Glass Fiber Reinforcement Materials Market Forecast to Reach $17.8 Billion by 2026
Glass Fiber Reinforcement Materials Market is forecast to reach $17.8 billion by 2026, after growing at a CAGR of 7.9% during 2021-2026, due to growing demand for glass fiber from the aerospace industry, automotive sector, construction activities, and others. These are used in the replacement of heavy metal parts and the benefits of using glass fiber reinforced plastics, such as low cost, reliability, and lightweight which is expected to drive the global demand for glass fiber reinforcement materials. The Union Ministry of Defense launched, Defense Production and Export Promotion Policy in 2020. This policy aims to generate revenue worth Rs. 175,000 crore (US$ 23.49 billion) for aerospace & defense products and services by 2025. Furthermore, various product types of fiberglass reinforcements materials such as soda ash, silica sand, and limestone are highly required from the construction sector for interior and exterior decoration. Thus, increasing consumption of plastic fiber from end-use industries is expected to influence the industry size during the forecast period.
Impact of COVID – 19
Due to COVID-19, the infrastructure and construction activities had been shut down from the first quarter of 2020, due to which new buildings, offices could not be commissioned. According to U.S. Census Bureau, construction spending in the US decreased 0.8% in January 2021. Thus, due to lockdown, all construction activities were pending. The private construction declined 0.5 percent, residential (-0.2 percent), health care (-4.4 percent) and office (-0.5 percent). Also, according to the U.S. Census Bureau, public construction declined 1.7 percent including highway & street (-0.6 percent) and education (-3.2 percent) in January 2021.
Glass Fiber Reinforcement Materials Market Segment Analysis – By Raw Material
Soda ash segment held the largest share in the global demand for glass fiber reinforcement materials market and are expected to continue their dominance for the period 2021-2026. Soda ash helps to lower the melting temperature of fiber products and limestone too. Soda ash is an essential material used to manufacture glass fiber reinforced plastics due to its good plasticizer and water reducing agent. Hence, soda ash is used to manufacture glass fiber reinforcement materials.
Glass Fiber Reinforcement Materials Market Segment Analysis – By Product Type
Chopped strand mat (CSM) held the largest share in the global demand for the glass fiber reinforcement materials market in 2020. A chopped strand mat is a form of reinforcement product that is used in fiberglass. CSM product produced strand roving fiber product with 1.5inch to 3inch lengths and provide equal strength of cut-off fibers in every direction. With this fiber orientation, chopped strand mat is easy to abstract shape when wet out with polyester or vinyl ester resins. These are available in form of roll stock product which produce fiberglass in a variety of weights and widths. Thus, it is used to cut off fiber glasses.
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Glass Fiber Reinforcement Materials Market Segment Analysis – By End-Use Industry
Building and construction segment has dominated the market of glass fiber reinforcement materials market in 2020 and is growing at a CAGR of 5.9% during 2021-2026. Growing construction activities will push the demand for plastics. Glass-reinforced plastic is a composite material that can be in form of chopped strand mats or continuous filament mats. These plastic compositions with raw materials such as soda ash, silica sand, limestone, and others are used in window, roofing, doors as it provides sound structure in the building. Thus, increasing demand for this material from construction activities will grow the market size in upcoming years. The Indian government launched the ‘Housing for All by 2022’, under the Pradhanmantri Awas Yojana scheme, the Indian Government has decided to give interest subsidies of 3% and 4% for loans of up to 9 lakh (US$ 12.3 ten thousand) and 12 lakh (US$ 16.36 ten thousand), respectively. Moreover, according to the Federal National Mortgage Association, new housing starts were expected to jump with 1 million new homes in 2021. ? Additionally, according to the Indian Brand Equity Foundation (IBEF), the real estate market of India is expected to grow USD 1 trillion by 2030. Hence, the growing demand for construction activities will be expected to boost the glass fiber reinforcement materials market during the projected era.
Glass Fiber Reinforcement Materials Market Segment Analysis – By Geography
APAC dominated the glass fiber reinforcement materials market share with more than 42.7%. due to the rapid consumption of fiberglass in various industries such as aerospace, automotive, wind energy, building and construction, and others. According to the Construction Association of South Korea (CAK), Korea’s public and private infrastructure and civil engineering services are estimated to generate revenues of US$148 billion (KRW166 trillion) in 2019. In which residential development, commercial and industrial facilities, and civil engineering services generated revenue US$58.4, US$45.4 billion, and US$44.2 billion, respectively. Additionally, according to the National Development and Reform Commission (NDRC), 14 construction investment projects were approved worth CNY177.8 billion (US$25.2 billion), following approvals of CNY68.9 billion (US$10.1 billion) in August 2020. According to Central Sanctioning and Monitoring Committee (CSMC), 1,68,606 new homes were approved to construct in urban areas under Pradhan Mantri Awas Yojana in 2021. Hence, increasing adoption with increasing building activities is projected to drive industry growth of glass fiber reinforcement materials.
Glass Fiber Reinforcement Materials Market Drivers
Increasing Adoption of Glass Fiber Reinforced Plastics in Transportation
Raw Materials of glass fiber reinforced plastic have a higher strength to weight ratio and lightweight, which provide higher mileage and reduce the cost of fuel. These materials are used in engine cowlings, doors, headrest back panels, benches, luggage bins, and cooling ventilators, thus increasing production of vehicles are expected to grow the market demand for glass fiber reinforcement materials from the transportation industry. According to the International Trade Administration (ITA), the Chinese government expected to run the production of automobiles with 35 million units by 2025. Additionally, according to the India Brand Equity Foundation (IBEF), the Indian Government expects the automobile sector to attract US$ 8 billion to US$10 billion in local and foreign investments by 2023. Thus, the growth of the transportation industry is promoting to the invention of new applications for glass fiber reinforcement materials.
High demand for Glass Fiber Reinforcement Materials in the Emerging Economies
As increasing construction, mining, vehicle production activities in emerging countries are growing the demand for glass fiber reinforcement materials. According to the National Development and Reform Commission (NDRC), 14 construction investment projects were approved worth CNY177.8 billion (US$25.9 billion), following approvals of CNY68.9 billion (US$10.1 billion) in August 2020. In 2019, according to the American Automotive Policy Council, in the United States, 10.8 million cars and trucks were produced. Additionally, 13.7 million were sold vehicles including cars and trucks in the U.S., Canada, and Mexico. Thus, growing investment activities in developing and emerging countries will drive the market demand in the projected ear.
Glass Fiber Reinforcement Materials Market Challenges
Volatility in Raw Material Prices
Soda ash is used to manufacture glass fiber reinforced plastics which is a petroleum material. Thus, volatility in crude oil affect the prices of soda ash, which creatine degrowth for the market. According to BP static, Oil prices declined US$64.21/bbl in 2019 as compared with $71.31/bbl in 2018. Thus, due to fluctuation in oil prices, the petrochemical materials price are also getting affected, which may hamper the glass fiber reinforcement materials market.
Glass Fiber Reinforcement Materials Market Landscape
Technology launches, acquisitions and R&D activities are key strategies adopted by players in the Glass Fiber Reinforcement Materials Market. Major players in the Glass Fiber Reinforcement Materials Market are Owens Corning, 3B-Fiberglass, Jushi Group, PPG Fiberglass, Taishan Fiberglass, Chongqing Polycomp International Corp (CPIC), Saint-Gobain Vetrotex, Asahi Glass, Nippon Electric Glass Co., Ltd., and BASF SE, and among others.
Key Takeaways
The Asia Pacific dominates the market of glass fiber reinforcement material market due to the increasing consumption of these materials from construction, wind energy, aerospace, and others in developing countries such as India and China.
According to the U.S. Census Bureau, new housing construction units were 11,471 thousand in 2019 in the United States, which reached 3,642 units in 2020 which increases consumption of glass fiber reinforced plastics.
Glass fiber reinforced plastics are manufacture with various raw materials, such as silica sand, limestone, soda ash, and more. These are widely used in roofing, flooring, and other application due to hardness, transparency, chemical attack resistance, and excellent stability.
Relevant Reports
A. Aramid Fiber Reinforcement Materials Market
https://www.industryarc.com/Research/Aramid-Fiber-Reinforcement-Materials-Market-Research-501470
B. Natural Fiber Reinforcement Materials Market
https://www.industryarc.com/Research/Natural-Fiber-Reinforcement-Materials-Market-Research-501660
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