Prepreg Market 2020 and Forecast 2021-2027

                                          
Report Overview: Global Prepreg Market


The global prepreg market size was estimated at USD 8.1 billion in 2020 and is estimated to register a compound annual growth rate (CAGR) of 10.6% over the forecast period 2021-2027. Rising product demand from the automotive, aerospace & defense, wind energy, and sporting goods industries owing to its high strength to weight ratio is projected to benefit the market growth over the forecast period.


The prepreg fibers with superior strength and lightweight are integral for the aircraft manufacturing industry. Replacing traditional materials with lightweight composites is an effective path towards meeting the aim of producing lightweight aircraft to increase fuel efficiency, decrease emissions, and reduce material usage, which translates into a growing adoption of prepreg materials.
U.S. led the North America regional market in 2019 and will expand further at a significant CAGR from 2020 to 2027. Rising demand for materials with low density, low electrical conductivity, and high durability and strength across various industries such as aerospace & defense, automotive, and wind energy is projected to augment the market growth.

The aerospace & defense systems manufacturers in the U.S. are making strong gains from the export of manufactured aircraft parts, which has led to an upward trend in the consumption of prepreg. This can be attributed to the increasing use of prepreg in the parts of aircraft, helicopters, defense aircraft, and aero-engines.

High manufacturing costs for aramid, carbon, and glass fibers, which are used as raw materials for the production of prepreg inflates the product price. Increased raw material prices are projected to pose a threat to market expansion. However, rising adoption of advanced processing and assembly techniques to minimize the lead time and enhance the product quality is projected to benefit market growth.

Major market players are integrated across the stages of value chain including raw material supply and product manufacturing to procure raw materials at affordable prices and gain competitive edge. In addition, companies are focusing on R&D investments to develop high-quality products, which is likely to stimulate industry growth.
 Fiber Insights

Carbon fiber accounted for the highest market share of over 84% in 2019 and is projected to retain its leading position throughout the forecast period. Growing concerns about fuel consumption and CO2 emissions have urged automotive parts manufacturers to use carbon fiber composite materials as substitutes for metal components. This is projected to fuel the demand for carbon fibers over the forecast period.

Carbon fiber exhibits noteworthy properties, such as high stiffness, lightweight, high tensile strength, high chemical resistance, high-temperature tolerance, and low thermal expansion. This is projected to result in growing acceptance of carbon fiber across various industries, such as aerospace & defense, automotive, sports equipment, construction, and others.

Glass fiber is extensively used as reinforcement fiber for polymeric resins including unsaturated polyester and epoxy. In addition, it is used as a reinforcing material in the manufacturing of products, such as tent poles, crossbows, automobile bodies, hockey sticks, paper honeycomb, and boat hulls.

Aramid fiber exhibits properties, such as high strength, good resistance to abrasion & organic solvents, low flammability, and good fabric integrity at elevated temperatures. This promotes its usage in the manufacturing of equipment, protective clothing, and accessories for application industries including military and construction.

Resin Insights: Global Prepreg Market

Thermoset resins accounted for the maximum market share of over 73% in 2019 and are projected to grow further at a significant rate from 2020 to 2027. Thermoset resins are in a liquid state at room temperature, which allows easy impregnation of reinforcing fibers. In addition, these resins are bonded by a three-dimensional network, which makes the fiber stronger as compared to thermoplastic resins.

Thermoset resins exhibit noteworthy properties, such as excellent resistance to corrosives and solvents, resistance to heat and high temperature, excellent adhesion, high strength, and elasticity. This is projected to promote its usage across several application industries, thereby driving the segment growth.

Thermoplastic is anticipated to be the fastest-growing resin segment from 2020 to 2027. These resins have high demand as they can be molded in different structures and shapes. Major applications of these resins include packaging containers, water & soda bottles, safety glass lenses, toys, grocery bags, piping, airplane armrests, window frames, and footwear.
Moreover, they offer superior aesthetic finishing, high resistance to chemicals, and hard crystalline or rubbery surface, which makes them highly preferable in applications, such as drainpipes, gutters, and vinyl siding.

Manufacturing Process Insights: Global Prepreg Market

The hot-melt manufacturing process held the major market share of 74% in 2019 and is projected to expand further at the fastest CAGR from 2020 to 2027. The process is widely used on account of its benefits, such as easy handling, control over resin content, and excellent product quality.
Lower cost of production using the hot-melt process is estimated to promote its adoption in the manufacturing of automotive parts and aircraft structures. In addition, the process does not involve the use of any type of solvent, which makes it environmentally friendly.

The solvent dip manufacturing process is also projected to register a significant CAGR from 2020 to 2027 and reach USD 4.16 billion by 2027. The resin used in the process is initially dissolved in a solvent bath to prepare a solution that is later used as a dipping solution. In the next step, the resin containing fiber is reheated to ensure even distribution of the resin across the fiber.

Cost of the solvent dip process is lower than the hot-melt manufacturing process. However, the solvent used in the process easily evaporates off the prepreg, which weakens the overall strength of the final composite material. Moreover, the use of chemicals in the solvent leads to a number of environmental issues, thus the acceptability is likely to slow down over the forecast period.

Application Insights: Global Prepreg Market

The aerospace & defense application segment accounted for the largest share of over 40% in 2019 and is estimated to expand at a strong CAGR from 2020 to 2027. Prepreg fibers have high demand in this industry on account of the rising need for highly durable and lightweight aircraft parts.
It’s a highly preferred material for fabricating different parts and components in the aerospace industry as it enables a constant resin ratio across the finished product, thus, enhancing the mechanical and physical properties of the component. In addition, increasing production of commercial aircraft on account of increasing passenger traffic is projected to drive the segment growth.

Prepreg fibers are increasingly being used as an alternative to metal wire and organic fiber in structural composite applications in automobiles as they have superior mechanical properties as compared to other synthetic fibers. In addition, the increasing demand for batteries from the automotive industry is expected to further propel the product demand.

The wind energy application segment is estimated to register the highest CAGR during the forecast period. Increasing demand for renewable energy sources coupled with the use of high-strength materials for manufacturing wind turbine parts is projected to stimulate the product demand. In addition, its benefits, such as low maintenance requirement, long shelf life, high strength-to-weight ratio, and corrosion resistance, are likely to propel the demand further.

Regional Insights: Global Prepreg Market

North America accounted for the highest market share of 39% in 2019 and is estimated to grow further at a significant CAGR from 2020 to 2027. This growth is attributed to the rapidly expanding aerospace industry in North America. The region is expected to cater to nearly one-third of the global operational fleet demand, resulting in an increased production of airframe and aircraft parts over the period. Ascending demand for new-generation aircraft is expected to boost the growth of the aircraft manufacturing industry, thereby supporting the regional market over the forecast period.
Asia Pacific is projected to be the fastest-growing regional market from 2020 to 2027. This growth is attributed to rapidly expanding application industries in developing countries including China, India, and Japan. The wind energy application segment is estimated to register the maximum CAGR from 2020 to 2027; while the aerospace & defense segment accounts for the major share of the APAC regional market. Europe is estimated to witness steady development over the forecast years.
Process innovation, improving R&D, and expansion of automobile production in countries, such as Germany, the U.K., Spain, and France, is expected to fuel the automotive industry growth in the region. Thus, rapid expansion of automotive industry coupled with rising demand for lightweight materials is anticipated to promote the market growth in Europe. Rising number of wind energy projects in countries, such as Germany and Czech Republic, is also projected to fuel market growth.

Key Companies & Market Share Insights: Global Prepreg Market

Upstream and downstream integrations across the value chain are considered by the leading players to maintain the business flow in the industry. The market is moving towards fragmentation on account of the presence of a large number of global and regional players. Major companies have a strong distribution network and product brands in the global market.
They are adopting various growth strategies for building a business framework, which will ensure stable profitability in the future. These strategies include prioritizing high-performance and eco-friendly businesses, restructuring the value chain, and creating new supply chains. Some of the prominent players in the prepreg market include:

Key companies Profiled: Global Prepreg Market Report

 	
Toray Industries, Inc.
 	
Axiom Materials, Inc.
 	
Park Aerospace Corp.

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2027. For the purpose of this study, Trusted Business Insights has segmented the global prepreg market report on the basis of fiber, resin, manufacturing process, application, and region:

Fiber Outlook (Volume, Kilotons; Revenue, USD Million, 2016 - 2027)

 	
Carbon
 	
Glass
 	
Aramid

Resin Outlook (Volume, Kilotons; Revenue, USD Million, 2016 - 2027)

 	
Thermoset
 	
Thermoplastic

Manufacturing Process Outlook (Volume, Kilotons; Revenue, USD Million, 2016 - 2027)

 	
Hot-melt
 	
Solvent dip

Application Outlook (Volume, Kilotons; Revenue, USD Million, 2016 - 2027)

 	
Aerospace & Defense
 	
Automotive
 	
Wind Energy
 	
Sporting Goods
 	
Others