July 12, 2024
Composites Market

Composites Market: Growing Demand for Lightweight and High-Strength Materials Drives Market Growth

The global Composites Market is estimated to be valued at US$ 93.4 billion in 2022 and is expected to exhibit a CAGR of 7.3% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview: Composites refer to materials made from two or more different components that combine to form a superior material with enhanced mechanical, thermal, and chemical properties. The Composites Market offers a wide range of products, including carbon fiber composites, fiberglass composites, and aramid fiber composites, among others. These composites offer advantages such as high strength, lightweight, corrosion resistance, and durability, making them ideal for several applications in industries such as aerospace, automotive, construction, and wind energy. The need for lightweight and high-strength materials in these industries is driving the demand for composites.

Market Key Trends: The key trend in the Composites Market is the increasing adoption of carbon fiber composites in the automotive industry. Carbon fiber composites offer significant weight reduction compared to traditional materials, leading to improved fuel efficiency and reduced emissions. Moreover, carbon fiber composites provide excellent strength-to-weight ratio, enhancing the overall safety and performance of vehicles. With the growing focus on sustainable and eco-friendly transportation solutions, automakers are increasingly incorporating carbon fiber composites in their vehicles. This trend is expected to drive the growth of the Composites Market in the forecast period.

Porter’s Analysis:

Threat of new entrants: The composites market is expected to face a moderate level of threat from new entrants. Although the market offers opportunities for growth, it also requires significant investments in research and development, manufacturing facilities, and distribution networks. Existing players with established brand reputation and strong customer relationships may have a competitive advantage over new entrants, making it challenging for new players to gain market share.

Bargaining power of buyers: The bargaining power of buyers in the composites market is relatively high. Buyers have access to a wide range of substitutes and can compare products and prices from various suppliers. Additionally, the growing demand for composites has led to an increase in the number of suppliers, giving buyers more options to choose from. This increases their bargaining power and puts pressure on prices and product quality.

Bargaining power of suppliers: The bargaining power of suppliers in the composites market is moderate. While there are numerous suppliers in the market, the availability of specialized raw materials and the need for consistent quality make it important for manufacturers to maintain good relationships with their suppliers. However, advancements in technology and the development of alternative materials reduce the dependence on specific suppliers, thereby reducing their bargaining power to some extent.

Threat of new substitutes: The threat of new substitutes for composites is low. Composites offer unique properties such as high strength, lightweight, and corrosion resistance that cannot be easily replicated by traditional materials. Substitutes such as metals, plastics, and wood may have their own advantages, but they often lack the combination of properties that composites provide, making them less desirable for many applications.

Competitive rivalry: The composites market is highly competitive, with a large number of players competing for market share. Major players such as Companies DE, Saint-Gobain S.A., Momentive Performance Materials, Inc., and others have a strong presence in the market, offering a wide range of products and solutions to cater to various industries. The intense competition among these players results in price wars, aggressive marketing strategies, and continuous product innovations to stay ahead in the market.

Key Takeaways:

The global Composites Market Scope is expected to witness high growth, exhibiting a CAGR of 7.3% over the forecast period (2023-2030). The market’s growth can be attributed to increasing demand from various end-use industries such as aerospace, automotive, construction, and wind energy. The unique properties offered by composites, including high strength-to-weight ratio, durability, and resistance to temperature and corrosion, are driving their adoption across these industries.

In terms of regional analysis, Asia Pacific is expected to be the fastest-growing and dominating region in the composites market. The region is experiencing rapid industrialization and urbanization, leading to an increased demand for lightweight and high-performance materials. Countries like China and India are investing in infrastructure development and renewable energy projects, further driving the demand for composites in the region.

Key players operating in the composites market include Companies DE, Saint-Gobain S.A., Momentive Performance Materials, Inc., Kineco Limited, Veplas Group, China Jushi Group Co., Ltd., Braj Binani Group, and Guardian Fibre Glass. These players have a strong presence in the market, offering a wide range of composites products to cater to various industries. They focus on research and development, strategic collaborations, and mergers and acquisitions to strengthen their market position and gain a competitive edge.

In conclusion, the composites market is poised for significant growth in the coming years, driven by increasing demand from various industries and technological advancements. However, players in the market need to be mindful of the competitive landscape, the bargaining power of buyers, and the need for continuous.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it