Composite Material Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Market Overview

The Composite Material Market is projected to register a CAGR of over 5% during the forecast period (2021-2026).

The market was negatively affected due to COVID-19 in 2020. Owing to pandemic scenario, several countries around the world went into lockdown to curb the spreading of virus. Manufacturing activities and construction work were halted due to supply chain disruptions and labour shortages or as a protective measure to stop the spread of virus, thereby negatively affecting the market. However, the conditions are expected to recover in 2021, which will restore the growth trajectory of the market studied, further benefitting the market over the forecast period.

• Over the short term, technological advancements in the field of material science and increasing use of composites in aerospace and defense industry are driving the market growth.
• On the flipside, negative impact of COVID-19 pandemic and high cost of composite materials are hindering the growth of the market studied.
• North America accounts for the largest market share and Asia-Pacific is expected to register highest growth rate during the forecast period.
• Among the applications, aerospace & defense application dominated the market studied and is expected to dominate the market studied during the forecast period.

Scope of the Report

Composite materials are made by combining two or more materials with different properties, without blending or dissolving them into each other. The global composite material market is segmented by resin, fiber type, coatings, adhesives, end-user industry, and geography. By resin, the market is segmented into Thermoset Resin and Thermoplastic Resin. By fiber type, market is segmented into Glass Fiber, Carbon Fiber, Aramid Fiber, and Others. By coatings, market is segmented into Gel Coat and Surface Veil. By Adhesives, the market is classified into Epoxies, Bismaleimide, Cyanate Ester, Modified Acrylics, Polyurethanes, and Silicones. By end-user industry, the market is segmented into Construction, Transportation, Electronics & Electrical, Healthcare, Power Generation, Industrial, Aerospace & Defense, Marine, and Others. The report also offers market size and forecasts for 15 countries across major regions. For each segment, market sizing and forecasts have been done on the basis of revenue (USD million).

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Key Market Trends

Carbon Fiber Type to Witness the Highest Growth

• Over the past years there have been a number of changes in the application areas for carbon fiber. Aerospace & defense applications have grown significantly and are now the largest consumers of carbon fiber.
• At present, the aerospace and defense industry are in a “supercycle”, mainly due to huge order backlogs, which may drive production in the industry over the next decade, thus increasing the demand for carbon fiber over the forecast period.
• According to Boeing Commercial Market Outlook 2020–2039, 43,110 aircrafts are expected to be delivered during 2020-2039. Of this regional flight deliveries are 2,430 units, single aisle are 32,270 units, widebody aircrafts at 7,480 units, and 930 freighter deliveries.
• The automotive segment is becoming increasingly obsessive with consumption of carbon fiber and has increased significantly over the past years. This is mainly because of the factors relating to the reduction of CO2 emissions, lightweight construction and e-mobility.
• Despite an encouraging term of growth in the automotive sector during the past decade, the momentum slowed down in recent years. The sales and production of new vehicles are going down in various parts of the world, including Europe, Asia-Pacific, and the United States. This affected the previously growing automotive production in most nations. Business models, the markets, and the competitive landscape are undergoing changes.​​ This may affect the demand for carbon fiber in the sector.
• According to the OICA data, the global automotive production declined by around 5% and reached 91.78 million in 2019. ​The production further declined and reached to 77.62 million in 2020. The huge downfall in 2020 was due to the impact of COVID-19.
• However, with growing concerns related to environmental pollution from petrol and diesel-based vehicles, the production of electric vehicles is expected to pick up pace over the next five years. This is likely to drive the demand for carbon fiber type and consequently drive the composite material market over the forecast period.
• According to IEA, in 2030, global electric vehicle sales are expected to reach 125 million as per the New Policies Scenario (excluding two/three-wheelers). In the [email protected] Scenario, in 2030, around 70% of the vehicle sales in China are expected to be EVs. Also, half of the vehicles sold in Europe are EVs, 37% in Japan, 30% in Canada and the United States, and 29% in India.
• Hence, owing to the above-mentioned factors, carbon fiber is expected to witness the highest growth rate during the forecast period.

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