Market Trends of Bakelite Industry
Automotive Segment to Dominate the Market
- The automotive industry is expected to be the dominating segment, and the growing need for lightweight, high fuel efficiency, and low emission vehicles widely drives its requirements.
- Composites made with bakelite are 30%-40% lighter than aluminum, as it is one of the key aspects considered by firms engaged in the automotive industry to ensure fuel efficiency.
- According to the International Organization of Motor Vehicle Manufacturers (OICA), global motor vehicle production reached 85,016,728 units in 2022, and the production increased by 5.9 percent when compared to the previous year's data—and motor vehicle production growth year-on-year between the 2021 and 2022 markets at 6 percent.
- Similarly, as per OICA, commercial vehicle production reached 57.49 million units in 2022 and registered growth when compared to 56.44 in 2021.
- Meanwhile, as per The Bureau of Economic Analysis of the United States Department of Commerce, light vehicle retail sales reached 13,754.3 thousand units, registering the lowest production when compared to 14,946.9 thousand units in 2021.
- Further, according to the German Association of the Automotive Industry (Verband der Automobilindustrie), automobile production in Germany reached 3.4 million in 2022 and registered a growth of 9.6 percent when compared to 3.1 million in 2021.
- Hence, such favorable trends in the automotive industry are likely to enhance the demand for bakelite materials during the forecast period.
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Asia-Pacific Region to Dominate the Market
- Asia-Pacific region is expected to be the largest and fastest-growing market for the electronics and power generation industry. Factors such as innovations and the emergence of advanced technologies in the electronics industry are expected to drive market growth.
- Bakelite consumption has witnessed rapid growth on account of increasing consumption in major end-user segments, such as semiconductors, inexpensive games, and automotive brake pads.
- According to the OICA, Asia-Pacific has led global automobile production in recent years. China is the largest producer of automobiles in the country. In 2022, China produced over 23.84 million units of passenger cars and remained at the top, followed by Japan with 6.57 million units,
- According to the China Association of Automobile Manufacturers(CAAM), In 2022, approximately 23.56 million passenger cars and 3.3 million commercial vehicles were sold in China.
- Additionally, initiatives under the Clean Energy Ministerial (CEM), like the electric vehicle initiative and the growing popularity of electric vehicles, are likely to drive the consumption of bakelite in the near future.
- Similarly, As per the Ministry of Industry in Indonesia in 2022, there was a significant increase in the investment value of the electronics manufacturing industry, reaching approximately IDR 7.5 trillion (USD 535.7 ) in 2022 from IDR 3.3 trillion (USD 235.7 ) the previous year, indicating a growth of 127%. This boosts the industrial film market as it is essential in the electronics manufacturing sector for protection and process enhancement.
- Hence, all such market trends are expected to drive the demand for the bakelite market in the region during the forecast period.
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