Composite Material Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023-2028)

Key Highlights

• Recent improvements in technological advancements such as Nanotechnology, Out-of-Autoclave (OOA) Curing, and others in composite material manufacturing are expected to drive the growth of the market.
• On the flip side, high manufacturing cost resulting in a higher price for the end-user market is expected to hinder the market growth.
• Transportation application is expected to dominate the market studied in the forecasted period
• North America is one of the largest market share and Asia-Pacific is expected to have a highest growth rate during the forecasted period.

Composite Material Market Trends

Rising Demand from Transportation sector

• Composites are made up of two or more materials that have diverse physical and chemical characteristics. Polymer composites have long been proposed as a replacement for heavier metal components in the automobile industry, offering weight savings while retaining other desirable features such as mechanical strength. Carbon Fibre is the most preferred polymer composite for this application.
• Carbon Fiber is an advanced composite material used in a wide range of applications from Automotive to sports equipment and even in the most advanced industries such as Aerospace, Defense, and other industries.
• The number of carbon fiber manufacturers are increasing year on year due to its heavy demand in various markets. For instance, in 2021, there were 58 carbon fiber producers in the United States, up from 17 in the previous decade.
• Because of their high specific strength and/or modulus, composites have long been hailed as the materials of the future, making them appealing choices for aircraft applications. In the latest Boeing 787 Dreamliner aeroplane, the amount of composites has climbed to 50%.
• According to OICA, global automotive production increased from 77.71 million units in 2020 to 80.15 million units in 2021 with a y-o-y growth of 3.1 %.
• Global efforts towards zero emissions by 2050 is another significant driver for composites in automotive industry, which in turn is leading to rapid development, innovation, and production of electric vehicles (EVs)
• In an effort to combat climate change, the UK government recently pledged to decrease 68% of CO2 emissions by 2030. To achieve this goal, new petrol and diesel automobiles woulds be be prohibited, and almost half of the UK's vehicles must be electric by the same year. This entails to replacing 16.1 million automobiles with electric vehicles (EVs), with only about 200,000 EVs now registered in the UK.
• Hence, owing to the above-mentioned factors, tranportation sector is expected to witness the highest growth rate during the forecast period.

Asia-Pacific to Witness the Highest Growth Rate

• Asia-Pacific region accounts for the highest share of composite material market owing to high demand from end-user industries like construction, automotive, electrical & electronics, aerospace & defense, Industrial, etc.
• The demand for composite material in the Asia-Pacific region is growing at a staggering rate as a result of rapid industrialisation in countries such as China, India, and Japan.
• The demand for composite materials is surging every year with the increase in its application in various industries. In China the supply of Carbon fiber, which is an advanced composite fiber, amounted to around 19,250 metric tonnes in the year 2021 according to CompositesWorld.
• According to OICA, automotive production in China was at around 26.08 million units with a y-o-y growth of 3% from the previous year where the production was at around 25.22 million units. The steady increase in Automotive sector would promote the growth of the composite market during the studied period.
• According to ITA, Japan's total domestic production of medical devices was around USD 24 billion whereas it was around USD 22.7 billion in 2020 and increasing dependancy on medical equipments post COVID-19 would further boost the composite market.
• As per Inverted, a lithium battery manufacturer, India’s ESDM (Electronics System Design & Manufacturing) sector is expected to reach USD 220 billion by 2025 and electronics manufacturing has been a crucial component of several government initiatives, including 'Make in India,' 'Digital India,' and 'Start-up India.' This factor would act as a potential growth opportunity for the studied market.
• According to JEC Korea, South Korea has a strong composites sector, with local processors and carbon fibre and resin suppliers, and the nation will continue to be at the forefront of composite material and method innovations. The government of South Korea has committed substantial resources to bolstering the country's carbon fibre sector.
• Increased usage of lightweight and extremely stiff carbon fibre is predicted to be stimulated by more rigorous environmental restrictions and the upgrading of environmental frameworks, such as the Sustainable Development Goals (SDGs) and the Paris Agreement. Asia's demand is said to be increasing, particularly in the domains of sports and outdoor activities, industrial, and aircraft.
• Owing to these prevailing market trends, the Asia-Pacific region is expected to dominate the global market.

Composite Material Market Competitor Analysis

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• The market estimate (ME) sheet in Excel format
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