Recyclable Thermoset Market
This report, from Stratview Research, studies the global recyclable thermoset market over the trend period of 2012 to 2017 and forecast period of 2018 to 2023. The report provides detailed insights into the market dynamics to enable informed business decision making and growth strategy formulation based on the opportunities present in the market.
The Global Recyclable Thermoset Market: Highlights
The global recyclable thermoset market is likely to grow at a healthy CAGR of 6.3% over the next five years, propelled by a host of factors including organic growth of the composites industry, an increasing preference of thermoset over thermoplastics, high focus on the green and sustainable materials, and the introduction of strict government regulations regarding the ban of landfill disposal.
Thermoset is the most widely accepted matrix system for fabricating composite parts. The matrix system has efficaciously been gaining penetration in most of the end-use industries, owing to its excellent strength and interlaminar properties. Unsaturated polyester, epoxy, and phenolic are the most commonly used matrices globally. Other major thermosets are polyurethane, vinyl esters, BMI, cyanate esters, and silicones. However, one of the biggest constraints of thermoset resin is its non-recyclability, owing to a large number of cross-link in its structure. The generation of waste from thermoset composites is mainly derived from the end-of-life of composite parts as well as from the scrap accumulated during the fabrication of composite parts.
Stringent regulations regarding the fuel efficiency enhancements and the carbon emission reductions, such as CAFÉ Standards, are creating an enormous pressure on automakers to make their vehicles fuel efficient. Automakers are unraveling this challenge by incorporating lightweight composite materials in the structural and semi-structural sections of their new vehicle models. A similar trend has been observed in the aerospace & defense industry where major airframers are introducing the next-generation aircraft with composites content up to 50% of the structural weight of the aircraft with the purpose to improve the fuel efficiency and to reduce the carbon emissions.
Such factors are incessantly engendering a greater demand for composite materials, especially of thermoset composites, in order to address different requirements of various industries. All the major stakeholders of various industries are increasingly betting on these materials in order to meet their existing as well as upcoming requirements, but the non-recyclability of thermosets is limiting their potential up to some extent.
The impact of non-recyclability of thermoplastic composites became even severe due to the ban on waste import in the major markets, especially China and introduction of strict landfill reduction laws in Europe. For instance; End-of-Life Vehicles generates between 7 to 8 million tonnes of waste in the European Union, which need to be managed properly in order to protect the environment. The European Union issued End-of-Life Vehicle Directive in 2000 with a complete implementation in 2003, which states a minimum 95% reuse or recovery of vehicle’s weight manufactured after January 2015.
Similarly, China was the dumping ground of the global trash and accumulated more than half of total global trash every year. The country used to import approximately 9 million metric tons of plastic scraps every year. However, the recent ban on the import of 24 waste items in China is scrambling the global leaders including the USA, Japan, and Europe, who used to export most of their waste to the country.
As of now, major composite thermoset players are paying for landfill disposable but the introductions on strict landfill regulations and high focus on saving the environment by opting green materials are leading the thermoset recycling necessary. Mechanical recycling and incineration (energy recovery) are currently the most used recycling technologies of thermoset materials but these technologies have certain disadvantages including the non-economic viability. To maintain the inevitable growth momentum of composite thermosets, it is important for the composite industry stakeholders to make rigorous efforts towards the development of efficient recycling technologies for thermoset composites that can be commercially viable and economical in nature.
Recyclable Thermoset Market by Technology Type:
Based on the technology type, the recyclable thermoset market is segmented into Mechanical Recycling, Feedstock Technology, and Energy Recovery. Mechanical recycling currently dominates the market, driven by a high usage in the Asia-Pacific, the largest thermoset composites market. Mechanical recycling is a manual process in which thermoset-made parts are pierced into fine particles, which are used as a filler or as a reinforcement. The recycling process is highly labor intensive and is highly preferred in China and India, owing to the availability of low-cost labor coupled with relatively less stringent landfill regulations. The process produces relatively low-quality fillers, which cannot be used in high-performance applications and also, this is a bit more expensive than the fillers, such as clay.
Energy recovery is another process and accounts for a considerable share of the total recyclable thermoset market; however, the process has incessantly been losing its share, owing to the generation of heat during combusting thermosets as well as the generation of harmful gases.
Feedstock recycling is likely to be the fastest-growing segment of the market, driven by its numerous advantages including higher-quality materials. The continuous efforts for the development of efficient feedstock recycling would propel the segment’s growth in the coming years.
Recyclable Thermoset Market by Thermoset Type:
Based on the thermoset type, the market is segmented into Unsaturated Polyester Resin (UPR), Epoxy Resin, Phenolic Resin, Polyurethane Resin, and Other Resins. UPR is likely to remain the most dominant segment of the market during the forecast period, driven by a high usage in various cost-sensitive industries including transportation and building & construction. UPR is the most widely used resin systems that offer excellent performance at a relatively low cost.
Epoxy resin is likely to be the fastest-growing segment of the market during the same period, propelled by an increasing usage in the transportation, Aerospace & Defense, and electricals & Electronics industries. Epoxy resin offers better mechanical and interlaminar properties but at a relatively high cost as compared to UPR.
Recyclable Thermoset Market by End-Use Industry Type:
Based on the end-use industry type, the market is segmented into Building & Construction, Transportation, Wind Energy, Electricals & Electronics, Aerospace & Defense, and Others. Building & Construction and transportation are the largest consumers of thermoset composites worldwide, driven by an increasing demand for lightweight, durable, corrosion-resistant, and highly aesthetic parts.
The transportation and aerospace & defense industries are likely to be the fastest-growing market over the next five years. Both end-use industries are increasingly increasing the penetration of composite parts into the structural and semi-structural applications in order to meet their current market requirements. Composite recycling becomes a necessity as both industries are highly relying upon thermoset composites.
Boeing and Airbus together generate almost 1 million lbs. of cured and uncured carbon fiber prepreg waste every year from the production of the B787 and A350XWB aircraft programs. Considering the waste of entire supply chain, the waste escalated to 4 million lbs. per years. It becomes inevitable for the industry leaders to better handle the thermoset waste to produce parts.
Recyclable Thermoset Market by Region:
Based on the regions, Asia-Pacific is likely to remain the largest recyclable thermoset market over the next five years, driven by a higher usage of mechanical recycling technology, which is further propelled by a low-cost labor and relatively less stringent regulations regarding the usage of waste. Also, Asia-Pacific is the largest producer as well as the procurer of composite materials, driven by the presence of assembly/manufacturing plants of highly cost-sensitive industries including electricals & electronics, wind energy, transportation, and building & construction.
Europe, another major market for recyclable thermoset, is likely to witness the highest growth over the next five years, driven by the stringent government laws regarding the ban of landfill and usage of waste, such as European Union’s end-of-life-vehicle (ELV) directive. Aerospace & Defense and transportation segments are likely to drive the demand for recycling of thermosets in the region in the coming years.
Recyclable Thermoset Market: Key Players and Strategies
A recent study suggests that merely 2% of composite industry players are active recyclers. However, the numbers of players have sharply been raising, owing to the industry’s focus on recycling thermosets. Connora Technologies, Adesso Advanced Materials Inc., Mallinda, LLC, and INTCO Recycling the major players active in the market.
Most of the major players are successful in getting investment from the various industry stakeholders in order to commercially develop their technologies. At the same time, major players are focusing on the development of those technologies that are economical and gives a better result than the landfill or incineration.
Strategic collaboration with institutes and industry stakeholders; execution of mergers & acquisitions, and formation of the long-term contracts are some of the major strategies adopted by the companies to remain competitive in the market. They have a high focus on R&D in order to develop commercially viable and economical technologies to address the existing challenges.
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 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:
The global recyclable thermoset market is segmented into the following categories.
Recyclable Thermoset Market, By Technology Type
Recyclable Thermoset Market, By Thermoset Type
Recyclable Thermoset Market, By End-Use Industry Type
Recyclable Thermoset Market, By Region
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