3 regional trends fueling global aramid fiber market
Publisher : Fractovia | Latest Update: 2019-09-10 | Published Date : 2017-12-28Request Sample
Spurred by growing defense expenditures of several prominent countries, the global aramid fiber market is set to record remunerative gains over the forthcoming years. Aramid fiber, more prominently known as Kevlar, is a synthetic product that is characterized by its excellent heat-resistance and strength that allows it to withstand over 500° Celsius and showcase tensile strength that is five times more stronger than steel.
Ever since the material was invented, it has been utilized extensively to develop products for several taxing application avenues, including defense; where it is used to make body armor, military helmets, vehicle armor and protective gloves, and firefighting; where it is used to make fireproof suits and gloves.
With several countries increasing their respective defense budgets in recent years and showing sighs of further increasing defense expenditures, demand for aramid fiber is projected to rise significantly in coming years, augmenting global aramid fiber market size substantially.
Effect of the United States’ exponential defense expenditures on global aramid fiber industry outlook
The United States is classified as one of the biggest defense spenders in the world. Leveraging on the country’s expansive military budget, the global aramid fiber market size is expected to cross momentous revenue gains in forthcoming years.
The Drivers: According to the National Priorities Project, during the 2015 financial year, the United States military spending was estimated to account for 54% of the cumulative federal discretionary spending, representing a sum that is somewhere around $598.5 billion.
United States’ prominent military budget, can be attributed to the world-leading stance the country acquired by the end of World War 2. Additionally, the nation’s defense budgets received an additional boost during the Iraq and Afghanistan war.
The Opportunities: Going forward, the USA’s ongoing plans to introduce Space Force; the sixth independent branch of military service, would be opening up another lucrative application avenue for the Kevlar fiber industry.
The Projections: The material already finds application in the aerospace sector, used extensively to manufacture shields that protect the manned elements of the International Space Station from space debris.
Aramid fibers have also been selected for extensive use in production of innovative flexible structures that are currently under development for future manned space exploration missions. With North America’s already established space exploration industry, a sizable chunk of aramid fiber market demand is slated to come from the region during the forecast timeframe.
Impact of EU’s decision to increase military spending on Europe aramid fiber market trends
After North America, Europe is considered the biggest aramid fiber market growth facilitator in the western hemisphere. In forthcoming years, owing to certain geopolitical situations, the global aramid fiber industry size is expected to record growth from several European Union member countries.
The Drivers: a prominent driver that is pushing for Europe to increase its military expenditure is the United States. According to The New York Times, Washington has been pushing the country’s European allies in the EU to ramp up their respective military spending and make bigger contributions towards their own defense.
Additionally, numerous countries in Eastern and Central Europe have increased their respective defense spending, primarily attributing to an increasing perception of threat coming from Russia.
The Projections: In 2018, the total military expenditure of Europe went up by 1.4%; approximately €326 billion. Five of the world’s top 15 defense spenders are from Europe.
With spending across the region set to increase, the global aramid fiber industry is expected to leverage the integrality of the material to bring in revenue growth and further augment aramid fiber market share in coming years.
Consequence of rise in defense spending from countries in APAC on global aramid fiber market
Owing to blend of emerging and well-established economies, the APAC is shaping up to become one of the most dynamic investment avenues for the global aramid fiber market. In line with their economic growth, many countries across the APAC are ramping up their defense budgets, which is creating new revenue streams for the region’s Kevlar fabric industry.
The Drivers: Among all APAC countries, China and India are expected to emerge as the most notable growth avenues for the aramid fiber market both in terms of defense and aerospace applications.
The Projections: According to a recent Bloomberg report, China is expected to increase its defense spending by more than 7.5% under Xi Jinping pledge to further advance and grow the country’s military strength.
Meanwhile, additional growth is projected to come from India, vis-à-vis the introduction of a change in basic custom duties for defense imports to alleviate the ongoing resource crunch faced by the Ministry of Defence in modernization of the country’s armed forces.
Effects of rising performance demand from customers of automotive industry on aramid fiber market outlook
Spurred by growing demand form potential customers, who are increasingly looking for maximum performance at minimum weight, the global automotive industry is establishing itself as a lucrative application avenue for the global Kevlar fiber industry.
The Drivers: Reducing weight without compromising on performance has become a crucial requirement for several types of vehicle tires. To attain this requirement more and more automotive industry players are focusing on cutting down on car tire weights.
The Impact: To reduce this weight without compromising on the tire’s structural integrity, the automotive industry is turning to the aramid fiber market. aramid fiber reinforced tires not only significantly lighter than their conventional counterparts, but they also facilitate additional benefits like reduced fuel consumption, increased handling performance all while maintaining safety and longevity.
Attributing to the aforementioned regional determinants and growing prominence of the tire reinforcement segment, adoption of aramid fibers in several high-intensity application segments is slated to witness a substantial incline in coming years. Global Market Insights, Inc., estimates, the aramid fiber market size would be surpassing a total valuation of $5 billion by 2024.
