COVID-19 Impact on Composites Market worth $82.9 billion by 2021

Thursday 14 May 2020, Amsterdam

The report "COVID-19 Impact on Composites Market by Fiber Type (Glass Fiber, Carbon Fiber and Natural Fiber), Resin (Thermoset Resin and Thermoplastic Resin), End-use Industry and Region - Global Forecast to 2021" The global composites market size is expected to decline from 90.6 billion in 2019 to USD 82.9 billion by 2021, at a negative growth rate of 4.4% over 2019. The composites industry is expected to decline in 2019 due to supply chain disruption caused by the COVID-19 pandemic.

Glass fiber composites comprise a major share of the composites market in terms of value and volume.
The glass fiber composites have superior attributes, such as strength, flexibility, durability, stability, lightweight, and resistance to heat, temperature, and moisture. Glass fiber composites are used in different end-use industry segments, such as construction, wind, pipe & tanks, marine, and transportation. There is a high demand for glass fiber composites from the wind energy and construction & infrastructure industries. It is expected to decline due to lockdown resulting in reduced wind capacity installations and the temporary suspension of operations in the automotive, aerospace, and construction industries.

The thermoset composites accounted for the largest share in the global composites market during the forecast period in terms of value and volume.
In thermoset composites, thermoset resin is used as a matrix with fibers, including glass fiber, carbon fiber, natural fiber, and others. Currently, thermoset resins are widely used for manufacturing composites, as when uncured, they are in a liquid state at room temperatures. This unique property of thermoset resin allows for the convenient impregnation of reinforcing fiber. But, because of the lockdown situation occurred due to COVID-19, many floor workers are unable to work in manufacturing facilities, which has resulted in the reduction in output of several resins, such as epoxy resins. Thus, the demand for thermoset resins is expected to decline during the forecast period.

The aerospace & defense end-use industry accounted for the largest share in the global composites market during the forecast period in terms of value.
The aerospace industry is a major consumer of composites. Growing environmental concerns and search for high strength light-weighting material to increase fuel efficiency have put composites in the limelight in the aerospace & defense industry. The COVID-19 pandemic has pushed the global aerospace and defense industry into an unprecedented crisis. A deep downfall in revenue and cash flow seems imminent for most airlines as well as OEMs and their suppliers in the aircraft production ecosystem. This huge impact on material suppliers would mainly hit the composite demand in aircraft manufacturing.

APAC is expected to account for the largest share in the composites market during the forecast period.
APAC is the largest market for composites. The major international players are exploring opportunities in the region owing to cheap labor, raw materials, and high demand from various end-use industries, such as pipes & tanks, wind energy, and construction & infrastructure. However, COVID-19 has affected the entire world disastrously, and APAC is one of the most affected regions, globally. The deadly virus has affected various major markets in APAC, including China and India. It has forced the government to lock down the that resulted in slow down across various sectors, including wind energy, aerospace & defense, and transportation. Wind energy is one of the most widely affected industries in China, and it is expected to reduce the wind energy installations in the country in 2020.

The key players in the composites market include Owens Corning (US), Toray Industries, Inc. (Japan), Teijin Limited (Japan), Mitsubishi Chemical Holdings Corporation (Japan), Hexcel Corporation (US), SGL Group (Germany), Nippon Electrical Glass Co. Ltd. (Japan), Koninklijke Ten Cate bv. (Netherlands), Huntsman International LLC. (US), and Solvay (Belgium), among many others. These companies are involved in adopting various inorganic and organic strategies to increase their foothold in the composites market. These players have taken different organic and inorganic developmental strategies over the past five years.