by The 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 are made from two or more constituent materials with significantly different physical or chemical properties that, when combined, produce a material with characteristics different from the individual components. Composites are widely used in the aerospace and defense industries due to their high strength to weight ratio and resistance to corrosion.
Market key trends:
One of the major trends driving the growth of the composite market is the increasing demand from the aerospace and defense industry. Composites increasingly used to manufacture aircraft components like fuselage, wings and empennage owing to their lightweight and corrosion resistant properties. This results in reduced fuel css and enhanced payload capacity. Additionally, composites allow complex component designs that were previously impossible to manufature from metal alone. The defense sector is also witnessing rising adoption of composites in applications such as radar domes, missile casings and interceptor missile airframes. Continuous investments towards development of advanced composite materials with high strength and stiffness will further support the demand in the coming years.
Porter’s Analysis:
Threat of new entrants: Low capital requirement and established brand names lower the threat of new entrants. However, established distribution channels and customer loyalty increases barriers.
Bargaining power of buyers: Large buyers can negotiate lower prices due to their volume. Varied product categories provide options to buyers.
Bargaining power of suppliers: A few large suppliers exist for key raw materials increasing their negotiation power. Development of alternative sources can reduce this.
Threat of new substitutes: Substitutes like metals and plastics pose competition. Innovation helps reduce the impact of substitutes.
Competitive rivalry: Intense competition exists among existing players to gain market share. Price wars can affect profit margins.
SWOT Analysis
Strength: Lightweight and durable nature increases applications. Established production capabilities and brand recognition.
Weakness: Vulnerable to raw material price volatility. High R&D investment required to develop new products.
Opportunity: Growing end-use industries like construction, automotive and wind energy drive volume growth. Developing nations offer new markets.
Threats: Stringent environmental regulations raise compliance costs. Economic slowdowns reduce overall demand.
Key Takeaways:
The Global Composite Market is expected to witness high growth, exhibiting CAGR of 7.3% over the forecast period, due to increasing demand from the automotive and construction industries. The market size is expected to reach US$ 170 Bn by 2030.
Regionally, Asia Pacific dominates currently due to growth in China, India and other developing economies. The APAC composite market projected to grow at over 8% driven by the increasing construction and automotive production. Meanwhile, Europe and North America also anticipated to offer lucrative opportunities owing to rising infrastructure investments and replacement of older structures.
Key players operating in the composite market include Saint-Gobain S.A., Momentive Performance Materials, Inc., Kineco Limited, Veplas Group, China Jushi Group Co., Ltd., Braj Binani Group, and Guardian Fibre Glass. Major players are focusing on new product development, mergers & acquisitions and enhancing their global footprint to increase market share in high growth regions.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
