Core Materials Market Size, Share & COVID-19 Impact Analysis, By Type (Foam, Honeycomb, and Balsa), By Application (Marine, Automotive, Aerospace, Energy, Construction, and Industrial), and Regional Forecast, 2023-2030

The global core materials market size was valued at USD 1,937.5 million in 2022. The market is projected to grow from USD 2,056.3 million in 2023 to USD 3,700.2 million by 2030, exhibiting a CAGR of 8.8% during the forecast period.

Core or structural materials are lightweight and utilize high-strength materials to produce high-strength-to-weight ratio structures in end-use applications. These materials are usually made of engineering items, including foam, wood, or paper, and are used as the primary component in sandwich panel construction. These sandwich panels are key structural materials for boats, ships, aircraft, wind turbines, and others. Therefore, the core material is highly utilized in various applications, including marine, automotive, energy, construction, and industrial, in foam, honeycomb, and balsa, as this material offers excellent sound insulation, enhanced conductivity, and optimal fire resistance.

These materials are widely utilized in engineering structures of different designs as they offer massive energy absorption, stiffness, and impact resistance. The core materials market growth is associated with its comprehensive utilization in various industries such as marine, aerospace, and others. Designers in these industries typically focus on the structural properties required in end-use applications. For instance, honeycomb core material is usually utilized in marine and aerospace applications as the product offers a good strength-to-weight ratio and provides optimum spacing between the two skins of the sandwich structure.

COVID-19 IMPACT

Halted Supply Chain & Manufacturing Activities Impacted the Global Core Materials Market during COVID-19

COVID-19 broke out in 2019 and hit nearly every country in the world. The production of core materials was halted or decreased due to fluctuations in the supply chain. This resulted in limited production and low demand for the product. Additionally, the manufacturers and suppliers of the product had to face low demand for the product as the end-use industries were operating at the lowest production capacities. Countries such as the U.S., India, and China had to impose restrictions on the movement of men and transportation, which led to the profound loss of this industry. For instance, in 2020, the pandemic impacted the automotive industry, leading to the closure of automotive parts manufacturing. The closure of these manufacturing units directly impacts the demand for the product, as it is widely utilized in the manufacturing of seat structures, dashboard cushioning, and others due to its excellent stiffness. Moreover, the product manufacturers were facing problems in reaching their business goals while overcoming the necessities of life.

The demand for these materials was not massive during COVID-19, but the market returned to pre-pandemic levels. The product manufacturers are operating at their total capacity to meet the demand. Additionally, the automotive sector's aging fleet may stimulate the demand for the material in the forecast time frame.

LATEST TRENDS

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Rising Demand for PET and PVC-based Memory Foams Core Material to Surge Demand

The demand for memory-based foam materials increased in the end-use industries over the past few years. This memory foam is commonly used in car seats, spray foam, and others. Thus, the rising demand for memory foam has become popular, creating a massive opportunity for the existing and new producers of these foam products to establish their presence in the global market. Furthermore, foam materials are gaining momentum in industrial applications owing to their excellent characteristics. Additionally, the increasing population in countries, such as Germany and Japan, has created a demand for memory foam-based seats and panels as they relieve physical stress when used in car and automotive seating.

DRIVING FACTORS

Growth in the Aerospace Industry is Propelling Demand for Core Materials

The growth of the market is associated with the boost in the aerospace industry, as the product is highly utilized in flight vehicles, Unscrewed Air Vehicles (UAVs), and airships due to its unique specifications, such as high strength, great flexibility, minimal maintenance, radar transparency, and low thermal conductivity. The most commonly used materials are open and closed-structured foams such as polystyrene, polyurethane, polyvinyl chloride, honeycombs, and balsa wood. Additionally, these materials are utilized in structural manufacturing methods such as infusion, wet lamination, prepreg, RTM, press bonding, and vacuum bagging, making the material more adaptable for the aerospace industry. For instance, flight control surfaces, landing gear doors, interior components, floor beams, and floorboards are made using these manufacturing methods. Furthermore, different materials are utilized to give the desired sandwich structure with additional features, including FST insulation or resistance in the aerospace industry.

Despite the materials’ excellent flexibility, weight reduction is a significant factor in the aerospace industry. These lightweight materials may increase profitability with a massive increase in fuel efficiency. Therefore, the structural components made of materials are being highly consumed in the aerospace industry to reduce weight. Additionally, these materials offer design flexibility, ensuring modification in the case of maintenance. Thus, using materials in the aerospace component will spur market growth in the forecast period.

RESTRAINING FACTORS

Rising Concerns for Sustainable Production of Core Materials to Restrict Market Growth

Demand for these materials is high in the end-use industries, but environmental concerns and the increased demand for sustainable production may hamper market growth. Industries such as marine, aerospace, automotive, energy, construction, and industrial use the sandwich structure, where this material is employed in manufacturing the panels' floors, bulkheads, and hatches. These materials are usually made of PET, PVC, and wood. Many countries, such as the U.K., have imposed rules and regulations on producing these polymers and cutting the wood. Moreover, polymers such as PET and PVC are non-biodegradable and highly regulated in various countries. Therefore, these factors affect the demand for materials and act as a restraint on the market.

SEGMENTATION

By Type Analysis

Foam Segment is Expected to Drive the Market Owing to Usage in Automotive Industry

The market is segmented into foam, honeycomb, and balsa on the basis of type. The demand for the foam segment is high due to their massive usage in the automotive and aerospace industries, as foam materials offer remarkable properties at a low weight. The foam materials can be combined with the composite material sheets in the form of a structural sandwich, making it more suitable for the end-use applications as foams have great dimensional density and require minimal maintenance.

Moreover, using honeycomb materials in end-use applications has boosted the demand for the materials market. Honeycombs are made of overexpanded NOMEX aramid and extruded polypropylene, which is most appropriate for boats, ships, traditional aircraft, cars, trucks, and other vehicles as the materials offer reduced weight and greater thermal & chemical resistance than traditional structures.

Meanwhile, the balsa segment is utilized in marine and aerospace applications. Thus, the demand for materials is increasing moderately.

By Application Analysis

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Aerospace Segment to Exhibit Significant Growth Rate Due to Rising Disposable Income

Based on application, the market is segmented into marine, automotive, aerospace, energy, construction, and industrial. The growth of core material is associated with rapid increase in the aerospace industry. For instance, NOMEX honeycomb material contributes to a dominant market share in the aerospace floor panels market as the product enables rigid and durable floor structures. Additionally, increasing demand for memory foam or viscoelastic foam is expected to boost this material demand in the aerospace industry, as the viscoelastic foam offers extensive flexibility at an elevated period in the aircraft' journey.

Moreover, the marine segment is expected to witness significant growth as the demand for ships, boats, maritime transportation, and the naval industry is high. Materials, such as balsa wood, are highly utilized in these applications' structural design.

These materials are widely utilized in the marine industry in designing the nacelle, hulls, and deck. Thus, using the material in marine applications is expected to boost the segment in the forecast time frame. On the other hand, the core consumption of the materials is high in the construction and industrial segments as the materials are used for insulation.

REGIONAL INSIGHTS

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Asia Pacific held the largest core materials market share and is anticipated to dominate the market during the forecast period. The market growth is associated with high industrial activities in the region, which boosts different sectors in the region. Additionally, countries in the region, such as India and China, have the highest population. As one of the largest consumers of automotive applications, the demand continues even though there was a downward trend in the industry during the COVID-19 pandemic. This material is one of the key raw materials for producing automotive components. Thus, the market is expected to grow at a high CAGR during the forecast time frame.

The core materials demand in North America is associated with the rapid growth in the aerospace industry. The number of aerospace institutions and key players is high in the region. On the other hand, aerospace R&D activities have increased over the past year in several countries in the region, including the U.S.

The market growth in Europe is significant due to the rapid increase in the region's automotive industry. High per capita income and consumer preference for cars and trucks are factors boosting the major market growth. Additionally, the presence of a few material manufacturers in the region is expected to boost the consumption of materials in the region.

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The growth of the market in Latin America is due to increased industrialization. Core materials primarily work as structural materials for various end-use industries due to their stiffness and lightweight. For instance, the demand for core materials in the marine industry is rapidly increasing, propelling the region's demand for core materials. Meanwhile, the Middle East & Africa is expected to have significant market growth driven by increased industrial investments.

KEY INDUSTRY PLAYERS

Key Players to Strengthen their Position by Offering Products to the Automotive and Aerospace Industries

The foremost producers, including Evonik Industries AG, Armacell International S.A., Plascore Incorporated, Euro-Composites S.A., Diab Group, 3A Composites, Gurit Holding AG, Hexcel Corporation, The Gill Corporation, and Changzhou Tiansheng New Materials Co. Ltd., are company trademarks for the core materials business. 

On the other hand, Evonik Industries has a strong presence in Europe and manufactures natural materials. The company has a presence in Germany. The company is one of the biggest manufacturers of materials in the region. Similarly, the other key players have established a strong regional presence, robust distribution channels, and varied product offerings.

LIST OF KEY COMPANIES PROFILED:

• Evonik Industries AG (Germany)


• Armacell International S.A. (Luxembourg)


• Plascore Incorporated (U.S.)


• Euro-Composites S.A. (Luxembourg)


• Diab Group (Sweden)


• 3A Composites (Switzerland)


• Gurit Holding AG (Switzerland)


• Hexcel Corporation (U.S.)


• The Gill Corporation (U.S.)


• Changzhou Tiansheng New Materials Co., Ltd. (China)

KEY INDUSTRY DEVELOPMENTS:

• February 2021 - Armacell International S.A. launched its new flexible PET foams in the global market. The purpose of the new product launch is to maximize revenue.


• February 2021 - Euro-Composites S.A. launched the poly shape core material. This poly shape core material can be used in boats, helicopters, aircraft, and other applications. The core material launch aims to establish its presence in the different end-use industries.


• February 2021 - Diab Group acquired SABIC’s foam production line. The company decided to present the newly acquired foam products under the portfolio named Divinycell. The purpose of the acquisition is to expand its product portfolio to maximize revenue.


• November 2019 - Evonik Industries announced expanding its lightweight construction materials production capacity. The company expanded its ROHACELL closed foam cell production in North America. The purpose of the product expansion is to maximize revenue.

REPORT COVERAGE

An Infographic Representation of Core Materials Market

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The research report provides detailed market analysis and focuses on crucial aspects such as types, applications, and leading companies. It provides quantitative data in terms of value, research methodology for market size estimation, and insights into market trends. It highlights vital industry developments and the competitive landscape. In addition to the factors mentioned above, the report encompasses various factors that have contributed to the growth of the market in recent years.

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