The Japanese government in April 2022 has set a goal for 5G ecosystem, according to which 99% of the population is anticipated to be serviced by 5G networks by the end of the fiscal year 2030. The Ministry of Internal Affairs and Communications (MIC) is the leading organization for overseeing this objective getting fulfilled. The MIC had granted NTT Docomo, KDDI au, SoftBank, and a more recent newcomer, Rakuten Mobile, access to the country’s 5G spectrum in 2019 for the construction of 5G networks. These four mobile network operators began offering 5G commercial service in all prefectures by the end of March 2021. By 2022, more than 20,000 mmWave gNodeBs have been installed among the nation’s four main carriers, and more are obligated to the Japan Ministry of Internal Affairs and Communications and will be installed by the beginning of 2024.

According to a survey conducted by Cyber Creative Institute in April 2021, NTT DOCOMO is ranked third globally in terms of the number of 5G essential patents, while Japan is ranked second by nationality among the top 10 nations. According to this analysis, NTT DOCOMO tops the list of international telecom carriers. About 15% of the standard necessary 5G patents are held by Japanese companies; however, an MNO, NTT DOCOMO, controls about 11.4% of the total followed by Sharp Corporation with 3.2% and NEC Corporation with 1.2% share.

Figure 1:          Japanese Companies Share of Standard Essential Patents for 5G

The Global System for Mobile Communications Association reported that Japan permits operators to install 5G base stations atop traffic lights, hastening the rollout of 5G across the country. When micro cells are put in place and network density is increased, 21 higher-capacity use cases can develop. According to GSMA APAC 5G Forum, the penetration of 5G connections in Japan is anticipated to increase from 153% in 2021 to 154% in 2025. The percentage of 5G smartphone adoptions is anticipated to rise from 71% in 2021 to 81% in 2025, and the 5G subscriber penetration is predicted to increase from 87% in 2021 to 88% in 2025. The same source has also reported the technology mix share of 5G in the country to be 12% in 2021 which is anticipated to increase to 68% by 2024.

Figure 2:        Japan Technology Mix, %, 2021 and 2025

Source: GSMA APAC 5G Forum

The four major 5G network carriers in Japan are anticipated to invest a lot of sum to the tune of $14 billion to expand 5G network in the country. This covers base stations, servers, and fiber optic investments.  By 2025, NTT Docomo plans to spend over $7 billion to extend its network to 97% of the country’s populated areas, KDDI plans to spend over $4 billion to accomplish the same for about 93% of the population, Softbank plans to spend over $1.9 billion in order to reach nearly 64% of the population, and Rakuten Mobile plans to spend over $1.8 billion to do the same for roughly 56% of the population.

Figure 3:        Number of 5G Base Stations in Japan, 2020 to 2023

Source: MIC, Japan

Table 1:         Planned 5G Base Stations in Japan by 2025

Company	Planned 3.7/4.5 GHz spectrum base stations by 2025	Planned 28 GHz base stations by 2025
NTT Docomo	8001	5001
KDDI au	30107	12756
SoftBank	7355	3855
Rakuten Mobile	15787	7948
Total	=SUM(ABOVE) 61250	=SUM(ABOVE) 29560

Source: MIC, Japan

For instance, according to the integrated report 2020, NTT Docomo sought to develop a fast, large-capacity 5G network across the country, fully utilizing new frequency bands, in order to create new value. In FY2020, 500 cities will be covered by the 5G network. With a target of installing 10,000 5G base stations by June 2021 and 20,000 5G base stations by March 2022, NTT Docomo invested a total of 1 trillion yen in the building of the 5G network between FY2019 and FY2023.

Although macrocells are used in 5G networks, the advent of higher spectrum bands would require denser network deployments in order to serve increased traffic volumes, hence the deployment of small cells would be crucial. The deployment of 5G will be made much easier by streamlining the small cell deployment procedure. For the same, Japan has allowed operators to mount 5G base stations atop traffic signals since 2022, which has accelerated 5G deployments throughout the nation as reported by GMSA. Higher-capacity use cases will be able to thrive as tiny cells are deployed and network density is enhanced.

Further, in order to meet the different needs of communication carriers and companies in the 5G era, DOCOMO collaborated with 12 global suppliers to advance open radio access networks (Open RAN), which enable flexible network development, and develop them abroad into the “5G Open RAN Ecosystem. In order to support NTT DOCOMO’s Open Radio Access Network (Open RAN) expansion plans, Samsung Electronics has announced in November 2022 to provide a range of 5G radios, including 3.7 GHz, 4.5 GHz, and 28 GHz – to its existing 3.4 GHz radio. These radios will cover the entire Time Division Duplex (TDD) spectrum bands held by the operator. In order to advance 5G commercial services, NTT DOCOMO, INC. and Korean telecom operator SK Telecom (SKT) agreed to work together regarding the technology for telecommunications infrastructure. The use of millimeter-wave technology, energy-efficient networks, open RAN/vRAN, and 5G Stand Alone is some of the specific technical topics that will be taken into account. Moreover, in August 2022, Nokia has announced the launch of an Industrial 5G fieldrouter that supports the local band and approved for the Japanese market and is expanding its industrial portfolio of ruggedized devices. Japan’s asset-intensive businesses will be able to use the fieldrouter to take advantage of dedicated coverage and capacity using the recently announced 5G n79 band or other 4.9G/LTE spectrum bands for local networks. Greater operational flexibility will help ports, manufacturers, energy, transportation, storage, and logistics businesses adapt to the needs of a market that is changing quickly.

The 5G operators in the country have launched Standlone networks to enable design simplicity, boost security, and save costs. In addition to enabling customization, 5G standalone is anticipated to create new service and income options for users.  For instance, in August 2022, NTT DOCOMO, Inc. unveiled the first commercial 5G Standalone network in the world, also known as 5G NR Dual Connectivity, letting smartphones to simultaneously use mid-band (sub-6 GHz) and mmWave frequencies (NR-DC). The Qualcomm wireless technology business, which was eager to demonstrate that smartphones running on its Snapdragon 8 Gen 1 platform can utilize the full speed of the new network, collaborated on the announcement. Users of the Sharp AQUOS R7, Samsung Galaxy S22, Samsung Galaxy S22 Ultra, or Sony’s Xperia 1 IV, which are all equipped with the Snapdragon® 8 Gen 1 Mobile Platform and the Snapdragon X65 5G Modem-RF System, are already experiencing download speeds of up to 4.9 Gbps and upload speeds of up to 1.1 Gbps, even in congested areas.

Additionally, the introduction of a 5G MEC (Multi-access Edge Computing) site in the Kanto region and the nationwide deployment of MEC servers in Japan were both announced by SoftBank Corporation in May 2022. SoftBank 5G MEC provides a low-latency, high-quality (low-jitter), and highly secure service experience using 5G SA (5G Stand Alone) commercial services. SoftBank is anticipated to address social issues and progress the industry as a digital platform provider in the Beyond 5G future by fostering the digital transformation (DX) of diverse industries and reaching Digital Twin*2.

Although 5GC software is essential for managing cell phone networks, domestic production and cost control are continuous issues that prevent associated technologies, including private 5G, from becoming a reality. To accomplish this, The University of Tokyo, Internet Initiative Japan, APRESIA, and Fujitsu Limited in November 2022, have created Open Source Software for the Private 5G Mobile System, bringing the 5G core network (5GC), the essential component of the 5G mobile networks, to domestic production. The partners’ initiative was carried out as a component of NEDO’s Research and Development Project of the Feasibility Study of Enhanced Infrastructures for Post-5G Information and Communication Systems. As a result, 5G base stations and terminal equipment produced by each company will be integrated with the 5GC technology created through this project to provide solutions for private 5G networks that will be continually released by APRESIA and Fujitsu. Using the 5GC and the public 5G networks that IIJ offers as a mobile virtual network operator (MVNO) through roaming, IIJ will also encourage the creation of communication services that can utilize a variety of private 5G networks.

The 5G launch has provided a number of new options for smartphone makers due to rising consumer and app developer demand. With the help of the internet of things, 5G technology has enable extremely fast speeds as well as a plethora of new applications. Customers of 5G devices in Japan have access to a variety of mmWave devices, including high-end smartphones from Apple, Samsung, Sony, Sharp Corporation, Fujitsu, and Google, as well as substantial carrier momentum for the technology. A number of new 5G devices launches have been announced by the major players. For instance, for the Japanese market, Samsung unveiled a new version of the Galaxy A23 5G in November, 2022, that features a smaller screen, a MediaTek Dimensity 700 chipset, and an IP68 rating. It has a 5.8-inch TFT LCD with HD+ resolution and a waterdrop notch for its 5 MP selfie camera. In February 2022, Panasonic Corporation announced to introduce new “TOUGHBOOK” rugged tablet “FZ-G2 series” and rugged PC “CF-33 series” models that are appropriate for outdoor and hard situations for domestic enterprises.  

Due to pressure from important stakeholders, including shareholders and customers, operators across the nation are moving more quickly toward more environmentally friendly operations. For instance, NTT Docomo and NTT Anode Energy Corp. inked a power purchase agreement (PPA) in March 2022 that was connected to a recently built solar power plant.

The cellular infrastructure in Japan is one of the most sophisticated in the world. The introduction of the 5G ecosystem in the nation has further improved communication thanks to a quicker network, improved signal strength, minimal latency, seamless connectivity, and quick data speeds. Massive machine-type communication (mMTC) is a feature of 5G that enables tens of billions of network-capable devices to connect wirelessly which benefits various end-user industries. The rising use of connectivity, internet applications, and new product launches have all contributed to the growth of companies in the 5G device market in Japan. Additionally, major 5G network carriers’ investments to upgrade current infrastructure for 5G, including base stations, modems, towers, and other supporting infrastructure, has accelerated the development of the 5G ecosystem in the nation. Furthermore, as the deployment of 5G technology has received encouraging signals, the rise of the 5G ecosystem is anticipated to create substantial prospects for different stakeholders.

The touch screen display is widely used in different consumer electronics items such as smartphones, tablets, laptops, and others. These touchscreen displays are widely popular because it is very convenient for the user to interact with the device by just using a single touch on the screen. They can perform various functions for the user with a single touch and the UI or user interface of the device becomes more user-friendly to operate. The touchscreen display can be defined as the electronic display screen that can be used by the user to provide input into the device or can be used for receiving information from a single peripheral device.

This touchscreen display is attached to the top of the consumer electronic device and is an integral part of the whole device as it is the basic input or output component of the whole device through which the user can operate the device. The user of the touchscreen display consumer electronics provides input to the device through various hand gestures and using fingertips to touch pictures or moving elements on the touchscreen display.

These displays are widely adopted by major manufacturers due to the growing demand among the general public coupled with significant technological advancements in the touchscreen display that makes it even more appealing to the users which helps in propelling growth in the touch screen display market.

Global Production Trends

The production of touchscreen displays has been steadily increasing over the years and the industry has been booming in recent times with its applications increasing in demand. For instance, factors such as rapid growth in the consumer electronics industry that needs an interactive display screen for devices such as smartphones or tablets to make the user experience more efficient and enjoyable are making several consumer electronic manufacturers adopt these touchscreen displays into their devices to fuel the sales as these touchscreen smartphones are widely popular in the recent time which in turn boosts the demand for the production of these touchscreen displays significantly.

In recent years, there has been a notable increase in the production of touchscreen displays in emerging economies that has increased urbanization in several countries across the globe coupled with technological advancements in the consumer electronics industry that require touchscreen displays with interactive user interfaces to attract customers to buy their device.

These touchscreen displays have a diverse set of applications in consumer electronics from laptops to smartphones and can cater to all their needs according to their technology, for instance, the touchscreen display used in smartphones these days comes in wide variety according to different user budgets and clarity or resolution of the screen. The more money user spends on the smartphone device the better touchscreen display with higher resolution they will get. Therefore, touchscreen displays help different consumer electronics with different touchscreen display requirements to become more user-friendly and smooth to operate.

As touchscreen displays have so many features and benefits, the demand for them has seen rapid growth in various consumer electronics such as usage in touchscreen displays for smart televisions, and touchscreen displays for laptops. Various applications for different consumer electronic devices need efficient and smart touchscreen display solutions and recent technological developments in the touchscreen display provide products that are an ideal solution for the device according to the different needs of the different devices. Moreover, the need for touchscreen displays to speed up the production process of smartphone devices to meet the global demand with the increasing global population is predicted to proportionally boost the production for them as well.

Touchscreen display use case

The use of touchscreen displays in different industry verticals is a huge trend in the market these days as people are switching over to more efficient options for smooth functioning and creating an interactive experience for the user by using the touchscreen displays for different industry verticals and make the day-to-day operation of these devices integrated with touchscreen easy to operate.

Consumer electronics products such as smartphones or tablets are one of the fastest-growing users of the touchscreen display market among all the other users and other industries like the touchscreen displays installed in different automobiles for navigation and music. These touchscreen displays are widely used in different industries including the medical or healthcare industries where several medical devices are integrated with these touchscreen displays to make the operation of complex medical devices a little easier for the doctors or patients. Therefore, with a rise in demand in these end-user industries a lot of research and development is done to make lubricants suitable for them using higher olefins efficiently.

Some other use cases for touchscreen displays include the use of them in different public places such as fast food chains, metro stations, and airports to provide useful information to the users and the user can interact with these devices to get some information or place order or buy a ticket using these devices. These touchscreen displays are widely used in different industries and have increased in demand significantly over the years with a rise in the wide applications across different industries. For instance, in the global fast food chain McDonald’s they install a touchscreen display device at their restaurants through which customer can input their order and pay using internet banking at the spot and take their orders hassle-free directly from the counter.

The growth in the applications of touchscreen displays in consumer electronics worldwide has made the production of touchscreen displays much more prominent and increased in numbers over the years as these consumer electronics that are growing in demand rapidly need the suitable touchscreen display that is to be integrated with the device. This has led to significant growth in the production of touchscreen displays which has made it easier for different consumer electronic industries and manufacturers to produce different products like smartphones or tablets according to their needs easily and efficiently with efficient prices. Therefore, the growth in the consumer electronics industry will increase the utilization and production of touchscreen displays in the market significantly. For instance, according to the Invest India government website India’s domestic electronic goods production has grown at a CAGR of 13% from $49 billion in FY17 to $101 billion in FY23.

Figure 1: Growth in Electronic Goods Production in India, From FY17-FY23 (In Billion Dollars)

Source: Invest India

Market Dynamics and Drivers

Several factors drive the touchscreen display market, including a rise in applications for them across different industrial applications like consumer electronics and medical devices in recent times coupled with the rise in demand for automobiles that use interactive touchscreen displays for navigation purposes especially in the automatic EVs with self-driving features in the world with the rise in global population and disposable incomes in different countries across the globe has contributed significantly to boosting the overall touchscreen display market. So, with this rapid growth in automobile technology and popularity coupled with growth in demand for consumer electronics, the need for suitable touchscreen displays is rising proportionally.

The touchscreen displays are used to produce interactive consumer electronics devices and other devices that make it easy for the user to interact with the device by just using their fingertips or hand gestures to operate the device which is why it is widely popular among the general public and is growing in demand significantly.

Using touchscreen displays benefits different industries by producing high-quality electronic devices in automobiles the touchscreen used for navigation, tablets, smartphones, medical devices, and other industrial applications are now being created with high efficiency and quality of touchscreen displays. Therefore, with a rise in demand for these products in the market, the touchscreen display market is also predicted to grow.

The development and innovation in different consumer electronics made using new and innovative touchscreen displays across the globe is one of the growth factors in the touchscreen display market. The use of innovative touchscreen displays in the consumer electronics industry is significantly impacting the demand for touchscreen displays in the market.

For instance, Samsung which is a Korean consumer electronics-producing company makes a wide range of consumer electronics products like smartphones, laptops, tablets, and more. Each segment of consumer electronics contains a wide variety of models for each segment for different price ranges catering to different consumer needs. The growth in revenue generation of this company has seen significant growth over the years and with constant growth in the profits generated by companies like Samsung making consumer electronics the demand for touchscreen displays is expected to boost in the market.

Figure 2: Growth in Profits Generated, Samsung Electronics, From the Year 2021-23 (In Billions of Us Dollars)

Source: Samsung financial statements

Challenges and Constraints

Despite the huge advantages and use cases of touchscreen displays the companies that manufacture them require a lot of cost to acquire the material with growing economies and inflation the production cost is going up worldwide. This makes it difficult for the manufacturers to keep up with the new price ranges and provide efficient touchscreen display products like smartphones or tablets.

Also, while manufacturing these touchscreen display products manufacturers need to be very precise and highly concentrated because of the fragile and sensitive nature of the displays that can be broken if not handled with care. These constant changes make it difficult for the manufacturers to produce efficient products for the end-users. These factors are predicted to contribute to and affect the touchscreen display market negatively.

Key Developments

• In April 2023, HD Focus announced the launch of their new product which is a 43-inch interactive multi-touch table with high-definition screen resolution.
• In January 2023, Samsung Display announced that they developed the world’s first-largest OLED touchscreen display that can provide simplified design and productivity.
• In June 2022, ViewSonic announced the launch of their first portable touchscreen monitor with model number VP-16 OLED which has as the name suggests OLED technology integrated into the device.

In conclusion, the touchscreen display market presents significant opportunities for growth and innovation, driven by the increasing popularity of consumer electronics around the globe. While facing challenges such as fluctuation in material costs that negatively affect various industry verticals and huge investments for research and development for new and innovative touchscreen display solutions, the industry is poised to capitalize on technological advancements and innovations to meet the needs of a growing global demand for consumer electronics made from touchscreen displays.

The Non-woven Adhesive Tape Market was valued at US$975.388 million in 2020 and will increase to US$1,620.67 million by 2027. Over the forecast period, this market is estimated to grow at a compound yearly growth rate of 7.52%.

Adhesive tape is one of many types of adhesive-coated backing materials. Based on the material used, they are of two types: Woven tapes and non-woven tapes. Woven tapes are made with fabrics from knitting yarns or weaving. On the other hand, non-woven tapes are made using natural or synthetic fibers that have been thermally, chemically, or mechanically interlocked. Non-woven fabrics have a wide range of properties. For instance, they are flexible, can be stretched, absorb liquids, washable, and are flame retardant. Furthermore, Non-woven tapes can also be recycled after they have been used. These tapes are made from various materials, including polypropylene, polyvinyl chloride, paper, and others. The silicone, rubber, or acrylic adhesives can easily adhere to inanimate objects or even human skin. The Non-woven Adhesive market landscape is segmented upon the adhesive type, material, end-user industries, and geography. Owing to their flexibility, durability, and various other appealing attributes based upon the type of material and adhesives used, the tapes are used in diverse fields. 

According to the Analysts, the demand for Non-woven Adhesive Tape Market is expected to increase in Healthcare, Automotive, and Packaging Industries predominantly during the projected period.

Owing to their versatility and recyclability, the non-woven adhesive tapes are widely being used in healthcare, automotive, and packaging segments. Non-wovens are increasingly being used in the interior and exterior of vehicles, and over 40 automotive parts are now made with these fabrics. Non-woven Tapes, in particular, are extensively used in vehicles for permanent emblems bonding, wire harnessing protection, paint masking, sound & vibration damping, and thermal management in fuel lines, firewalls, & floorboards, among many others. Many non-wovens manufacturers are expanding their product lines to meet the growing demand for electric vehicles. Non-woven manufacturers are benefiting from market trends such as “green” mobility and autonomous driving. Furthermore, manufacturers are also gearing up their innovation by deploying new recyclable materials, like flax, for the better mechanical performance of their tapes. At the same time, a few other groups are also deploying strategic developments to enhance their brand presence in the view of expanding market size. For instance, a global pioneer in the development of water-based adhesive tapes, ATP Adhesive’s acquisition of BDK Industrial Products Ltd., a specialized adhesive solutions provider, in March 2021 is the best example of this. This partnership is expected to strengthen the duo’s presence in the market and expand the product portfolio.     

Similarly, the demand for non-woven adhesives is increasing in the healthcare sector as well. They are used to affix dressing for a skin injury and also to hold the primary dressing in position and shape. Additionally, they are used to hold electrodes, intravenous needles, or medical devices in place. Special medical-grade hypoallergenic adhesives are used in the tapes for the healthcare industry for clean and painless removal. Furthermore, their water-repellent, anti-microbial, stretchable, sterile, and soft attributes, as mentioned above, makes them perfect for use in wound dressing and other clinical applications. At the same time, several manufacturers are gearing up to produce innovative to meet the increasing demand. 3 M’s launch of new medical-grade non-woven adhesive tape in May 2022 is a prime example of this. The new Spunlace Extended Wear Adhesive Tape on Liner, 4576, was developed by 3M for extended wear devices that required adherence to the skin for about a 21-day wear time. The Longer wear times of this innovative approach offer the best user compliance and hygiene. Similar developments are expected to drive the market growth of the non-woven adhesives in Healthcare and automotive segment.

During the forecast period, the Non-woven Adhesive market in the Asia Pacific region is expected to have a dominant share. 

Based on geography, the Global Non-woven Adhesive Tape market landscape is segmented into five regions: North America, South America, Europe, the Middle East and Africa, and the Asia Pacific. The Asia Pacific is expected to hold a dominant share of non-woven adhesive tapes. The rapid growth could be attributed to an increase in the development of automotive and Healthcare segments in the region, particularly in countries like China and India. For instance, according to OICA, of the 80 million units of motor vehicles produced in 2021, over 46 million units were produced in the Asia Pacific region. About 50% percent of these units, over 26 million units, were produced by China, the largest automobile producing nation globally. Furthermore, a recent initiative taken by the Chinese government to sell 7 million electric cars by 2025 and the lifting of JV regulation for foreign manufacturers is further expected to expand the EV segment market in China. Similarly, India, the fifth-largest global car manufacturer, has aimed to expand the electric vehicle sales to thirty percent by 2030 in support of the EV30@30 Campaign. 

At the same time, growing Healthcare and medical device in the region is also expected to increase the demand for non-adhesive tapes in the region. For instance, according to the IBEF (Indian Brand Equity Foundation), the Indian hospital industry accounts for 80% of the nation’s overall healthcare market. In comparison, the healthcare market in the country is expected to increase to US$ 372 billion by 2022. This growth could be attributed to the rising income, better awareness of health and diseases along with growing access to health insurance. Similarly, according to the Chinese National Health Commission, as of 2020, the country had over 35,000 hospitals, over 7 million beds, and about 3.32 billion patient visits. Such factors are expected to drive the growth of the Non-woven adhesive tape market in the region during the forecasted period. 

Covid-19 Insights

COVID-19’s impact on the non-woven adhesives market varied depending upon the end-user industries. The outbreak of the pandemic and the subsequent lockdown resulted in the closure of many automobile facilities. The increased infection rates had further affected the staffing in the industries, thereby reducing productivity. Subsequently, several projects were also put on hold and were postponed. The disruptions in demand and supply chains and volatile prices had negatively affected the market. In the automobile industry, for instance, the number of units manufactured in 2020 fell to 77,621,582 units from 92,175,805 in 2019 worldwide, according to the statistics derived by OICA. Overall, the manufacturing of motor vehicles in 202o decreased by 15.8% globally. Consequently, the automobile industry’s demand for non-woven adhesive tapes decreased during the pandemic. Conversely, the demand for the tapes in Healthcare saw a drastic increase due to an increase in the number of hospitalized patients. With the recovering economy and initiatives carried by the governments of several nations towards sustainability, the industry is expected to grow even more in upcoming years.

Non-Woven Adhesive Tape Market Scope:

Report Metric	Details
Market Size Value in 2020	US$975.388 million
Market Size Value in 2027	US$1,620.67 million
Growth Rate	CAGR of 7.52% from 2020 to 2027
Base Year	2020
Forecast Period	2022–2027
Forecast Unit (Value)	USD Million
Segments Covered	Adhesive Type, Material, End-User And Geography
Regions Covered	North America, South America, Europe, Middle East and Africa, Asia Pacific
Companies Covered	3M, Nitto Denko Corporation, Tesa SE, Avery Dennison Corporation, Intertape Polymer Group, LINTEC Corporation, Berry Global Inc, Scapa, Lohmann GmbH & Co.KG, Rogers Corporation
Customization Scope	Free report customization with purchase

The Automotive Composites Market was valued at US$7.317 billion in 2022 and is estimated to grow at a CAGR of 11.04%, reaching a market size of US$15.231 billion by 2029.

Automotive composites are employed in a variety of interior, exterior, structural, and other vehicle applications. The properties of automotive composites include low coefficients of thermal expansion, ease of production, shape retention, and corrosion resistance for performance in both dry and wet environments. Particulate, flake, fiber, carbon, and metal are the different categories of composite materials according to the geometry of the reinforcement. The car industry has been obliged to manage emissions due to rising environmental concerns and strict pollution control regulations. The curb weight is one of the most important variables impacting fuel economy and vehicle emissions. Reduced curb weight can significantly improve fuel economy, which in turn helps lower vehicle emissions. Demand for automotive composites is anticipated to increase over the projected period as a result of strict pollution control rules, particularly in developed nations, and growing demand for lighter materials in the automotive industry.

Automotive Composites Market to Benefit from Growing Trend of Lightweight and Energy-Efficient Vehicles

OEMs in the automobile sector are concentrating more and more on the strict requirements put in place by governments regarding carbon emissions. The transportation industry is responsible for about 27% of greenhouse gas emissions, according to the Environmental Protection Agency of the United States. The U.S. government implemented tough policies that increased the production of lightweight automobiles in order to cut carbon emissions. Utilizing light-weight vehicles increases battery life and fuel economy, cutting the cost of vehicle maintenance. Due to their high quality and low labour and maintenance costs, the use of glass fibre composites and carbon fibre composites has increased. The U.S. government has made it a priority for manufacturers to adhere to an average miles per gallon standard for their vehicles, and as a result, American automakers are putting more emphasis on producing lightweight cars to decrease the weight of the batteries and so improve fuel efficiency.

The strict rules that the U.S. and European governments have set for car manufacturers, such as the Corporate Average Fuel Efficiency (CAFE) standards and the European Emission Standards (EES), are receiving a lot of attention from the automotive sector. The usage of these materials in the automotive sector has been influenced by the strict government regulations, the lightweight property, and the high safety standards associated with composites.

Additionally, numerous public-private partnership initiatives have already been created in EU member states to increase the use of composites in the automobile industry. Examples of such initiatives include the development of innovation clusters for automotive lightweight materials and composites, as well as partnerships with the chemical and automotive sectors to encourage investment through supply chain analyses of the market for vehicle carbon fibre composites.

The growing electric vehicle market will steer the demand for automotive composites.

According to various analysts, electric vehicles would enable greater pricing per kilo of weight saved in vehicle weight reduction techniques. Cars can recover more kinetic energy via brake energy recovery, but they also lose more energy when accelerating in typical driving cycles. In electric automobiles, a lighter car body enables battery reduction while maintaining range. By enabling additional systems such as the brake system and driving the train to be downsized, reducing the weight of the vehicle body and battery system increases the overall vehicle weight reduction. The reduced weight improves performance in ICE vehicles while reducing emissions at the same powertrain power and torque levels. The adoption of electric vehicles is being strongly influenced by the rapid urbanisation and rising standard of living.

A 2022 report by the International Energy Agency revealed that EV sales have increased from 2.1 million in 2019 to 6.6 million in 2021. OEMs are investing heavily in innovative technologies and energy-efficient engines to take advantage of the rising demand for electric vehicles and premium passenger cars. In April 2021, Solvay unveiled Amodel Supreme PPA, a brand-new collection of high-performance polyphthalamide (PPA) compounds created for difficult e-mobility and metal replacement applications. Additionally, even after prolonged exposure to high temperatures, these materials preserve essential electrical characteristics like the comparative tracking index (CTI). Compounds were created to ensure hydrolytic stability in the presence of modern EV cooling fluids. Due to the various benefits that automotive composites offer, the demand for lightweight interior and exterior materials, as well as engine components, has increased. As a result, rising interest in electric vehicles is what is driving the market for automotive composites.

Asia-Pacific to hold a major share due to the growing automotive industry and government policies.

Asia-Pacific is the largest and fastest-growing region due to the presence of the most automobiles, particularly in China, India, and Thailand. In addition, it is anticipated that the major markets for four-wheelers will be in China, India, Indonesia, Thailand, and Indonesia, which will further fuel the market’s growth. Due to government initiatives in the region, the Asia-Pacific region will continue to lead the worldwide automotive composites market throughout the forecast period. Furthermore, it is projected that increasing the manufacturing of electric vehicles would present profitable market expansion potential. Emerging economies like India, China, and South Korea have the greatest growth potential. Asia-Pacific has experienced significant growth in the automotive composites sector as a result of the region’s expanding adoption of emission-free vehicles.

According to the India Brand Equity Foundation (IBEF), passenger car sales in India reached 2.3 million units in FY-21. This trend is anticipated to continue in the next ten years. Top manufacturers around the world are also looking to the Asian market to increase their earnings. India’s automotive composites sales are increasing as some of the biggest automakers in the world build factories there to fulfill growing demand. For instance, in January 2021, Tesla established Tesla India Motors and Energy Private Limited and erected a research and development facility there. These factors are expected to boost the demand for automotive composites in the region.

Challenges in the recyclability of composites will hinder the market’s growth

Numerous automotive applications use composite materials to help achieve goals including light vehicle weight, low battery weight, fuel efficiency, low CO2 emissions, and high accident safety. Composites, however, are challenging to recycle. The recyclability of composites used in automotive applications is a concern due to complicated material compositions and the cross-linked nature of thermoset resins. In contrast to thermoplastics, which are simple to remould, thermoset resins are more difficult to recycle. The inability to recycle the composites used in automotive applications is a significant barrier for the market for automotive composites.

Automotive Composites Market Scope:

Report Metric	Details
Market Size Value in 2022	US$7.317 billion
Market Size Value in 2029	US$15.231 billion
Growth Rate	CAGR of 11.04% from 2022 to 2029
Base Year	2022
Forecast Period	2024 – 2029
Forecast Unit (Value)	USD Billion
Segments Covered	Fibre Type Application Geography
Companies Covered	Toray Industries Abbott (Solvay) Owens Corning Berkshire Hathaway (Johns Manville) BASF SE And more
Regions Covered	North America, South America, Europe, Middle East and Africa, Asia Pacific
Customization Scope	Free report customization with purchase