Market research Analysis: The impact of Covid-19 on the thermoplastic composites market
Source: press release
Due to shutdowns in several countries, the demand for thermoplastic composites has dropped significantly across many industries. Not only have supply chains been disrupted, but the absence of workers has also slowed production.
According to a new market research report on the thermoplastic composites market, the global composites market size is expected to grow from $22.2 billion in 2020 to $31.8 billion by 2025, at a CAGR of 7.5% over the forecast period. The thermoplastic composites industry is growing due to the increase in demand for high performance materials with properties such as reformability, recyclability, FST property, high strength to weight ratio, good resistance to traction, electrical conductivity, among others.
Covid-19 has negatively impacted the demand for thermoplastic composites in various end-use industries such as aerospace and defense, transportation, wind power, construction, consumer goods and electronics, etc. Supply chain disruption leading to delays or non-arrival of raw materials, disrupted financial flows and increasing absenteeism among production line workers has forced OEMs to operate at zero or partial capacities, resulting in reduced demand for thermoplastic composites.
Companies operating in the thermoplastic composites market have strengthened their position in the global thermoplastic composites market by adopting expansions, partnerships, agreements, new product/technology launches, joint ventures, contracts and mergers and acquisitions of 2015 to 2020. However, due to the containment announced by several countries in 2020, the demand for thermoplastic composites from wind turbine installations, consumer goods and electronics manufacturers, automotive and aerospace manufacturers, and construction sectors has declined sharply. For example, demand for composites from two major commercial aircraft manufacturers, Boeing and Airbus, declined significantly due to a lack of new aircraft orders in January and February, respectively. In the wind energy sector, international and national travel bans are creating problems in routine maintenance, operations and the supply of related materials and equipment, thereby reducing the demand for thermoplastic composites.
The thermoplastic composites activity of these companies is strongly affected due to the Covid-19 epidemic causing reduced demand for thermoplastic composites from several OEMs and supply chain disruption. However, several thermoplastic composite manufacturers have focused on offering support to medical device and healthcare manufacturers. For example, instead of Covid-19, Celenase Corporation provided assistance to medical equipment manufacturers to provide their medical grade products such as long fiber reinforced thermoplastics and continuous fiber reinforced thermoplastics for ventilator manufacturing, respirators and other medical and healthcare devices.
Thermoplastic fiberglass composites are less expensive than carbon, basalt and aramid fiber composites. Low cost, ability to blend with all thermoplastic resins, ease of fabrication, and properties comparable to other fiberglass thermoplastic composites are driving the growth of fiberglass thermoplastic composites in various end-use industries such as construction, wind energy, transport and consumption. goods and electronics.
PA resins account for the largest market share
The strong demand is mainly driven by the growing consumption of short glass fiber reinforced polyamide in transportation, sports and recreation, consumer goods, industrial, marine, energy, oil and gas, and building and construction applications. But, due to the lockdown situation that has arisen due to Covid-19, many floor workers are unable to work in manufacturing facilities, resulting in the reduction in resin production and price fluctuations. Thus, the demand for PA thermoplastic resins is expected to decrease in 2020. With the recovery of the above-mentioned industries, the demand for PA thermoplastic composites would gradually increase over the forecast period.
SFT holds a significant share of revenue
Strong demand for SFT in transportation, consumer goods and electronics is driving the growth of the SFT thermoplastic composites market. China is the main market for SFT due to the well-established automotive and electronics industries. However, with the country heavily affected by the pandemic, the demand for SFTs in the automotive and electronics sectors has declined. Demand is expected to stabilize in 2021 and increase as industries recover.
The transportation end-use industry accounts for the largest market share in the global thermoplastic composites market during the forecast period in terms of value and volume.
the demand for lightweight thermoplastic composites is driven by the growing emphasis on improving energy efficiency in the automotive industry. Thermoplastic composites are widely used in interior automotive parts including brake pedals, airbag modules, engine sound shielding, dash mount, trunk liners and air intake manifolds , among others. Demand for thermoplastic composites in automotive and penetration in electric vehicles have been heavily impacted by Covid-19. However, the demand for thermoplastic composites would increase with the recovery of the global automotive and electric vehicle sectors after 2020.
Apac is expected to account for the largest market share
Apac accounts for the largest share of the global thermoplastic composites market. The electrical and electronics, automotive and consumer goods sectors are the major consumers of thermoplastic composites in the region. North America is the second largest consumer of thermoplastic composites. Aerospace & Defense and Automotive are the major industries fueling the growth of the thermoplastic composites market in this region. Additionally, the United States is a manufacturing center for various commercial, military and private aircraft. However, the Covid-19 outbreak has affected the demand for thermoplastic composites in the region. On the positive side, the Covid-19 pandemic has prompted countries like India to reduce reliance on imported goods and manufacture parts/components locally. Such initiatives, coupled with recovery in thermoplastic composite end-use industries, will increase the demand for thermoplastic composites in Apac.
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