Innovations in the arena of chemicals and materials has resolved several operational and environmental issues faced by various sectors. For instance, with the advent of thermoplastic, the automotive sector which is trying to implement the trend of ‘low carbon economy’ has overcome the complexity of reducing vehicles weight to enhance fuel efficiency. And in the flourishing construction sector that is moving towards the trend of ‘skyscrapers’, ‘energy efficient structures’, and ‘intricate designs’, thermoplastics finds ample scope of application owing to its thermal insulation properties. As a consequence, the long fiber thermoplastic (LFT) market companies is leveraging the dire need of industries relying on LFT seeking metal replacement applications and semi-structural applications. Moreover, as electric vehicles is the asylum sought by the global automotive sector to diminish its participation in ‘carbon footprints’, LFTs are being commoditized as they are extensively employed in such weight-centric vehicles designing and manufacturing. The pacing EVs market is adding substantial impetus to the global LFT market demand.
Hence, the global long fiber thermoplastic (LFT) market size was evaluated to be $1.1 billion in 2018. Injection molding is used with inline compounded material that virtues thermal isolation and creep resistance. The trend of hybrid LFTs is pacing up as they offer high performance at low cost by blending carbon fibers with other fiber reinforcements such as glass fibers via injection molding. Moreover, this combination of glass and fiber also reduces the overall weight, the most sought after resolution by LFT market end-user industries such as automotive, construction, and electronics. This trend is estimated to be the most disruptive force, catapulting the market to grow at a global CAGR of 5.8% during the forecast period of 2019 – 2025.
APAC leads the global long fiber thermoplastic (LFT) demand as India and China pace up their ‘electric mobility’:
APAC is reckoned to be the leading region globally in terms of LFT market size, as the region in 2018 generated 44% of the global demand share. This lucrative trade in APAC is attributable to the strong presence of globally leading automotive manufacturers in India, China, and Japan, and the flourishing construction and electronics industry in similar economies.
Some facts supporting the argument –
The trend of electric vehicles in the automotive sector in APAC is adding impetus to its long fiber thermoplastics market. In 2018, the global electric car fleet exceeded 5.1 million units with China alone witnessing sales of nearly 1.1 million units. And the country also led the global electric car stock with 2.3 million (approximately 50%) units. By 2030, China and Japan are estimated to secure 1st and 3rd position in global EV market respectively. Not just EVs, even the contemporary ICE engine vehicles manufacturers are implementing ‘light weight design’ to enhance fuel efficiency of vehicles. The overall automotive market in APAC is flourishing as well with growth rate in India (+7.98%), Indonesia (+10.31%), and Malaysia (+12.18%).
By 2030 the global volume of construction output is estimated to grow by 85% to $15.5 trillion. China, United States, and India are forecast to account for 57% of this global growth. Likewise, India is estimated to develop twice as faster as China. This humongous growth in the global as well as APAC’s construction sector is playing a vital role in LFT market growth.
The unceasing demand for long fiber thermoplastics generated from the automotive industry is recognized as a significant influence contributing towards the growth of the global long fiber thermoplastics market. The automotive industry is identified as the fastest growing application segment, proceeding with an application CAGR of 4.1% during the forecast period of 2019 – 2025. Long fiber thermoplastics (LFTs) are extensively used as replacements for conventional materials such as metal assemblies, die castings, and underperforming plastics in the automotive industry. They are lightweight and enhance the performance, dimensional stability, and strength of the automobile and hence improve the fuel efficiency to meet the quality standards set by regulatory bodies. This inexpensive innovative material also assist in help in lowering the automotive manufacturing cost.
Long Fiber Thermoplastics (LFT) Market Companies:
Some of the key players with majority of the global long fiber thermoplastics market share are Polyone Corporation, Plasticomp, Inc., SGL group, RTP Company, Sumitomo Bakelite Company Limited, TechnoCompound GmbH, Daicel Polymer Ltd, Inc, SKYi innovations, Inc, Great Resins Industrial Co, Inc, Celanese, Inc., Quadrant Plastic Composites (Schweiz) AG, Solvay Inc, Asahi Kasei, Inc, Lanxess, and SABIC.