COMPOSITE MARKET ANALYSIS

Market Challenges And Opportunities

Global Composites Market Drivers:

INCREASING DEMAND FOR LIGHTWEIGHT MATERIALS IN AUTOMOTIVE INDUSTRY

Increasing demand for composites in the automotive industry is anticipated to boost the market growth over the forecast period. Rising fuel prices have triggered the need for fuel-efficient vehicles. Composites are most widely utilized as the replacement for aluminum, wood, and steel on account of their higher strength to weight ratio. Growing environmental concerns and stringent regulations regarding pollution control have forced automotive manufacturers to enhance their technologies and develop vehicles having low pollution. One of the most important factors affecting fuel efficiency and vehicular pollution is the overall weight of the vehicle. The presence of stringent environmental regulations in Europe and the U.S. has forced automotive manufacturers to include composites in automotive production. Globally, especially in Europe, regulations are forcing OEMs to significantly reduce the CO2 emissions caused by vehicles.

 For instance, in Europe, regulations to reduce the annual average emission from vehicles about 140 g of CO2 per km to 95 g CO2 per km is expected to benefit the adoption of composites. The U.S. Environmental Protection Agency (EPA) and the Department of Transportation National Highway Traffic Safety Administration (NHTSA) have also set standards to reduce automotive greenhouse gas emissions and increase fuel efficiency which is expected to drive the industry growth.

GROWING UTILIZATION OF COMPOSITES IN INDUSTRIAL SECTORS

Composites are produced using a combination of fibers and matrices. Matrices are generally made of resins including thermoplastics, epoxy, or polyester. One of the major advantages of high-performance composites is their lower mass content as compared to steel and iron. Due to this, a fewer number of materials such as fasteners and joints are required to hold the product together. This not only decreases the overall weight of the product but also increases its stiffness, making it stronger.High-performance composites are characterized by a low CTE (coefficient of thermal expansion), which means their performances are not impacted by extreme temperatures and pressures. This property is of particular importance in industrial applications where machines are subjected to extremely high temperatures.

The commercial aviation industry has increased the utilization of composites to around 50% of the total aircraft weight. For instance, Airbus A350 is built utilizing 52% CFRP, while Boeing 787 Dreamliner is built using 50% CFRP by weight. The surge in demand for commercial aviation is expected to drive the global market over the forecast period.

Global Composites Market Opportunities:

The automotive industry's increasing use of carbon fibre parts, particularly in the electric vehicle category, is anticipated to present the composites market with several opportunities. Electric vehicles are becoming more popular and in demand on the worldwide automobile market. By significantly decreasing car pollution, renowned automakers want to adhere to environmental regulations and emission requirements. As a result, battery-powered vehicles like automobiles and small trucks are becoming more and more popular all over the world.

The global production of electric vehicles witnessed a significant growth of 19.3% in 2019 with a production of over 2 million units and a growth of 22.7% in 2020 with a production of over 2.4 million units and is expected to rise at a considerable rate over the forecast period, which is expected to drive the demand for composites used in niche applications and car parts.