as well as the demand for advanced product properties have become some of the forces behind this move. With these opportunities in mind, leading firms such as BASF and Solvay are now exploiting them by developing new products like recycled-content thermoplastic composites and high-performance polyamide compounds that incorporate post-industrial recycled content.

These advances highlight the potential of thermoplastic composites to offer sustainability while maintaining high performance, thus increasing their attractiveness across various sectors.

The automotive industry is one of the largest consumers of materials and seeks light weight alternatives to enhance fuel consumption and reduce emissions. Consequently, there are opportunities for thermoplastic composites in such an instance since 6–8% fuel economy can be achieved through a 10% reduction in vehicle weight, as stated by the U.S. Department of Energy.

The automotive industry is a primary driver for the Global Thermoplastic Composites Market Industry, as manufacturers increasingly seek lightweight materials to enhance fuel efficiency and reduce emissions. The shift towards electric vehicles further amplifies this demand, as thermoplastic composites offer the necessary strength and durability while minimizing weight. In 2024, the market is projected to reach 31.3 USD Billion, reflecting the automotive sector's commitment to innovation and sustainability. As the industry evolves, the integration of thermoplastic composites is likely to become more prevalent, potentially leading to a compound annual growth rate of 8.31% from 2025 to 2035.

Based on Region, the Thermoplastic Composites Market is segmented into North America, Europe, Asia-Pacific, Middle East & Africa, and Latin America. The Asia-Pacific Thermoplastic Composites Market held the maximum market share and is also expected to account for a significant revenue share during the forecast period. Asia Pacific is a rapidly growing market for thermoplastic composites, driven by the region's booming automotive, aerospace, and construction industries. The increasing demand for lightweight materials in the automotive sector, along with the region's growing middle class and rising disposable income, fuels the adoption of thermoplastic composites in Asia Pacific.

Key market players are emphasizing significantly on R&D for increasing their product offerings, which will further help the Thermoplastic Composites Market to grow considerably. Market players are adopting several business development strategies such as acquisitions, mergers, collaborations, and partnerships to enhance their market presence and acquire a larger customer base. To survive in the competitive market, industry players must provide cost effective products.

The Thermoplastic Composites Market is very competitive with market players trying to develop unique and innovative products and solutions, which could render the competitors’ offerings obsolete. The competitive environment is likely to grow further owing to rising technological advancements. Some of the key players operating in the Thermoplastic Composites Market are BASF SE, Toray Advanced Composites, Arkema, LANXESS, Celanese Corporation, Hexcel Corporation, SABIC, Avient Corporation, SGL Carbon, Solvay. To increase their global reach and client base, key firms are concentrating on acquisitions and product innovation.

BASF SE: BASF SE is one of the leading chemical manufacturers in the world. It operates through eleven divisions that are grouped into six segments: chemicals, materials, industrial solutions, surface technologies, nutrition & care and agricultural solutions. It further manages 52 global and regional business units and develops strategies for 72 strategic business units. Company’s products find applications in a wide array of industries such as automotive, agriculture, construction, electrical & electronics, packaging, paints & coatings, textile and paper & pulp, among others.

BASF has presence in around 91 countries and facilitates the manufacturing of its products through 239 production sites spread worldwide. The company focuses substantially on research and development and had R&D spending of around USD 2.45 billion in 2022. With a strong customer base, BASF caters to around 82,000 customers from numerous sectors globally.  The company primarily operates in Europe and has an active presence in the Americas, Asia-Pacific, Middle East & Africa.

Toray Advanced Composites: Toray Advanced Composites is a subsidiary of the Toray Group and specializes in the development and production of advanced thermoset and thermoplastic composite materials for the manufacturing of lightweight structures for applications in industries including aerospace, automotive, space, consumer goods and industries such as oil & gas. The Toray Group is committed to technological innovation with a strong emphasis on research and development. The company is renowned for its expertise in creating advanced materials, particularly synthetic fibers, films, and carbon fibers.

The types of products offered by the Toray Advanced Composites include thermoplastic, thermoset, composite tooling materials, adhesives & core and compression molded parts. Toray Advanced Composites has a long heritage of combining state-of-the-art materials technology with world-class technical expertise for delivering a customer-centric business model. The company facilitates the manufacturing of its products through its production and operation facilities in North America, Europe, and Asia.