Global Composites: Three Big Predictions for 2013


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Global Composites: Three Big Predictions for 2013

  1. 1. Emerging Trends in theGlobal Composites Industry
  2. 2. About Sandeepan Sandeepan Mondal Industry Analyst – Chemicals, Materials & Foods Frost & Sullivan• Experience in tracking global markets related to polymers, composites, lubricants, biomaterials in different application sectors such as automotive, aviation, high speed rail, marine and building and construction• Involvement in many high-value consulting assignments related to new product potential, market size estimation and forecasting and competitor benchmarking• In my spare time I’m a leading cricket enthusiast, an award winning quizzer and enjoy travelling, photography and reading.
  3. 3. Four Signs A Composite Manufacturer Might Need toReinvent its Business Model Demand •The economic recession in 2008-2009 was a game-changer as it led to some of fluctuation in the end-user sectors being heavily affected. certain sectors •Companies need to hedge risks by spreading their supply to varied sectors •10 years ago, it was US, Japan and Europe which were leading growth figuresRegional demand for composite demand across sectors Dynamics •There is now a regional shift towards Asia in terms of both supply and demand when it comes to composites and its raw materials •Technological advancements in terms of automation and fabrication Technology as a methodology have resulted in lower cycle times and lower costs of disruptor manufactured parts. • Companies need to incorporate technology as a tool to expedite their expansion across industries using composites •The marine industry, for example, 2008-2009 saw the exit of many boat High Level of builders which were acquired by larger companies. consolidation in •The aerospace industry now relies on a few suppliers (both Tier-I and End-user composite suppliers) to manufacture parts and components Industries •Maintaining client relationships is of paramount importance as bargaining power of buyers has increased substantially.
  4. 4. Three Big Predictions for 2013 The automotive sector is expected to remain as the largest market for 1 composites globally, since fiber-reinforced thermoplastics are used on a large-scale in this market Closed molding and out-of-autoclave techniques are expected to be a 2 major enabler for high throughput rate of composite parts and components Asia-Pacific and China, in particular, is not only expected to be major 3 production hub for raw materials concerning composites, but also substantial in terms of demand across sectors. Source: Frost & Sullivan analysis.
  5. 5. Sector-wise Composite Demand $24.7 B Global Composites Market Sector Share Total Composites Market: Total Composites Market: Segmentation by Sectors, Global, Segmentation by Sectors, Global, 2012 2018 14.2% 16.7% 0.1% 0.1% 3.8% 4.0% 1.1% 1.2% 80.8% 78.0% Automotive Automotive Commercial Aviation Commercial Aviation Marine Marine High Speed Rail High Speed Rail Building and Construction Building and ConstructionNote: Other sectors like other aerospace, other transportation, sporting goods, wind energy, oil, gas & offshore and civil engineering are not taken into account here. Note: All figures are rounded. The base year is 2012. Source: Frost & Sullivan analysis.
  6. 6. Growth Opportunity Matrix for Composites 10.0% Commercial 8.0% Aviation Volume CAGR (2012-2018) Marine Automotive 6.0% Building and (2012 4.0% Construction 2.0% 0.0% 0.0 5,000.0 10,000.0 15,000.0 20,000.0 25,000.0 30,000.0 35,000.0 High Speed Revenues in 2018 ($ Million) -2.0% Rail -4.0% Source: Frost & Sullivan analysis.
  7. 7. Consumption Patterns by Resin and Fiber Type Resins and Fibres consumption patterns in composites across sectors Automotive Low Very Low Very Low Negligible Very High High Low Very Low Commercial Low High Low Very Low Low Medium High Low Aviation Marine High Medium Low Low Very Low Very High Very Low Very Low High Speed Rail High Low Medium Low Medium High Very Low Negligible Building and High Medium Low Very Low Low Very High Very Low Very Low Construction UPRs & Epoxies Phenolics Acrylics Thermo Glass Carbon Others* Vinyl plastics Fibres Fibres Esters*Others include aramid fibres, natural fibres and boron nitrides Source: Frost & Sullivan analysis.
  8. 8. Regional Trends in Global Composites Market Composites in North America Europe ROW Automotive 25% 24% 51% Commercial Aviation 40% 45% 15% Marine 50% 30% 20% High Speed Rail 3% 17% 80% Building and Construction 45% 30% 25%Note : All figures are rounded. The base year is 2012. Source: Frost & Sullivan analysis.
  9. 9. The CEO’s Perspective Reducing margins need to be taken care of by either increasing prices1 or/and shifting production base to low- cost centers Fabrication costs would come down2 with process innovations Advanced composites like CFRPs are3 likely to be used on a large-scale only in commercial aviation or aerospace GFRPs are likely to dominate for the4 next 10 years in almost all sectors Competitors should focus on demand5 emanating from Asia-pacific Source: Frost & Sullivan analysis.
  10. 10. Follow Frost & Sullivan on Facebook, LinkedIn,SlideShare, and Twitter Group Search: The future of chemicals
  11. 11. If you would like to know more, do contact us.Chiara Carella Sandeepan MondalCorporate Communications Industry AnalystChemicals, Materials & Food Chemicals, Materials and Foods+44 (0) 207 343 8314 (91)