Market Trends of Epoxy Composite Industry
There is an Increasing Demand in the Aerospace and Defense Industry
- In the aerospace and defense industry, epoxy composites improve aircraft performance in primary structures such as wings and fuselages.
- Leading aerospace parts and components manufacturers focus on lightweight solutions, particularly in demand. Reducing an aircraft's weight by 1,000 kilos saves 6,000 metric tons of aviation fuel over its lifetime.
- The global aerospace and defense industry has grown significantly over the past few years due to the growing demand for passenger travel and military expenditures worldwide. Constantly increasing oil prices have resulted in a rapid increase in demand for fuel-efficient aircraft.
- Additionally, the defense budget in countries such as the United States and China continuously increases due to rising global tensions and the country's desire to equip the armed forces with modern platforms.
- The Japanese aerospace industry manufactures aircraft components for commercial and defense aircraft. Commercial aircraft production has increased over the past few years due to the increasing cargo demands.
- In March 2024, SkyDrive Inc., one of the leading Japanese eVTOL aircraft manufacturers, announced that it started the production of its highly anticipated “SKYDRIVE (SD-05)” aircraft. This aircraft is being manufactured at Suzuki Motor Corporation’s (“Suzuki”) manufacturing plant in Iwata City, Shizuoka, Japan. Through this production, the company aims to revolutionize urban air mobility.
- The aerospace industry is undergoing rapid technological advancements and innovation, creating upswings for aircraft manufacturing. According to the Boeing Commercial Outlook 2023-2042, with a resurgence in international traffic and domestic air travel back to pre-pandemic levels, the company has projected global demand for 48,575 new commercial jets by 2042.
- In 2023, German arms producer Rheinmetall announced the construction of its new manufacturing unit in Weeze, Germany. The new facility will likely be equipped with state-of-the-art infrastructure and capable of manufacturing parts for F-35 stealth aircraft starting in 2025.
- Therefore, the growing aerospace and defense industry is expected to boost the demand for epoxy composites during the forecast period.
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Asia-Pacific is Expected to Dominate the Market
- Asia-Pacific represents the largest epoxy composite market during the forecast period.
- The electronics industry in the region has increased over the past few years owing to the consistently growing demand for smartphones, portable computing devices, consumer electronics products, gaming systems, and other personal electronic devices.
- China is the world's most extensive base for electronics production. In 2023, Huahong Group’s Wuxi planned to build a 12-inch specialty process production line with a process grade covering 65/55-40 nm and a monthly production capacity of 83,000 pieces.
- Also, in November 2023, the Government of India approved USD 360 million of investments by 27 significant electronics manufacturers to encourage more domestic IT hardware production. In addition, the Government of India allocated INR 760 million (USD 9.054 million) for electronic manufacturing in the country and introduced incentive schemes to boost the electronic manufacturing industry in April 2024.
- China's aircraft parts and assembly manufacturing sector is rapidly growing, boasting over 200 small manufacturers. Key players are predominantly based in Nanchang, Shanghai, Chengdu, Xi'an, Harbin, Shijiazhuang, and Shenyang.
- China's aerospace policy is a robust initiative to propel the nation to the forefront of aerospace development and production. Forecasts indicate that China is projected to become the world's leading market for civil aircraft sales over the next two decades.
- China's aerospace industry is recovering steadily after facing a significant decline in the previous 2-3 years. The Civil Aviation Administration of China (CAAC) has estimated that the aviation industry will recover domestic traffic to around 85% of pre-pandemic levels. According to the Boeing Commercial Outlook 2023-2042, in China, around 8,560 new deliveries will be made by 2042, and the market service value will account for USD 675 billion by 2042. Owing to such new deliveries in the country, the demand for composite adhesives in the aerospace industry will likely rise.
- India's defense manufacturing has improved, and the country has increased its export of defense equipment, including Cheetah helicopters, to countries such as Afghanistan, Indonesia, Nepal, Vietnam, South Korea, Myanmar, Israel, and Russia. The ISRO is also rapidly developing spacecraft.
- In February 2024, South Korea announced its plan to start the mass production of 40 KF-21 Boramae fighter jets this year with an investment of USD 178.6 million. The country aims to fill the power vacuum caused by the South Korean Air Force’s aging fighter fleet through the mass production of these jets.
- According to the Japan Aircraft Development Association, there will be an increase in the number of passenger aircraft in service by 1.6 times from 2022 to 2042, accounting for 25,075 in 2022 to 45,527 aircraft in 2042.
- Hence, given such trends and rapidly growing end users, the demand for epoxy composite in Asia-Pacific is anticipated to grow during the forecast period.
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