Aramid Fiber Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

The Aramid Fiber Market is Segmented by Product Type (Para-aramid and Meta-aramid), End-user Industry (Safety and Protection Equipment, Aerospace, Automotive, Electronics and Telecommunication, and Other End-user Industries), and Geography (Asia-Pacific, North America, Europe, South America, and Middle-East and Africa). The report offers the market size and forecasts for in value (USD million) for all the above segments.

Market Snapshot

Aramid Fiber Market - Market summary
Study Period: 2016 - 2026
Base Year: 2020
Fastest Growing Market: Asia Pacific
Largest Market: Europe
CAGR: >4 %

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Market Overview

The aramid fiber market was valued at USD 3,968.97 million in 2020, and it is projected to register a CAGR of over 4% during the forecast period (2021-2026).

The market was negatively impacted by COVID-19 in 2020. During the pandemic scenario, end-user industries such as automotive, aerospace, and electronics halted their production temporarily, leading to a decrease in demand for products made up of aramid fibers, which in turn, negatively impacts the demand in the studied market. According to the International Civil Aviation Organization (ICAO), the overall number of passengers had fallen by 92% globally, as of April 2020, when compared to the same months of 2019, and the international traffic had fallen by 98%, decreasing the growth of the aerospace industry, which negatively impacts the market demand for aerospace materials like aramid fiber.

Over the short term, the increase in defense spending by many countries and the growing demand for aramid fiber from the aerospace sector are expected to drive the market's growth.

On the flip side, the availability of alternatives with better properties such as glass fibers and the negative economic impacts of COVID-19 are projected to hinder the growth of the market studied.

Europe dominated the aramid fiber market, followed by North America and Asia-Pacific, with the largest consumption coming from countries such as Germany, the United Kingdom, France, and Italy.

Scope of the Report

Aramid fiber is a man-made, high-performance organic fiber that is manufactured from aromatic polyamides. The key characteristics of aramid fiber include high strength, good resistance to heat, abrasion, and organic solvents, non-conductivity, and low flammability. It is mainly used for applications such as composites, ballistics, optical fiber cables, protective clothing against heat and chemicals, and others. The aramid fiber market is segmented by product type, end-user industry, and geography. By product type, the market is segmented into para-aramid and meta-aramid. By end-user industry, the market is segmented into safety and protection equipment, aerospace, automotive, electronics and telecommunication, and other end-user industries. The report also covers the market size and forecasts for the aramid fiber market in 16 countries across major regions. For each segment, the market sizing and forecasts have been done on the basis of value (USD million).

By Product Type
Para-aramid
Meta-aramid
By End-user Industry
Safety and Protection Equipment
Aerospace
Automotive
Electronics and Telecommunication
Other End-user Industries
Geography
Asia-Pacific
China
India
Japan
South Korea
Rest of Asia-Pacific
North America
United States
Canada
Mexico
Europe
Germany
United Kingdom
Italy
France
Russia
Rest of Europe
South America
Brazil
Argentina
Rest of South America
Middle-East and Africa
Saudi Arabia
South Africa
Rest of Middle-East and Africa

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Key Market Trends

Automotive Industry Dominated the Market

In the automotive industry, aramid fibers are used in the manufacturing of reinforcement materials for tires, turbocharger hoses, powertrain components, belts, brake pads, gaskets, clutches, seat fabrics, electronics, seat sensors, and hybrid motor materials.

Additionally, the high thermal resistance of aramid fibers makes them ideal for the manufacturing of heat shields and under bonnet applications.

In recent years, there has been a shift toward lightweight automobiles. Owing to this, car manufacturers are designing lighter vehicles by replacing metal with composites based on aramid fiber to make them light, tough, and recyclable. The growing demand for lightweight vehicles is favoring the aramid fiber market.

Aramid fibers find major applications in automobile racing events. They are becoming a major alternative for fiberglass-reinforced plastic in racing automobiles, as they do not shatter and leave debris in case of a crash.

However, the global automotive industry has witnessed a downfall in recent times. According to the OICA, around 77.62 million vehicles were produced globally in 2020 compared to 92.18 million vehicles in 2019, witnessing a decreasing growth rate of about 15.8%.

The decline can be majorly attributed to the reduced production in the major automotive hubs such as the United States, China, Japan, and Germany. In 2020, these countries witnessed a decline of 19%, 2%, 17%, and 24%, respectively, compared to 2019.

Therefore, the aforementioned factors are expected to have a significant impact on the market in the coming years.

Aramid Fiber Market - Segmentation

Germany to Dominate the European Market

The German economy is the largest in Europe and the fourth-largest in the world. According to the International Monetary Fund (IMF), the percentage change in the real GDP growth of the country accounted for -4.9% in 2020, and it has been estimated that there is a +3.6% change in the real GDP in 2021.

Germany leads the European automotive market, with 41 assembly and engine production plants that contribute to one-third of the total automobile production in Europe. Germany, which is one of the leading manufacturing bases of the automotive industry, is home to manufacturers from different segments, such as equipment manufacturers, material and component suppliers, engine producers, and whole system integrators.

According to the OICA, the total number of cars and light commercial vehicles (LCV) produced in Germany amounted to about 4.95 million units in 2019 and reached 3.74 million units in 2020, with a decline rate of 24.4%. The country has been witnessing this decline in automotive production over the past few years. This is mainly due to high costs, shifting of the production base to other countries (like China), and the introduction of new WLTP emission control regulations (as numerous manufacturers were unable to register their new products).

Germany, being one of the leading manufacturing bases for the aircraft industry, is home to manufacturers from different segments, such as equipment manufacturers, material and component suppliers, engine producers, and whole system integrators. The Federal Ministry of Economic Affairs and Energy lists aerospace as a key industry in Germany, with a strong industrial core and high growth rates expected to be witnessed in the years to come.

The German aerospace industry includes more than 2,300 firms located across the country, with northern Germany recording the highest concentration of firms. The country hosts many production bases for aircraft interior components and materials, largely in Bavaria, Bremen, Baden-Württemberg, and Mecklenburg-Vorpommern.

In Hamburg, Germany, Airbus inaugurated an automated fuselage-structure assembly line for narrow-body aircraft of the A320 family with a new concept for the industrial production network of Airbus in October 2019. This new line is designed to assemble the longer parts for the A321LR and includes 20 robots with a new logistics model, laser-assisted automatic positioning, and digital data. This site is also involved in the manufacturing and equipping of the A330 and A350 XWB jetliners family.

In March 2019, Germany's Lufthansa ordered 20 new Boeing 787-9 planes and 20 Airbus A350-900s long-haul jets, which will be delivered from late 2022 to 2027.

Furthermore, in November 2020, Airbus signed a contract to deliver 38 new Eurofighter aircraft, including 30 single-seater and 8 twin-seater Eurofighters, to the German Air Force.

All the aforementioned factors are projected to have a significant impact on the market growth in the coming years.

Aramid Fiber Market - Regional Trend

Competitive Landscape

The aramid fiber market is highly consolidated with the top two players. Key companies in the market include TEIJIN LIMITED, DuPont, Yantai Tayho Advanced Materials Co. Ltd, Kolon Industries Inc., and HYOSUNG, among others.

Recent Developments

In May 2020, HYOSUNG signed an MOU for investment in the expansion of the latter′s Aramid factory in Ulsan City of South Korea. Under this MOU, HYOSUNG plans to invest a total of USD 54 million in its Aramid factory in Ulsan, finish the expansion by the first half of 2021, and expand the factory′s production capacity from 1,200 ton to 3,700 ton a year.

In November 2019, TEIJIN LIMITED moved into the second phase of the planned 25% capacity expansion for its Twaron aramid fibers. The capacity increase is expected to take place by 2022 in two of its factories located in the Netherlands, at Delfzijl and Emmen, which enhances the company's business.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Drivers

      1. 4.1.1 Increase in Defense Spending by Many Countries

      2. 4.1.2 Growing Demand from the Aerospace Sector

    2. 4.2 Restraints

      1. 4.2.1 Available Alternatives with Better Properties

      2. 4.2.2 Impact of COVID-19 Pandemic

    3. 4.3 Industry Value Chain Analysis

    4. 4.4 Porter's Five Forces Analysis

      1. 4.4.1 Bargaining Power of Suppliers

      2. 4.4.2 Bargaining Power of Buyers

      3. 4.4.3 Threat of New Entrants

      4. 4.4.4 Threat of Substitute Products and Services

      5. 4.4.5 Degree of Competition

  5. 5. MARKET SEGMENTATION

    1. 5.1 By Product Type

      1. 5.1.1 Para-aramid

      2. 5.1.2 Meta-aramid

    2. 5.2 By End-user Industry

      1. 5.2.1 Safety and Protection Equipment

      2. 5.2.2 Aerospace

      3. 5.2.3 Automotive

      4. 5.2.4 Electronics and Telecommunication

      5. 5.2.5 Other End-user Industries

    3. 5.3 Geography

      1. 5.3.1 Asia-Pacific

        1. 5.3.1.1 China

        2. 5.3.1.2 India

        3. 5.3.1.3 Japan

        4. 5.3.1.4 South Korea

        5. 5.3.1.5 Rest of Asia-Pacific

      2. 5.3.2 North America

        1. 5.3.2.1 United States

        2. 5.3.2.2 Canada

        3. 5.3.2.3 Mexico

      3. 5.3.3 Europe

        1. 5.3.3.1 Germany

        2. 5.3.3.2 United Kingdom

        3. 5.3.3.3 Italy

        4. 5.3.3.4 France

        5. 5.3.3.5 Russia

        6. 5.3.3.6 Rest of Europe

      4. 5.3.4 South America

        1. 5.3.4.1 Brazil

        2. 5.3.4.2 Argentina

        3. 5.3.4.3 Rest of South America

      5. 5.3.5 Middle-East and Africa

        1. 5.3.5.1 Saudi Arabia

        2. 5.3.5.2 South Africa

        3. 5.3.5.3 Rest of Middle-East and Africa

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements

    2. 6.2 Market Share Analysis

    3. 6.3 Strategies Adopted by Leading Players

    4. 6.4 Company Profiles

      1. 6.4.1 China National Bluestar (Group) Co. Ltd

      2. 6.4.2 DuPont

      3. 6.4.3 Hebei Silicon Valley Chemical Co. Ltd

      4. 6.4.4 Huvis

      5. 6.4.5 HYOSUNG

      6. 6.4.6 KERMEL

      7. 6.4.7 Kolon Industries Inc.

      8. 6.4.8 Shenma Industrial Co. Ltd

      9. 6.4.9 SINOPEC YIZHENG CHEMICAL FIBRE LIMITED LIABILITY COMPANY

      10. 6.4.10 Suzhou Zhaoda Specially Fiber Technical Co. Ltd

      11. 6.4.11 TEIJIN LIMITED

      12. 6.4.12 TORAY INDUSTRIES INC.

      13. 6.4.13 Wuxi Heshengyuan Carbon Fiber Technology Co. Ltd

      14. 6.4.14 X-FIPER New Material Co. Ltd

      15. 6.4.15 Xiamen Chao Yu Environmental Protection Technology Co. Ltd

      16. 6.4.16 Yantai Tayho Advanced Materials Co. Ltd

    5. *List Not Exhaustive
  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

    1. 7.1 Emerging Applications in the Optical Fiber Industry

    2. 7.2 Market Expansion of Unmanned Aerial Vehicles (UAV)

    3. 7.3 Other Opportunities

**Subject to Availability

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Frequently Asked Questions

The Aramid Fiber Market market is studied from 2016 - 2026.

The Aramid Fiber Market is growing at a CAGR of >4% over the next 5 years.

The Aramid Fiber Market is valued at 3968 Million USD in 2016.

Asia Pacific is growing at the highest CAGR over 2021- 2026.

Europe holds highest share in 2020.

TEIJIN LIMITED, DuPont, Yantai Tayho Advanced Materials Co., Ltd., Kolon Industries, Inc., HYOSUNG are the major companies operating in Aramid Fiber Market.

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