A Transparency Market Research report states that the reinforced plastics market is poised to experience a compound annual growth rate of 7.6 percent between 2013 and 2019. All sorts of industries from construction to aviation that make use of reinforced plastics will be responsible for this considerable growth. Let’s take a look at what is spurring the demand for reinforced plastics.
Why the Reinforced Plastics Market Is Growing
According to Transparency Market Research, the worldwide reinforced plastics market had $8.42 billion worth of activity three years ago. By 2019, the market is expected to hit a remarkable $15.82 billion. Much of the anticipated growth is due to the considerable economic expansion and corresponding disposable income in the Asia Pacific region. Those who reside in this part of the world are poised to purchase a significant number of automobiles over the next half decade. The soaring demand for new vehicles is widely viewed as one of the primary growth catalysts for reinforced plastics. Mix in the fact that construction projects are ramping up throughout India and China, and it is easy to understand why the demand for reinforced plastics is surging.
Economists expect that the emergence of wind energy will catalyze the reinforced plastics market even further, creating a slew of lucrative opportunities for the market’s producers. Reinforced plastics are necessary for the aerodynamic blades that are used to generate wind energy. These blades are favored over others because they boost wind turbine efficiency thanks to their light weight. Industry experts anticipate that future research and development efforts to create reinforced plastics from biocomposites will further advance the market.
Transparency Market Research’s findings also show that the second largest market segment that requires reinforced plastics is construction and building. This sector’s compound annual growth rate for reinforced plastics will likely grow by nearly 7 percent between 2013 and 2019. Furthermore, reinforced plastics are critical to the printing of circuit boards, which are used in a variety of industries.
The Relationship Between Automobile Manufacturers and Reinforced Plastics Producers
Transparency Market Research found that the automobile industry relied on reinforced plastics more than any other sector in 2012. Contemporary vehicles require reinforced plastics for a myriad of vehicle parts. This is precisely why automobile producers will continue to demand substantial quantities of reinforced plastics for the foreseeable future. The light weight of reinforced plastics improves fuel economy, allowing vehicles to create less of a negative environmental impact. It is estimated that the use of reinforced plastics cuts an automobile’s weight by upwards of 50 percent. It is also important to note that governments throughout Europe have heightened vehicle CO2 emissions, further driving the demand for uberlight reinforced plastics. Even the aviation and aerospace industries are reliant upon reinforced plastics as ever-stringent government regulations are put in place to lower CO2 emissions. The use of reinforced plastics is critical to meeting these challenging regulations.
Will Anything Stop the Growth of the Plastics Industry?
The reinforced plastics industry might have a hurdle to overcome in the potentially wild price swings of raw materials. It is a widely accepted fact that strict feedstock regulations imposed by the United States and European governments put a strain on the market, as well. Some also point to the existence of a demand-supply chasm in the raw material supply chain as a threat. Yet industry experts do not expect any of these potential hindrances to be insurmountable.