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Prepreg Market | Covid-19 Impact Analysis
Covid-19 has impacted the market dynamics, competition, and global supply chains. The revenues have gone down in 2020 and may resume an uptrend gradually from 2021. Companies optimizing their operation and strategy will sustain and beat the competition.
Note: The summary below might not have included insights on covid impact since we have large number of reports.
This strategic assessment report, from Stratview Research, provides a comprehensive analysis that reflects today’s prepreg market realities and future market possibilities for the forecast period of 2021 to 2026. The report estimates the short- as well as long-term repercussions of the COVID-19 pandemic on the demand for prepreg in various industries at the global, regional, as well as country level. Also, the report provides the possible loss that the industry will register by comparing pre-COVID and post-COVID scenario. The vital data/information provided in the report can play a crucial role for market participants as well as investors in formulating short-term as well as long-term growth strategies.
The Prepreg Market: Highlights
Prepreg is one of the most common forms of composite materials in which the reinforcement material is pre-impregnated with either thermoplastic or thermoset resin system in a predefined ratio. It enables consistent resin/matrix ratio in the finished product; thus, delivering uniform mechanical and physical properties throughout the final part. The resin system in prepregs is partially cured for ease of handling and to prevent complete polymerization, it is stored in a cool place. This is the B- stage product and needs to be heated in an autoclave or oven during the fabrication to achieve full polymerization. With the advent of the growing demand for composites, the usage of prepregs is growing and is finding a place in a multitude of applications.
The COVID-19 outbreak proved to be the storm that smashed the 16-year boon of the aerospace industry along with irreparable changes in the industry’s growth trajectory. The stooping RPKs, plummeting aircraft orders, myriad employee layoffs, plunging revenues, etc. have created an appalling scenario for the industry stakeholders. However, the resilient and well-experienced aerospace industry is likely to bounce back once the pandemic begins to wane. The similar downturns are also being noticed in other major markets of prepreg.
The prepreg market is anticipated to mimic the aerospace industry’s course, its biggest demand-generator, marking a ginormous decline in 2020. Nevertheless, considering the aerospace industry’s recovery paths during previous downturns combined with several interviews conducted across the supply chain, Stratview Research reckons that the market is expected to recoup in the next five years with a healthy CAGR to reach a value of US$ 5.7 billion in 2026.
In the aerospace industry, prepregs are increasingly being used owing to their advantages such as weight reduction, ease of use, low void content, exceptionally low thermal expansion of coefficient, and control of laminate thickness. In the aerospace industry, epoxies are used for highly loaded parts and supreme toughness, BMI systems for high-temperature performance, phenolics for fire, smoke, and toxicity performance in aircraft interiors, and cyanate esters for space structures and satellite applications.
Based on the resin type, we have segmented the market as thermoset prepreg and thermoplastic prepreg. Thermoset prepreg is anticipated to capture the lion’s share in 2020, maintaining its incontestable dominance till 2026. Thermoplastic prepregs, on the other hand, are expected to experience faster recovery during the forecast period. Unlike thermosets, thermoplastics do not need to crosslink. They retain their plasticity, can be melted again and can be reshaped by reheating them above their processing temperatures. These characteristics offer intriguing possibilities for both faster and more innovative composite processing techniques compared to thermoset prepregs.
Based on the product type, we have classified the market as epoxy, phenolic, BMI, cyanate ester, polyimide, PPS, PEEK, PEI, and other prepregs. Epoxy prepreg is expected to remain the largest segment, whereas PPS and PEEK are likely to be the fastest-growing segments during the forecast period. Epoxy offers numerous favorable properties such as high chemical resistance, high durability, excellent corrosion resistance, good electrical insulation property, ability to cure over a wide range of temperatures, and excellent fatigue strength. PPS, PEI, and PEEK polymers offer excellent thermal stability for high-temperature applications which is a critical property in several military, aeroengine, and supersonic business jet programs where aero-frictional heating can generate continuous service temperatures beyond the capabilities of the high-temperature epoxy resin system.
Based on the curing type, the market is segmented as autoclave, out-of-autoclave, and others. Autoclave is likely to remain the supreme curing type till 2026, whereas out-of-autoclave is expected to heal at the fastest rate post the pandemic. The autoclave process provides a gamut of advantages, excellent part strength with low void content, and greater part consolidation. The market is experiencing a gradual shift of interest towards out-of-autoclave prepreg owing to its substantial cost-savings.
All regions are expected to mark colossal declines in 2020, with North America enduring the most severe blow. Despite the grave consequences of the pandemic, North America is anticipated to rebound quickly to maintain its vanguard in the market during the forecast period, driven by the presence of leading aircraft and automotive OEMs, aeroengine manufacturers, tier players, prepreg manufacturers, and raw material suppliers. The USA remains the growth engine of the region’s market.
Asia-Pacific is expected to show early signs of recovery, expecting to log the fastest recovery in the post-pandemic market scenario, driven by thrust-bearers: China, Japan, and India. Opening of assembly plants of Boeing and Airbus in China, upcoming indigenous commercial aircraft (COMAC C919), rising aircraft fleet size, increasing military spending by countries such as China and India, and dominance of the region in the consumer goods, automotive, construction, and wind energy are likely to rejuvenate the region’s prepreg demand in the long-term.
The prepreg market is gradually consolidating as the major companies recorded a fair number of mergers & acquisitions to capture a bigger chunk of the market. For instance; Solvay S.A., acquired the Cytec Industries Inc. at a total purchase price of approximately US$ 5.5 Billion, landing at the second-most dominant position in the market (2019). Similarly, in 2018, Toray, the world’s largest carbon fiber manufacturer, acquired TenCate Advanced Composites Holding B.V. (TCAC), at an agreed purchase price of 930 million Euro. TCAC is the leading supplier of carbon fiber-reinforced thermoplastic tapes and high heat-resistant thermoset prepregs to the aerospace industry. Also, in 2019 Kordsa acquired Axiom Materials and in 2020, Teijin Limited acquired Renegade Materials Corporation.
The supply chain of this market comprises raw material suppliers, prepreg manufacturers, distributors, composite part fabricators, OEMs, and MRO companies. The key prepreg manufacturers include Celanese Corporation, Gurit Holdings, AG, Hexcel Corporation, Mitsubishi Chemical Carbon Fiber and Composites, Inc. (MCCFC), Park Electrochemical Corp., SGL Group SE, Solvay S.A., Teijin Group, and Toray Industries, Inc. The formation of long-term contracts, application development, and the development of innovative products are some of the key strategies adopted by the major players in order to gain a competitive edge in the market. However, the sudden turn of events has persuaded the key players to readjust their focus, and better align their strategies, tunneling their vision on short-term survival and long-term stability.
This report offers high-quality insights and is the outcome of detailed research methodology comprising extensive secondary research, rigorous primary interviews with industry stakeholders, and validation and triangulation with Stratview Research’s internal database and statistical tools. More than 700 authenticated secondary sources, such as company annual reports, fact book, press release, journals, investor presentation, white papers, patents, and articles, have been leveraged to gather the data. We conducted more than 15 detailed primary interviews with the market players across the value chain in all four regions and industry experts to obtain both qualitative and quantitative insights.
This report provides market intelligence most comprehensively. The report structure has been kept such that it offers maximum business value. It provides critical insights into the market dynamics and will enable strategic decision making for the existing market players as well as those willing to enter the market. The following are the key features of the report:
The prepreg market is segmented into the following categories.
Prepreg Market, by End-Use Industry
Prepreg Market, by Resin Type
Prepreg Market, by Form Type
Prepreg Market, by Fiber Type
Prepreg Market, by Curing Type
Prepreg Market, by Product Type
Prepreg Market, by Region
Report Customization Options
With this detailed report, Stratview Research offers one of the following free customization options to our respectable clients:
Custom Research: Stratview research offers custom research services across the sectors. In case of any custom research requirement related to market assessment, competitive benchmarking, sourcing and procurement, target screening, and others, please send your inquiry at [email protected]
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