Closed Molding Composites Market - Forecast(2023 - 2028)

Closed Molding Composites Market Overview

The closed molding composites market size is forecast to reach US$68.3 billion by 2027 after growing at a CAGR of 7.6% during 2022-2027. Closed molding composites are extensively finding their usage in the aerospace and defense sector in making the aircraft lightweight and fuel-efficient. The aerospace and defense sector is expanding globally and this will drive the growth of the market. According to Boeing’s Commercial Market Outlook 2021-2040 report, the global commercial fleet will touch 49,000 airplanes by 2040. Furthermore, closed molding composites are widely used in the automotive sector to help manufacture various lightweight components and achieve fuel efficiency. The automotive sector globally is booming with increasing R&D and production of automobiles and this will drive the growth of the market in the forecast period. For instance, according to the statistics by the European Automobile Manufacturers Association, in October 2021, registrations in the electrically-chargeable cars expanded in the EU with battery-electric cars and plug-in hybrids nearly doubling their market share in the third quarter of 2021, accounting for 9.8% and 9.1%, respectively, of the market. Reinforcements will witness the highest demand in the forecast period and will be followed by core materials, and surface finishes. The compression molding process is projected to witness the maximum demand in the forecast period while resin transfer molding will witness significant demand. The fluctuation in the prices of raw materials might hamper the growth of the market in the forecast period.

COVID-19 Impact

The closed molding composites market was severely hit due to the COVID-19 pandemic. Challenges like supply chain disruption, idling of factories, and raw material procurement surfaced during the pandemic which disturbed the closed molding ecosystem deeply. Market players adopted several key tactics to maintain a standard operation to face the pandemic challenges but failed miserably. For instance, as per the August 2020 second quarter 2020 financial results report by US-based Core Molding Technologies, the company’s business was badly hit by the pandemic. The company faced a net loss of $2.3 million in the second quarter of 2020. However, the company’s business came back on track towards the end of 2020. The market has witnessed decent growth post the COVID-19 market opening. Going forward, the market is projected to witness robust growth owing to the high demand for composite materials from the aerospace and automotive industries.

Report Coverage

The report: “Closed Molding Composites Market Forecast (2022-2027)”, by IndustryARC, covers an in-depth analysis of the following segments of the Closed Molding Composites Industry. 

By Material Type: Resins, Reinforcements, Additives and Fillers, Core Materials, Surface Finishes, Others
By Fiber Type: Glass Fiber, Carbon Fiber, Chopped Carbon Fiber, Continuous Carbon Fiber, Aramid Fiber, Natural Fiber, Sisal, Banana, Nettle, Hemp, Others
By Process: Vacuum Infusion and Bagging, Resin Transfer Molding, Compression Molding, Pultrusion, Reinforced Reaction Injection Molding, Centrifugal Casting, Continuous Lamination, Others
By End Use Industry: Aerospace and Defense, Automotive, Construction, Consumer Recreation, Industrial, Marine, Wind Energy, Electrical and Electronics, Sports, Others
By Geography: North America (USA, Canada, Mexico), Europe (UK, Germany, France, Italy, Netherlands, Spain, Russia, Belgium, Rest of Europe), Asia Pacific (China, Japan, India, South Korea, Australia, and New Zealand, Indonesia, Taiwan, Malaysia, Rest of Asia Pacific), South America (Brazil, Argentina, Colombia and Rest of South America), and RoW (Middle East and Africa).

Key Takeaways:

• Carbon fiber composite is leading the closed molding composites market. This type of fiber composite comes with a higher strength-to-weight ratio compared to conventional materials, making it a desirable choice in many ends use applications.
• The aerospace and defense sector will drive the growth of the closed molding composites market in the forecast period. In July 2020, Teijin Carbon Europe upgraded its partnership with the National Composites Centre in the UK to support advanced aerospace manufacturing projects.
• The Asia-Pacific region will witness the highest demand for closed molding composites in the forecast period owing to massive growth in the region’s aerospace and automotive sector. For instance, in July 2021, Airbus delivered its A350 aircraft to China Eastern Airlines, which features a carbon-fibre composite fuselage and wings.

Figure: Asia Pacific Closed Molding Composites Market Revenue, 2021-2027 (US$ Billion)

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Closed Molding Composites Market - By Material Type

Reinforcement materials dominated the closed molding composites market in 2021. These materials provide diverse properties to molding composites and make the molding composites to be used in various end-use applications. Multiple synthetic (carbon fiber, glass fiber, ceramic inserts, and graphene fibers) and natural (sisal, banana, nettle, hemp) reinforcements are used in closed molding composites owing to their wide range of properties. Synthetic reinforcements are gaining traction in the market owing to the exceptional properties offered by them such as high durability; stiffness; lightweight; resistance to corrosion, etc. Many research organizations and manufacturers have highlighted the growing importance of these reinforcement materials in the market. For instance, as per the October 2019 journal by Multidisciplinary Digital Publishing Institute, reinforced composites are gaining traction as demands for lightweight materials with high strength for specific applications are increasing in the market. Such high demand for various reinforcement materials will increase their demand in the forecast period. Core materials, surface finishes will witness significant demand in the forecast period.

Closed Molding Composites Market - By Fiber Type

Carbon fiber composites dominated the closed molding composites market in 2021. This type of composite comes with low density, low mass, and low thermal expansion compared to metals like aluminum and steel. Moreover, carbon fiber composites possess high rigidity compared to their counterparts. Owing to these superior properties, carbon fiber composites are extensively used in aerospace, automobile, construction, sports, and many other sectors. For instance, in July 2021, Japan-based Teijin Limited launched commercial operations to manufacture carbon fiber composite products in Ha Nam, Vietnam. The company will initially manufacture carbon fiber composite materials for sports and outdoor activities. Such developments regarding carbon fiber composites will stimulate its demand in the closed molding composites market during the forecast period.

Closed Molding Composites Market - By Process

Compression molding dominated the closed molding composites market in 2021. This process offers fast molding cycles and high part uniformity in a cost-effective way. Moreover, the demand for closed molding composites manufactured by the compression molding process is surging in applications in the automotive, aerospace, and construction sectors as the applications in these sectors demand a strong surface finish and non-corrosive properties, which are offered by these composites. Accordingly, market players are focusing on expanding the compression molding process. For instance, in February 2021, Teijin Limited announced that the company will install a composite compression molding line at Benet Automotive in the Czech Republic. Such developments in the compression molding process will increase its demand in the closed molding composites market during the forecast period. Resin transfer molding is projected to witness significant demand in the forecast period.

Closed Molding Composites Market - By End Use Industry

The aerospace and defense industry dominated the closed molding composites market in 2021 and is growing at a CAGR of 6.2% in the forecast period. The demand for closed molding composites is increasing in the aerospace and defense sector due to the growing demand for lightweight components and fuel-efficient aircraft. Composites have become a suitable alternative to metals and accordingly, their utilization is getting amplified. For instance, in January 2020, Germany-based carbon composites manufacturer SGL Carbon announced that it will produce carbon composite landing gear for 500 air taxis globally. Similarly, in June 2021, Teijin Limited’s Tenax carbon fiber prepreg was adopted to be used in a next-generation aircraft engine of Airbus. Such high uses of composites in the aerospace and defense industry will augment the growth of the closed molding composites market in the forecast period. The automotive sector is projected to drive the growth of the closed molding composites market significantly in the forecast period.

Closed Molding Composites Market - By Geography

The Asia Pacific region held the largest market share in the closed molding composites market in 2021 with a market share of up to 34%. The high growth of the closed molding composites market is attributed to the increasing demand for composites in the region’s aerospace and automotive sector. For instance, in March 2020, Indian airline Vistara received its first 787-9 Dreamliner from Boeing. This Boeing aircraft is 50% composite by weight. Furthermore, the demand for composites is rising in the automotive sector owing to the need for lightweight applications. In September 2020, Japanese automobile manufacturer Nissan designed a lightweight car body part implementing carbon fiber reinforced plastics composite material. Such growing use of composites in the Asia Pacific’s aerospace and automotive sector will expand the closed molding composites market in the forecast period. The North American region is projected to witness significant demand for closed molding composites in the forecast period.

Closed Molding Composites Market Drivers

Expanding aerospace and defence sector will drive the market’s growth

Closed molding composites are vastly associated with the aerospace and defense sector as these composites help in manufacturing lightweight aerospace components and enhance the fuel efficiency of aircraft. The aerospace and defense sector expanding globally and this will drive the growth of the market. For instance, as per the 2021 Boeing Market Outlook (BMO) report, the aerospace products and services that Boeing addresses will become a US$ 9 million trillion market over the next decade. Similarly, as per the November 2021 news by Airbus, the company foresees demand for 39000 new passenger and freighter aircraft by 2040. Such massive implementation of closed molding composites in the aerospace and defense sector will increase their demand, ultimately contributing to the growth of the market in the forecast period.

Booming automotive sector will drive the market’s growth

Closed molding composites are used in large quantities in automobiles for structural and bodywork applications to reduce the overall weight of the vehicles and increase fuel efficiency. The automotive sector globally is booming and this will drive the growth of the market. For instance, according to the July 2021 data by the European Automobile Manufacturers Association, registration in the passenger car segment surged by 25.2% in the first of 2021 in the European region. Similarly, according to the data by the India Brand Equity Foundation, demand for passenger vehicles jumped in India as 261,633 units sold in April 2021, gaining a market share of 12.9%. Such increasing demand for composite materials will amplify the requirement for a closed molding composites portfolio and this will drive the growth of the market in the forecast period.

Closed Molding Composites Market Challenges

Fluctuation of raw material prices might hinder the growth of the market 

The closed molding composites include raw materials such as polyethylene, polyester, and polyacrylonitrile. These are petroleum-based raw materials whose prices are fluctuating due to the volatility in petroleum prices and this might affect the growth of the closed molding composites market in the forecast period. Petroleum prices plunged historically during the pandemic. As per the data by ourworldindata.org, the crude oil price in 2017 accounted for US$ 54.19 per barrel which surged to US$ 64.21 per barrel in 2019. In 2020, the oil price again dropped to US$ 41.84 per barrel. Such fluctuations in oil prices created volatility in the petroleum prices, ultimately fluctuating the raw material prices. These fluctuations in the raw material prices might affect the growth of the closed molding composites market in the forecast period.

Closed Molding Composites Industry Outlook

Investment in R&D activities, acquisitions, product and technology launches are key strategies adopted by players in the closed molding composites market. Major players in the closed molding composites market are:

1. Core Molding Technologies
2. Huntsman International LLC
3. CVC Thermoset Specialties
4. Teijin Limited
5. SGL Carbon
6. A. Schulman
7. Menzolit
8. GKN Aerospace
9. SAERTEX GmbH
10. Others

Recent Developments

In May 2020, Huntsman Advanced Materials completed the acquisition of US-based CVC Thermoset Specialties which deals with industrial composites. This acquisition will help Huntsman Advanced Materials to strengthen its composites portfolio, which will contribute to the expansion of the closed molding composites market in the forecast period.

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