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The sheet molding compound (SMC) market has been experiencing significant trends driven by various factors influencing the demand and supply dynamics. SMC, a composite material made of resins, reinforcements, and fillers, finds extensive applications in industries like automotive, electrical, and construction due to its lightweight, durable, and corrosion-resistant properties. One prominent trend in the SMC market is the increasing demand for lightweight materials in the automotive sector to enhance fuel efficiency and reduce carbon emissions. Automakers are increasingly adopting SMC components for body panels, bumpers, and other structural parts, thereby driving the growth of the SMC market.
The COVID-19 is expected to bring a negative impact on the sheet molding compound market growth owing to the imposition of lockdown. The pandemic had temporarily shut down factories and manufacturing units that hampered the demand and supply of the market.
Moreover, sustainability has emerged as a key trend influencing the SMC market. With growing environmental concerns and regulations emphasizing the need for eco-friendly materials, manufacturers are focusing on developing SMC formulations with recycled or bio-based materials. This shift towards sustainable SMC solutions not only aligns with corporate sustainability goals but also appeals to environmentally conscious consumers, thereby driving market growth.
Furthermore, technological advancements play a crucial role in shaping the SMC market trends. Innovations in resin formulations, reinforcement materials, and manufacturing processes have led to the development of high-performance SMC products with improved mechanical properties and processing efficiency. For instance, the incorporation of carbon fiber reinforcements in SMC formulations enhances strength and stiffness while maintaining lightweight characteristics, making it suitable for demanding applications in aerospace and high-performance automotive sectors.
Additionally, the growing construction industry contributes to the expansion of the SMC market. SMC materials offer advantages such as design flexibility, corrosion resistance, and ease of installation, making them ideal for various construction applications such as façade panels, roofing systems, and utility enclosures. The increasing investments in infrastructure development and the adoption of advanced composite materials in building construction further drive the demand for SMC products.
On the flip side, the SMC market also faces challenges such as fluctuating raw material prices and regulatory uncertainties. Volatility in crude oil prices impacts the cost of key raw materials used in SMC production, such as polyester resins, affecting profit margins for manufacturers. Moreover, evolving regulatory standards related to emissions, recycling, and safety requirements add complexity to the SMC manufacturing processes, necessitating continuous adaptation and compliance measures.
Furthermore, the competitive landscape of the SMC market is characterized by strategic initiatives such as mergers and acquisitions, partnerships, and product innovations. Leading players in the industry are focusing on expanding their product portfolios, enhancing production capacities, and strengthening their market presence through collaborations and strategic alliances. These strategic moves aim to capitalize on emerging opportunities and gain a competitive edge in the global SMC market.
Sheet Molding Compound SMC Market Highlights:
Global Sheet Molding Compound (SMC) Market Overview
The sheet molding compound (SMC) market size was valued at USD 1.57 billion in 2023. The sheet molding compound (SMC) industry is projected to grow from USD 1.65 billion in 2024 to USD 2.29 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 4.22% during the forecast period (2024 - 2032). Increasing consumption in modern construction projects, rising demand for commercial and passenger vehicles, which are enveloped by stringent emission regulations, and increasing penetration of carbon fiber for developing low-density sheet molding compound (SMC) are the key market drivers enhancing the market growth.
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Sheet Molding Compound (SMC) Market Trends
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Growing demand for bio-based materials in the automotive industry is driving the market growth
Market CAGR for sheet molding compound (SMC) is driven by the growing demand for bio-based materials in the automotive industry. Automotive Original Equipment Manufacturers adopt sheet molding compounds to reduce weight and fuel consumption. Sheet molding compound (SMC) are lightweight and tough, and resistant to aluminum sheets. Automotive manufacturers utilize sheet molding compound (SMC) compounds for protection against impact dings, dents, and rust compared to traditional steel decks. According to European Automobile Manufacturers' Association (ACEA), 79.1 million motor vehicles were produced worldwide in 2021, with an increase of 1.3% compared to 2020. Sheet molding compound (SMC) are procured for manufacturing Electric Vehicle (EV) battery enclosures.
Furthermore, several leading automotive companies focus on using sustainable materials and adopting bio-based sheet compounds to make concept cars. For instance, in August 2022, Ford Motors and John Deer collaborated to build a gator UTV concept. The tolerable roofing parts consist of bio-based sheet molding compound (SMC). These product innovations are projected to drive the sheet molding compound (SMC) market revenue over the forecast period.
Sheet molding compound (SMC) are highly utilized in transportation applications due to properties such as lightweight and good mechanics. They are corrosion, fire, and stain resistant and exhibit electrical insulation. As a result of several unique perceived benefits, SMC and BMC are being preferred over traditional materials such as steel, iron, and aluminum. With the rise in demand for solid compounds and lightweight materials, automobile manufacturers are likely to reduce their dependence on steel and are shifting toward adopting sheet molding compound (SMC). Moreover to the inherent limitations of metals as well as an increase in prices, various manufacturers use thermoset composites as a replacement for metal for high-performance applications, which, in turn, promotes the growth of the sheet molding compound (SMC) market. The directly proportional relationship between the weight of the materials used in manufacturing and the consumption of fuels has shifted the preference of many manufacturers toward lightweight materials.
Sheet Molding Compound (SMC) Market Segment Insights
Sheet Molding Compound (SMC) Type Insights
The sheet molding compound (SMC) market segmentation, based on type includes flame resistance, electronic insulators, corrosion resistance, general purpose, and others. The electronic insulators segment dominated the market, accounting for major market revenue over the forecast period. Electronic insulators sheet molding compound (SMC) is suitable for manufacturing several electrical and electronics products such as Circuit Breakers, Panel Boards, Relays, enclosures, and many other high-voltage electrical appliances. Insulators sheet molding compound (SMC) compound offers excellent stability and heat-transferring properties for manufacturing electrical and energy products driving the growth of this segment.
Sheet Molding Compound (SMC) Application Insights
The sheet molding compound (SMC) market segmentation, based on application, includes automotive, electrical & electronics, building & constriction, and others. The electrical & electronics category generated the most income over the forecast period. Electrical and energy original equipment manufacturer manufacturers are highly procuring sheet molding compound (SMC) for making an array of electrical and energy solutions such as electrical connectors, circuit breakers, switchgear, insulators, and junction boxes. Engineering plastics manufacturing trends are enhancing globally, and growing demand for energy and power products and the volume of international trade is expected to drive the growth of this segment.
Figure 1: Sheet Molding Compound (SMC) Market, by Application, 2022 & 2032 (USD billion)
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Sheet Molding Compound (SMC) Regional Insights
By region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The Asia Pacific sheet molding compound (SMC) market area will dominate this market over the forecast period. The region is known as an automotive original equipment manufacturer hub with the presence of prominent industry leaders such as Toyota, Suzuki, Nissan, and Tata, among others. This region is majorly contributing to exports, driving demand for consumer goods and the production of automobile components. Moreover, the China sheet molding compound (SMC) market held the largest market share, and the India sheet molding compound (SMC) market was the fastest-growing market in the Asia Pacific region.
Further, the major countries studied in the market report are The U.S., Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure 2: SHEET MOLDING COMPOUND (SMC) MARKET SHARE BY REGION 2022 (%)Â
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Europe sheet molding compound (SMC) market accounts for the second-largest market share due to the rapid adoption of sheet molding compound (SMC) in an electric vehicles is driving market revenue growth in this region. Sheet molding compound (SMC) are utilized as an enclosure for an electric vehicle battery. Further, the German sheet molding compound (SMC) market held the largest market share, and the UK sheet molding compound (SMC) market was the fastest-growing market in the European region.
The North America sheet molding compound (SMC) market is expected to grow at the fastest CAGR from 2023 to 2032. This is due to the increasing adoption of sheet molding compound (SMC) in the automotive and energy industries is driving market revenue growth in this region. Moreover, the Canada sheet molding compound (SMC) market held the largest market share, and the US sheet molding compound (SMC) market was the fastest-growing market in the North America region.
Sheet Molding Compound (SMC) Key Market Players & Competitive Insights
Leading market players are investing heavily in research and development to expand their product lines, which will help the sheet molding compound (SMC) market grow even more. Market participants are also undertaking several strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, the sheet molding compound (SMC) industry must offer cost-effective items.
Manufacturing locally to minimize operational costs is one of the key business tactics manufacturers use in the sheet molding compound (SMC) industry to benefit clients and increase the market sector. Major players in the sheet molding compound (SMC) market, including POLYTEC Holding AG, IDI Composites International., Polynt, TEIJIN LIMITED., Premix Group, MENZOLIT, Huayuan Advanced Materials Co., Ltd, Core Molding Technologies., Changzhou City Jiangshi Composite Technology Co. Ltd., and others, are attempting to increase market demand by investing in research and development operations.
Japan Composite Co., Ltd. was founded in 1997. The company manufactures and sells agarwood, a synthetic biomass resin material for industrial and architectural purposes. They also work on processing synthetic biomass resins such as garbage bags, rice bags, and kitchen bags. In August 2020, Japan Composite Co., Ltd. agreed to acquire the sheet molding compound (SMC) and molding operations of DIC Kako Inc. The two companies signed the contract for the deal and started their operations on December 1, 2020.
GE Renewable Energy is an American wind turbine manufacturer division of General Electric focusing on producing energy from renewable sources. Its portfolio of products such as wind, hydroelectric, and solar (concentrated and photovoltaic) power-generating solutions. In April 2021, GE Renewable Energy's Grid Solutions business and Hitachi ABB Power Grids Ltd announced an agreement on using an alternative gas to sulfur hexafluoride (SF₆) for use in high-voltage equipment. The company also revealed that the partnership would help accelerate using fluoro nitrile-based eco-efficient insulation and switching gas in high-voltage equipment as an alternative to SF₆ gas.
Key Companies in the Sheet Molding Compound (SMC) market include
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IDI Composites International (U.S.)
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Menzolit (Germany)
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Polynt (Italy)
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Continental Structural Plastics Inc. (U.S.)
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Zoltek Corporation (U.S.)
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DIC Corporation (Japan)
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Changzhou Tianma Group Co., Ltd. (China)
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Core Molding Technologies (U.S.)
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Zhejiang Sida New Materials Co., Ltd. (China)
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Molymer SSP Co., Ltd. (Japan)
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Showa Denko K.K. (Japan)
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Devi Polymers Private Limited (India)
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Zhejiang Yueqing SMC & BMC Manufacture Factory (China)
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Changzhou City Jianghsi Composite Technology Co., Ltd. (China)
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Huayuan Advanced Materials Co., Ltd. (China)
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Jiangsu Zhaojun New Material Co., Ltd. (China)
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Beijing New Friend Insulation Material Co., Ltd. (China)
Sheet Molding Compound (SMC) Industry Developments
October 2020:Â Astar S.A., a Spain-based specialized formulating and engineering chemical firm, signed an agreement with Toray International UK for carbon fiber sheet molding compound (CMSC) supply in the UK. This contract between Astar and Toray International is conveyed to resume a strategic partnership between groups that began in 2018 as a part of a government-funded project. This contract will continue the supply of sheet molding compound (SMC) to build scalable and lightweight carbon fiber technology for application in electric vehicles.
Sheet Molding Compound (SMC) Market Segmentation
Sheet Molding Compound (SMC) Type Outlook
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Flame Resistance
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Electronic Insulators
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Corrosion Resistance
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General Purpose
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Others
Sheet Molding Compound (SMC) Application Outlook
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Automotive
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Electrical & Electronics
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Building & Constriction
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Others
Sheet Molding Compound (SMC) Regional Outlook
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North America
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US
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Canada
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Europe
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Germany
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France
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UK
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Italy
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Spain
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Rest of Europe
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Asia-Pacific
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China
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Japan
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India
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Australia
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South Korea
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Australia
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Rest of Asia-Pacific
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Rest of the World
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Middle East
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Africa
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Latin America
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