Carbon Fiber Reinforced Plastic Market Trends

Growth Drivers

• Surge in the Production Volume of Vehicles – As per the Organization of Motor Vehicle Manufacturers, the global production of vehicles was 80,145,988 units in 2021. This is a rise from 77,711,725 units in 2020.In the automotive industry, carbon fiber reinforced plastics are being highly utilized owing to their considerable weight savings, enhanced tensile strength, fatigue resistance, and durability. Thus, the increase in demand for and production of vehicles is expected to create lucrative opportunities in the market.
• Growth in the Aerospace and Defense Industry – Recently, the revenue generation by the global aerospace and defense industry was approximately USD 700 billion in 2021, an increment of 4% from 2020, and there was a profit generation of almost USD 6o billion in the same time period.
• Burgeoning of Population with Middle Income - According to the World Bank, the total population with a middle income in the world rose from USD 5.51 billion in 2015 to USD 5.86 billion in 2021.
• Higher Utilization of Carbon Fiber Reinforced Plastic in Construction Sector – for instance, the rise in construction was observed to be around 11% in 2021 than the previous year globally, while total construction output is projected to hit approximately USD 15 trillion by 2030 across the globe.

Challenges

• Presence of Prolonged Production Cycles
• Easy Availability of Steel Counterparts
• High Costs Associated with Carbon Fiber Reinforced Plastics
• Carbon fiber reinforced plastic is expensive since its cost is directly associated with the cost of the precursor from which it is acquired. The manufacturing process of carbon fiber reinforced plastic is also highly-specialized and it also requires advanced machinery for production. Moreover, the machinery to produce carbon fiber reinforced plastic can cost thousands of dollars that increases the price of the end product. Hence, it is expected to hamper the market’s growth.