Robust growth estimated in global composites industry, composites manufacturing, Technical Polymers

Robust growth estimated in global composites industry

There is a little doubt that composite materials are rapidly becoming a mainstream technology and material of choice within many industries, from aerospace to wind energy. As demand for more composite applications increases in the coming years, gaining insight on major market drivers, supply and demand, price movements, market opportunities and competitive forces proves critically important. As per Lucintel, the industry presently finds itself caught in the middle of the global economic crisis. There were dramatic changes in the composites market in 2009. Constructions, automotive and marine are market segments that were badly hit during 2008-09 due to recession in industrialized nations. Composites shipment in wind energy continued to grow at a healthy rate and, according to Lucintel estimates, holds strong promise during 2010-15. Asia emerged as the largest regional market in terms of composite shipments in 2009, taking the place of North America, and is expected to maintain its leadership helped by the growing economies of China and India. Composite materials industry is expected to reach US$ 27.4 bln in 2016 at a CAGR of 5.3%.
As per Lucintel�s Norm Timmins at the ACMA COMPOSITES 2011, the global composite materials industry reached a total value of US$17.7 bln in 2010, growing at over 10% despite a still-sluggish world economy. Total global revenues in the composite materials market comprise US$8.8 bln of resins, US$7.7 bln of fibers, with ancillary materials making up the balance. The total value of composite end products reached US$50.2 bln. By 2016, the composite materials industry is estimated to reach US $27.4 bln at a 7.8% CAGR, while composite end-products will total US$78 bln. The North American and European composites industries grew year-over-year by approximately 13% and 8% respectively in 2010, while Asia grew by about 9%. Composites have a 3.6% share in transportation (based on monetary value), a 68% share in marine, a 38% share in wind energy, a 7% share in construction, and 10% in aerospace. These figures plainly indicate that there is vast growth potential for composites. With over 30,000 potential product applications, the industry is sustainable, despite poor performance in the last half-decade. Yet, composites industry growth outpaced GDP in 2010, and trend data suggest that it will grow faster than GDP during the next five years. The BRIC nations- Brazil, Russia, India and China will foster strong growth as they begin to play larger roles in the global economy and in composites manufacturing. These emerging economies are experiencing rapid growth and urbanization and show evidence of emerging middle classes and increased OEM production. BRIC economic growth likely will lead to greater market fragmentation as composites-related companies jockey for space and share, but those with the capacity for innovation will thrive. Another potent growth driver will be China�s wind market, predicted to grow a robust 23% pa through 2015.
In 2011, the sluggish automotive, construction, electronics and consumer-goods markets are estimated to bounce back. Wind and aerospace continue as the most attractive growth markets in North America and Europe. Population increases, infrastructure needs and the green movement are few of the factors that will drive composites growth to new horizons.
The global composites market is expected to grow by 4% pa from �60 bln in 2008 to �80-85 bln in 2013, according to JEC Composites. In tonnage terms the market would grow from 8.6 mln tons to 10 mln tons over the same time span. The report highlights importance of growth in the Asian market. China's growth is forecast at 8-9% pa. Looking at the fast-growing BRIC countries (Brazil, Russia, India, China), JEC expects their global market share to grow from around 22% in 2008 to 29% in 2013. China would represent 23% of the worldwide market in 2013, India 3%, Brazil 3% and Russia less than 1%. The fast development of the composites market in Asia, typically in China and India, will keep driving the emergence of large players across the value chain of composites. JEC said the composites industry will evolve in line with economic growth of end sectors. The exception is the aeronautics sector where light weighting will increase the proportion of composites in a commercial aircraft from less than 10% to 10-15% on average. The worldwide growth of the wind energy market is expected to lead to 16% annual growth in this market for composites. In developed countries, composites� positions against competing materials (steel, aluminum, technical polymers) are now stable (equilibrium based on an overall stable price difference) - except in aeronautics, where composites are still expected to replace competing materials. In emerging countries, the composites market is mainly driven by economic growth following a development curve (the more a country is economically developed, the bigger its composites market tends to be). Overall - with the exception of Aeronautics - the worldwide composites industry therefore evolves globally in line with its underlying application industries. The main growth drivers for the worldwide composites market should be:
• The growth of the Asian market, especially in China (+8-9% p.a., 43% of the worldwide growth), with the main contribution in terms of industries coming from Building and Construction (equipment phase) - 67% of the growth - and Automotive (increase of local demand) - 45% of the growth for the Transportation market. The fast development of composites market in Asia, typically in China and India, will keep driving the emergence of large players across the value chain of composites: Chinese leaders (e.g. Jushi, CPIC, Taishan) for fiberglass manufacturing, Indian and Chinese players on composites processing for the Wind Energy market (Suzlon in India, Goldwind and Sinovel in China), for the Automotive market (Xieno Automobile, Yahoa Dazhong Advanced Materials), and in some years time for the Aeronautics market.
• The growth of the Wind Energy market worldwide (+16% p.a.; 19% of the worldwide growth) driven by the combination of public regulation in favour of renewable energy (to reduce the global impact on environment) and of the possibility to exploit Wind farms that are economically viable,
• The continuing penetration of composites materials in Aeronautics, where lightening issues will drive the development of new commercial aircrafts with higher level of composites (from less than 10%, to 10-15% on average for commercial aircrafts). In terms of processes, more automated processes should keep developing at the expense of manual processes, in particular in Asia, where today they remain underdeveloped compared to North America and Europe.