Constant R&D coupled
with innovation and implementation of new techniques in technologies are
resulting in growth of different industries such as pharmaceutical, automotive, aviation, and others. Prepreg is
widely used in these industries for smooth functioning. Prepreg are composite
fibers that are pre-impregnated with a resin system such as thermoset or
thermoplastic resin matrix in a certain amount. Unique properties of material
is curated under high temperature and pressure, making it easy to use as a good
fatigue resistant, environmental hazard as well as corrosion resistant. Manufactured
by hot melt process and solvent dip process, prepreg are extensively used in
planes, cars, sports equipment, and other various fields, the material has wide
applications in various end-user vendors. Hence, due to huge demand of the
material, the prepreg market revenue estimated as $7.73 billion globally in
2018, and the market is expected to grow at a CAGR of 10.5%, during the
forecast period 2019-2025.
According to the estimations of the International Trade Centre (ITC), trade value of epoxide resins, and polyacetals was evaluated as $65.57 billion by the end of 2018. The report further assessed that the global trade value recorded an increase of 16% in 2017-2018. It can be concluded that a substantial amount of this parent trade value contributed to prepreg market growth, as these are used extensively used in prepreg.
Booming Prepreg Market
Revenue in Europe.
In 2018, the European
prepeg market held the largest share with almost 39% of the global market. The U.K., Germany, Spain, and other European
countries are constantly developing their technologies and implementing the
usage of prepreg in different verticals such as automotive, healthcare, motorsports,
sports equipment, and others. These end-users of different
verticals are contributing to the expansion of the prepreg market paving further opportunities for the market leaders in the next years.
·A Record Year for Wind
Energy Installations across Countries in Europe Driving Prepreg Market –
According to the
analysis of European Environment Agency, Europe will witness a rise in temperature
between 1°C to 2.5°C during 2021-2050, which will further rise in between 2.5°C
to 4.0°C by 2071-2100. Globally,
countries are facing the consequences of global warming, which is the current
threat and majorly focused area by the Governments. Various initiatives and technological
developments can be witnessed in countries to lessen the impact of global
warming. Studies of Union of Concerned Scientists Science for a Healthy Planet
and Safer World shows that renewable energy generation sources such as
turbines, windmills, and solar panels emit less or no global warming emissions. In
2017, Europe installed 16.8 GW of extra wind power. In Europe, wind energy was
the second largest power generating form with a total capacity of 169 GW in
2016. It was a record year for wind energy installations in the UK, Belgium,
Germany, France, Croatia and Ireland. Prepregs
are used in rotor blades of wind turbines. Thus, with increasing numbers of
windmills, the prepreg market will observe an upsurge resulting in market expansion.
Moreover, in 2018, Germany ranked second in terms of revenue earned of $4.45
billion from products such as polyacetals, polyethers and epoxide resins, and
witnessed an annual growth of 11% in the trade value. Hence,
the Europe prepreg market will witness a demand influx, during the forecast
period.
· Expansion of Sports Sector is Attributing to
the European Prepreg Market Share –
Prepeg fiber glass, carbon epoxy, injection molded glass,
and nylon are some of the major components of snowshoes, ski boots, inline
skates, skis, ski poles, and snowboard bindings. The tooling cost and
flexibility of products are attracting related vendors. Sports is one of the fastest expanding sectors. According to the reports of European
Commission, people aged between 15-29 years comprises of 38% of sport
employment which is twice the percentage of total employment. Thus,
growth of the sports industry will lead to the traction of vendors into the
prepreg market, in the upcoming years.
The key application of
prepreg is found in the aerospace and defense sector. Earlier, prepregs were
taken as specialty materials and were used only for non-critical
secondary structures such as alpha helices and beta sheets but with further R&D, prepegs constitute
almost half of the airframe of different planes. Additionally, they are used in
subsea tubes for gas and oil exploitation and high pressure vessels. As per
reports of Aerospace Industries Association, aerospace and defense industry
contribute as largest positive trade balance of any the U.S. industry. It
rested at a revenue of around $90 billion in 2016, supporting 2.4 million jobs
in the country, contributing to 13% of the nation's manufacturing workforce. Furthermore,
the International Civil Aviation Organization (ICAO) presents that flight
passengers count reached to 3.7 billion in 2016, which shows the growth in the
aviation industry. On the other hand, in 2016, the U.S. OEMs made
a penetrating success in the Indian market by selling over $14 billion worth
defense systems such as chinook helicopters, Lockheed Martin’s C-130 aircraft,
and Boeing’s Apache. Thus, with high demand in aircraft industry,
the prepreg market will witness growth in terms of revenues. Prepreg in the aviation
and defense industry is expected to grow at a CAGR of 8.2%, yielding good returns
to the prepreg market vendors by the end of 2025.
Prepreg Market Growth
Drivers –
· Motorsports Industry
to Bring Drastic Growth in the Prepreg Market –
The global motorsports
market recorded $4.3
billion in 2017 and projected to grow at a CAGR of 8.43%, during the forecast 2018-2023.
Sportscar such as Formula 1 cars and others are built by individual carbon
fiber prepeg plies that are laid on top of one another at different angles to
avoid any hindrance in mechanical performance. Thus, with the growth of
motorsports, the prepreg market will boost in the upcoming years.
· Flourishing Orthopedic Technology in
Prosthetics and Orthotics to Drive Prepreg Market –
Prepreg carbon fibers
make for one of the most important components of orthotic fabrication.
Due to its high durability and lightweight features, it is widely accepted by prepreg
carbon fiber vendors. Prepregs are used in prosthetic feet, as these compounds
come in rolls or sheets that already have an optimum balance of partially cured
epoxy resin. Thus, foot
orthotic insoles market is
substantially attributing to growth of the prepreg market. In 2017, revenue of the
foot orthotic insoles industry was estimated $3 billion, and expected to grow
at a CAGR of 5.7%, during the forecast period 2018-2023. This growth in foot
orthotic insoles industry will contribute to expansion of the prepreg market
and open new avenues for vendors in the upcoming years.
Prepreg Market:
Competitive Landscape
The key driving forces
contribute to market growth and the market players holding major market shares
are SGL Group (Wiesbaden, Germany), Gurit Holdings AG (Wattwil, Switzerland),
Park Electrochemical Corporation (Melville, U.S.), Toray Industries (Tokyo,
Japan), Teijin Limited (Osaka, Japan), Royal TenCate N.V. (Almeo, The
Netherlands), Hexcel Corporation (Connecticut, U.S.), Solvay (Brussels,
Belgium), Mitsubishi Rayon Co. Ltd. (Tokyo, Japan), and Axiom Materials
(California, U.S.).
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Related Reports:
A) Orthotic Devices Market
https://www.industryarc.com/Report/163/orthotic-devices-market.html
B) Thermoplastic Elastomers Market
https://www.industryarc.com/Report/11670/thermoplastic-elastomers-market.html
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