Composite Market Analysis: Trends, Challenges, and Opportunities
The composite market consists of products made by combining two or more materials such as resins and fibers to offer improved strength, durability and lightweight properties. Composite materials find extensive applications in transportation, construction, wind energy, aerospace and defense industries owing to their high mechanical strength, corrosion resistance and design flexibility. Growing awareness about eco-friendly materials and stringent emission norms are fueling adoption of composites in automotive to reduce vehicle weight and boost fuel efficiency.
The Global Composite Market is estimated to be valued at US$ 100.31 Bn in 2024 and is expected to exhibit a CAGR of 7.4% over the forecast period from 2024 to 2031
Key Takeaways
Key players operating in the composite market are Companies de, Saint-Gobain S.A., Momentive Performance Materials, Inc., Kineco Limited, Veplas Group, China Jushi Group Co., Ltd., Braj Binani Group, Guardian Fibre Glass. Major players are focusing on R&D to develop advanced engineered composite materials for applications in aerospace, industrial and infrastructure sectors.
The rising demand for lightweight and high-performance materials from automotive, aviation, marine and wind energy industries is a key driver for the growth of the composite market. Composites help reduce weight and improve fuel efficiency of vehicles. Additionally, excellent mechanical and chemical resistance properties of composites make them suitable for use in medical, electronics and industrial equipment industries.
The global composite market is estimated to witness high growth in Asia Pacific region primarily driven by increasing adoption in wind energy and construction applications in China and India. North America and Western Europe are also expected to maintain their leading positions owing to widespread use of composites in aerospace and automotive verticals over the forecast period.
Market Key Trends
One of the key trends gaining traction in the composite market is the growing demand for carbon fiber composites. Carbon fiber composites offer high strength to weight ratio and resistance to heat, corrosion and fatigue. Leading automotive manufacturers are extensively using carbon fiber materials in premium vehicles to reduce weight and improve fuel economy. Additionally, rising investments in green energy have boosted adoption of carbon fiber composites in wind turbine blades over the past few years.
Porter’s Analysis
Threat of new entrants: Composite manufacturing requires large capital investment and established distribution channels which make entering difficult.
Bargaining power of buyers: Buyers have moderate bargaining power given the diverse product range offered by manufacturers and possibility of substitution.
Bargaining power of suppliers: Suppliers of raw materials like fiberglass, epoxy and carbon have lower bargaining power due to availability of substitutes.
Threat of new substitutes: Aluminum and steel have been substituting composites in certain applications but composites hold advantages in terms of strength and weight.
Competitive rivalry: Intense competition exists between major players to gain market share through product innovation and expansion into emerging regions.
Geographically, the North American market accounts for over 35% of overall composite demand majorly driven by transportation, aerospace and construction applications in the region.Followed by Europe which contributes over 25% owing to strong presence of automotive and wind energy industries.
The Asia Pacific region is expected to witness highest growth during the forecast period supported by increasing domestic demand from end use industries and expanding manufacturing facilities by prominent players in China, India and other Southeast Asian nations.
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