The global Composite Market is estimated to be valued at US$ 100.22 Bn in 2023 and is expected to exhibit a CAGR of 7.3% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Composite materials comprises a combination of two or more than two materials like resin and fibers. Composites are widely used in aerospace, industrial, transportation, construction, wind energy and others sector owing to their various advantages like high tensile strength, corrosion resistance, lightweight and durable. Aerospace & defense industry is one of the major end user of composites for manufacturing aircrafts, spacecrafts, defense vehicles and others.
Market key trends:
One of the key trend witnessed in the composite market is development of bio-based resins. Traditional petroleum based resins used in composites have certain drawbacks like non-biodegradability and associated environmental concerns. To overcome this, many manufacturers are developing sustainable and bio-based resin systems derived from renewable resources like vegetable oils, corn and sugarcane for manufacturing composite materials. For instance, Momentive Performance Materials introduced bio-based unsaturated polyester and vinyl ester resin systems named SoyWorks that are derived from soybean oil instead of petroleum. Such eco-friendly resins will drive the demand of composites in coming years.
Porter's Analysis
Threat of new entrants: The high capital requirements and long gestation period for establishing a plant act as entry barriers for new players in the composite market.
Bargaining power of buyers: The presence of many established players in the composite market gives buyers higher bargaining power to negotiate on prices.
Bargaining power of suppliers: Composite raw material suppliers possess low bargaining power due to availability of substitute materials and less differentiation in materials.
Threat of new substitutes: New alternative materials with improved properties pose a moderate threat to composites.
Competitive rivalry: Stiff competition exists among the key players to gain higher market share through product portfolio expansion and strategic collaborations.
Key Takeaways
The Global Composite Market is expected to witness high growth, exhibiting CAGR of 7.3% over the forecast period 2023 to 2030, due to increasing demand from automotive and construction industries.
The automotive industry is the major end-use sector for composites. Rapid urbanization and growth in construction activities are also driving the demand for composites in infrastructure development globally. The Asia Pacific region dominated the composite market in 2022 led by China, India, and Japan on account of swift industrialization and rising manufacturing activities in the region.
Key players operating in the composite market are Saint-Gobain S.A., Momentive Performance Materials, Inc., Kineco Limited, Veplas Group, China Jushi Group Co., Ltd., Braj Binani Group, Guardian Fibre Glass. These players are focusing on new product launches, mergers & acquisitions and strengthening their distribution networks to gain competitive advantage.
Regional analysis
The Asia Pacific region is projected to be the fastest growing as well as dominating market for composites during the forecast period. China, India, and Japan are the major countries contributing to the growth of the composite market in Asia Pacific due to rapid industrialization, expansion in manufacturing activities and rising investments in the automotive and construction industries.
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