Composites for the Electrical and Electronic Trends and Forecast
The future of composites for the global electrical and electronics market looks promising with opportunities in the PCB, housings, rods, tubes, connectors, switch panel markets. Composites for the global electrical and electronics market is expected to grow with a CAGR of 4.1% from 2024 to 2030. The major drivers for this market are increasing demand for lightweight materials in electrical and electronics industries, growing need for high-performance and corrosion-resistant materials, and rising focus on energy efficiency and sustainability.
• Lucintel forecasts that, within the fiber type category, glass fiber is expected to witness the higher growth over the forecast period.
• Within the application category, PCB is expected to witness the highest growth.
• In terms of regions, APAC is expected to witness the highest growth over the forecast period.
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Emerging Trends in the Composites for the Electrical and Electronic Market
There are a few notable emerging trends in the market corresponding to the composites opportunity in electrical and electronics applications, which are changing the landscape of the market.
• Use of Lightweight Material Components Increasing: The development of composites is primarily aimed at making products lighter in weight, which increases energy utilization efficiency. These materials assist in reducing the weight of electronic gadgets, making them more efficient and consuming less energy.
• Incorporation of Smart Technology: Smart technology for real-time data collection and monitoring is gaining attention with the integration of embedded sensors within smart composites. This is a growing trend in the fields of smart homes, wearable technology, industrial automation, and the general Internet of Things (IoT).
• Green Strategies: The use of green materials is further strengthening the practicality of composites, such as bio-composites and recyclable composites. These trends align with the global challenge of reducing pollution and promoting circular economies.
• New Manufacturing Techniques: New manufacturing processes, such as adding layers of composites to enhance production instead of applying them all at once at a specific angle, known as the Automated Fiber Placement technique, are advancing the composites manufacturing industry. These methods increase efficiency, decrease waste, and create intricate designs—important aspects in modern-day engineering.
• Customization and Tailored Solutions: There is a rapidly increasing demand for new composite solutions that can be applied to specific applications. This is driving the improvement of material compositions and other practices that enhance the efficacy of designing electronic products.
Overall, trends like these are reengineering the composite opportunities in the electrical and electronics field, further encouraging performance, efficiency, and technological advancements.
Recent Developments in the Composites for the Electrical and Electronic Market
Based on emerging studies in the composites opportunity for the electrical and electronics market, some key innovations and advancements can be outlined as follows:
• Advanced Circuit Boards: Progress is accelerating in the development of lightweight, high-performance composite materials for the circuit board industry. These materials exhibit improved thermal properties and electrical insulation, which help reduce costs and improve the performance of electronic devices.
• Advanced Insulating Materials: Advances in composite materials are being made to serve as insulators in electrical units. These composite insulation materials are advantageous for providing both thermal and electrical insulation, especially in high-voltage and energy-efficient power systems.
• Improved Composite Enclosures: The trend of using composites for electronic enclosures is on the rise, particularly in consumer electronics. Recent trends focus on enhancing structural strength and aesthetics while reducing weight for mobile and portable gadgets.
• Recyclable Composite Materials: Recyclable composite materials are gradually becoming standard in electronic industry applications. Companies are focusing on producing materials that are easily recyclable to reduce electronic waste.
• Smart Composite Solutions: Today’s polymer composites are expected to integrate smart technologies. This emerging trend involves composites with feedback functions for monitoring environmental conditions, which can be applied in various electronic applications.
These developments have a significant positive impact on managing composite activities in the electrical and electronics sector, leading to innovations in new products and improving the efficiency of existing products across several applications.
Strategic Growth Opportunities for Composites for the Electrical and Electronic Market
The composites opportunity in electrical and electronics applications is characterized by several strategic growth opportunities spanning key applications. Five areas warrant further examination:
• Consumer Electronics: The thermal and mechanical properties of end-use, carbon fiber-reinforced composite materials continue to evolve. For instance, composite skins for domed roofs and camera attachments are gaining popularity. Sales of composites are rising as manufacturers focus on lightweight handheld graphic devices.
• Automotive Electronics: New opportunities are emerging due to the increasing demand for electric vehicles (EVs), which require components like battery enclosures and electrical units. Weight reduction, energy efficiency, and performance all depend on the judicious use of composites in EVs.
• Telecommunications: The new 5G technology boosts the demand for lightweight yet durable composite materials in antennas and circuit boards. This creates opportunities for companies to source composite materials specialized for high-pressure applications, as seen in the telecommunications industry.
• Renewable Energy Systems: With the growing use of renewable energy sources, there are new opportunities for composite materials in wind blades and solar panels. These composites help achieve higher performance without adding weight to the systems.
• Smart Grids and Infrastructure: The evolution of electrical grids requires new composite materials for smart grid components. There is a growing demand for composites in electrical infrastructures that are reliable, efficient, and sustainable.
These strategic growth opportunities highlight the potential for composites to enhance the advancement and performance of electrical and electronic applications, providing manufacturers with prospects in the dynamic market.
Composites for the Electrical and Electronic Market Driver and Challenges
There are many factors that increase the growth as well as challenges that affect growth of the composites opportunities market in electrical and electronics applications.
The factors responsible for driving the composites for the electrical and electronic market include:
• Growth in the Need for Composite Solutions: There is an increased demand for lightweight and energy-efficient products, which drives the use of composite materials. These techniques lead to weight reduction in electronics, improving performance and energy efficiency, making composites more useful.
• Progress in Technology: Developments in composite material characteristics and manufacturing techniques have made it possible to create better composites. These advances significantly promote the creation of high-quality composites that better serve the electronics industry.
• Increasing Inclination Towards Green Products: The rising use of green materials is stimulating the growth of sustainable composites. Industries are seeking ways to reduce greenhouse gas emissions, which is driving innovations in recyclable and bio-based materials.
• Growth in the Electric Vehicle Sector: The increasing adoption of electric vehicles is creating vast opportunities for composites in automotive electronics. The demand for lightweight and high-performance components has led manufacturers to seek better, advanced composite materials.
• Lifting Restrictions on Global Telecommunication Technologies: The expansion of advanced telecommunication technologies, such as 5G, has driven the demand for high-quality composite materials in electronic gadgets and infrastructure, consequently boosting the market.
Challenges in the composites for the electrical and electronic market are:
• High Cost of Entering the Market: The cost of advanced composite materials in the USA is often prohibitive, making such investments unattainable for smaller players. This challenge limits market penetration and expansion.
• Challenging Manufacturing Processes: Composite materials are often characterized by complicated and lengthy manufacturing processes. Scaling up production without compromising quality is a challenge manufacturers face.
• Threat of Substitutes: The electrical and electronics market is dominated by alternative materials such as metals and plastics, posing a challenge for composites. Overcoming misconceptions about performance and price will be crucial to the adoption of composites.
Thus, stakeholders in the composites opportunity for electrical and electronics applications must understand both the opportunities and challenges. Despite the potential for significant growth in this market, overcoming these challenges is essential for innovation and success.
List of Composites Companies for the Electrical and Electronics Market
Companies in the market compete on the basis of product quality offered. Major players in this market focus on expanding their manufacturing facilities, R&D investments, infrastructural development, and leverage integration opportunities across the value chain. Through these strategies composites companies for the electrical and electronics market companies cater increasing demand, ensure competitive effectiveness, develop innovative products & technologies, reduce production costs, and expand their customer base. Some of composites companies for the electrical and electronics market are profiled in this report include-
• Owens Corning
• Jushi Group
• Nippon Electric Glass
• CPIC
• Toray Industries
• Hexcel Composites
• Mitsubishi Rayon
Composites for the Electrical and Electronic by Segment
The study includes a forecast of composites for the global electrical and electronic market by fiber type, resin type, manufacturing process, application, and region.
Composites for the Electrical and Electronics Market by Fiber Type [Analysis by Value from 2018 to 2030]:
• Glass Fiber
• Carbon Fiber
Composites for the Electrical and Electronics Market by Resin Type [Analysis by Value from 2018 to 2030]:
• Polyester
• Epoxy
• Vinyl Ester
• Phenolic
• Thermoplastic
Composites for the Electrical and Electronics Market by Manufacturing Process [Analysis by Value from 2018 to 2030]:
• Spray Up
• Hand Lay Up
• SMC/BMC
• Injection and Compression Molding
• Laminate
• Others
Composites for the Electrical and Electronics Market by Application [Analysis by Value from 2018 to 2030]:
• PCB
• Housings
• Rods
• Tubes
• Connectors
• Switch Panels
• Others
Composites for the Electrical and Electronic Market by Region [Analysis by Value from 2018 to 2030]:
• North America
• Europe
• Asia Pacific
• The Rest of the World
Country Wise Outlook for the Composites for the Electrical and Electronic Market
The electrical and electronics industry is increasingly adopting composite materials due to their low weight, high durability, and temperature stability. Composites have seen significant developments in major markets, including the United States, China, Germany, India, and Japan, in areas such as circuit boards, enclosures, and electrical components. These developments are a result of technological changes driving the need for better, faster, and environmentally friendly materials.
• USA: In the USA, more opportunities are emerging for the use of composites in electrical insulation and encasement. There has been significant investment in carbon fiber-reinforced polymers (CFRPs) for power generation and transmission applications. Recent joint ventures between tech companies and composite companies have produced advanced constructions that improve thermal and electrical diffusivity while reducing structural weight. The rising demand for electric vehicles (EVs) is also driving the development of composites in battery enclosure applications, where weight, safety, and performance are critical factors.
• China: Composite materials are rapidly advancing in China’s electrical and electronics industries, particularly in consumer electronics and telecommunications sectors. The emphasis is on fabricating high-density, high-temperature composite materials for electrical cards and covers of electronic devices, which are essential for smart devices and 5G technologies. Research funding from the government is focused on improving material features and manufacturing capabilities. Additionally, the strategy to develop a domestic supply chain for composite materials aims to reduce dependence on external sources and foster local innovation.
• Germany: Germany has become a major player in many sectors, including construction, automotive, and electrical and electronics, where it leads in the use of composites. Noteworthy trends include the adoption of lightweight composite designs in electric vehicle components, enhancing overall performance. German manufacturers are focusing on producing advanced hybrid composites made from various types of polymers. Many companies are collaborating with research institutions to develop recycling systems for e-waste and integrate these processes into the composites sector. The emphasis on Industry 4.0 is also driving changes in composite manufacturing processes, embracing automation to improve efficiency and accuracy.
• India: The electrical and electronics market in India is increasingly adopting composites. Recent initiatives include the development of high-grade composites for boards and components in renewable energy systems. The government is advocating for more research and development in composite technologies to increase local content in manufactured goods. Public-private partnerships are focused on optimizing the cost of composite materials and producing them for the local market.
• Japan: Japan has been a leader in adopting composites in the electrical and electronics market, particularly in robotics and advanced manufacturing. Developments include the use of composite materials in precision electronics and components for environmentally sensitive electronics. Japanese corporations are working on smart composite materials that feature embedded signal sensors, capable of sending operational updates. Japan’s commitment to sustainability includes projects focused on developing composites that can be recycled, aligning with its goals of promoting a closed-loop economic model in manufacturing.
Features of Composites for the Global Electrical and Electronics Market
Market Size Estimates: Composites for the electrical and electronic market size estimation in terms of value ($B).
Trend and Forecast Analysis: Market trends (2018 to 2023) and forecast (2024 to 2030) by various segments and regions.
Segmentation Analysis: Composites for the electrical and electronic market size by various segments, such as fiber type, resin type, manufacturing process, application, and region in terms of value ($B).
Regional Analysis: Composites for the electrical and electronic market breakdown by North America, Europe, Asia Pacific, and Rest of the World.
Growth Opportunities: Analysis of growth opportunities in different fiber types, resin types, manufacturing processes, applications, and regions for composites for the electrical and electronics market.
Strategic Analysis: This includes M&A, new product development, and competitive landscape of composites for the electrical and electronics market.
Analysis of competitive intensity of the industry based on Porter’s Five Forces model.
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FAQ
Q1. What is the growth forecast for composites for the electrical and electronics market?
Answer: Composites for the global electrical and electronics market is expected to grow with a CAGR of 4.1% from 2024 to 2030.
Q2. What are the major drivers influencing the growth of composites for the electrical and electronics market?
Answer: The major drivers for this market are increasing demand for lightweight materials in electrical and electronics industries, growing need for high-performance and corrosion-resistant materials, and rising focus on energy efficiency and sustainability.
Q3. What are the major segments for composites for the electrical and electronics market?
Answer: The future of composites for the global electrical and electronics market looks promising with opportunities in the PCB, housings, rods, tubes, connectors, switch panel markets.
Q4. Who are the key composites companies for the electrical and electronics market?
Answer: Some of the key composites companies for the electrical and electronics market are as follows:
• Owens Corning
• Jushi Group
• Nippon Electric Glass
• CPIC
• Toray Industries
• Hexcel Composites
• Mitsubishi Rayon
Q5. Which composites for the electrical and electronics market segment will be the largest in future?
Answer: Lucintel forecasts that glass fiber is expected to witness the higher growth over the forecast period.
Q6. In composites for the electrical and electronics market, which region is expected to be the largest in next 6 years?
Answer: APAC is expected to witness the highest growth over the forecast period.
Q.7 Do we receive customization in this report?
Answer: Yes, Lucintel provides 10% customization without any additional cost.
This report answers following 11 key questions:
Q.1. What are some of the most promising, high-growth opportunities in composites for the electrical and electronics market by fiber type (glass fiber and carbon fiber), resin type (polyester, epoxy, vinyl ester, phenolic, and thermoplastic), manufacturing process (spray up, hand lay up, SMC/BMC, injection and compression molding, laminate, and others), application (PCB, housings, rods, tubes, connectors, switch panels, and others), and region (North America, Europe, Asia Pacific, and the Rest of the World)?
Q.2. Which segments will grow at a faster pace and why?
Q.3. Which region will grow at a faster pace and why?
Q.4. What are the key factors affecting market dynamics? What are the key challenges and business risks in this market?
Q.5. What are the business risks and competitive threats in this market?
Q.6. What are the emerging trends in this market and the reasons behind them?
Q.7. What are some of the changing demands of customers in the market?
Q.8. What are the new developments in the market? Which companies are leading these developments?
Q.9. Who are the major players in this market? What strategic initiatives are key players pursuing for business growth?
Q.10. What are some of the competing products in this market and how big of a threat do they pose for loss of market share by material or product substitution?
Q.11. What M&A activity has occurred in the last 5 years and what has its impact been on the industry?
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