Asia Pacific Composites Market Size, Share & Trends Analysis Report By Product (Carbon Fiber, Glass Fiber), By Manufacturing Process (Layup, Filament, Injection Molding, Pultrusion), By Application (Automotive & Transportation), By Country, And Segment Forecasts, 2024 - 2030

Asia Pacific Composites Market Trends

The Asia Pacific composites market size was estimated at USD 45.31 billion in 2023 and is anticipated to grow at a compound annual growth rate (CAGR) of 8.9% from 2024 to 2030. This growth is attributed to the growing use of lightweight materials in various manufacturing sectors. This trend is predicted to boost market development in the forecast years. The region's profitability is also on the rise, influenced by factors such as growing air traffic, increased production of automobiles, and ambitious goals for expanding the production capacity of electrical and electronic goods set by several governments, including China, India, Japan, and South Korea.

The Asia Pacific region, being the world's largest transportation market, is anticipated to see a surge in market growth due to the presence of numerous automobile manufacturers and consistent growth in vehicle production. The relocation of manufacturing bases to India and Southeast Asian countries, driven by a favorable business environment and cost-effective labor, is predicted to boost the demand for composites in the region. The expansion of other industries such as electrical & electronics, construction, and turbines is expected to significantly contribute to market growth.

The increasing need for complex and compact designs, growing material needs, and cost limitations could further amplify the demand for composite materials, thereby driving market growth. However, the emphasis on eco-friendly lifestyles and production regulations due to climate change could limit the market's expansion. The push for renewable energy presents a great opportunity for the composites market to reach its full potential, as these materials are needed to manufacture the devices or equipment used to generate and store carbon-neutral energy.

In the aerospace industry, the use of composites is on the rise due to their ability to reduce weight and improve fuel efficiency. Aerospace composites, with their superior strength-to-weight ratio, enable efficient structural and aerodynamic designs. There has been a significant shift in aircraft design at Boeing and Airbus, with aerospace composites now considered primary structures. All wide-body airplanes designed by both manufacturers are now based on this new approach.

Market Concentration & Characteristics

The Asia Pacific Composite market tends to be fragmented due to its broad spectrum of applications and the existence of numerous mid-sized manufacturers serving specific niches. While there are leading players in the market, the overall landscape is marked by a plethora of companies providing specialized products and services, adding to its fragmented nature.

The market is characterized by a surge in innovation, driven by continuous technological advancements, particularly in the aerospace, construction, and automotive industries. Companies are consistently investing in R&D to improve their manufacturing techniques, the properties of materials, and the applications of composites. For Instance, in December 2023, Teijin Frontier Co., Ltd., an organization within the Teijin Group that converts fibers and goods introduced Microft MX, a premium, high-performing material of the future. To create the perfect woven or knitted structure, this product is made from a highly distorted cross-section multifilament yarn, which is a consistent blend of polyester and nylon single filaments spun using a unique method. Rich colors come from a consistent mixture of nylon and polyester threads. Microft MX has a chambray-like appearance because of the two fabrics' distinct dyeing processes.

Regulations and standards that govern the use of composites in various sectors, including safety and environmental restrictions, have a moderate influence on the market. Nonetheless, future market growth could be influenced by changes in regulations concerning sustainability and recyclability.

Moreover, the market is experiencing significant product expansion as manufacturers consistently launch new products and materials to cater to the changing needs of customers and industry standards. This expansion incorporates the creation of superior composite matrices, improved performance, cost reduction, and the facilitation of new applications. For Instance, In January 2024, Toray Industries, Inc. exhibited its carbon fiber TORAYCA M46X model. This new product maintains a high tensile modulus and is about 20% more resilient than comparable items in the TORAYCA MX series. When carbon fiber-reinforced plastic products are used with TORAYCATM M46X, their weight is reduced, and their environmental impact is lessened.

Product Insights

The glass fiber segment led the market and accounted for the largest market share of 64.0% in 2023. The growth is attributed to the broad application demand from industries such as construction, wind energy, electrical & electronics, and automotive & transportation. The increasing demand for high-strength materials in the automotive and aerospace sectors is anticipated to boost the market in the forecasted years. Glass fibers, known for their high rigidity, tensile strength, and lightweight properties, are predominantly used as raw materials for composites. Their excellent impact resistance further enhances their use in manufacturing composites.

The Carbon fiber segment held a substantial market share in 2023 due to its noteworthy properties like low thermal expansion, high strength-to-weight ratio, high stiffness, high chemical resistance, and high-temperature tolerance. Carbon fiber is molded with plastic resin to form carbon fiber reinforced polymer, such sandwich structures are broadly used in both interior and exterior aircraft applications.

Manufacturing Process Insights

The layup process held the largest market share of 36.37% in 2023. This growth is primarily due to its widespread use in composite manufacturing. This method involves arranging layers of composite fiber in a specific order using a matrix of resin and hardener, which is then allowed to cool at room temperature. The growing production of boats, wind turbine blades, and architectural moldings is expected to significantly boost the demand for the layup process. The layup process is popular for composite production due to its simple technology application and the need for less costly machinery.

The Pultrusion process also had a considerable market share in 2023. This growth is attributed to its effectiveness in producing fiber-reinforced composite products. It enables manufacturers to produce a continuous length of fiber-reinforced polymer. The pultrusion process is a continuous method that pulls resin-soaked fibers through a die to create a high-fiber volume product with a consistent cross-section. The fibers used in the process are soaked with resin in the infeed area, and the mixture then passes through additional fixtures to remove excess air and resin.

In addition, the compression molding segment held a significant market share in 2023. This is due to its utility in creating larger product pieces and its use in the production of sample projects and prototypes for short production runs. Compression molding is a molding technique where the material is preheated and placed in an open, heated mold cavity.

Application Insights

The Automotive & Transportation segment led the market and accounted for the largest market share of 20.14% in 2023. This growth can be attributed to the seamless flow of vehicles, components, spare parts, and raw materials throughout the automotive procurement, production, and sales process. Moreover, advancements in technology aimed at reducing vehicle weight are expected to boost the demand for carbon composites. The superior attributes of these products, such as durability and lightweight, are advantageous for the design and manufacturing of automotive parts using composite materials.

The wind energy segment also held a considerable market share in 2023, thanks to the excellent properties of the blades, such as fire retardancy, corrosion resistance, design flexibility, and durability, which help maintain blade weight. Wind energy is projected to be the fastest-growing application segment in the composites market in the forecast period, due to the increasing use of composites and the growing installation of wind energy farms. Composites are employed in wind energy for the production of various components, including wind turbine blades, blade reinforcements, blade laminates, spar caps, blade root joints, carrots, and spacers. These materials facilitate the manufacturing of cost-effective, long, and robust wind turbine blades, thereby enhancing energy capture capability.

In addition, the electrical and electronics sector held a significant market share in 2023, owing to the lightweight and cost-effective solutions offered by composites to the industry. The heat-resistant nature of composites has led to their increased usage in electronic goods that are susceptible to overheating. Composite materials are increasingly being used in the electrical & electronics sector due to their high arc resistance properties and dielectric strength.

Country Insights

China Composites Market Trends

The composite market in Chinadominated the market with a share of 50.06% in 2023. This growth is driven by the rising production of lightweight vehicles and the subsequent demand for lightweight materials, including composites. The surge in demand for electronic gadgets, particularly in China and India, is also expected to fuel market growth. The increasing standard of living and the trend towards smaller electronic devices are likely to boost the demand for composites. As per the Global Electrical & Electronics Council, China is the world's largest producer of electrical & electronics, providing ample growth opportunities for composite manufacturers.

India Composites Market Trends

The India composites market held a significant market share in 2023, driven by the growing focus on sectors such as automotive manufacturing, defense aircraft, equipment manufacturing, and marine industries. The expansion plans of various automotive manufacturers in the country are also contributing to this growth. Moreover, India is expected to install more wind energy plants with a capacity of over 20GW in the next five years from 2020, which is projected to increase the demand for composites in windmill production.

Japan Composites Market Trends

The composite market in Japan had a significant market share in 2023, owing to the presence of global aircraft manufacturers like Fuji Heavy Industries, Kawasaki Heavy Industries, and Mitsubishi Heavy Industries, as well as their increasing focus on improving aerospace manufacturing practices. Additionally, the country's automotive companies are striving to meet global environmental standards and reduce vehicle pollution levels, leading to increased use of lightweight materials in automotive production and supporting the growth of composites in Japan.

Key Asia Pacific Composites Company Insights

The Asia Pacific composites market is moderately fragmented due to the presence of key players in the market including Toray Industries, Inc. Kineco Limited, and China Jushi Co., Ltd. among others.

Key players in the market include Teijin Ltd.; Toray Industries, Inc., and Kineco Limited.

• Teijin Ltd. offers a variety of products and services in sectors such as information & electronics, safety & protection, environment & energy, and healthcare. The company's operations are divided into five categories: advanced fibers & composites, electronics materials & performance polymer products, healthcare, trading & retail, and others. The advanced fibers & composites category comprises products like aramid fibers, carbon fibers, polyester fibers, polyethylene naphthalate (PEN) fibers, and synthetic leather.

• China Jushi Co., Ltd. primarily focuses on the R&D, production, and distribution of fiberglass and related products. The company's main product is glass fiber yarn, and it is a key enterprise in the fiberglass division of China National Building Material Company Limited. The company's primary business is the production and sale of fiberglass and its finished products.

• Kukdo Chemical Co., Ltd.; Cobra Advanced Composites; and Kineco Limited are among the other participants in the Asia Pacific composites market.

• Kineco Limited, based in Goa, India, focuses on designing, prototyping, and producing large-scale composite goods utilizing carbon fiber or glass reinforcements in any phenolic resin or polyester epoxy system. The process capabilities of the company include vacuum bagging or prepreg autoclave curing, filament winding, smart resin infusion, resin transfer molding, and controlled hand layup.

Recent Developments

• In December 2023, Teijin Ltd. announced the commencement of production and sales of TenaxTM Carbon Fiber. This product is made with a synthetic monomer acrylonitrile (AN) using waste and residue from recycled raw materials or biomass-derived products. These materials have been certified by the International Sustainability and Carbon Certification system under ISCC PLUS. This move is a part of Teijin Group's initiative to reduce the environmental and societal impact of their business activities, aligning with their long-term vision of global environmental protection.

• In July 2023,Toray Industries, Inc. revealed plans to expand the production capacity of regular tow carbon fiber at two of their facilities. The company will make capital investments to enhance the Spartanburg plant production capacity in South Carolina, USA, and the Gumi in Gyeongsangbuk-do, Korea. These investments are expected to boost the annual capacity by over 20%, to 35,000 metric tons commencing in 2025.

• In October 2021, Kineco Group declared that it had agreed with Exel Composites Oyj to establish a joint venture aimed at developing the Indian pultrusion market. The newly formed joint venture, Kineco Exel Composites India, aims to expand the pultrusion business in India. The joint venture is targeting significant growth, particularly in large and expanding industries such as wind power, transportation, and telecommunications.

Asia Pacific Composites Market Report Scope

Asia Pacific Composites Market Report Segmentation

This report forecasts revenue growth at regional levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the Asia Pacific composites market report based on Product, manufacturing process, application, and country.

• Product Outlook (Volume, Kilotons; Revenue, USD Million, 2018 - 2030)

  • Carbon Fiber

  • Glass Fiber

  • Others

• Manufacturing Process Outlook (Volume, Kilotons; Revenue, USD Million, 2018 - 2030)

  • Layup

  • Filament

  • Injection Molding

  • Pultrusion

  • Compression molding

  • RTM

  • Others

• Application Outlook (Volume, Kilotons; Revenue, USD Million, 2018 - 2030)

  • Automotive & Transportation

  • Electrical & Electronics

  • Wind Energy

  • Construction & Infrastructure

  • Pipes & Tanks

  • Marine

  • Others

• Country Outlook (Volume, Kilotons; Revenue, USD Million, 2018 - 2030)

  • China

  • Japan

  • India

  • South Korea