Vulcanized Fiber Market Trends

Growth Drivers

• Rising Automotive Industry with Increasing Sales of Electric Vehicles across the World – The increasing number of automotive industries across the world is estimated to drive market growth. The adoption of electric vehicle demand is expanding owing to the rising greenhouse gases across the world. The growing global warming around the world is estimated to propel the electric vehicle growth thereby propelling the market growth in the coming years. The less cost and high efficiency of electric vehicles are driving the growth of the market. As per the estimations, electric car sales raised from 0.2% in 2011 to 4.6% in 2021 out of total car sales in the United States according to the Bureau of Labor Statistics.

• Growing Policies to Reduce Vehicle Emissions and Use of Petrochemicals – The United States Environmental Protection Agency, in 2021 December finalized the revised national greenhouse emissions standards for light trucks and passenger cars of Model 2023-2036.

• Escalating the Construction Sector with Rise in Infrastructural Development – The annual value of construction projects undertaken in the year 2021 was estimated to be more than USD 1.5 trillion in the U.S.

• Increasing Use of Furniture Manufacturing with Growing Economic Standards – The furniture industry growth rate in India accounted for more than USD 5 billion in the year 2023 as per the reports.

• Rising Electrical Wires Consumption with Growing New Connections and Extension of Old Ones – The year-on-year growth rate of exported insulated wire across the U.S. in 2018 was over 4 and increased to more than 20 in the year 2021 as per the estimation in 2022.

Challenges

• Availability of Other Alternatives and Substitutes
• High Initial Cost and Time – The production process and preparing vulcanized fiber from cellulose wood pulp is very difficult. The cost of preparation is also expensive owing to the involvement of serval steps such as gelatinization of cellulose fibers, curing, air drying, treating under pressure and heat for adhesion properties, and many more. Also, they involve various equipment installation and maintenance which is estimated to inhibit the market growth.
• Degradation and Discoloration on Long Exposure to Air