Carbon Fiber Reinforced Plastics (CFRP) Market to reach USD 31.5 billion in 2025

During the projection period, the global Carbon Fiber Reinforced Plastics (CFRP) Market is expected to increase at a CAGR of 12.4%, from USD 17.5 billion in 2020 to USD 31.5 billion in 2025. Because of the higher performance features of CF & CFRP, as well as their ability to withstand hostile environments, the market is rising.


Impact of COVID-19 on global Carbon Fiber Reinforced Plastics (CFRP) Market

COVID-19 has had a negative impact on CFRP composite demand in a variety of industries, including aerospace and defence, automotive, and wind energy. Financial flows have been interrupted by supply chain disruptions resulting in delays or non-arrival of raw materials, and rising absenteeism among production line workers has forced composite component makers to operate at partial capacity.The travel ban has drastically curtailed air travel, which has had a negative impact on the aerospace and automotive industries by limiting new aircraft deliveries and demand. The demand for CF and CFRP materials has decreased as aviation deliveries and automobile demand have decreased.

Market dynamics

Driver: High demand for composite materials for the aerospace industry

In the best-case scenario, after 2021, when aerospace businesses are able to operate at full capacity with no travel limitations or supply chain disruptions, demand for composite materials from the aerospace and defence industries will skyrocket. In the aerospace sector, CFRP composite materials are widely used as sandwich structures in both interior and exterior applications. CFRP composites' low weight and high tensile strength improve fuel efficiency, save maintenance costs, and help OEMs meet tough environmental laws in Europe and North America. The newer advanced aircrafts, such as the Airbus A350 XWB and the Boeing Dreamliner 787, have a composites-based airframe that is 50 percent lighter.

Restraint: The decrease in the number of commercial aircraft deliveries

The Carbon Fiber Reinforced Plastics (CFRP) Market would be immediately impacted by a decline in aircraft deliveries. Because commercial aircraft account for more than 80% of composite material usage, a drop in demand for composites as a result of fewer aircraft orders would have a negative impact on the industry.The recent grounding of the Boeing 737MAX as a result of mishaps involving Malaysian and Ethiopian Airlines led in the cancellation of its orders. Airbus and Boeing delivered 122 and 50 commercial aircraft globally in the first quarter of 2020, respectively, a 22 percent and 66 percent decrease from the first quarter of 2019.

Opportunity: Reduction of cost of carbon fibers is an excellent opportunity in the Carbon Fiber Reinforced Plastics (CFRP) Market

Polymeric resins and carbon fibres are the primary raw materials utilised in the manufacturing of carbon fibre composites. Carbon fibre prices are directly proportional to the price of the precursor raw materials used to make them. Carbon fibres are currently made from polyacrylonitrile (PAN), which costs around USD 90 per kilogramme in aerospace applications. Carbon fibres might be substantially cheaper if low-cost, high-yield precursors for aerospace grade carbon fibres could be developed. Carbon fibre precursors with low costs might lower the cost of aerospace-grade carbon fibres. Carbon fibre cost reductions would lower the cost of carbon fibre CF and CFRP, consequently driving the industry.

Challenge: Liquidity crunch due to slowdown in the aerospace industry is a major challenge

The CFRP composites sector requires a lot of money. The main end-users of CFRP composite materials, such as commercial and business aircraft manufacturers, rotary aircraft manufacturers, helicopter manufacturers, wind blade manufacturers, and automotive component manufacturers, are all at a standstill as a result of the present epidemic. Some OEMs are cash-strapped and have little operating cash flow.Furthermore, industrial consolidation has resulted from the huge decline in market capitalisation. OEMs and their suppliers are projected to experience a liquidity crunch and go out of business as a result of the lack of revenue. To avoid a liquidity constraint, the aircraft industry's major task would be to maintain uninterrupted cash flow.

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