Fiber Reinforced Composites Market is Expected to Reach $131.6 Billion by 2027

According to a new report published by Allied Market Research, titled," Fiber Reinforced Composites Market by Fiber Type, Resin Type, and End-User Industry: Opportunity Analysis and Industry Forecast, 2020-2027," 

The global fiber reinforced composites market size was valued at $84.5 billion in 2019, and is projected to reach $131.6 billion by 2027, growing at a CAGR of 5.9% from 2020 to 2027.

Fiber reinforced composite (FRC) is a combination of two materials known as reinforcement fiber and matrix. When properly chosen, they offer high strength and stiffness at a reduced weight. The role of the reinforcement fiber is to impart strength to the matrix, whereas the matrix supports the fiber from external wear & tear. There are two types of reinforcement fibers for FRCs, natural fiber and synthetic fiber. Natural fibers include coir, palm, hemp, and luffa, whereas synthetic fibers include carbon, glass, and aramid materials. Synthetic fiber provides more stiffness while natural fibers are cheap and biodegradable, making them environment-friendly. Efforts are being made in the direction of combining two types of fibers together and blending with a matrix material to form a hybrid material.

Fiber reinforced composites have gained importance due to constant demand for lightweight materials with strength in industries such as construction, automobile, aerospace, and other manufacturing industries. FRCs offer high strength and are used as a replacement for materials such steel and aluminum. In addition, they offer resistance to corrosion, wear, impact, and fire. 

FRCs are costly compared to other traditional materials such as steel and wool. The availability of cheaper substitute is expected to limit the growth of the global fiber reinforced composites market during the forecast period. However, FRCs can be tailored for specific applications, which can be augmented to optimize the final prices. Therefore, developing new manufacturing technologies to achieve different variants of FRCs will offer fresh opportunities for the global fiber reinforced composites market during the forecast period. FRCs are presently manufactured by various techniques, each process resulting in composites of different physical properties such as melting point, stiffness, and tensile strength.  

The global fiber reinforced composites market is segmented into fiber type, resin type, end-user industry, and region. 

Based on fiber type, the fiber reinforced composites market is divided into carbon fibers, glass fibers, aramid fibers, and others. The glass fibers segment held the largest revenue share in the global fiber reinforced composites market in 2019. Glass fiber-based FRCs are used extensively in aerospace & defense, automotive, sporting goods, and wind turbine blades. 

Based on resin type, the market is divided into thermoset composites and thermoplastic composites. The thermoset composites segment held the largest fiber reinforced composites market share in 2019. Thermoset fiber composites are increasingly being used in the aerospace, sporting goods, wind energy, and automotive end-use industries. Compared to thermoplastic composites, thermoset composites do not deform under heat; hence, they are used in the production of permanent components.

The end-user industries of fiber reinforced composites include building & construction, automotive, electrical & electronics, aerospace & defense, sporting goods, wind energy, and others. Presently, the automotive industry held the largest revenue share in the global fiber reinforced composites market. Fiber reinforced composites are used to make structural and non–structural components such as seat structures, bumpers, hoods, and fuel tanks. Automotive composite materials enable designers to improve durability, meet load–bearing requirements, and achieve reduction in vehicle weight.

Region-wise, the market is studied across North America, Europe, Asia-Pacific, and LAMEA. Presently, Asia-Pacific accounts for the largest share of the market, followed by Europe, and North America. 

The major companies profiled in this report include Avient Corporation, Hexcel Corporation, Mitsubishi Chemical Holdings, Plasan Carbon Composites, Rochling Group, SABIC, SGL Carbon, Solvay SA, Toray Industries Inc., and TPI Composites Inc. 

New product launches are expected to offer fresh opportunities for the global fiber reinforced composites market during the forecast period. For instance, SABIC, a key player in the fiber reinforced composites market, launched UDMAX fiber reinforced thermoplastic composite, which is designed to replace traditional panels made of metal and thermoset materials for interior & exterior automotive applications.

Key findings of the study

• The Asia-Pacific fiber reinforced composites market is projected to grow at the highest CAGR of nearly 7.4%, in terms of revenue, during the forecast period.
• By fiber type, the glass fibers segment accounted for the largest market share in 2019.
• By resin type, the thermoset composites segment accounted for the largest market share in 2019.
• On the basis of end-user industry, the automotive segment garnered the largest market share in 2019.

Impact of COVID-19 on the global fiber reinforced composites market

• The COVID-19 pandemic disrupted the global economic growth in 2020, and the economic recovery is predicted to occur in the second half of 2021.
• However, the pandemic majorly hit the aerospace, construction, and automotive industries. These three are the major end-users of fiber reinforced composites. In an effort to contain the spread of the virus, countries, such as India, Germany, U.S., and China, had to halt manufacturing plants as well as impose restrictions on domestic as well as international travel. 
• Major automakers, such as Toyota, temporarily suspended or intend to temporarily suspend production of automobiles and components at selected plants in Japan and overseas. 
• There was a change in consumer spending patterns as consumers delayed purchasing new vehicles to minimize their spending. This decline in automotive sales led to loss of revenue of all the automobile manufacturing companies. The decline in consumer demand was evident in their quarterly sales. 
• In the construction as well as infrastructure markets, lack of workforce led to a decline in the pace of construction of new infrastructure. 
• Major sports events, such as Olympic Games, which were scheduled for 2020 have been postponed to August 2021. This has impacted the sales of sporting goods.