Functional Composites Market By Type (Metal Matrix Composites, Polymer Matrix Composites, Ceramic Matrix Composites & Hybrid Matrix Composites), By Function (Thermally Conductive, Electrically Conductive, Magnetic, Barrier, Functional Composite Matrix, Optics & Others), By Application (Sensor, Body Panels, Valve Covers, Truck Beds, Storage Tanks, Electrical Components & Others), By End-use Industry (Transportation (Automotive, Aerospace, Marine & Locomotive), Building & Construction (Residential, Commercial, Industrial & Infrastructure), Electrical & Electronics, Consumer Goods, Energy Industry & Others), By Geography - Global Opportunity Analysis & Industry Forecast, 2022-2027
Functional Composites Market Overview
The Functional Composites market size is estimated to reach more than US$68.3 billion by 2027, after growing at a CAGR of 7.8% during the forecast period 2022-2027. The rising demand from end-user industries such as aerospace & defense, automobile, building & construction and consumer goods & electronics is driving the functional composites market. Functional composites are compounds with unique electrical, optical and magnetic properties and it includes metal matrix composites, polymer matrix composites, ceramic matrix composites and hybrid matrix composites. The COVID-19 pandemic majorly impacted the functional composites market due to restricted production, supply chain disruption, logistics restrictions and a fall in demand. However, with robust growth and flourishing applications across major industries such as transportation and others, the Functional Composites market size is anticipated to grow rapidly during the forecast period.
Functional Composites Report Coverage
The “Functional Composites Report – Forecast (2022-2027)” by IndustryARC, covers an in-depth analysis of the following segments in the Functional Composites industry.
- Asia-Pacific dominates the Functional Composites market size. The increase in demand from end-user sectors, such as transportation and others, is the main factor driving the region's growth.
- One of the primary factors contributing to the Functional Composites market's favorable outlook is significant growth in the electronics sector around the world.
- The widespread use of Functional Composites in the consumer goods sectors also drives demand for items made with these composites.
Functional Composites Market Segment Analysis – by Type
The Polymer Matrix Composites segment held the largest share in the Functional Composites Market in 2021 and is projected to grow at a CAGR of 8.0% during the forecast period 2022-2027, owing to the extensive characteristics of polymer matrix composites over metal matrix composites, ceramic matrix composites and hybrid matrix composites. Polymer matrix composites are regarded for their low cost and simple fabrication methods. It is widely used in applications like scanners, devices, body panels and others, thereby increasing demand in various end-use industries. Thus, owing to tremendous advantages and better availability over other types, the demand for polymer matrix composites is growing for applications in major industries, thereby boosting the growth opportunities for Functional Composites in the projected years.
Functional Composites Market Segment Analysis – by End-use Industry
The Transportation segment held the largest share of the Functional Composites Market in 2021. The segment is projected to grow at a CAGR of 7.5% during the forecast period 2022-2027, owing to the increasing usage of ceramic balls in transportation components. Functional Composites are expected to drive demand for transportation applications as it is widely used in the body panel, sensors, valve covers and others, thereby boosting the functional composites market. According to the Energy Information Administration (EIA), by 2035, there would be 1.7 million automobiles worldwide. According to the International Organization of Motor Vehicle Manufacturers (OICA), automobile output increased by 10% in the first nine months of 2021 to 57.26 million vehicles, up from 52.15 million units in the same period last year. With the increasing transportation production, the demand for functional composites is also likely to increase, as a result of which the Functional Composites industry would be flourished over the forecast period.
Functional Composites Market Segment Analysis – by Geography
The Asia-Pacific held the largest share in the Functional Composites Market in 2021 and is projected to grow at a CAGR of over 8.0% during the forecast period 2022-2027. The automotive sector in Asia-Pacific is rapidly growing due to a flourishing base for automotive manufacturers, demand for automotive compounds and production rise. According to the India Equity Foundation, by 2030, the Indian aerospace and defense (A&D) sector is expected to reach US$70 billion. In November 2020, Boeing estimated that China's airlines would spend US$1.4 trillion on 8,600 new planes and US$1.7 trillion on commercial aircraft services over the next 20 years. According to India Brand Equity Foundation (IBEF), India’s domestic automobile production increased at a 2.36% CAGR from FY16 to FY20, with 26.36 million vehicles produced in FY20. With the robust growth of the transportation industry in Asia-Pacific, the demand for functional composites for application in automotive would rise. Thus, the growth of functional composites in the region is being aided by the increasing transportation sector in APAC, thereby dominating the market in the Asia-Pacific region.
Functional Composites Market Drivers:
Rising Demand from the Electrical & Electronics Industry:
Functional Composites have growing applications in the electrical & electronics industry. Functional Composites are widely used in electrical & electronic components. The electronics industry is growing rapidly due to the high demand for electrical devices and consumer electronics such as smartphones, TV, PC and others in the work-from-home scenario. According to the India Brand Equity Foundation (IBEF), the electronics manufacturing industry in India is projected to reach US$520 billion by 2025. According to the Semiconductor Industry Association (SIA), global semiconductor sales totaled US$151.7 billion in the first quarter of 2020, showing an increase of 23% over the first quarter of 2021. With the increasing growth in electronics production, the demand for functional composites for applications is growing. The growing electrical and electronics sector is driving the market and offering major growth opportunities in the Functional Composites industry.
Increasing Government Initiative are Bolstering the building and infrastructure Industry:
Government investment is boosting the building and construction sector in various countries. The Indian government now places great emphasis on the infrastructure sector. India intends to invest US$1.4 trillion in infrastructure between 2019 and 2023 in order to achieve sustainable national development. The Indian government has proposed spending INR 5,000,000 crores (US$ 750 billion) on rail projects between 2018 and 2030. Additionally, the building sector frequently makes use of wood-based products like furniture and coating chemicals that are necessary for these wood products to be resilient and long-lasting. Therefore, it is anticipated that demand for functional composites would expand significantly as construction activities increase around the world. As a result, such government investments and activities in the construction industry would boost the growth of the Functional Composites market share.
Functional Composites Market Challenges
Complex Techniques and Higher Costs:
The complex technique is a significant concern regarding the growth of the Functional Composites market. There is a high possibility of error due to the high accuracy and complexity of the techniques. The lack of experts in some regions can lead to significant drops in market adoption. The incompatibility of the modern technique is a challenge. The increasing need for high accuracy to achieve the desired result, as well as the increasing complexities in functional techniques, are expected to hinder the market growth during the forecast period. Moreover, limited labor supply and higher costs of material hamper the growth of the functional composites market. All of these factors may have an impact on the overall growth of the Functional Composites market.
Key Market Players
Technology launches, acquisitions and R&D activities are key strategies adopted by players in the Functional Composites market. The top 10 companies in the Functional Composites market are:
- Arkema S.A.
- BASF SE
- Hexcel Corporation
- Cytec Industries Inc.
- Koninklijke Ten Cate N.V.
- TPI Composites Inc.
- Toray Industries Inc.
- Mitsubishi Rayon Co. Ltd
- Teijin Limited.
- SGL Carbon SE
Report Code: CMR 54385
Report Code: CMR 80512
Report Code: CMR 10087
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