The CAGR for the advanced composites industry is projected to be 9% by 2030. The advanced composites market value is expected to be USD 20 billion by 2030.
Advanced composites have many applications in many industries. These include aerospace and defense, marine, sporting goods, transportation, and energy that’s been generated by windmills. Advanced composites are the material of choice for usage in companies in these industries and more mainly because they are easy to use due to their strong and lightweight nature.
Those companies that make advanced composites are aware of this. That’s why they’re entering into strategic agreements with companies in these industries to be the major suppliers of these materials.
Advanced composites are the combinations of two or more materials with different and unique properties. The final material (mixed) has unique properties that are different from those of its parents. It’s these properties that make advanced composites flexible, strong, durable, and versatile. They are also less expensive than the combination of materials that they’re made from.
COVID-19 is a somewhat dangerous virus that’s changing the nature and destiny of the world. Measures like social distancing and contactless delivery are plunging the world further into the isolation and individualism that characterizes the digital era. This virus was capable of making some who got it very ill. It even resulted in more than a few deaths. But what really scared governments were the fact that those who made a complete recovery could get the virus again after a few months. Also, some of those who recovered suffered from long-term health complications caused by COVID-19.
Governments around the world imposed lockdowns and quarantines in the effect to contain the spread of the virus. These were temporary since they didn’t really work. However, the negative effects that these lockdowns and quarantines had on global businesses were far from temporary. Many are only just recovering from the halts and scalebacks in production that they sustained because of the lockdown and quarantine periods.
The companies in the advanced composites industry really suffered. They are only now barely starting to recover from the halts and scalebacks in production.
The advanced composites industry remains very competitive and fragmented. There are many reasons that explain this. One is that the industry is posting a high CAGR for both the short and long-term periods. This is enticing many companies, especially larger ones with huge treasuries, to enter the industry. Another reason is that many companies around the world can see that the industry is fairly lucrative.
Those companies that are already in the industry have to be creative if they want to remain profitable enough to survive. They find that they have to invest heavily in research and development. Then only can they develop those new generations of advanced composite products that have innovative uses and applications? They can then create the sustainable competitive advantage that they need to become and remain profitable.
Other companies find that entering into strategic partnerships with other successful companies in the industry is highly beneficial. They can increase their financial and human resource pools. This will allow them to do substantial investments in research and development. Thus, they can create a sustainable competitive advantage by developing and marketing newer and better products at higher price points.
Mergers and acquisitions do the same thing for these companies.
Axalta Coatings is a major American player in the industry. It is an industry leader because it invested heavily in research and development. This allowed it to create a sustainable competitive advantage that allowed it to become and remain competitive and profitable.
List of companies
The aerospace and defense industry is growing dramatically in most nations around the world. What accounts for this is the fact that most nations around the world are investing heavily in their defense and military systems. This is driving growth in the global advanced composites industry.
The global automotive industry is also posting record growth. This is mainly being buoyed by the phenomenal growth in developing economies. In any case, this is driving demand for a new generation of cars that need new and lightweight materials to operate optimally. Advanced composites are the perfect candidate for these cars.
The same applies to the sporting goods and consumer electronics industries. The CAGR for the aerospace and defense industries is supposed to register 10% for the time period that this report covers. Most of this growth will go towards the acquisition of more commercial and jetfighter planes. This is largely attributed to the fact that people are becoming richer around the world and are flying much more often.
Many economies around the world, especially those in the Asia-Pacific region, are investing more in wind energy generation technologies. This is also driving up demand for advanced composite materials.
Companies in the advanced composites industry are seeing the enormous money-making and growth potentials that this industry presents. They’re investing heavily in research and development for this reason. The objective is to try to produce a new generation of advanced composites that is of superior quality, weigh even less, and have more innovative and useful applications than previous generations did.
What’s holding growth back in the advanced composites industry is the fact that advanced composites are a little more expensive than other materials are.
One of the biggest challenges that companies in the advanced composites industry face going forward lies in continuing to develop and market advanced composites that are better and have more diverse applications at a price point that the masses around the world can afford.
3M is a major American player in the global advanced composites industry. It is an industry leader because it invested heavily in research and development. This allowed it to develop and market a new generation of advanced composites that have are of high quality and have versatile applications and uses. It has been able to create a sustainable competitive advantage by doing this.
The global advanced composites industry is grouped into the following sub-segments based on fiber:
The global advanced composites industry is grouped into the following sub-segments based on resin:
The advanced thermosetting resin sub-segment can be divided into the following categories:
The advanced thermoplastic resin sub-segment can be divided into the following categories:
The global advanced composites industry is grouped into the following sub-segments based on application:
The global advanced composites industry can be grouped into the following regions:
The North American region leads in terms of advanced composite market share and advanced composites market value. There are many reasons for this. One is the fact that the wind energy, transportation, and aerospace, and defense industries are growing rapidly. These industries have traditionally been large consumers of advanced composites.
The United States of America currently has the largest advanced composites market growth rate of all of the regions in the world. This is largely caused by many new energy plants that are using clean and renewable sources of fuel to operate.
The Asia-Pacific region has the largest regional advanced composite market share three years ago. What is driving growth in this region is the fact that industries like consumer electronics, automotive, and wind energy generation are growing rapidly. These require large quantities of advanced composites to operate optimally and efficiently.
Also, many governments in the Asia-Pacific region are encouraging the growth of green industries both in the energy and construction fields. Nations like India and China (especially) are passing laws that encourage the growth of this. Well, it turns out that these industries rely on advanced composites to operate optimally and efficiently.
The European Union is seeing respectable growth in its advanced composites industry. What’s driving growth in this region is an increased demand for advanced composites in the automotive and energy industries. Both industries are growing at breakneck speeds.
December 2021: Toray Advanced Composites (TAC, Nijverdal, The Netherlands), in collaboration with industry and academic partners, received funding for the development of a long-life, fully composite liquid hydrogen (LH2) tank for civil aviation by the Dutch Ministry of Economic Affairs and Climate Policy's Research and Development for Mobility project. The European Commission (EC) has recognised hydrogen as a critical priority for achieving the European Green Deal's goal of a sustainable economy. TAC claims that by switching the hydrogen tank's structure from existing metallic solutions to composites, it will achieve weight savings that will enable LH2 to be advanced as a sustainable fuel source for civil aircraft. This will reduce air travel's carbon footprint and boost and extend the flight range of the aircraft fleet by reducing the weight and cost of the aircraft's construction.
The CAGR for the advanced composites industry is projected to be 9% by 2025. The advanced composites market value is expected to be USD 20 billion by 2025. Advanced composites are versatile and lightweight. Hence, their high demand in many industries. The North American region leads in terms of advanced composites market share but the Asia-Pacific region leads in terms of advanced composites market growth rate.
|Market Size||2030: USD 20 Billion|
|Forecast Units||Value (USD Billion)|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, and Trends|
|Segments Covered||Resin Type, Fiber Type and Application|
|Geographies Covered||North America, Europe, Asia-Pacific, and Rest of the World (RoW)|
|Key Vendors||3M (US), Axalta Coating Systems, LLC (US), PPG Industries (US), DowAksa Advanced Composites Holdings BV (The Netherlands), TEIJIN LIMITED (Japan), Koninklijke Ten Cate B.V. (the Netherlands), Toray Industries Inc. (Japan), Hexcel Corporation (US), SGL Carbon (Germany), Cytec Solvay Group ( US), Huntsman International, LLC (US), and Mitsubishi Chemical Holding Corporation (Japan).|
|Key Market Opportunities||The major manufacturers of the advanced composites are heavily investing in the production of thermoplastic composites to meet increasing demand from diverse end-use industries.|
|Key Market Drivers||
The market valuation would be USD 20 billion.
3M (US),Axalta Coating Systems,LLC (US),PPG Industries (US),DowAksa Advanced Composites Holdings BV (The Netherlands),TEIJIN LIMITED (Japan),Koninklijke Ten Cate B.V. (the Netherlands),Toray Industries Inc. (Japan),Hexcel Corporation (US),SGL Carbon (Germany),Cytec Solvay Group ( US),Huntsman International,LLC (US),Mitsubishi Chemical Holding Corporation (Japan)
Cost-intensive thermoplastic composites could hold back market growth.
The Asia Pacific region would ensure a better growth rate.
End users from the advanced composites market are wind energy, aerospace & defense, sports equipment, automotive, construction, medical, consumer goods, and others.