Global Sheet Molding Compound (SMC) Market Research Report 2023-Competitive Analysis, Status and Outlook by Type, Downstream Industry, and Geography, Forecast to 2029

Global Sheet Molding Compound (SMC) Market Research Report 2023-Competitive Analysis, Status and Outlook by Type, Downstream Industry, and Geography, Forecast to 2029

Sheet Molding Compound (SMC) is a composite material used in the manufacturing of various parts, particularly in the automotive industry. SMC is made by combining chopped fiberglass strands with thermosetting resins and other additives, such as pigments and fillers, to create a mixture that can be molded into different shapes and sizes. The resulting material is lightweight, durable, and has excellent strength and stiffness properties. It is typically used in the manufacturing of automotive parts, electrical enclosures, and other structural components.

Market Overview:

The latest research study on the global Sheet Molding Compound (SMC) market finds that the global Sheet Molding Compound (SMC) market reached a value of USD 1529.66 million in 2022. It’s expected that the market will achieve USD 1953.32 million by 2028, exhibiting a CAGR of 4.16% during the forecast period.

Supply chains and logistics are disrupted

The outbreak of COVID-19 has had a major impact on the development of the Sheet Molding Compound (SMC) industry. First, the lockdown or quarantine measures implemented in many countries to control the spread of the COVID-19 virus have hit logistics hard, disrupting supply chains and logistics for many businesses, resulting in delays in delivery times. The resulting disruption has delayed production and reduced demand for Sheet Molding Compound (SMC) products in many regions. The upstream company affects the work progress of the downstream company. The insufficient supply of raw materials leads to the inability to deliver orders in time, the production plan is seriously hindered, and the company's production capacity is forced to reduce.

Lower downstream demand

During the COVID-19 outbreak, outbreak has also led to a drop in demand for SMC materials, especially in the automotive industry. The pandemic has resulted in the closure of many automotive manufacturing facilities, resulting in reduced demand for SMC materials used in various parts such as bumper beams, hoods, fenders, and deck lids. Declining demand for SMC materials has led to significant declines in sales and revenues for many companies in the industry. Falling sales have also prompted companies to reduce production capacity and workforce. In the short term, the epidemic has put pressure on the survival of enterprises. Instead, it poses challenges to cash flow management, supply chain management, risk resistance, and strategic positioning in the long run. With the outbreak and continuous spread of the new crown pneumonia epidemic, most manufacturing industries have announced the postponement of resumption of work. However, the uncertainty of factors such as resumption time, recruitment, and employee sentiment will have a negative impact on the recovery of production in the industry to a certain extent.

The development of the automotive industry continues to promote the development of the Sheet Molding Compound (SMC) market

The automotive industry is one of the major consumers of sheet molding compound (SMC) materials. SMC is increasingly replacing metals in auto parts and components due to its lightweight, high strength, and corrosion resistance properties. The trend toward lightweight in the automotive industry is one of the primary driving factors for the growth of the SMC market. Automakers are under increasing pressure to reduce vehicle weight to comply with stricter emissions standards and improve fuel efficiency. SMC is a popular material choice for lightweight due to its high strength-to-weight ratio, which can help reduce the overall weight of a vehicle without sacrificing structural integrity or safety. Moreover, the increasing demand for electric and hybrid vehicles is driving the growth of the SMC market. Electric and hybrid cars require lightweight materials to improve their overall range, and SMC is considered an ideal material to meet these requirements. One example of SMC being used in the automotive industry is in producing exterior body panels. These panels are made by compressing SMC into a mold and then curing it under heat and pressure. The resulting parts are lightweight, durable, and have excellent corrosion resistance, making them ideal for exterior automotive applications. The use of SMC materials in the automotive industry is expected to increase in the coming years as automakers continue to focus on lightweight and improving fuel efficiency.

Competition from Alternative Materials

Competition from alternative materials is a challenging factor for the growth of the global sheet molding compound (SMC) market as customers have a wide choice in terms of materials available for various applications. For example, carbon fiber-reinforced polymers (CFRP) and glass fiber-reinforced composites (GFRP) are becoming increasingly popular alternatives to SMCs. CFRP is lightweight, durable, and has a high strength-to-weight ratio, making it ideal for high-performance applications such as aerospace, automotive, and sporting goods. Furthermore, sheet molding compounds (SMC) are highly neglected by real estate developers and project developers due to a lack of awareness. Some end users are also looking for alternatives such as galvanized aluminum sheets for roofing, doors, and window panels. Therefore, to compete with these alternative materials, SMC manufacturers may need to focus on developing new products with better performance characteristics such as higher strength, durability, and lighter weight, while also improving the cost-effectiveness of SMC as a solution.

Region Overview:

In global comparison, a significant portion of the revenue was generated in Asia Pacific (50.82% in 2022).

Company Overview:

Teijin Limited is one of the major players operating in the Sheet Molding Compound (SMC) market, holding a share of 9.34% in 2023.

Teijin Limited

Teijin Limited is a Japanese chemical company that produces a wide range of products, including composite materials such as Sheet Molding Compound (SMC). Teijin is a technology-driven global group providing advanced solutions in transportation, electronics, safety, environment, and health.

IDI Composites International

IDI Composites International (IDI) is the premier global formulator and manufacturer of thermoset molding composites and compounds for OEMs, Tier 1's and molders.

Segmentation Overview:

By type, General Purpose SMC segment accounted for the largest share of market in 2022.

Application Overview:

By application, the Automotive and Commercial Vehicle segment occupied the biggest share from 2018 to 2022.

Key Companies in the global Sheet Molding Compound (SMC) market covered in Chapter 3:

Teijin Limited
Huamei New Material
Japan Composite Co., Ltd.
Polynt
Beijing Friend Group
SIDA New Material
Changzhou Rixin
Jiangshi Composite
Changzhou Tianma Group Co., Ltd.
Menzolit
Molymer Group
IDI Composites International
STS Group AG
Fangda Thermoset Plastic
Zhejiang Yueqing Resin Factory
Huayuan Advanced Materials Co., Ltd.
Devi Polymers
BI-GOLD New Material

In Chapter 4 and Chapter 14.2, on the basis of types, the Sheet Molding Compound (SMC) market from 2018 to 2029 is primarily split into:

General Purpose SMC
Flame Resistance SMC
Electronic Insulators SMC
Others

In Chapter 5 and Chapter 14.3, on the basis of Downstream Industry, the Sheet Molding Compound (SMC) market from 2018 to 2029 covers:

Automotive and Commercial Vehicle
Electrical & Energy
Construction
Others

Geographically, the detailed analysis of consumption, revenue, market share and growth rate, historic and forecast (2018-2029) of the following regions are covered in Chapter 8 to Chapter 14:

North America (United States, Canada)
Europe (Germany, UK, France, Italy, Spain, Russia, Netherlands, Turkey, Switzerland, Sweden)
Asia Pacific (China, Japan, South Korea, Australia, India, Indonesia, Philippines, Malaysia)
Latin America (Brazil, Mexico, Argentina)
Middle East & Africa (Saudi Arabia, UAE, Egypt, South Africa)