Glass Filled Nylon Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Global Glass Filled Nylon Market is projected to register a CAGR of  more than 4% during the forecast period (2021-2026).

The glass-filled nylon market is badly affected by COVID-19. Glass-filled nylon is usually used in the automobile industries in manufacturing windshields. COVID-19 has negatively impacted the automotive market. The automobile production in 2020 has witnessed a decline of 15.8% compared to 2019. The decline in production is due to the pandemic situation and shutdown of manufacturing facilities around the globe. However, as the markets have slowly opened, and the manufacturing plants resumed production in the second half of 2020 which is an encouraging sign for the glass-filled nylon market.

Key Highlights

• Over the medium term, the major factor driving the growth of the market is the developing electric vehicles industry which is expected to rise further in the coming years.
• The automotive industry is anticipated to dominate the glass-filled nylon market across the globe during the forecast timeline.
• Asia-Pacific region is expected to dominate the glass-filled nylon market globally owing to the high demand for product consumption in the automotive and electrical & electronics industry from the region.

Key Market Trends

Automotive Segment to Dominate the Market

• Glass Filled Nylon has been widely utilized in the automotive business effectively owing to its highly rigid nature, high mechanical quality, high level of hardness, and durability. In addition to this, they possess high dimensional security, great fatigue strength, and high mechanical damping properties.
• The above-mentioned properties make this material reasonable for use in parts that are presented to high static loads over significant stretches in high-temperature conditions. As glass fibers tend, at times, to have an impressive rough impact on mating surfaces, these glass fibers strengthened materials are less reasonable for sliding applications.
• Moreover, the automotive industry represented a major share of the market because of the significance of vehicle weight reduction and expansion in guidelines for less fuel utilization of vehicles. Glass-filled nylon yields higher elasticity and dimensional security to motor parts. It is utilized in car motor spreads, parts inside the motor compartment, and under the hood of vehicles.
• However, the decline in the automobile production has negatively affected the demand for glass filled nylon in the past few years.According to the OICA, around 77.62 million vehicles were produced globally in 2020 compared to 92.18 million vehicles that were produced in 2019, witnessing a decreasing growth rate of about 15.8%.
• The decline is majorly attributed to the reduced production in the major automotive hubs such as United States, China, Japan, and Germany. In 2020, these countries witnessed a decline of 19%, 2%, 17%, and 24% respectively compared to 2019.
• All the aforementioned factors are expected to negatively affect the glass filled nylon market during the forecast period.

Asia-Pacific Region to Dominate the Market

• Asia-Pacific region holds a prominent share in the glass-filled nylon market globally because of the presence of large end-user industries in the region.
• Chinese automotive manufacturing industry is the largest in the world. The industry witnessed a slowdown in 2018, wherein production and sales declined. A similar trend continued, with production witnessing a 7.5% decline in 2019. Additionally, the production volume has reached 25.23 million vehicles in 2020, registering a decline rate of about 2% compared to 2019.
• As the pandemic spread, many auto companies across the country shut down their manufacturing activities due to the nationwide shutdown. In addition to the auto companies based in Hubei, Tesla’s new factory in Shanghai was shut down and postponed the production date of its Model 3. Moreover, Volkswagen postponed the production at all of the Chinese plants that it runs in partnership with SAIC.
• In 2020, According to Zvei, the revenue fall rate of the electrical & electronics industry in the Asia-Pacific region is 3% and is expected to bounce back by 6% in the year 2021. Moreover, China accounts for about 40% of the electronics industry worldwide.
• The electrical and electronics manufacturing sector is one of the most prominent sectors in the ASEAN region. This sector accounts for nearly 30%-35% of the total exports from the region.
• Thus, rising demand from various industries is expected to drive the market studied in the region during the forecast period.

Competitive Landscape

The global glass-filled nylon market is partially fragmented in nature. Some of the players in the market include BASF SE, Arkema, LANXESS, Ascend Performance Materials, and Asahi Kasei Corporation, among others.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support