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    Reinforced Compounds Market Report

    Reinforced Compounds Market Report
    Report code - SR1904 Published On : Mar,2022 No. of Pages: 145
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    Reinforced Compounds Market Size, Share, Trend, Forecast, Competitive Analysis, and Growth See more...

    Market Highlights

    Reinforced compounds cover both thermoplastic and thermoset compounds. Thermoplastic compounds typically have low melting points due to which they can further be remolded or recycled easily. On the other hand, thermoset compounds can withstand high temperatures and once hardened cannot be reformed or recycled. Thermoplastic compounds are SFT, LFT, CFT, and GMT, whereas thermoset compounds are SMC and BMC.

    The global reinforced compounds market suffered a significant decline in 2020 due to the global economic recession led by the COVID-19 pandemic. Almost all the major markets, such as transportation, consumer goods, and electrical & electronics, registered enormous decline amid the pandemic, whose impact has been felt across the supply chain including raw materials. Reinforced compounds, among the growing categories of materials, could not escape from it and recorded a hefty decline.

    Earlier in 2021, the industry stakeholders were expecting a strong recovery in the demand for reinforced compounds, citing the rebound in the end-use industries. However, insurgent variants of COVID-19 paired with the shortage of semiconductor chips thrashed the market hope. As per analysis, the volume loss of 9.6 million units in 2021 due to the semiconductor chips, is a key factor that led to diminished market growth from earlier projections.

    The year 2022 is anticipated to be a record-breaking year with humongous growth expected in most of the major markets, which, in turn, will thrive the demand for raw materials including reinforced thermoplastics. Overall, in the long run, the reinforced compounds market is expected to grow at a promising CAGR of 7.7% (value basis) during the forecast period to reach an iconic figure of US$ 25.0 billion by 2027.

    Market Segments' Analysis

    Based on material type, the market is segmented as GMT (Glass Mat Thermoplastic), BMC (Bulk Molding Compound), SMC (Sheet Molding Compound) LFT (Long Fiber Thermoplastic), SFT (Short Fiber Thermoplastic), and CFT (Continuous Fiber Thermoplastic). SFT holds the market dominance and is estimated to maintain its lead in the years to come, in terms of both, value and volume. SMC is the next largest market after SFT, followed by LFT. LFT is projected to record the fastest long-term growth during the forecast period, driven by an increased acceptance in the automotive industry. Some of the advantages offered by LFT are high strength (particularly at high temperatures), excellent resistance to long-term loads, and high fatigue resistance.

    Based on the end-use industry type, the market is classified into aerospace & defense, transportation, consumer goods, electrical & electronics, construction, and others. Transportation is expected to remain the biggest demand generator of reinforced compounds in terms of both value and volume in the foreseen future. The past decade has been the most evolving for automakers with the industry rapidly moving ahead in several directions, mainly triggered by several macro-environmental factors, such as carbon emission reduction targets. The impact of such trends was quite visible on the market dynamics of material content per vehicle. There has been a paradigm shift towards the use of lightweight materials, more specifically composites, in vehicles across regions. Reinforced compounds have been the choice of materials in several applications.

    Based on the resin type, the market is segmented as polyester, PP (polypropylene), PA (Polyamide), PBT (polybutylene terephthalate), PPS (Polyphenylene sulfide), PC (Polycarbonate), and others. Polyamide is expected to remain the most preferred resin type in the reinforced compounds market during the forecast period. PA resin is widely used in SFT, whereas polyester in SMC and BMCs. PA resin offers excellent temperature- and electrical-resistant properties and is widely used in major markets, such as transportation, consumer goods, and electrical & electronics. Some commonly used polyamides are PA11, PA12, PA46, PA6, and PA66.

    In terms of regions, Asia-Pacific is expected to remain the largest as well as the fastest-growing market for reinforced compounds over the forecast period. China, Japan, South Korea, and India are the major markets for reinforced 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. Reinforced 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. 

    Key Players

    Reinforced compounds comprise several sets of products. Most of them compete with each other in specific applications but are entirely different in terms of product type, raw materials, manufacturing process, etc. Most of the companies have a presence in one or two types of reinforced compounds, again, sticking to either thermoset compounds or thermoplastic compounds. It is extremely important to understand the competitive landscape of each compound type in order to understand the overall market competitive landscape. The following are some of the key players in the reinforced compounds market:

    • SABIC
    • DuPont
    • BASF SE
    • DSM N.V.
    • Covestro AG
    • Hanwha Corporation
    • Huayuan Advanced Materials Co., Ltd. (HAMC)
    • Teijin Limited
    • Polynt S.p.A.
    • Solvay S.A.

    Research Methodology

    This strategic assessment report, from Stratview Research, provides a comprehensive analysis that reflects today’s reinforced compounds market realities and future market possibilities for the forecast period of 2022 to 2027. The report segments and analyzes the market in the most detailed manner in order to provide a panoramic view of the market. The vital data/information provided in the report can play a crucial role for the market participants as well as investors in the identification of the low-hanging fruits available in the market as well as to formulate the growth strategies to expedite their growth process.

    This report offers high-quality insights and is the outcome of a 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 1,000 authenticated secondary sources, such as company annual reports, fact books, press releases, journals, investor presentations, 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.

    Report Features

    This report provides market intelligence in the most comprehensive way. 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:

    • Market structure: Overview, industry life cycle analysis, supply chain analysis.
    • Market environment analysis: Growth drivers and constraints, Porter’s five forces analysis, SWOT analysis.
    • Market trend and forecast analysis.
    • Market segment trend and forecast.
    • Competitive landscape and dynamics: Market share, Product Portfolio, New Product Launches, etc.
    • Attractive market segments and associated growth opportunities.
    • Emerging trends.
    • Strategic growth opportunities for the existing and new players.
    • Key success factors.

    The Reinforced Compounds Market is segmented into the following categories:

    Reinforced Compounds Market, by Material Industry Type

    • GMT (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
    • BMC (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
    • SMC (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
    • LFT (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
    • SFT (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
    • CFT (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)

    Reinforced Compounds Market, by End-Use Industry Type

    • Aerospace & Defense (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
    • Transportation (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
    • Consumer Goods (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
    • Electrical & Electronics (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
    • Construction (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
    • Others (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)

    Reinforced Compounds Market, by Fiber Type

    • Glass Fiber Compounds (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
    • Carbon Fiber Compounds (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)

    Reinforced Compounds Market, by Resin Type

    • Polyester (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
    • PP (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
    • PA (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
    • PBT (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
    • PPS (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
    • PC (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
    • Others (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)

    Reinforced Compounds Market, by Region

    • North America (Country Analysis: The USA, Canada, and Mexico)
    • Europe (Country Analysis: Germany, France, The UK, Russia, Italy, and Rest of Europe)
    • Asia-Pacific (Country Analysis: China, Japan, India, and Rest of Asia-Pacific)
    • Rest of the World (Country Analysis: Brazil, Saudi Arabia, and Others)

    Report Customization Options

    With this detailed report, Stratview Research offers one of the following free customization options to our respectable clients:

    Company Profiling

    • Detailed profiling of additional market players (up to three players)
    • SWOT analysis of key players (up to three players)

    Competitive Benchmarking

    • Benchmarking of key players on the following parameters: Product portfolio, geographical reach, regional presence, and strategic alliances

    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 to sales@Stratviewresearch.com

    A Bird's Eye View of the Market

    The reinforced compounds market is estimated to grow at a healthy CAGR of 7.7% (value basis) over the next five years. Expected recovery of the major end-use markets in the post-pandemic developments paired with an incessant increase in the penetration of reinforced compounds favored by stringent regulations remains the market driver.

    SABIC, DuPont, BASF SE, DSM N.V., Solvay S.A., BASF SE, Covestro AG, Hanwha Corporation, Teijin Limited, Huayuan Advanced Materials Co., Ltd. (HAMC), and Polynt S.p.A. are some of the key players in the market.

    Asia-Pacific is estimated to remain dominant in the reinforced compounds market in the coming years. High automobile production, the continuous shift of electrical & electronics and consumer durable products in key Asian economies, and the increasing acceptance of composites are the key factors behind the dominance of the region in the global market.

    Asia-Pacific is also estimated to grow at the fastest pace in the coming five years, mainly driven by China and India. Other countries, such as Japan and South Korea, also generate a fair demand for compounds. However, China and India are likely to create humongous opportunities in the coming years.

    SFT (Short Fiber Thermoplastic) is likely to maintain its dominance in the market over the next five years, followed by SMC, LFT, and GMT. LFT is likely to witness the highest growth in the coming years. Thermoset compounds (SMC and BMC) also hold a fair share of the market and their demand has been growing steadily with the advancements in technologies such as direct-SMC.

    Transportation is expected to remain dominant in the thermoplastic compounds market in the coming years. The industry is the biggest user of SMC, BMC, SFT, LFT, and GMT products.

    PA (Polyamide) is likely to maintain its dominance in the market over the next five years on account of its high temperature and electrical-resistant properties, and widespread usage in end-use industries.