CAGR: 13.2%Current Market Size: USD 7.32 billion Fastest Growing Region: APAC
Largest Market: North AmericaProjection Time: 2022-2029Base Year: 2021
The global prepreg market is expected to grow from USD 7.32 billion in 2021 to USD 19.06 billion by 2029, at a CAGR of 13.2% during the Projection period 2022-2029. This growth of the market is driven by rapid demand for prepreg in end-user industries such as aerospace & defense, wind energy, electronics, automotive, and sporting goods.
Prepregs is the composite material that comprises a high-strength reinforcement fiber pre-impregnated with a thermoset or a thermoplastic resin. The process of resin impregnation accurately controls the fiber to resin ratio. It offers several benefits such as maximum strength properties, part uniformity and repeatability, less waste, and less curing time. However, the prepregs are pricey and can be stored for about six months at room temperature.
Prepregs are generally used for high-performance applications where weight and mechanical properties take precedence over the cost in industries such as aerospace, sports, military, automotive, and wind energy. For instance, prepreg fibers with greater strength and light weight are essential for the aircraft manufacturing industry. There is a significant trend of replacing traditional materials with lightweight composites for producing lightweight aircraft to decrease emissions, increase fuel efficiency, and reduce material usage, creating the demand for prepregs.
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Market Dynamics:
Drivers:
Significant research and development into lightweight materials are going on in the global automotive industry for lowering the cost, increase the ability of the materials to be recycled, maximize the fuel economy, and enabling materials integration into vehicles. Hence, in current times, carbon fiber-reinforced polymer (CFRP) and glass fiber-reinforced polymer (GFRP) is being used as a substitute for aluminum and steel in the automotive sector. The glass fiber and carbon fiber prepregs are lighter than steel by about 15–20%, and 50–70% respectively. Also, the weight of a vehicle can be reduced by about 60% by using such prepreg parts. Hence, demand for lightweight materials from the automotive industry drives the growth of the global prepreg market.
In the wind energy sector, carbon fiber composites have seen high-potential applications such as turbine blades. This is mainly attributed to the high tensile and compressive strength of prepreg materials. For instance, recently, Hexcel Corporation, an American public industrial materials company expanded its supply agreement with Vestas Wind Systems A/S, a Danish manufacturer, seller, installer, and servicer of wind turbines to provide composite materials for new generation wind blades. Such agreements among wind energy industry players and prepreg materials companies are fueling the growth of the global market.
Restraints:
At present, prepregs are seeing a dramatic surge in applications across aerospace, wind, and other industries. However, its usage is restricted due to its high material and manufacturing costs. For instance, carbon fiber prepregs are presently being used only in the manufacture of racing cars as well as some high-end sports cars owing to their significantly high cost.
Opportunities:
In June 2021, Rassini, a Mexico-based technology company in composite vehicle suspension systems adopted the HexPly M901 prepreg system by Hexcel, a global provider of advanced composites technologies to accelerate prototype and new product development cycles. This has helped Rassini to decrease the total time to market with an easy to process material solution and enable an effective early-stage design screening and cost-effective production. The emergence of innovative software tools such as the HexPly M901 prepreg system for prepreg product development is expected to create lucrative growth opportunities for the market in upcoming years.
Challenges
The global COVID-19 pandemic has forced all industries to change the way of managing assets and workforces. In addition, the global automotive sector has seen disruption in supply chains due to large-scale manufacturing interruptions within Europe, the closure of assembly plants in the U.S., and disruption in Chinese parts exports. This situation has led to drastic changes in demand for prepreg materials across the globe due to a decreased demand from the aerospace & defense and automotive industries. However, the aforementioned industries are seeing a slow recovery rate; this factor may pose challenges to the growth of the market.
Segmentation Analysis:
The global prepreg market has been segmented based on the type of fiber reinforcement, resin type, form, manufacturing process, application, and regions.
By type of fiber reinforcement
The type of fiber reinforcement segment includes carbon fiber prepreg, glass fiber prepreg, and others. The carbon fiber prepreg segment led the prepreg market with a market share of around 78.32% in 2021. This is attributed to the rising usage of carbon fiber composite materials as alternatives for metal components by automotive parts manufacturers due to concerns about fuel consumption and CO2 emissions. In addition, as compared with the traditional forms of composites manufacturing, carbon fiber prepreg enables improved production performance and reduced manufacturing costs. The aforementioned factors are fueling the growth of this segment.
By Resin Type
The resin type segment includes thermoset prepreg and thermoplastic prepreg. The thermoset prepreg segment led the prepreg market with a market share of around 70.51% in 2021. These prepregs are the synthetic polymer-reinforced fibers pre-impregnated with high-grade resins. Such materials turn into exceptionally strong and durable after heating, while being exceptionally lightweight as compared with the traditional metallic solutions. Such features of thermoset prepreg are the primary factor contributing to the growth of this segment.
By Application
The application segment includes aerospace & defense, wind energy, automotive, sporting goods, electronics (PCB), and others. The aerospace & defense segment led the prepreg market with a market share of around 39.04% in 2021. The upsurge in demand for highly lightweight and durable aircraft parts has primarily driven the growth of this segment. In addition, the market players are developing innovative prepreg solutions for the aerospace industry, creating lucrative growth opportunities for the segment. For instance, in March 2021, Toray Industries Inc. announced the development of carbon-fiber-reinforced plastic (CFRP) prepreg for advanced aerospace applications.
By Regional Analysis
The regions analyzed for the prepreg market include North America, Europe, South America, Asia Pacific, and the Middle East, and Africa. North America region dominated the prepreg market and held the 41.03% share of the market revenue in 2021.
Global Prepreg Market - Country Analysis
Germany's prepreg market size was valued at USD 0.93 billion in 2021 and is expected to reach USD 2.39 billion by 2029, at a CAGR of 12.9% from 2022 to 2029. Germany is one of the leading nations in the mechanical engineering, manufacturing, automotive, and electrical industries. Growing demand for prepreg material in wind energy system installation across Germany has primarily driven the growth of the market. In addition, the expansion of global industry players in the country is opportunistic for the growth of the market. For instance, in January 2020, Mitsubishi Chemical Corporation, a Japanese company announced to the acquisition of c-m-p GmbH, a German carbon fiber prepreg manufacturer to strengthen its presence in the carbon fiber composite material business.
China's prepreg market size was valued at USD 1.06 billion in 2021 and is expected to reach USD 2.73 billion by 2029, at a CAGR of 13.0% from 2022 to 2029. China is a leading automotive producer, consumer, and exporter. For instance, the country continues to be the largest vehicle market by both manufacturing output and annual sales, with domestic production anticipated to reach 35 million vehicles by 2025. Hence, the huge demand for prepreg materials from the automotive sector in China drives the growth of the market.
India's prepreg market size was valued at USD 0.55 billion in 2021 and is expected to reach USD 1.46 billion by 2029, at a CAGR of 13.4% from 2022 to 2029. India is one of the strongest growing economies in Asia. In addition, the emerging popularity of prepreg in this country is expected to create lucrative growth opportunities for the market.
The demand for prepreg from wind energy applications in the country is opportunistic for the growth of the market. The Government of India is promoting wind power projects around the country through private sector investments by providing different financial and fiscal incentives.
Key Industry Players Analysis:
To increase their market position in the global Prepreg business, top companies are focusing on tactics such as adopting new technology, mergers & acquisitions, product developments, collaborations, and partnerships, joint ventures, etc.
Latest Development
Report Metrics
Report Attribute |
Details |
Study Period |
2021-2029 |
Base year considered |
2021 |
CAGR (%) |
13.2% |
Market Size |
7.32 billion in 2021 |
Projection period |
2021-2029 |
Projection unit |
Value (USD) |
Segments covered |
Type of Fiber Reinforcement, Resin Type, Form, Manufacturing Process, Application, and Regions |
Report Scope |
Revenue Projection, competitive landscape, company ranking, growth factors, and trends |
Companies covered |
Solvay Group, Hexcel Corporation, Toray Industries, Inc., Teijin Limited, Mitsubishi Chemical Holdings Corporation, SGL Group, Axiom Materials, Gurit Holding AG, Park Aerospace Corp., Plastic Reinforcement Fabrics Ltd. among others |
By Type of Fiber Reinforcement |
|
By Resin Type |
|
By Form |
|
By Manufacturing Process |
|
By Application |
|
Regional scope |
|
Scope of the Report
Global Prepreg Market by Type of Fiber Reinforcement:
Global Prepreg Market by Resin Type:
Global Prepreg Market by Form:
Global Prepreg Market by Manufacturing Process:
Global Prepreg Market by Application:
Global Prepreg Market by Region:
North America region dominated the prepreg market and held the 41.03% share of the market revenue in 2021
The application segment includes aerospace & defense, wind energy, automotive, sporting goods, electronics (PCB), and others. The aerospace & defense segment led the prepreg market with a market share of around 39.04% in 2021. The upsurge in demand for highly lightweight and durable aircraft parts has primarily driven the growth of this segment. In addition, the market players are developing innovative prepreg solutions for the aerospace industry, creating lucrative growth opportunities for the segment. For instance, in March 2021, Toray Industries Inc. announced the development of carbon-fiber-reinforced plastic (CFRP) prepreg for advanced aerospace applications.
In June 2021, Rassini, a Mexico-based technology company in composite vehicle suspension systems adopted the HexPly M901 prepreg system by Hexcel, a global provider of advanced composites technologies to accelerate prototype and new product development cycles. This has helped Rassini to decrease the total time to market with an easy to process material solution and enable an effective early-stage design screening and cost-effective production. The emergence of innovative software tools such as the HexPly M901 prepreg system for prepreg product development is expected to create lucrative growth opportunities for the market in upcoming years.
The rising usage of carbon fiber composite materials as alternatives for metal components by automotive parts manufacturers due to concerns about fuel consumption and CO2 emissions. In addition, as compared with the traditional forms of composites manufacturing, carbon fiber prepreg enables improved production performance and reduced manufacturing costs
China's prepreg market size was valued at USD 1.06 billion in 2021 and is expected to reach USD 2.73 billion by 2029, at a CAGR of 13.0% from 2022 to 2029. China is a leading automotive producer, consumer, and exporter. For instance, the country continues to be the largest vehicle market by both manufacturing output and annual sales, with domestic production anticipated to reach 35 million vehicles by 2025. Hence, the huge demand for prepreg materials from the automotive sector in China drives the growth of the market.
In May 2022, Solvay Group introduced SolvaLite 714 Prepregs, an essential addition to its wide portfolio of composite materials for the automotive industry. This offering is the new generation of unidirectional carbon-fiber and woven-fabric products pre-impregnated with SolvaLite 714 epoxy resin.
Global prepreg market is expected to grow from USD 7.32 billion in 2021 to USD 19.06 billion by 2029, at a CAGR of 13.2% during the Projection period 2022-2029
Political Factors- The demand for prepreg from wind energy applications in the country is opportunistic for the growth of the market. The Government of India is promoting wind power projects around the country through private sector investments by providing different financial and fiscal incentives.
Economical Factors- The economic factor for any business includes recession, inflation, growth in GDP, growth in population, etc. rise in raw material prices increases the cost of the final product, and to maintain profitability, the organization has to increase its prices. The organization can leverage this trend by expanding its product range and targeting new customers. At present, prepregs are seeing a dramatic surge in applications across aerospace, wind, and other industries. However, its usage is restricted due to its high material and manufacturing costs. For instance, carbon fiber prepregs are presently being used only in the manufacture of racing cars as well as some high-end sports cars owing to their significantly high cost.
Social Factor- The North American region has registered the highest value for the year 2021. The growth of this region is mainly driven by the rapid expansion of the aerospace and defense industry coupled with the upsurge in the production of airframe and aircraft parts. In addition, the new product development trend in this region is opportunistic for the growth of the market. For instance, in July 2021, Toray Composite Materials America, Inc., a supplier of carbon fiber materials and advanced composite prepreg launched Toray 2700, an Epoxy-based high-performance, patented resin technology mainly focused on applications in emerging aerospace programs.
Technological Factors- In June 2021, Rassini, a Mexico-based technology company in composite vehicle suspension systems adopted the HexPly M901 prepreg system by Hexcel, a global provider of advanced composites technologies to accelerate prototype and new product development cycles. This has helped Rassini to decrease the total time to market with an easy to process material solution and enable an effective early-stage design screening and cost-effective production. The emergence of innovative software tools such as the HexPly M901 prepreg system for prepreg product development is expected to create lucrative growth opportunities for the market in upcoming years.
Environmental Factors- The rising usage of carbon fiber composite materials as alternatives for metal components by automotive parts manufacturers due to concerns about fuel consumption and CO2 emissions. In addition, as compared with the traditional forms of composites manufacturing, carbon fiber prepreg enables improved production performance and reduced manufacturing costs.
Legal Factors- In January 2020, Mitsubishi Chemical Corporation, a Japanese company announced to the acquisition of c-m-p GmbH, a German carbon fiber prepreg manufacturer to strengthen its presence in the carbon fiber composite material business. Furthermore, in May 2022, Solvay Group introduced SolvaLite 714 Prepregs, an essential addition to its wide portfolio of composite materials for the automotive industry. This offering is the new generation of unidirectional carbon-fiber and woven-fabric products pre-impregnated with SolvaLite 714 epoxy resin.
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