Green Composites Market Trends
Growth Drivers
- Growing Environmental Concerns Across the World - Growing environmental concerns around the world are driving the green composites market as consumers and industry seek sustainable and environmentally friendly alternatives to traditional materials. The United Nations Environment Program (UNEP) has identified green composites as a promising solution to environmental problems. UNEP recognizes the potential of green composites to reduce greenhouse gas emissions, reduce waste and improve resource efficiency.
- Increasing Product Demand from Marine, and Automotive Industries – Demand for environmentally friendly composite materials from various industries such as marine, and automotive industries due to their benefits in terms of sustainability, weight reduction, and performance enhancement is growing rapidly. Reportedly, with the help of lightweight materials such as green composites a 10% reduction in vehicle weight has the potential to improve fuel efficiency by 6% to 8%.
- Growing Focus on Green Composites by Market Players – A large number of market players are substituting fossil feedstock with bio-based food ingredients materials. Therefore, manufacturers are focusing on incorporating biodegradable substitutes in their products as a result of the demand for green and sustainable products by consumers.
Challenges
- High in Cost - Green composites can be more expensive than traditional materials, making them less competitive in price-sensitive markets. Manufacturers need to find ways to reduce production costs and enhance economies of scale to make green composites more cost-effective.
- Lack of Standardization in Manufacturing Technologies
- Technical Limitations
Global Green Composites Market: Key Insights
The chemical industry is a major component of the economy. According to the U.S. Bureau of Economic Analysis, in 2020, for the U.S., the value added by chemical products as a percentage of GDP was around 1.9%. Additionally, according to the World Bank, Chemical industry in the U.S. accounted for 16.43% to manufacturing value-added in 2018. With the growing demand from end-users, the market for chemical products is expected to grow in future. According to UNEP (United Nations Environment Program), the sales of chemicals are projected to almost double from 2017 to 2030. In the current scenario, Asia Pacific is the largest chemical producing and consuming region. China has the world’s largest chemical industry, that accounted for annual sales of approximately more than USD 1.5 trillion, or about more than one-third of global sales, in recent years. Additionally, a vast consumer base and favorable government policies have boosted investment in China’s chemical industry. Easy availability of low-cost raw material & labor as well as government subsidies and relaxed environmental norms have served as a production base for key vendors globally. On the other hand, according to the FICCI (Federation of Indian Chambers of Commerce & Industry), the chemical industry in India was valued at 163 billion in 2019 and it contributed 3.4% to the global chemical industry. It ranks 6th in global chemical production. This statistic shows the lucrative opportunity for the investment in businesses in Asia Pacific countries in the upcoming years.
|
Base Year |
2024 |
|
Forecast Year |
2025-2037 |
|
CAGR |
7.5% |
|
Base Year Market Size (2024) |
USD 32.33 billion |
|
Forecast Year Market Size (2037) |
USD 82.78 billion |
|
Regional Scope |
|
