Basalt Fiber Market size is forecast to reach $429 million by 2025, after growing at a CAGR of 11.2% during 2020-2025.
Basalt Fiber Market size is forecast to reach $429 million by 2025, after growing at a CAGR of 11.2% during 2020-2025. Basalt fiber is gaining popularity owing to its excellent properties, such as thermal and cold resistance, tensile strength, and chemical resistance to corrosion compared to Fiberglass and other FRP products. It is also environmentally friendly and easily recyclable.
Low energy consumption, low cost of basalt, and associated process equipment, high durability and resulting fiber strength, increased demand for high chemical-resistant fibers are driving the market growth of basalt fiber.
Recent research studies have led to the advent of new types of basalt, increase energy efficiency of equipment, and promote use of associated petroleum gas for melting basalt rocks. These factors are expected to create lucrative opportunities for market players during the forecast period.
The report: “Basalt Fiber Market– Forecast (2020-2025)”, by IndustryARC, covers an in-depth analysis of the following segments of the Basalt Fiber Industry.
By Form: Continuous Basalt Fiber and Discrete Basalt Fiber.
By Type: Chopped Fiber, Continuous Filaments, Roves, Ropes, Tapes, Mats and others.
By Composite Processing Method: Pultrusion, Prepregs, Compression Molding, Hand Layup, Resin Molding, Vacuum Infusion, Spray Gun, Resin Film Infusion (RFI), Filament Winding and others.
By End Use Industry: Construction & Infrastructure, Automotive & Transportation, Electrical & Electronics, Wind Energy, Marine and others.
By Geography: North America, South America, Europe, APAC, and RoW.
Key Takeaways
Asia Pacific dominates the basalt fiber market, owing to the increasing demand from the automotive & transportation industries. According to OICA, the production of light commercial vehicles has augmented by 10.2 % in 2018 in the APAC region.
Increased use of basalt fiber in nuclear applications is likely to increase the demand for basalt fiber. Basalt fiber does not absorb nuclear radiation. This makes it suitable for use in the processing and transport of radioactive materials used in nuclear power plants. Thus, the demand for basalt fiber in nuclear applications is high.
There is huge potential for basalt fiber in marine, aerospace & defense, sporting goods, and wind applications. However, due to a lack of clarity regarding the applications of basalt fiber, glass fiber is still the preferred.
Furthermore, operations in various industries such as automotive, aerospace, construction and others is being significantly affected due to the COVID-19 epidemic, as most of countries have issued “stay at home guidance” i.e., lockdown. And it is expected that the outbreak of COVID-19 will be seen in the whole year of 2020, and a few months in 2021. Therefore, this factor is expected to limit basalt market growth.
Basalt Fiber Market Segment Analysis - By Form
Continuous basalt fibers held the largest share in the basalt fiber market in 2019, owning to the growing demand from the construction & infrastructure sector. Continuous basal fibers have characteristics such as inferior efficiency, higher tensile strength, and excellent mechanical properties.
Also, it is eco-friendly, which makes them suitable for various applications, such as reinforcing nets, pipes, containers, electrical insulation materials, basalt plastic products, and others. Additionally, they offer higher strength than steel which makes them preferred material in the construction industry.
The construction & infrastructure segment held the largest share in the basalt fiber market in 2019 and is growing at a CAGR of 11.6% during the forecast period, owning to increased application of basalt fiber in the construction & infrastructure segment due to its high strength, non-corrosive properties, environmentally friendly properties, good compatibility with concrete, and easy mixing at high concentration.
Basalt fiber provides higher mechanical strength that is required for construction in extreme conditions. Rising construction activities in various regions owing to population growth, rising income, and government initiatives in several countries to develop better infrastructure will boost the demand for the basalt fiber market.
Basalt Fiber Market Segment Analysis - By Geography
Basalt Fiber Market Segment Analysis - By Geography
APAC held the largest share in the basalt fiber market up to 32% in 2019, owning to growth in construction projects and rising automotive production in the region. In 2018, according to OICA, the automotive production in India, Indonesia, Malaysia, and Thailand has increased up to 5174645, 1343714, 564800, and 2167694 i.e., 8.0%, 10.3%, 12.2%, and 9.0% higher than the previous year due to rising per capita income of the individuals which further led to the massive demand for basalt fiber in the APAC region.
According to the International Trade Administration (ITA), China is the world’s largest vehicle market and the Chinese government is expecting that automobile production will reach 35 million by 2025. According to the China Association of Automobile Manufacturers, over 27 million vehicles were sold in 2018 in the country. In 2019, China government invested 1.9 billion on 13 public housing projects. Furthermore, construction projects such as ‘100 smart cities’ and ‘Housing for All by 2022’ in India are influencing basalt fiber market growth. Thus, increasing construction activities and automation production is anticipated to propel the Basalt Fiber market in the APAC region during the forecast period.
Basalt Fiber Market Drivers
Basalt Fiber Market Drivers
Increase in demand for noncorrosive materials from construction industry
In the construction industry, demand for non-corrosive materials is increasing as it helps to minimize costs and increase the life of the structure produced using them. One of these developments is the use of corrosion-free basalt fiber composite bars as reinforcement for concrete.
Basalt composites are non-corrosive, consist of 80% fiber, and have three times the tensile strength of the steel bar often used in building structure. The basalt fibers impart strength to the rebar while the resin holds the fibers firmly. Compared to steel rebar, basalt fiber reinforced plastic greatly increases the life of civil engineering structures where corrosion is a major factor. Therefore, the use of basalt fiber has increased in construction industry.
In 2019, China announced to invest $142 billion in 26 infrastructure projects. In addition, according to India Brand Equity Foundation (IBEF), India plans to spend US$ 1.4 trillion on infrastructure in the next five years. In addition, the United States is witnessing noticeable investment for residential construction, and the trend is expected to remain the same in the near future.
For instance, according to the U.S Census bureau, in January 2020 value of construction put in place in residential and nonresidential construction increased to $567,555 million and $470,986 million from $546,532 million and $466,436 million in December 2019. Mexico is also witnessing high housing demand, therefore attracting noticeable investment into construction.
For instance, In January 2019, Inter-American Development Bank (IDB) granted local currency financing program to the Mexican company Procsa up to 150 million Mexican pesos ($7.8 million), in order to financing for land acquisition, development, and commercialization of housing for low and middle-income families in the country. Therefore, the growth in construction projects and investments is will drive basalt fiber market growth.
Basalt Fiber Market Challenges
Difficulty in promotion of basalt fiber
In the fiber and structural composites business, basalt fiber is relatively new material. The price of basalt fibers is significantly higher than that of S-glass, aramid, or carbon fiber, but less than that of E-glass. The cost of production should decline in the coming years as global production rises. In the production of basalt fiber, there are some technical difficulties that make it difficult for the product to compete with other matured products.
There are a number of advantages of basalt fiber over conventional glass fiber; however, it is not recommended by the governments and no initiatives have been taken by other agencies to promote this industry. Therefore, these factors are limiting basalt fiber market growth.
The emergence of COVID-19
The emergence of COVID-19
The outbreak of coronavirus has disrupted the supply chain and postponed the deliveries of raw materials, due to lockdown and shortages of staff. Industries are shuttered all around the world. Decrease in purchasing capital of people has a direct impact on the automotive, construction and aviation industries, which in turn lowered the demand of basalt fiber and hampered the growth of market.
According to the Society of India Automobile Manufacturers (SIAM), passenger vehicle sales declined by 51% to 143,014 units in March 2020 whereas the sales of commercial vehicles crashed 88% to 13,027 units. Also, International Air Transport Association (IATA) has estimated that global airline passenger revenue will drop by $314 billion in 2020, a 55% decline compared to 2019.
Basalt Fiber Market Landscape
Basalt Fiber Market Landscape
Technology launches, acquisitions and R&D activities are key strategies adopted by players in the Basalt Fiber Market. In 2019, the market of Basalt Fiber Market has been consolidated by the top five players accounting for xx% of the share.
Major players in the Basalt Fiber market includes Basaltex NV, Sudaglass Fiber Technology Inc., Kamenny Vek, Zhejiang GBF Basalt Fiber Co., Ltd, Technobasalt Invest LLC, Shanxi Basalt Fiber Technology Co., Ltd, JiangSu TianLong Continuous Basalt Fiber High-tech Co., Ltd., Jiangsu Green Materials Vally New Material T&D Co., Ltd, Mafic SA, and Mineral 7 CJSC, among others.
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