Market Dynamics
Introduction
Thermoplastic compounds are the most dominant product category in the composites industry. The biggest composite markets, such as automotive, consumer goods, and electrical & electronics, excessively rely on thermoplastic compounds. Almost, all the companies serving the thermoplastic business are today have a focus on thermoplastic compounds targeting the composites industry.
The growth trajectory of thermoplastic composites has been impressive over the years with adoption in almost all applications. For several applications, thermoplastic composites have become a standard material and are likely to remain the most preferred material type in the years to come. The success of thermoplastic compounds in composite applications is mainly envisaged because of tireless efforts made by the composites fraternity.
The huge adoption of thermoplastic composites over thermoset composites is mainly due to their ability to be remolded multiple times. Thermoplastic composites can be heated, remolded, and then cured without degradation in their properties. This heating-cooling cycle can be repeated multiple times, giving the product an almost indefinite shelf life. Almost all thermoplastic composites are used in the form of compounds “Thermoplastic compounds” that can be categorized as GMTs, LFTs, SFTs, and CFTs.
Covid-19 Impact
The thermoplastic compounds market suffered a significant decline in 2020 due to the global economic recession led by the COVID-19 pandemic. A huge reduction in the production of automobiles, electrical & electronic products, and consumer durables in the wake of reduced demand, supply chain disruption, cash flow constraints, and temporary shutdown in production facilities, impacted the demand for thermoplastic compounds negatively. However, the market participants started recording some positive signs of recovery from 2021 onwards.
Segments Analysis
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Segmentations
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List of Sub-Segments
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Dominant and Fastest-Growing Segments
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Material-Type Analysis
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GMT, LFT, SFT, and CFT
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SFT is estimated to maintain its irrefutable lead in the market during the forecast period.
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End-Use Industry-Type Analysis
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Aerospace & Defense, Transportation, Consumer Goods, Electrical & Electronics, Construction, and Others
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Transportation is expected to remain the biggest demand generator during the forecast period.
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Resin-Type Analysis
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PP, PA, PBT, PPS, PC, and Others
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Polyamide (PA) is expected to remain the most preferred resin type in during the forecast period.
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Regional Analysis
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North America, Europe, Asia-Pacific, and Rest of the World
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Asia-Pacific is expected to remain the largest as well as the fastest-growing market over the forecast period.
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By Material Type
“SFT is expected to maintain its dominant market position, while CFT is forecasted to experience the fastest long-term growth”.
The market is segmented as GMT (Glass Mat Thermoplastic), LFT (Long Fiber Thermoplastic), SFT (Short Fiber Thermoplastic), and CFT (Continuous Fiber Thermoplastic). SFT is estimated to maintain its irrefutable lead in the market during the forecast period, in terms of both, value as well as volume. Several factors behind the dominance of SFT over other thermoplastic compounds are its lower cost, additional strength, wide application usage, and moldability.
On the other hand, CFT is projected to record the fastest long-term growth during the forecast period due to increasing demand for high-performance CFTs, especially in the aerospace & defense industry.
By End-Use Industry Type
“Transportation will continue as the primary demand driver, while aerospace & defense is anticipated to achieve the highest CAGR in both value and volume”.
The market is classified into aerospace & defense, transportation, consumer goods, electrical & electronics, construction, and others. Transportation is expected to remain the biggest demand generator for thermoplastic compounds in terms of both value and volume in the foreseen future.
Thermoplastic composites are becoming a popular choice for automotive applications, propelled by the increasing incorporation of lightweight materials in vehicles with the sole aim of reducing vehicle weight to achieve greater fuel efficiency.
Aerospace & defense is expected to record the highest CAGR (value & volume) during the forecast period. All the leading aircraft manufacturers are turning to thermoplastic compounds for their significant weight reductions, cost savings, and other advantages.
By Resin Type
“Polyamide (PA) is forecasted to remain the leading resin type in the thermoplastic compounds market during the forecast period”.
The market is segmented as PP (polypropylene), PA (Polyamide), PBT (polybutylene terephthalate), PPS (Polyphenylene sulfide), PC (Polycarbonate), and others. Polyamide (PA) is expected to remain the most preferred resin type in the thermoplastic compounds market during the forecast period.
PA resin offers high temperature and electrical resistance and is widely used in transportation, consumer goods, and electrical and electronics applications among others. Some commonly used polyamides are PA11, PA12, PA46, PA6, and PA66.
Regional Analysis
“Asia-Pacific will continue as the largest and fastest-growing market for thermoplastic compounds, with significant demand also anticipated from North America and Europe during the forecast period”.
The market is broken down geographically into areas like North America, Europe, Asia-Pacific, and the Rest of the World (RoW). Asia-Pacific is expected to remain the largest as well as the fastest-growing market for thermoplastic compounds over the forecast period. China, Japan, South Korea, and India are the major markets for thermoplastic compounds in the region and are anticipated to maintain their dominance in the region’s market in the years to come.
The introduction of stringent regulations is leaving no options before automakers except to incorporate lightweight materials in their vehicles. Thermoplastic compounds remain the priority of all the leading automakers. North America and Europe are also likely to create significant demand during the forecast period. The USA and Mexico are the major markets in North America, whereas Germany, France, the UK, and Russia are the major markets in Europe.
