The four main sectors driving growth of polymer composites have been construction, automotive, aeronautics, and wind energy. Polymer composites are becoming the material of choice for replacing traditional materials in the automotive industry. Compared to traditional materials, composites have higher strength-to-weight ratios, chemical and heat impact resistance and greater design flexibility. The future of composite materials in North American automotive industry market compared to competing materials looks good. However, demand for composites dropped significantly during 2008 and in 2009 as overall automotive market weakened during the economic downturn, and is expected to continue weakening in 2009. According to Lucintel's report, composite materials market is estimated to reach US$1581 mln in 2014, growing at more than 4% CAGR uptil 2014. Producers focusing on innovations and cost leadership will win most of the volume growth. Automotive OEMs are looking for new ways to reduce vehicle weight that will further increase fuel economy. By developing new materials to meet the demanding application requirements, composite materials suppliers will gain more market share during the next six years. Despite economic slowdown, significant opportunities exist for composites in the European automotive market. According to Lucintel, the European automotive industry output will expand significantly from 2009 to 2014. Following the rapid growth in auto production, composite materials demand in European market is forecast to increase by 6.87% pa and reach US$1824.9 mln by 2014. As per the study, composites are being increasingly used as they can reduce weight up to 35%, which improves fuel economy. Composites also reduce tooling and assembly costs as composites have lower tooling and equipment costs; they are competitive compared to steel at lower production volumes in certain automotive applications. The use of composite materials, which initially was driven from exterior applications, has now spread to all areas of the vehicle – interior and under-the-hood applications. Under-the-hood and interior applications represent good growth potential. As the overall penetration was only 3% in automotive materials in 2008 there is much more potential for composites. As per the study, polypropylene based composites will drive the future growth of the European automotive composites market. The critical success factor for composites material producers will increasingly be not only developing new products at low cost; in addition, Lucintel believes the most successful companies will be those that can develop application-specific, customer-focused solutions and have the ability to help their customers achieve long-term business objectives, such as increasing performance or lowering costs. As per Research and Markets, composites are becoming the material of choice for replacing traditional materials such as steel, aluminum and engineering plastics in European automotive industry. The future of the composite materials in European automotive industry market compared to competing materials looks good. Also, Europe has come up as leading region using advanced high performance carbon-epoxy composites in racing and luxury cars, though at a nascent stage. Composites materials market is expected to reach US$1824.9 mln by 2014. Composites consumption in automotive applications such as air intake manifolds, front end carriers, interior headliners, pickup box, switches are expected to grow above 4% CAGR during the in the next 5 years. Producers, focusing on innovations and cost leadership will win most of the volume growth. Automotive OEMs are looking for new ways to reduce vehicle weight, further increasing fuel economy and thus increasing environmental performance. By developing new materials to meet the demanding application requirements with a focus on weight and cost reduction, composites materials suppliers will gain more market share during the next six years. The Brazilian sector of composites materials may register a US$1.3 bln revenue by the end of 2010 – 11% higher more than 2009. Approximately 210,000 tons is expected to be consumed, compared to 183,000 in 2009 (a 14.7% increase). These figures were released by the Brazilian Composite Materials Association (ABMACO). During H1-2010, the industry represented by ABMACO made US$ 0.71 bln, 20% higher than H1-2009. The industry saw only a 1% increase in H2-2009. The investment community and capital markets are taking formal notice of opportunities in the advanced composites segment as per Michael Del Pero, as observed in the 3rd Annual CompositesWorld Investment Forum (CIF). Global carbon fiber and glass fiber markets are predicted to reach US$11.1 bln by 2015, with close to US$2 bln coming from emerging applications and technologies. The carbon fiber market alone is projected to expand to US$2.7 bln in the next five years, roughly 2.5 times the size it was in 2009. Growth in the carbon fiber market will depend largely on greater penetration of advanced composites in the aerospace and wind energy sectors. Based on industry outlook and market forecasts, carbon fiber is well-positioned to do so, especially in aerospace. Although the world’s airlines are expected to lose another US$4 bln in 2010 (after losing over US$10 bln in 2009), passenger/cargo traffic and commercial fleet production are each expected to outpace gross domestic product (GDP) in terms of growth over the next decade. The airlines’ ageing fleets have reached their service-life limits, creating pent-up demand. As the Boeing 787 and Airbus’ A380 and A350 platforms enter production, there will be an inevitable increase in demand for both carbon and glass fiber. On the wind energy front, the U.S. has brought roughly 96 manufacturing facilities on line over the last two years to support increased capacity production efforts, thus surpassing Germany as the global leader in installed wind power capacity. Continued growth, however, will depend on successful power grid expansion, which remains an issue of public policy and government influence, but the implications for composite suppliers and manufacturers are vast and encouraging. High-end automotive applications represent key near-term opportunities for carbon fiber. For glass-fiber, construction applications (particularly in civil infrastructure) provide some of the greatest global opportunities, in developed and developing markets alike. As the global economy continues to evolve and end-markets seek manufactured products that are lighter, stronger, faster and greener, growth of polymer composites will continue. The composites industry in India after recording impressive growth during last 5 years is now poised for a take-off. In the past few years the industry has witnessed a growth rate of more than 15% while developed markets in N. America and Europe has definitely shown signs of slowing down as per Lucintel. Some driving factors for the growth of Indian economy as well as Indian Composites market. • GDP growth in FY 2007-08 – 8.7% • Burgeoning manufacturing sector • Heavy investment in infrastructure • Sectoral boom in telecom, automotive industry, greater usage in oil and gas segments • Increased urbanization and growing urban infrastructure need • A booming service sector • Existence of a sizeable middle-class population with high purchasing power Many international companies have maintained a regional base in India, taking advantage of the territory's well-established business infrastructure and a proficiency in English, which facilitates corporate communications. Among material suppliers, Owens Corning and Saint-Gobain have already established a manufacturing base. Among product manufacturers, Hobas, Creative Pultrusion, Amiantit, LM fiberglass, Pentair, Hepworth, Enercon, Suzlon, Vestas, Angerlehner and several others have opened manufacturing facility in India according to this report. DSM, Dow and other resin suppliers import resins to Indian composites market. Asland, Reichhold are setting up greenfield facilities in India that are expected to be operational by 2008 end. India now has global players in both the material supply chain as well as fabricators. It gives leeway to the companies to explore both the domestic market as well as supply the world market with products made in India. This report discusses most recent developments in Indian composites market, the dynamics within the market keeping an eye on the future of this industry in India Economic recovery holds the key to global US$19 bln composites industry regaining a positive growth trajectory. There were dramatic changes in the composites market in 2008 with prominent segments such as construction, automotive and marine suffering double-digit declines in demand for composites due to economic downturn in USA and Western Europe. However, wind energy, aerospace and pipe & tank segments continued to grow at a healthy pace in all three geographic regions despite the global downturn. Growing economies of China and India have provided a buffer to the downslide in the industry, though growth rates slowed in these economies as a result of global exposure. The Asian composites market, a bright spot in last 5 years, has emerged in 2008 as the largest regional composites market in terms of shipments by displacing North America. Rapid infrastructure and economic growth in China and India are driving the growth of the Asian composites market.