The Asia-Pacific market for aramid fiber is expected to register a CAGR of 8.36% during the forecast period (2018 - 2023). This significant growth is majorly driven by the growing demand for fuel efficiency.
Aramid fibers are essential for meeting the increasing demands from the transportation industry to have a durable system and body parts that offer better performance with lightweight. In a typical automobile, the use of fibers is 50% by volume while adding just 10% to the weight. A vehicle weight reduction of 100 kg saves up to 12.5 g of CO2 emissions every kilometer. In other words, every kilogram weight reduction in a car can save 20 kg greenhouse gas emissions throughout the lifetime of the car. Furthermore, the volatile and gradually increasing gas prices lead to a higher demand for lightweight cars with higher fuel efficiencies. Aramid fiber is also in demand for its use as a sail and hull for boats and aircraft body parts. These demands for lightweight materials in order to attain fuel efficiency and to reduce VOC emissions will lead to an increase in the demand for aramid fiber from the automotive & transportation industry.
Among the end-user industries, automotive holds the highest market share of around 58% of the Asia-Pacific aramid fiber market. In the automotive industry, meta-aramid is majorly used for thermal insulation & spacers, hot gas filtration, cushioning material, and as safety & protective clothing. The automotive production in the Asia-Pacific region has increased by more than 3.3% in 2017, with countries such as India, China, and Thailand, registering the largest production. With the increasing demand for automotive vehicles, especially the high-end cars, the market for aramid fibers in Asia-Pacific is expected to grow at a steady pace during the forecast period.
China registered the largest share of approximately 60% of the aramid fiber market in Asia-Pacific. The demand for aramid fiber in the region is majorly driven by the increase in the defense expenditure and the automotive production. The positive growth in the defense budget valued at USD 174.5 billion in 2018 is expected to increase the use of personal protective equipment in the defense sector, which is expected to in turn increase the usage of aramid fiber in the defense industry through the forecast period. It even registers the highest growth rate in the Asia-Pacific aramid fiber market powered by the emerging fiber optic cable applications. The large market size, coupled with the huge growth rate of the country, is instrumental in the expansion of the Asia-Pacific aramid fiber market.
Major Players: DowDuPont, Teijin Aramid B.V, Yantai Tayho Advanced Materials Co. Ltd, Kolon Industries, and Toray Chemical Korea Inc., among others.
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