Natural Fiber Reinforced Composites Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

Natural Fiber Reinforced Composites Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

The natural fiber reinforced composites market was estimated to reach 3,738.76 kilotons in 2022 and is expected to register a CAGR of more than 9% during the forecast period 2022-2027. Natural fiber reinforced composites’ applications are increasing rapidly owing to their numerous advantages such as low cost, biodegradability, eco-friendly nature, relatively good mechanical properties, and others.

· The increasing demand for bio-based composites and the growing demand for new eco-friendly composites in the electronics industry is driving the natural fiber reinforced composites market.

· However, the moisture adsorption, restricted processing temperature, incompatibility with most polymer matrices​, and the lower impact resistivity compared to glass fiber reinforced composites​ are going to slow down the market.

· Flame retardancy of natural fiber reinforced polymer composites​ is expected to provide new opportunities for the market.

· There is always a continuous requirement for eco-friendly materials in the building materials industry. Natural fiber reinforced polymer-based composites are increasingly being used in civil engineering construction applications due to their numerous advantages.

· Wood fiber-reinforced composites can be used for decking, fencing, molding, trim, etc. Owing to their low maintenance costs and resistance to weathering, stains, and warping, wood fiber-reinforced composites are the desirable alternates to wood in these applications. ​

· Non-wood natural fibers can be used as a substitute for many wood-fiber composites such as bathtubs and shower walls​, fiber-reinforced (polymer) panels (FRP)​, privacy dividers, and translucent accents panels​.

· Composite materials are becoming increasingly essential in the construction sector to achieve long-term sustainability.

· The Asia-Pacific construction sector has been witnessing steady growth in the recent past, owing to the presence of fast-growing economies, rapid urbanization, and increasing infrastructure spending. ​

· Hence, all the abovementioned trends are projected to boost the growth of natural fiber reinforced composites in the construction sector over the forecast period.​

· The Asia-Pacific region is expected to dominate the global market. With growing construction activities in countries such as China, India, and Japan, the usage of natural fiber-reinforced composites is increasing in the region.

· The building and construction industry in ASEAN countries and India represents one of the fastest-growing markets, and it is anticipated to account for the major share of the global construction market. Countries such as China, India, South Korea, and other Asian countries in the Asia-Pacific region have been witnessing robust growth in construction activities.

· The Chinese government is planning to have a minimum of 5,000 fuel cell electric vehicles by 2025 and 1 million by 2030. The government promoting the use of electric, hybrid, and fuel cell electric vehicles is expected to drive the market.

· Favorable government policies, such as the extension of the FAME-II scheme until 2024, the enhancement of incentives for two-wheelers, and the launch of the production-linked incentive (PLI) scheme for the auto and auto component sector worth INR 26,000 crore and the PLI for advanced chemistry cells worth INR 18,000 crore, is likely to provide significant support to the sector as it adopts advanced technologies.

· The availability of affordable housing in the country is expected to rise by around 70% by 2024. By 2022, India is expected to contribute about USD 640 billion to the construction sector due to government initiatives in infrastructure development and affordable housing such as Housing for All, Smart City plans, etc. The growing demand for housing is likely to drive residential construction in the country, both in the public and private sectors, which is, in turn, driving the market for natural fiber reinforced composites.

· The new policies and investments made by different governments will boost the natural fiber-reinforced composites market demand in the rest of Asia-Pacific during the forecast period.

The global natural fiber reinforced composites market is fragmented in nature, with no player capturing a significant share of the market. The major players in the market include Trex Company Inc., Fiberon Technologies Inc., FlexForm Technologies, UPM, and The AZEK Company, among others.

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