Find the store Analysis: Impact of Covid-19 on Thermoplastics Market
Source: press release
Due to the shutdowns in many countries, the demand for thermoplastic compounds has decreased significantly in many industries. Not only has supply chains been disrupted, but production has also slowed due to the absence of workers.
According to a new market research report on Thermoplastics Market, the global composite materials market size is expected to grow from $22.2 billion in 2020 to $31.8 billion by 2025, with a CAGR of previous 7.5 during the forecast period. The thermoplastic composites industry is growing due to the increase in demand for high performance materials with properties such as repairability, recyclability, FST properties, high strength-to-weight ratio, good tensile strength, and electrical conductivity, among others.
Covid-19 has negatively impacted the demand for thermoplastic composites across various end-use industries such as aerospace, defense, transportation, wind energy, construction, consumer goods, electronic among others. Disruption in the supply chain has resulted in delayed or non-arrivals of raw materials, disrupted financial flows, and increased absenteeism among production line workers, forcing OEMs to operate at zero or partial capacity, resulting in reduced demand for thermoplastic compounds.
The companies operating in the thermoplastic composites market have consolidated their position in the global thermoplastic composites market by embracing expansions, partnerships, agreements, new product/technology launches, joint ventures, contracts, mergers and acquisitions from 2015-2020. However, due to the closures announced by many countries in 2020, the The demand for thermoplastic compounds from wind turbine installations, consumer and electronic goods, automobile and aircraft manufacturers, and construction sectors has fallen sharply.. For example, the demand for vehicles from two major commercial aircraft companies, Boeing and Airbus, fell significantly due to the lack of new aircraft orders in January and February, respectively. In the wind energy sector, international and domestic travel bans create problems in routine maintenance, operations, and procurement of related materials and equipment, thus reducing the demand for thermoplastic compounds.
The thermal vehicle business of these companies is being severely affected by the Covid-19 outbreak, resulting in Low demand for thermoplastic compounds from many OEMs and disrupt the supply chain. However, many thermoplastic composite manufacturers have focused their focus on providing support to manufacturers of medical and healthcare device manufacturers. For example, in place of Covid-19, Celenase Corporation has confirmed assistance to medical equipment manufacturers to provide their medical products such as long fiber reinforced thermoplastics and continuous fiber reinforced thermoplastics to make ventilators, respirators and other medical and healthcare devices.
Thermoplastic fiberglass composites are cheaper compared to carbon, basalt and aramid composites. The low cost, ability to blend with all thermoplastic resins, ease of manufacture, and similar properties to other thermoplastic fiber composites are driving the growth of thermoplastic fiberglass composites in various end-use industries such as construction, wind energy, transportation, consumer goods and electronics.
PA resins account for the largest market share
Rising demand is primarily driven by the increasing consumption of short glass fiber reinforced polyamide in transportation, sports, leisure, FMCG, industrial, marine, energy, oil and gas, and building and construction applications. But due to the lockdown caused by Covid-19, many floor workers are unable to work in the manufacturing facilities, resulting in Resins production decline and price fluctuations. Thus, the demand for PA thermoplastic resins is expected to decline in 2020. With the recovery of the above industries, the demand for PA-based thermoplastic composites will gradually rise during the forecast period.
SFT owns a large share of revenue
Rising demand for SFT in the areas of transportation, consumer goods and electronics is driving the growth of the SFT thermoplastic composites market. China is SFT’s main market due to its well-established automotive and electronics industries. However, the country was greatly affected by the epidemic, the demand for SFT in the automotive and electronics industries decreased. Demand is expected to stabilize in 2021 and will increase as industries recover.
The Transportation end-use industry accounts for the largest market share in the global thermal vehicle market during the forecast period in terms of value and volume.
the Demand for lightweight thermoplastic compounds Driven by the growing focus on enhancing fuel efficiency in the automotive industry. Thermoplastic compounds are widely used in automobile interior parts, which include brake pedals, airbag units, engine noise protection, dashboard mounts, trunk liners, and air intake manifolds, among others. The demand for thermoplastic compounds in cars and the penetration of electric vehicles have been severely affected by Covid-19. However, the demand for thermoplastic compounds will rise as the global automotive and electric vehicle sectors recover after 2020.
Apac is expected to capture the largest market share
Apac accounts for the largest share of the global thermoplastic materials market. The electrical, electronics, automotive and consumer goods sectors are major consumers of thermoplastic compounds in the region. North America is the second major consumer of thermoplastic compounds. Aerospace, defense and automotive are key industries fueling the growth of the thermoplastics market in this region. Furthermore, the United States is a manufacturing hub for many commercial, military, and private aircraft. However, the Covid-19 outbreak has affected the demand for thermoplastic compounds in the region. On the positive side, the Covid-19 pandemic has urged countries like India to reduce dependence on imported goods and manufacture parts/components locally. Such initiatives along with payback in the thermoplastic end-use industries will increase the demand for thermoplastic composites in Apac.
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