Aramid fibre market is expected to grow at a CAGR of 11% during the forecast period of 2023 to 2030. The market is being driven by the rising demand for lightweight and flexible materials from the automotive industry as well as the military and defence industry for a variety of applications. Furthermore, the restrictions connected to the reduction of carbon emissions drive various industrial participants to search for alternative materials that are not only lightweight but also sturdy and fuel-efficient. During the time of analysis, it is anticipated that this will continue to propel growth in the aramid fibre market. On the other hand, the expansion of the market is being hindered by the high expenses of research and development as well as the non-biodegradable nature of aramid fibres. In terms of value, the aramid fibre market in Europe is the most important worldwide, followed by the markets in North America and the Asia Pacific.
The Pandemic Led to Moderate Level of Adverse Impact
The global pandemic has had an impact on every industry around the globe. The interruptions in the global supply chain and the impediment in the activities of refining and petrochemicals, which form the majority of end-users of aramid fibre, are having a relatively negative impact on the aramid fibre market. The oil and gas industry, the automotive industry, the chemical industry, and the telecommunications industry are the key end users of aramid fibre. The Covid-19 epidemic has had a moderate influence on both business and consumer sentiment throughout the global markets, which has led to a considerable decline in the refining and petrochemical sectors as well as the power generation sector. In spite of the fact that the market is gradually improving, it will be some time before the chemical and petrochemical sectors return to a development trajectory that is consistent. It is anticipated that growth in the refining and petrochemical sectors will rebound more quickly than that of the building and power generating markets. As a result of the precipitous drop in demand, it is anticipated that the marine and automotive markets would have a gradual rebound over the next six to eight quarters. The power generation sector is anticipated to keep up its rapid expansion, which will be supported by increased government spending. However, the unceasing demand from largely unaffected industries such as defence and electrical and telecommunications is expected to be the saving grace for the aramid fibre market, thereby compensating for a portion of the losses that have been experienced. Additionally, continuous investments made toward the creation of 4G and 5G networks are projected to support the market for aramid fibre over the long term.
Increasing Application Across Industries Boosting the Market Revenues
The expansion of the aramid fibre market has been significantly impacted by the fast-growing demand for lightweight materials in applications involving security and protection. In the same vein as this, the rising demand for lightweight materials that offer significant emission reduction in vehicles is also acting as a key determining factor favouring the growth of the aramid fibre market. This is due to the fact that lighter materials are easier to transport and store. Additionally, the potential for aramid fibre to serve as a substitute for steel and asbestos, in addition to the demand for protective measures brought about by the rise of asymmetric warfare, are all factors that are contributing to the market's expansion. The rising demand for products, automotive and aerospace applications is the primary contributor to the expansion of the market. In addition to this, the expanding demand for the product from a wide variety of industries, such as healthcare, oil and gas production, and others, as a result of stringent government laws connected to workplace safety, is also fuelling the expansion of the aramid fibre market. However, the high costs of research and development (R&D), as well as the non-biodegradable nature of aramid fibres, have the potential to act as key restraints towards the growth rate of the aramid fibre market in the forecast period of 2023 to 2030, whereas the high costs of production have the potential to pose a challenge to the growth of the aramid fibre market.
Stringent Regulations to Protect the Environment Favouring the Market
The Environmental Protection Agency (EPA) of the United States estimates that the annual carbon dioxide (CO2) output of a passenger vehicle is around 4.7 metric tonnes. As a result, governments all over the world are placing a greater emphasis on the requirement of severe environmental rules. The Environmental Protection Agency (EPA) in the United States has been consistently revising and enforcing a number of emission standards for vehicles. In addition, the European Union (EU) has mandated rigorous standards that makers of passenger vehicles and light-duty vehicles are required to comply to remain in compliance with the EU light-duty vehicle CO2 regulation. A law on CO2 requirements for heavy-duty vehicles was suggested in 2018, and there is already an obligatory threshold for the emissions of carbon dioxide that applies to new passenger cars and light commercial vehicles. These rigorous laws are causing a decrease in the amount of pollution that is produced by vehicles, which is further driving the demand for lightweight materials that offer considerable reductions in the amount of pollution that is produced by automobiles. Because of these laws aimed at lowering carbon emissions, several major participants in the sector are being forced to search for new materials that are not only strong but also lightweight. As a result, a number of different industries are shifting away from using conventional materials like steel and aluminium in favour of more modern materials like aramid fibres and carbon fibres in order to cut down on weight and lessen their overall demand for energy.
Increase R&D Costs are Constraining the Market Growth
Aramid fibres are high-performance materials that are used in the composites of applications that require high load-bearing capacity, high mechanical and chemical strength, excellent thermal resistance, and lightweight materials. Aramid fibres are also used in applications that require excellent thermal resistance and lightweight materials. Therefore, substantial research and development are required for these fibres in order to produce high-quality products suitable for a wide variety of applications, including security and protection as well as industrial filtration. However, the research and development costs, which include man-hours, materials, and technology, are significantly high. This is one of the factors that is preventing the aramid fibre market from expanding further.
Aerospace and Defence Promising Opportunities During the Forecast Period
Aramid fibres are versatile enough to be employed in the construction of any kind of aircraft, including hot air balloons, spaceships, fighter planes, passenger airlines, and space shuttles. Because of the rise in the price of fuel, commercial airlines are continuously experimenting with new ways to boost their performance while minimising their impact on the environment. Because aramid fibre is so much lighter than other types of fibre, it has been suggested as the best way to cut down on fuel consumption. In addition, because of rising worries about safety all across the world, flying is increasingly viewed as the safest mode of transportation. As a consequence of this, there has been an increase in the utilisation of aramid fibre in aeroplanes due to the fact that it is resistant to both corrosion and impact.
Para-Aramid Fibre Represented the Largest Segment In 2021
The para-aramid segment held the greatest share accounting for about 70% of the revenue share in 2021. This is primarily due to its increasing use in applications such as the manufacturing of bulletproof body armour for the military, aerospace, and defence. Because to its high strength-to-weight ratio and superior insulating qualities, this fibre is ideal for use in bulletproof jackets, helmets, and vehicle armour. It also has a high strength-to-weight ratio. Because honeycomb panel-based composites structure is becoming increasingly prevalent in the automotive and aerospace & defence industries, it is anticipated that the meta-aramid segment will experience significant growth during the forecast period of 2023 to 2030, therefore registering the highest CAGR. The demand for thermal protective clothing is on the rise, which in turn is driving up the demand for this fibre.
Security and Protection Industry Remained as the Largest End User Industry
In the year 2021, the market was driven by the security and protection application segment. As a result of the growing demand from developing countries like China, Brazil, and India, it is anticipated that it will continue to hold the leading position through the year 2030. Their primary applications are in the military, industry, and the civilian sector, with the necessity for thermal and ballistic protection growing in both civil law enforcement and armed forces as a direct result of the rise in the number of terrorist attacks and acts of insurgency. Because of their one-of-a-kind set of qualities, which causes these fibres to thicken when subjected to high temperatures such as flashover, they find widespread application in safety and protection applications. As a result, this sector commands the lion's share of the market share. Also, this fibre enhances the protective barrier between the heat source and the skin when firefighters need it the most; this robust barrier remains pliable and flexible until it is cold, and it gives additional minutes of protection without impeding the wearer's mobility.
Filament Form Dominated the Market in 2021
It is anticipated that the filament will continue to hold the majority share of the market until 2030 due to the numerous benefits it offers, which include a high degree of dimensional stability, resistance to heat, flame, and chemicals; excellent strength-to-weight ratio; ability to be modified according to the application; and availability in a variety of colours. There is a good chance that staple fibre will present enticing business opportunities over the course of the forecast period. Key applications for staple fibre include hot gas filtration fabrics, sewing threads, zipper tapes, firefighters’ turnout facing fabrics, aircraft carpeting, and cut-protection products such as gloves. Staple fibre is also likely to present such opportunities.
Europe Remains the Global Leader
Europe was the largest market for aramid fibre in 2021. The demand for protective garments is being fuelled by strict safety standards within industries such as oil and gas, construction, aluminium, and steel, which is boosting the market for aramid fibre in Europe. In addition, friction materials are needed for high-end automotive, in addition to other industrial sectors that also contribute to the expanding demand for aramid fibre in the region. Since the cost of production in APAC is cheaper than that in other regions, the majority of the main manufacturers that are currently active in the aramid fibre market have their production capabilities located in APAC. Demand for aramid fibre is increasing all around the world, but particularly in North America and the Asia Pacific. As a result, it is anticipated that the markets in these regions will record stronger growth.
The United States of America, Canada, and Mexico have all experienced economic expansion in recent decades, which has contributed to the region's overall market growth. Because of the North American Free Commerce Agreement's (NAFTA) strong integration, trade in these countries has risen rapidly over the past 20 years, which has contributed to an acceleration of their economic growth. NAFTA is the acronym for the North American Free Trade Agreement. In addition, the United States and Canada are linked through the Original Equipment Manufacturers (OEMs) and automotive parts businesses that are involved in the production and assembly of automobiles. According to estimates provided by Boeing, the demand for brand-new aeroplanes around the globe is expected to reach approximately 40,000 by the year 2035, with North America accounting for the largest portion with more than 15,000 aeroplanes. Over the course of the allotted time period, the regional aramid fibre market share will increase as a result of robust growth factors in the aviation industry.
Due to the existence of major aramid fibre production countries such as China and Japan, it is projected that the market in the Asia Pacific region would have the highest growth rate of all regions in the market over the course of the projection period. There would be a beneficial effect on the expansion of the market brought about by the favourable steps taken by the governments of China and India regarding safety and precaution.
Top 3 Companies Held Over 50% of Market Revenues
The market is highly concentrated since leading companies including Dupont Inc., Kolon Industries Inc., and Teijin Limited account for more than 50 per cent of the market share between them. The manufacturers in North America and Europe are concentrating on expanding their presence across the Asia Pacific in order to enhance their market share. As a result, the primary players in the market have established robust regional presences, distribution methods, and product portfolios. Teijin Ltd. of Japan, DuPont De Numerous, Inc. of the United States, Yantai Tayho Advanced Materials Co., Ltd. of China, Hyosung Corp. of South Korea, Toray Industries, Inc. of Japan, Kolon Industries Inc. of South Korea, Huvis Corporation of South Korea, Kermel of France, China National Bluestar (Group) Co., Ltd. of China, and SRO Aramid (Jiangsu) Co. Ltd. are (China).
Historical & Forecast Period
This study report represents analysis of each segment from 2022 to 2032 considering 2023 as the base year. Compounded Annual Growth Rate (CAGR) for each of the respective segments estimated for the forecast period of 2024 to 2032.
The current report comprises of quantitative market estimations for each micro market for every geographical region and qualitative market analysis such as micro and macro environment analysis, market trends, competitive intelligence, segment analysis, porters five force model, top winning strategies, top investment markets, emerging trends and technological analysis, case studies, strategic conclusions and recommendations and other key market insights.
Research Methodology
The complete research study was conducted in three phases, namely: secondary research, primary research, and expert panel review. key data point that enables the estimation of Aramid Fiber market are as follows:
Market forecast was performed through proprietary software that analyzes various qualitative and quantitative factors. Growth rate and CAGR were estimated through intensive secondary and primary research. Data triangulation across various data points provides accuracy across various analyzed market segments in the report. Application of both top down and bottom-up approach for validation of market estimation assures logical, methodical and mathematical consistency of the quantitative data.
| ATTRIBUTE | DETAILS |
|---|---|
| Research Period | 2022-2032 |
| Base Year | 2023 |
| Forecast Period | 2024-2032 |
| Historical Year | 2022 |
| Unit | USD Million |
| Segmentation | |
Type
| |
Application Type
| |
|
Region Segment (2022-2032; US$ Million)
|
Key questions answered in this report
