Global Market Analysis on Aramid Fibers
Meta Aramid fibers are expected to witness the fastest growth in the future owing to its properties that makes it best suitable for electrical insulation and security & protective clothing that are mainly used in defense and industrial sectors.
Global Aramid Market Size (2016-2021 F)
- Para-aramid fiber market is expected to be the largest market of aramid with the consumption level accounting for about 65-70% of the overall aramid market. This is because of its high tensile strength and insulation properties, which makes it suitable for electronics, automotive and aviation applications
- Asia Pacific is expected to witness the fastest growth of aramid fiber, which is expected to grow at a CAGR of 9-10% Y-o-Y until 2021. Rising consumption of electrical device is expected to bolster the demand of Optical Fiber Cable and also increase in automobile manufacturing in India and China is expected to drive the demand of aramid fiber
- North America and Europe are expected to continue to be the major consumer of aramid fiber compared to other regions owing to the steady improvement in demand from automobile sales, especially in France, Germany, Spain and UK, as aramid fibers finds its extensive automobile applications in tire reinforcement, industrial & automotive hoses, power transmission belts, brake, clutch and gasket uses. However, North America and Europe are anticipated to exhibit moderate growth as compared to other regions
Aramid Fibers Regional Market Dynamics
DuPont is the only major producer of aramid fiber in North America. US relies on imports as DuPont exports to other buyers across the globe. Automotive and Protective clothing are expected to be the key growth drivers of Aramid Fiber in North America.
North America Aramid Demand Trends and Outlook(2016-2021F)
- Aramid demand from North America witnessed a good improvement during 2016-2017 owing to good improvement in auto sales. In 2017, the US auto sales were assessed to be around 20.9 Million units and is expected to reach around 22 Million by 2021. Rising demand from automotive industry and infrastructural development is expected to drive the regional growth of aramid until 2021
- Furthermore, growing requirement for protective clothing from defense and industrial sectors for the purpose of security and protection is expected to fuel the growth rate of aramid in the future. Also, the stringent regulations imposed by U.S OSHA regarding safety of workers will fuel the consumption level of protective clothing
Europe Aramid Demand by Application (2016-2021F)
- Europe is one of the largest consumer of Aramid Fiber after North America as there is huge consumption of aramid from automotive & industrial gaskets, brake pads, linings, etc. in the region. As European auto sales, especially in Germany, France and UK have been on an increasing trend over the past three years, the automobile sector will be the key demand driving segment of aramid
- In 2017, European Union had decided to increase its defense budget with EUR 1.5 billion, EUR 1 billion for development and acquisition and EUR 0.5 billion for military research. Hence, it is expected that aramid demand would be mainly driven by protective clothing segment due to increasing expenditure on defense especially by Germany and France
- Teijin Aramid has launched Twaron ComForte SB3 in Nov 2017, which is one of the lightest ballistic protection products for body armor
Aramid Fibers Trade Dynamics
North America and Republic of Korea are the two major exporters of aramid fiber. China, Belgium, Mexico and Germany are the key importing countries of aramid from North America and Republic of Korea. As there are not much capacity additions announced by the suppliers, these two countries are expected to be the net exporter of aramid until 2021.
Cost and Price Drivers of Aramid Fibers
Feedstock prices such as p-phenylene diamine, terephthaloyl dichloride and benzene are the key cost drivers of aramid. Steady improvement in demand from fiber-optic cable, automobile and protection gear are the key price drivers of aramid.
- Raw material prices such as p-phenylene diamine and terephthaloyl dichloride are the key cost drivers of aramid as most of the suppliers are not backward integrated
- Since the basic raw materials involves aniline, terephthalic acid and benzene, which are aromatic compounds and their prices are highly volatile and varies on a weekly/monthly basis, these basic raw materials are the key cost drivers of aramid
- Aramid production process involves spinning process, which leads to energy intensive process. Hence, energy cost is considered to be a key cost driver of aramid
- Increasing demand for protection gear in aerospace and defence sector is expected to witness a good growth in the future which is expected to be one of the key price driver of aramid
- Since aramid is widely used across various applications like tire reinforcement, automotive hoses, clutch and gasket uses and the automobile sales is witnessing a good improvement, demand from automobile sector is expected to be the key price driver of aramid
- Rising demand for aramid as a replacement for asbestos in textile application is expected to drive the prices of aramid until 2021