CAGR: 9.42% Current Market Size: USD 4.11 billionFastest Growing Region: North America
Largest Market: EuropeProjection Time: 2022-2028Base Year: 2020
Global aramid fiber market is expected to reach USD 7.72 billion by 2028, at a CAGR of 9.42% from 2022 to 2028. This growth of the aramid fiber market is significantly driven by the rising use of such materials in the manufacturing of automotive and aerospace industry. The increasing demand for lightweight materials in several application has led to high sales in the past few years. The developing countries are the major end-users of aramid fiber owing to the expansion of automobile industry.
Aramid fiber is known to be one of the first organically developed fiber which was used as a reinforcement in manufacturing of advance components. Aramid fibers have exceptional properties such as high tensile strength and modulus. These fibers have inherent heat and flame resistant. These characteristics helps to maintain the properties even at high temperatures. Aramid term is specifically designated for aromatic polyamide type which have 85% of their amide bonds directly attached to two aromatic rings. The configuration of such bonds is used to classify the type of aramid fiber. The first aramid fiber was commercialized in 1960s and was even used as a ballistic protection back then. The set of properties which these fibers consist of makes them suitable to be used in clothing, armor and other such applications.
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Market Dynamics
Drivers:
The manufacturers present in end-user industries, especially, in automobile and aerospace industry have immense requirement for materials that can lower the overall weight of the components. The imposition of stringent regulations by different global and regional agencies. The United States Environment Agency and European Union had imposed regulation for vehicle emissions. These agencies provide regular and modified several norms in order to reduce CO2 emissions. Thus, the need for lightweight materials has increased owing to these regulations. Manufacturers are opting for aramid fiber in order to manufacture fuel efficient vehicles.
The use of aramid fiber is increasing in safety and protection equipment in end-use industry such as defense, automotive, healthcare, etc. The aramid fiber makes the consumer goods fire and stab resistant. These fibers are even used in protective clothing including footwear, gloves, helmets and coveralls. The defense applications require the use of high tensile materials in order to withstand extreme conditions. Improvisation in protective clothing is necessary for upgrading the quality especially for defense application.
Restraints:
The aramid fiber market's expansion is being hampered by the variable cost of raw materials necessary for product development. The total costs are influenced by the raw material prices connected with the development of aramid fiber. The upstream price of raw materials has an impact on the production's final price. As a result, the shifting cost of raw materials has an impact on the market expansion of aramid fiber companies.
Opportunities:
The expansion of defense and aerospace industry is providing lucrative opportunities to the market. The composites used in equipment and protective components are manufactured using aramid fiber. The government of developed and developing countries are investing hugely on defense services and are always willing to strengthen their armed forces. The properties of aramid fiber make it compatible to be used in such equipment. Some of it’ properties include resistance against heat, high strength, lower creep, high toughness, and thermal dimensional stability. The increasing concerns over border disputes especially in countries such as US, China and India, has led to strengthening of their military base.
Challenges
The aramid fiber requires the extensive research and development processes in order to be launched in the market. The technology used for manufacturing of aramid fiber are rigorous and require the use of high-end equipment. Further, the process is also lengthy and thus this leads to delay in commercialization of the product.
Segmentation Analysis
The global aramid fiber market has been segmented based on type, application, end-user, distribution channel, and regions.
By Type
The type segment includes meta aramid, para aramid and copolyamide. The para aramid segment led the aramid fiber market with a market share of around 46.99% in 2021. Para aramid fibers have excellent properties such as high tensile strength, modulus behavior and resistance against chemical and heat. The para aramid fibers have higher flame resistance and effective ballistic properties. It even has high cut resistant and thus is widely used in safety and protection equipment.
By Application
The application segment includes friction materials, industrial filtration, security and protection, rubber reinforcement, optical fibers, tire reinforcement, electrical insulation and others. The security and protection segment led the aramid fiber market with a market share of around 31.93% in 2021. Security and protection applications are being more emphasized upon by the manufacturers. Aramid fiber are stab-resistant and bullet-resistant and thus the manufacturers of safety and protection equipment prefer using it in the manufacturing. Also, with the growing number of incidents in workplaces, the employers are also opting for safety equipment in their facilities.
By End-user
The end-user segment includes aerospace, automotive, electronics and telecommunication, industrial and others. The aerospace segment led the aramid fiber market with a market share of around 35.02% in 2021. Aerospace industry constantly performs research and development in order to upgrade the quality of components used in different aircrafts. Aircraft’s components are required to be light weight and fuel efficient. The use of efficient material is crucial in the aerospace industry. Aramid fibers have been used as a novel material in the manufacturing of aircrafts for over decades.
By Distribution Channel
The distribution channel segment includes online and offline. The compression moulding segment led the aramid fiber market with a market share of around 29.17% in 2021. Aramid fiber are majorly used by the end-users of aerospace, automotive, electronics and telecommunication industries. Thus, the end-users usually buy the product in bulk quantity, as it is used in manufacturing of various equipment and component. Manufacturers would prefer to check the quality in accordance with their requirement.
By Regional Analysis
The regions analyzed for the aramid fiber market include North America, Europe, South America, Asia Pacific, and the Middle East, and Africa. Europe region dominated the aramid fiber market and held the 37.09% share of the market revenue in 2021.
Key Industry Players Analysis
To increase their market position in the global aramid fiber business, top companies are focusing on tactics such as adopting new technology, mergers & acquisitions, product developments, collaborations, and partnerships, joint ventures, etc.
Latest Development
In May 2020, a major player, HYOSUNG, had planned the expansion of the aramid fiber factory in Ulsan, South Korea. The company had also signed a Memorandum of Understanding for investment of USD 54 millions in this particular facility. The company had decided to expand the production to 3700 tons every year.
In November 2019, Teijin Ltd., which is a Netherlands based company, had announced to increase it’s production capacity by 25%. This has been done as a response to the increased demand from various end-users.
Report Metrics
Report Attribute |
Details |
Study Period |
2018-2028 |
Base Year |
2021 |
Projection Period |
2022-2028 |
Market Share Unit |
USD Billion |
Segments Covered |
Type, Application, End-use and Distribution Channel |
Regions Covered |
North America, Europe, Asia-Pacific, South America and Middle-East and Africa |
Major Players |
Teijin Ltd., DuPont De Numerous Inc., Hyosung Corporation, Kolon Industries, Kermel, SRO Aramid Co. Ltd., Yantai Tayho Advanced Materials Co. Ltd., Toray Industries, Huvis Corporation, China National Bluestar, X-FIPER New Material Co. Ltd. and Toyobo Co. Ltd. |
Scope of the Report
Global Aramid Fiber Market by Type:
Global Aramid Fiber Market by Application:
Global Aramid Fiber Market by End-user:
Global Aramid Fiber Market by Distribution Channel:
Global Aramid fiber Market by Region:
Global aramid fiber market is expected to reach USD 7.72 billion by 2028, at a CAGR of 9.42% from 2022 to 2028.
The global aramid fiber market has been segmented based on type, application, end-user, distribution channel and regions.
The regions analyzed for the aramid fiber market include North America, Europe, South America, Asia Pacific, and the Middle East and Africa.
Leading market players active in the global aramid fiber market are Teijin Ltd., DuPont De Numerous Inc., Hyosung Corporation, Kolon Industries, Kermel, SRO Aramid Co. Ltd., Yantai Tayho Advanced Materials Co. Ltd., Toray Industries, Huvis Corporation, China National Bluestar, X-FIPER New Material Co. Ltd. and Toyobo Co. Ltd. among others.
Manufacturers in the aramid fiber market are using advanced production technologies to incorporate better results, and performance of the whole process. In addition, the rising number of investments will contribute to demand for the aramid fiber.
Rising demand for use of high strength, low weight and durable products, in manufacturing of safety equipment, automobile and aerospace components, is primarily driving the growth of the aramid fiber market.
The pandemic has significantly affected several industries and has caused a worldwide economic slowdown. Many regions imposed various lockdowns during the fiscal year 2020. These lockdowns led to closure of the regional industries and all type of manufacturing facilities, which has led to shortage of supply in the market. Additionally, all the end-users industries were temporarily closed during this period, which in turn has decreased the sales for aramid fiber.
Based on the sales revenue, product offering, and regional presence, the companies are selected.
Political- The United States Environment Agency and European Union had imposed regulations for vehicle emissions. These agencies provide regular and modified several norms in order to reduce CO2 emissions. Thus, the need for lightweight materials has increased owing to these regulations. Manufacturers are opting for aramid fiber in order to manufacture fuel-efficient vehicles.
Economic- The aramid fiber market's expansion is being hampered by the variable cost of raw materials necessary for product development. The total costs are influenced by the raw material prices connected with the development of aramid fiber. The upstream price of raw materials has an impact on the production's final price. As a result, the shifting cost of raw materials has an impact on the market expansion of aramid fiber companies. The government of developed and developing countries are investing hugely in defense services and are always willing to strengthen their armed forces.
Social- The increasing production of aircraft, automobiles, safety equipment, and the electric and electronic products has led to a rise in demand for aramid fiber. The countries such as the UK, Germany, Russia, France are the major end-users of aramid fiber. The increasing spending on the defense and aerospace industry is providing lucrative opportunities to the market growth of aramid fiber. Further, the presence of multiple manufacturers in the regional countries have increased the supply of product.
Technological- The aramid fiber requires extensive research and development processes in order to be launched in the market. The technology used for the manufacturing of aramid fiber is rigorous and requires the use of high-end equipment. Further, the process is also lengthy and thus this leads to delay in the commercialization of the product. The properties of aramid fiber make it compatible to be used in such equipment. Some of its’ properties include resistance against heat, high strength, lower creep, high toughness, and thermal dimensional stability.
Environmental- The increasing use of private jets, helicopters, etc. and rise in a number of air passengers has led to the high demand of aramid fiber in Moreover, USA and Canada are some of the key factors polluting the environment. So, in order to stop the emission of CO2 several laws and regulations are being imposed by the agencies and government.
Legal- In May 2020, a major player, HYOSUNG, had planned the expansion of the aramid fiber factory in Ulsan, South Korea. The company had also signed a Memorandum of Understanding for the investment of USD 54 million in this particular facility. The company had decided to expand the production to 3700 tons every year.
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