The market for thermoplastic composites is expected to grow at a CAGR of more than 5% during the forecast period. One of the major factors driving the market studied is the increasing demand from the transportation sector. However, challenges to form composites from fiber reinforcements are likely to restrain the market.
- Increasing investments in aerospace and defense applications are also likely to boost the demand for during the forecast period.
- Growing usage in the Asia-Pacific region to act as an opportunity for the market growth in the future.
- Asia-Pacific accounted for the highest market share and is likely to dominate the market during the forecast period.
Key Market Trends
Transportation Industry to Dominate the Market
- Transportation is the major end-user industry of the thermoplastic composites. The growing demand for producing light-weight and less CO2 emission vehicles are driving the demand for thermoplastic composites in the transportation industry.
- It is expected that, by 2020, the carbon emissions cap for new cars in the European Union will drop from 130 grams to 95 grams per kilometer. To achieve this target, car manufacturers are designing lighter vehicles by replacing metal with composites to make them light, tough, and recyclable.
- In 2019, the automotive production witnessed a decline owing to trade war pf US-China and other political reasons. This is expected to continue in the first half of 2020, owing to the weak sales in second half of 2019. However, the automotive is likley to recover by the end of 2020.
- In addition, the development of electric vehicles may continue to gain momentum in the upcoming years especially in Europe, China. and United States, where many government programs are promoting a move away from fossil fuels owing to the various environmental concerns.
- Hence, owing to the above-mentioned factors, the transportation industry is likely to dominate the market.
China to Dominate the Asia-Pacific Region
- China is the largest manufacturer and consumer of thermoplastic composites in the region, followed by India and Japan.
- China is the world’s largest automotive producer. However, in 2018, the country witnessed about 4.16% decline in the production of vehicles, accounting for 27,809,196 units of motor vehicles. The performance of the automotive industry was affected by the economic shifts and China's trade war with the United States. This trend sustained during 2019 as well, as the domestic automotive production and sales declined by 7.5% and 8.2%, respectively.
- China has the world’s largest electronics production base. Electronic products, such as smartphones, OLED TVs, tablets, wires, cables, and earphones, recorded the highest growth in the electronics segment. The country serves not only domestic demand for electronics, but also exports electronic output to other countries.
- In China, with the increase in the disposable income of middle-class population and the increasing demand for electronic products in the countries importing electronic products from China, the production of electronics is projected to grow.
- With growing investments and the construction activities in the country, the demand for construction chemicals is projected to grow during the forecast period. Moreover, restrictions on foreign investment on land development, high-end hotels, office buildings, international exhibition centers, and construction and operation of large theme parks have also been lifted. The growth in infrastructure and transportation sectors is expected to boost the thermoplastic composites market in the country, over the forecast period.
- The Chinese aircraft industry depicted significant growth over the years. According to Boeing, China is estimated to require around 7,600 new commercial aircraft, valued at USD 1.2 trillion, over the next two decades.
- Foreign investment in China has also been extended into the aviation sector, which is projected to register a CAGR of 6%, owing to China’s geographical location, which provides easy access to the industrial goods markets in the neighboring countries, as well as, other countries globally, making it a major access point for manufacturers and suppliers.
- Due to the above mentioned factors, the market for thermoplastic composites in China is expected to witness a significant growth during the forecast period.
The thermoplastic composites market is partially fragmented, with the top five players accounting for around 35% of the global market. Some of the major players in the market include BASF SE, Arkema, TORAY INDUSTRIES, INC., LANXESS, and Solvay, among others.
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