Market Dynamics
Introduction
Thermoset compounds, comprising SMC and BMC, are advanced composite materials widely used across multiple industries. Both SMC and BMC are formulated from a combination of glass fibers or carbon fiber, thermosetting resin in liquid form, and mineral fillers, offering high strength, durability, and design flexibility. The primary distinction between the two lies in their reinforcement and form: SMC incorporates long chopped glass strands and is produced in malleable sheet form, whereas BMC contains shorter glass strands and is prepared in bulk form. These compounds are typically processed through compression or injection molding, enabling the production of lightweight yet robust components. Their versatile performance makes them integral to applications in transportation, construction, electrical & electronics, and other industrial applications.
Recent Market JVs and Acquisitions:
The thermoset compounds market has undergone M&A and partnerships worldwide to expand capacities, diversify portfolios, expand market reach, and drive technological innovation:
- In 2024, Dieffenbacher acquired Schmidt & Heinzmann’s composites business, securing key assets and 30+ employees to strengthen its position in advanced composites manufacturing and SMC/BMC equipment solutions.
- In 2024, National Composites partnered with Laval to strengthen SMC/BMC operations by combining Laval’s compression molding expertise with National’s Class A painting, final assembly, and full-service composite manufacturing capabilities.
- In 2023, Mitsubishi Chemical Group acquired CPC s.r.l. to strengthen its vertically integrated carbon fiber supply chain and expand its presence in the growing carbon fiber based automotive thermoset compounds market.
- In 2020, Astar S.A. and Toray International UK Ltd. signed an exclusive agreement to supply carbon fiber sheet molding compound (CSMC) materials across the U.K., reinforcing their long-standing collaboration started in 2018.
- In 2020, Mitsubishi Chemical Corporation acquired c-m-p GmbH and launched an SMC facility in Italy, strengthening its carbon fiber composite presence across key European mobility markets.
- In 2020, Japan Composite (Mitsui Chemicals, Inc. and Nippon Shokubai Co., Ltd.) acquired DIC Kako’s SMC business for a dual-plant setup between Shimizu and Narita, boosting SMC production capacity by 70 percent to 33,000 tons for a more stable, robust supply structure.
- In 2018, LyondellBasell acquired A. Schulman, Inc., a leading global supplier of high-performance plastic compounds, composites, and powders. The acquisition more than doubles its existing compounding business and broadens the reach into growing, high-margin end markets such as automotive, construction, electrical & electronics, and aerospace & defense.
- In 2017, the Polynt-Reichhold merger created a global thermoset player with enhanced capabilities in SMC/BMC compounds, leveraging integrated supply chains, expanded R&D, and 44 plants to serve diverse industrial and mobility categories.
Market Segments' Analysis
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Segmentations
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List of Sub-Segments
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Segments with High Growth Opportunity
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Industry-Type Analysis
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Aerospace & Defense, Marine, Transportation, Construction, Consumer Goods, Electrical & Electronics, Pipe & Tanks, and Others
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Transportation industry is expected to remain the largest market for thermoset compounds during the forecast period.
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Product-Type Analysis
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SMC and BMC
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SMC is expected to remain dominant in the market by 2030,
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Fiber-Type Analysis
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Glass Fiber and Carbon Fiber
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Glass fiber commands a mammoth share of the market
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Resin-Type Analysis
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Polyester, Epoxy, and Other Resins
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Polyester is likely to hold a significant share of the market
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Region Analysis
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North America, Europe, Asia-Pacific, and The Rest of the World
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Asia-Pacific is set to dominate the global thermoset compound market.
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By Industry Type
“Transportation is expected to remain the biggest demand generator of the thermoset compounds market during the forecast period.”
The market is segmented into aerospace & defense, marine, transportation, construction, consumer goods, electrical & electronics, pipe & tanks, and other industries. Transportation is expected to remain the biggest demand generator of thermoset compounds with usage in hood, bumper, door panel, fender, pickup truck boxes, and headlamp reflector, followed by electrical & electronics and construction industries. Aerospace & defense remains the fastest-growing industry in the market due to driven by the industry recovery paired with growing acceptance in secondary structural and interior parts.
By Product Type
“SMC dominates the thermoset compound market due to wide usage in transportation, construction, and the electrical & electronics industry.”
Based on the product type, the market is segmented into SMC and BMC. SMC is expected to remain the market’s larger category during the forecast period. SMC holds the dominating market share due to its structural strength, Class A finish, and applications in the automotive and construction industries, while BMC is growing at a decent rate, excelling in electrical insulators, switchgear components, and precision EV components.
By Fiber Type
“Glass Fiber is expected to hold a major market share of the market during the forecast period.”
By fiber type, the market is segmented into glass fiber and carbon fiber. Glass fiber comprises a significant share due to cost-effectiveness and broad industry-wide OEM adoption, in contrast with carbon fiber variants, which achieve a high growth rate, driven by electrification’s weight-reduction and high-performance demands in aerospace & defense.
By Resin Type
“Polyester is expected to dominate the thermoset compounds market”
Based on the type of resin, the market is segmented as polyester, epoxy, and others. The polyester segment is expected to account for a larger share of the market in the coming five years. Further, polyester resins are expected to be the faster-growing segment during the forecast period. The growth is attributed to their unique properties, such as excellent dimensional stability, corrosion resistance, and chemical confrontation properties, which augment the durability of SMC and BMC materials. SMC and BMC composites based on polyester resin display superb fire- and flame-resistant characteristics, hence, they are employed in electrical & electronics application.
Regional Analysis
“Asia-Pacific will continue as the largest market for thermoset compounds, with North America as the second largest during the forecast period”
By region, Asia-Pacific has a major share, in terms of value, in the global thermoset compound market due to rising industrialization, increasing automobile production, and the electrical & electronics industry in the region. The automotive industry in China, India, Japan, and South Korea is expected to be the largest demand generator for thermoset compounds globally, as the region accounts for more than 50% of the vehicle production worldwide. Asia-Pacific leads the electrical & electronics industry, with China, Taiwan, South Korea, and Japan manufacturing most of the world’s switchgears, electrical enclosures, circuit breakers, and insulators.
Key Players
The market is highly fragmented, with more than 50 players across the region. Most of the major players compete in some of the governing factors, including price, service offerings, and regional presence, etc. The following are the key players in the thermoset compounds market. Some of the major players provide a complete range of services.
Here is the list of the Top Players (Based on Dominance)
- LyondellBasell
- Teijin Automotive Technologies
- Polynt Group
- IDI Composites International
- Core Molding Technologies
- Menzolit
- Polytec Group
- Changzhou Jiang's Compound Materials Technology Co., Ltd.
- Mitsui Chemicals Group
- Huayuan Advanced Materials (Hamlite)
Note: The above list does not necessarily include all the top players in the market.
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Report Features
This report provides market intelligence most comprehensively. The report structure has been kept so that it offers maximum business value. It provides critical insights into market dynamics and will enable strategic decision-making for 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, Service 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 thermoset compounds market is segmented into the following categories.
Thermoset Compounds Market, by Industry
- Aerospace & Defense (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
- Marine (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)
- Construction (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)
- Pipe & Tanks (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
- Other Industries (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
Thermoset Compounds Market, by Product
- SMC (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)
Thermoset Compounds Market, by Fiber
- Glass Fiber (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
- Carbon Fiber (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
Thermoset Compounds Market, by Resin
- Polyester (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
- Epoxy (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
- Other Resins (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
Thermoset Compounds Market, by Region
- North America (Country Analysis: The USA, Canada, and Mexico)
- Europe (Country Analysis: Germany, France, The UK, Russia, and the Rest of Europe)
- Asia-Pacific (Country Analysis: Japan, China, India, and the Rest of Asia-Pacific)
- Rest of the World (Country Analysis: Brazil, Argentina, and Others)
