Prepreg Market Expected to Reach $16.1 Billion by 2031—Allied Market Research

According to a new report published by Allied Market Research, titled, “Prepreg Market," The prepreg market was valued at $6.3 billion in 2021, and is estimated to reach $16.1 billion by 2031, growing at a CAGR of 9.9% from 2022 to 2031.

Prepreg is a reinforcement fiber, which has been pre-impregnated with a thermoplastic or thermoset resin in a specific ratio. Prepreg is a composite material that is increasingly being used in diverse applications owing to its properties such as high strength, uniformity & repeatability, reduced wastage, and less curing time. It also offers high fatigue resistance, superior quality, an extremely low thermal expansion coefficient, high specific modulus & strength, and good environmental & corrosion resistance. It is used in various aircraft interiors, aerospace components, automotive parts & components, electronic-transmission applications, sporting goods, and high impact surfaces.

Increase in its application in the manufacturing of wind turbines due to the growth in adoption of renewable energy sources supports the growth of the market. Growth in industrialization and urbanization has resulted in a greater sale of vehicles, increasing the demand from the automotive sector. The adoption has gained momentum from the aerospace and defense sector.

The rising production of commercial aircrafts and increasing defense spending have accelerated the market growth. The economic growth in countries such as China, Japan, and India have encouraged global players to expand into emerging countries to tap market potential. Technological advancements and rising investments in R&D are factors expected to offer growth opportunities.

Surge in automotive industry

Prepreg is used for manufacturing in the automotive industry to substitute metals in interior and exterior applications. The growth in need to reduce weight in automobiles for increased performance and safety has accelerated the adoption of prepreg. Moreover, there has been increase in demand for modernized vehicles and the growth in development of autonomous vehicles sector across the globe.

The increase in demand for passenger vehicles and the surge in electrification of vehicles have increased prepreg applications in the automotive sector. Manufacturing activities have been halted due to various government regulations across the globe. Restrictions on import of goods to curb the spread of the virus have hampered the market growth.

The prepreg market is segmented on the basis of fiber type, resin type, manufacturing process, applications, and region. Depending on fiber type, the market is classified into carbon, glass, and aramid. On the basis of resin type, the market is divided into thermoset and thermoplastic. Depending on the manufacturing process, the prepreg market is segregated into Hot-melt and Solvent dip. Depending on the application, the market is categorized into aerospace & defense, automotive, wind energy, sporting goods, and others. Region-wise, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.

On the basis of fiber type, carbon fiber accounted for a major market share in 2021. Carbon fiber prepreg offers high strength, flexibility, greater performance under high temperatures, and high chemical resistance. The increase in use of carbon fiber in automotive and aerospace components has boosted the market growth of this segment.

By resin type, thermoset resins accounted for a major market share in 2021. These resin matrices include epoxy, BMI, and phenolic resins. These resins enable easy impregnation of reinforcing fibers due to their liquid state. The resin then undergoes partial curing and alters its state from liquid to solid in the B-stage. This resin is then treated at an elevated temperature to reach its final fully cross-linked form.

On the basis of manufacturing process, the holt-melt process accounted for a major market share in 2021. Hot melt prepreg production is a two-stage process that includes pre-lamination of a substrate paper and impregnating the fibers. This process offers benefits such as higher product quality, reduced cost, and ease of handling.

On the basis of application, the aerospace & defense dominated the global prepreg market in 2021. Prepreg is increasingly being used in this sector owing to a greater need for high-performing, lightweight, and efficient parts. Prepregs are used to replace metal parts owing to a superior strength-to-weight ratio. Governments across the globe are investing significantly toward the development of military forces, boosting the adoption of prepregs in the sector.

By region, North America dominated the global prepreg market in 2021. The industrial growth in countries such as U.S., Canada, Mexico, rise in automotive penetration, and increase in demand from aerospace & defense sectors drive this region's growth. Increase in urbanization, growth in R&D activities, expansion of international players in this region, and technological advancements contribute to the market growth.

The rise in application of prepregs in electronics, construction, and manufacturing applications has been observed. The increase in awareness regarding the adoption of renewable energy sources and growth in use in the wind energy sector in developing countries of this region are expected to offer market growth opportunities during the forecast period.

The key players operating in the global prepreg market are Axiom Materials, Inc., Gurit, Hexcel Corporation, Isola Group, Mitsubishi Chemical Corporation, SGL Carbon, Solvay, Sunrez Corporation, Teijin Carbon Europe GmbH, and Toray Composite Materials America, Inc.

Key finding of the study

• North America is projected to grow at the highest CAGR of approximately 9.9%, in terms of revenue, during the forecast period.
• By resin type, the thermoset segment is anticipated to grow with CAGR 9.9%, in terms of revenue, during the forecast period.
• By fiber type, the carbon segment is anticipated to grow with high CAGR, in terms of revenue, during the forecast period.
• By manufacturing process, the hot-melt segment is anticipated to grow with high CAGR, in terms of revenue, during the forecast period.
• By end-use industry, the aerospace and defense segment is anticipated to grow with CAGR 10.09 %, in terms of revenue, during the forecast period.