PUBLISHER: BIS Research | PRODUCT CODE: 1385521
PUBLISHER: BIS Research | PRODUCT CODE: 1385521
“Global Bio-Composite Materials Market Expected to Reach $55.93 Billion by 2032.”
KEY MARKET STATISTICS | |
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Forecast Period | 2023 - 2032 |
2023 Evaluation | $13.59 Billion |
2032 Forecast | $55.93 Billion |
CAGR | 17.03% |
The global bio-composite materials market was valued at $11.90 billion in 2022, and it is expected to grow at a CAGR of 17.03% and reach $55.93 billion by 2032. The growth in the global bio-composite materials market is expected to be driven by a combination of factors, primarily led by the rising awareness and adoption of eco-friendly and biodegradable materials in various industries, including automotive, construction, packaging, and consumer goods, among others.
Bio-composites represent a specialized sector within the composite materials industry, highlighting the utilization of natural fibers and matrices derived from renewable sources such as agricultural byproducts, wood, and bio-based polymers to create innovative and environmentally sustainable composite materials. These bio-composites offer multiple advantages over traditional synthetic composites, including a reduction in environmental impact, lower carbon emissions, and increased biodegradability. Furthermore, the global emphasis on sustainability by governments and industries is placing the bio-composite materials market on the cusp of substantial expansion. Additionally, in the coming years, there is an anticipation that bio-composite materials may approach their limits in their existing formulations and designs, leading to a growing demand for bio-composite materials with enhanced properties. These new bio-composite materials are currently under exploration with the aim of providing superior mechanical, thermal, and sustainability-related characteristics.
The global bio-composite materials market is in a growth phase, wherein the number of companies offering bio-composite materials is increasing rapidly. Latest technological advancements in bio-composite materials, such as natural fibers and wood fibers, and the growing number of construction projects, the automotive industry, renewable energy demand, as well as electronics and consumer goods sectors, are boosting the adoption of the bio-composite materials market across the globe. Furthermore, numerous industry stakeholders are eagerly anticipating the future of the bio-composite materials market due to the escalating demand for environment-friendly and sustainable materials. The surge in global investments in eco-friendly materials is primarily driven by their low environmental impact and cost-effectiveness. Moreover, the potential of bio-composite materials to surpass traditional alternatives in terms of sustainability and performance stands as a significant advantage in the evolution of eco-friendly materials. Additionally, with significant demand for bio-composite materials during the forecast period (2023-2032), primarily from transportation, energy storage, and electronics, among other sectors, the market competition is expected to grow considerably among established and emerging bio-composite materials suppliers in the bio-composite materials market.
The global bio-composite materials market is experiencing significant growth due to several key factors. This growth is driven by increased research and development efforts aimed at improving sustainable materials, rising demand for environment-friendly alternatives, and growing focus on achieving carbon neutrality objectives. The popularity of bio-composite materials is on the rise because they offer numerous benefits, including enhanced durability, reduced environmental impact, and compatibility with a wide range of applications. Furthermore, the synergistic compatibility of bio-composite components with various structural elements can result in the creation of high-performance and environmentally responsible materials with a reduced ecological footprint. These materials provide long-term sustainable solutions that align with environmentally conscious practices, contributing to a greener future. Additionally, the increased energy efficiency of bio-composite materials can lead to the production of lightweight and eco-friendly products, which is particularly important in industries such as automotive manufacturing, where efficiency and sustainability are paramount.
Additionally, companies are increasingly focusing on delivering cutting-edge and eco-friendly solutions, expanding their customer base globally, and investing in research and development. The growth of the global bio-composite materials market depends on its ability to gain traction across major industries and effectively address sustainability concerns. In the current market landscape, there are challenges, such as scaling up the production of high-quality bio-composite materials and addressing specific application limitations. However, it is expected that the market conditions will become more favorable in the projected period from 2023 to 2032, paving the way for further expansion in the bio-composite materials market.
The automotive sector is anticipated to claim the largest market share by 2032. This projection is underpinned by the increasing utilization of bio-composites in the production of a wide array of trucks and cars. Furthermore, the use of bio-composites in crafting interior panels is also projected to witness substantial growth. These materials are expected to gain prominence due to their ability to reduce vehicle weight and enhance overall efficiency. Notably, the adoption of bio-composites is likely to yield significant cost savings in vehicle manufacturing processes. According to the International Energy Agency (IEA), more than 10 million electric vehicles have been sold by 2022. The growing popularity of electric vehicles is driving up demand for bio-composite materials.
Wood fiber composites led the bio-composite materials market in 2022. These bio-composites are manufactured in various forms, including decking, railings, balusters, fences, and more. Wood fiber composites are generally more cost-effective when compared to non-wood fiber composites. They find applications in various settings, such as residential properties, commercial establishments, pool-side areas, observatory decks, and jetties. These factors contribute to the increasing demand for wood fiber composites during the forecast period.
In the global bio-composite materials market, the hybrid composites segment claimed a leading market share in 2022. This strong market presence can be attributed to the widespread global demand for bio-composites. The popularity of hybrid composites is due to their excellent fiber-polymer adhesion, which leads to low moisture absorption, high strength, and exceptional dimensional stability.
The extrusion segment was the major processing technique in the bio-composite materials market in 2022 and is expected to be the fastest-growing segment from 2023 to 2032. This growth is driven by the increasing demand for vehicles, which is expected to stimulate the need for extrusion. On the other hand, injection molding is projected to be the fastest-growing category throughout the forecast period. This growth can be attributed to the increasing demand for mass production of thousands of identical components at lower costs, along with the advantages of design flexibility and precision, which are particularly beneficial for various end-user industries such as packaging, medical, and electronics, contributing positively to market expansion.
The global bio-composite materials market is expected to witness significant growth in the coming years, with major contributions from China, Asia-Pacific and Japan, Europe, and North America regional markets. In terms of revenue generation, Asia-Pacific and Japan is anticipated to maintain its position as the largest market for bio-composite materials until 2032. This is primarily attributed to the upsurge in construction activities, population growth, thriving automotive industry, and an increase in disposable income, all of which are major driving factors for the growth of the bio-composite materials market in the Asia-Pacific region. Furthermore, China's rapidly rising economy and the presence of key industry players along the supply chain of bio-composite material components are having a significant impact on the market's growth.
The persistent need for lightweight materials in a wide array of applications across sectors such as construction, aerospace, and automotive has driven advancements in bio-composites. Various industry players have consistently innovated bio-based composites to fulfill the demand for lightweight materials. For instance, in 2022, several automotive manufacturers, such as BMW, Volvo, and Porsche, collectively invested $35.9 million in the sustainable lightweighting specialist, Bcomp. Furthermore, in 2021, the Retrac Group planned to introduce an extensive range of natural bio-composites. These novel products combine the characteristics of both carbon fiber and natural fiber, making them suitable for crafting lightweight structures. As a result, the increasing need for lightweight materials in diverse industries highlights the significant influence of bio-composites in shaping the future of materials engineering.
Natural fiber composites often exhibit a limited interfacial bond between the fibers and matrix, leading to subpar mechanical performance and relatively weaker strength when compared to synthetic fibers such as glass and carbon fiber. One important factor of comparison is that all plant-based fibers are inherently hydrophilic and polar, absorbing water due to their composition, primarily hemicellulose and pectins. In contrast, both thermoplastics and thermoset polymers are nonpolar and hydrophobic, creating compatibility challenges between the fibers and matrix. However, it's worth noting that the mechanical strength can be improved through chemical pre-treatment of the fibers. Furthermore, similar to synthetic fibers, natural fibers suffer from thermal instability, with thermal degradation initiating at approximately 392°F, rendering them incompatible with certain manufacturing processes. Additionally, inadequate fiber separation and dispersion represent significant drawbacks in the application of bio-composites, limiting their widespread use. All these factors are expected to hinder the growth of the bio-composite materials market during the forecast period (2023-2032).
The energy required to manufacture bio-composites is significantly lower compared to the energy needed for producing glass fiber composites and carbon fiber composites. Nevertheless, bio-composites are currently available at a higher cost than glass fiber composites. However, due to the potential for economies of scale and their widespread applications, there is an opportunity for price reduction. Developing countries such as India and China, with abundant raw materials such as flax, jute, Kenaf, and hemp, can produce bio-composites at a lower cost, contributing to an overall reduction in the price of natural fiber-based bio-composites. Furthermore, it is anticipated that these bio-composites will become more affordable as the technology matures and production benefits from economies of scale. Additionally, expanded production capacity can empower bio-composite manufacturers to provide more competitive pricing, rendering their products more attractive to a broader spectrum of industries and applications. Consequently, this can catalyze the adoption and growth of the bio-composite materials industry.
Product/Innovation Strategy: The product segment helps the reader to understand the different types involved in the bio-composite materials market. Moreover, the study provides the reader with a detailed understanding of the global bio-composite materials market based on the application (automotive, construction, aerospace, consumer goods, packaging, electronics, renewable energy, and others). The bio-composite materials market is gaining traction in applications on the back of sustainability concerns and their higher tensile strength and toughness, among others. Bio-composite materials are also being used for controlling greenhouse gas (GHG) emissions. Moreover, partnerships and collaborations are expected to play a crucial role in strengthening market position over the coming years, with the companies focusing on bolstering their technological capabilities and gaining a dominant market share in the bio-composite materials industry.
Growth/Marketing Strategy: The global bio-composite materials market has been growing at a rapid pace. The market offers enormous opportunities for existing and emerging market players. Some of the strategies covered in this segment are mergers and acquisitions, product launches, partnerships and collaborations, business expansions, and investments. The strategies preferred by companies to maintain and strengthen their market position primarily include partnerships, agreements, and collaborations.
Competitive Strategy: The key players in the global bio-composite materials market analyzed and profiled in the study include bio-composite materials suppliers that develop, maintain, and market bio-composite materials. Moreover, a detailed competitive benchmarking of the players operating in the global bio-composite materials market has been done to help the reader understand the ways in which players stack against each other, presenting a clear market landscape. Additionally, comprehensive competitive strategies such as partnerships, agreements, and collaborations will aid the reader in understanding the untapped revenue pockets in the market.
The market size for the global bio-composite materials market has been calculated through a mix of secondary research and primary inputs. A combination of top-down and bottom-up approaches has been followed to derive the quantitative information. The steps involved in the bottom-up approach are as follows:
The primary sources involve the bio-composite materials industry experts and stakeholders such as data suppliers, platform developers, and service providers. Respondents such as vice presidents, CEOs, marketing directors, and technology and innovation directors have been interviewed to verify this research study's qualitative and quantitative aspects.
The key data points taken from primary sources include:
This research study involves the usage of extensive secondary research, directories, company websites, and annual reports. It also makes use of databases, such as Hoovers, Bloomberg, Businessweek, and Factiva, to collect useful and effective information for an extensive, technical, market-oriented, and commercial study of the global market. In addition to the aforementioned data sources, the study has been undertaken with the help of other data sources and websites.
Secondary research was done to obtain crucial information about the industry's value chain, revenue models, the market's monetary chain, the total pool of key players, and the current and potential use cases and applications.
The companies that are profiled have been selected based on inputs gathered from primary experts and analyzing company coverage, product portfolio, and market penetration.
Among the top players profiled in the report, the private companies operating in the global bio-composite materials market accounted for around 80% of the market share in 2022, while the public companies operating in the market captured around 20% of the market share.
Private Companies
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Public Companies
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