Sheet Molding Compound Market

Sheet Molding Compound Market Outlook (2024 to 2034)

The global sheet molding compound market is projected to be worth US$ 3,011.6 million in 2024. Projections put the CAGR of the market for the 2024–2034 period at a sturdy 5.1%. By the time the forecast period ends, the market value is predicted to have reached US$ 4,952.6 million.

Key Market Growth Drivers

The automotive industry makes significant use of sheet molding compounds. As automotive production gets ramped up, especially in regions like the Asia Pacific, the sheet molding compound market stands to benefit. The lightweight nature of sheet metal compounds is seeing car manufacturers turn toward the product in increasing numbers in favor of steel.

There has been a concentrated effort toward using hybrid materials in industries. Manufacturers are no longer placing their whole trust in single-pure metals. Thus, a hybrid solution like sheet metal compound is increasingly making its way into industries.

Manufacturers of sheet metal compounds are looking to further advance the product. By refining carbon fiber and glass fiber, producers of the compound are looking to enhance the benefits of the product. Sheet metal compounds are becoming more lightweight and low-density as a result, only increasing their adoption in industrial work.

Automobile industry players are increasingly affected by concerns over sustainability and fuel consumption. As a result, car makers are inclined toward producing cars with lighter materials, which use less fuel and thus reduce the environmental impact of vehicles. Sheet metal compounds are thus increasingly being leveraged by vehicle manufacturers to produce lighter cars.

Report Attributes	Details
Estimated Market Value (2024E)	US$ 3,011.6 million
Forecasted Market Value (2034F)	US$ 4,952.6 million
Global Market Growth Rate (2024 to 2034)	5.1% CAGR
Glass Fiber Segment Growth Rate (2024 to 2034)	63.1%
North America Market Share (2024)	25.8%
East Asia Market Share (2024)	30.7%
Key Companies Profiled	IDI Composites International Menzolit Polynt Continental Structural Plastics Inc. Zoltek Corporation DIC Corporation Changzhou Tianma Group Co., Ltd. Core Molding Technologies Zhejiang Sida New Materials Co., Ltd. Molymer SSP Co., Ltd. Showa Denko K.K. Devi Polymers Private Limited Zhejiang Yueqing SMC & BMC Manufacture Factory Changzhou City Jianghsi Composite Technology Co., Ltd. Huayuan Advanced Materials Co., Ltd. Jiangsu Zhaojun New Material Co., Ltd. Beijing New Friend Insulation Material Co., Ltd.

What Factors Have Driven the Demand in the Sheet Molding Compound Market?

“Adoption of Sheet Metal Compounds in the Consumer Goods Industry Boosting the Market”

With the rising popularity of metal consumer goods, manufacturers are on the hunt for metals and metal hybrids that can aid in their quest to satisfy the demand. Sheet metal compounds are one such option being utilized by consumer goods manufacturers. With the growing need for convenient consumer goods, there is also a desire from manufacturers for materials that do not make their goods bulky. Thus, the adoption of sheet metal compounds in the consumer goods industry, for utensils, clocks, home décor, and the like, is increasing.

“Toughness of Sheet Metal Compounds Making Them a Hit for Manufacturers”

While being lightweight, sheet metal compound use does not mean manufacturers have to sacrifice quality either. The compound is rigid and resistant to various dangers like corrosion, fire, and stains. Thus, sheet metal compounds provide safety while still not being bulky.

Which Factors Present Challenges to the Expansion of the Sheet Molding Compound Market?

“Heavy Prices and the Availability of a Prominent Alternative Present Challenges to the Growth of the Sheet Molding Compound Market”

The rising price of carbon fiber, one of the two types of sheet metal compounds, is making manufacturers hesitant about buying the material. With the price of producing automobiles ever-climbing, producers are looking at cost-effective options. Thus, there is a limit placed on the use of the product in the automobile industry.

The problem is compounded by the availability of an alternative that is cheaper for manufacturers. Light fiber injection is capturing the attention of automakers due to the economical nature of the product. Light fiber injections also provide the same toughness and lightweight capabilities to manufacturers as sheet metal compounds. Thus, there is significant competition for the product.

Country-wise Insights

For 2024, the market value of sheet molding compounds in North America is pegged to be US$ 777 million, with a share of 25.8% of the global market. For the 2024–2034 period, the market is expected to register a solid CAGR of 5.3% in North America. At the end of the forecast period, the North America market value is expected to have reached US$ 1,307.5 million, with the industry share rising to 26.4%.

Already accounting for a considerable share, bigger than North America, the market in East Asia is expected to grow by leaps and bounds. While the 2024 industry share for the region is estimated to be 30.7%, with a valuation of US$ 924.6 million, the CAGR for the market over the forecast period is anticipated to be a promising 6.1%. By the time 2034 rolls around, the market's valuation of sheet molding compounds in East Asia is expected to have shot up to US$ 1,669.0 million, with an increased market share of 33.7%.

What Makes Japan Such a Promising Country for the Sheet Molding Compound Market?

“Humungous Motor Vehicle Production in Japan Conducive to the Growth of the Market”

The sheet molding compound market’s value in Japan for 2024 is anticipated to be US$ 275.5 million. The market is expected to register an encouraging CAGR of 6.0% in Japan from 2024 to 2034, and by the end of the forecast period, the market value is projected to have crossed US$ 492.4 million.

Japan produces a considerable amount of cars and other automobiles, with the country claimed to be the third-leading motor vehicle manufacturing nation in the world. With car production only set to accelerate in the coming years, with numbers claimed to reach near about five million units a year, there is increased scope for sheet metal compounds, which is driving the market in the country.

Why is the Sheet Molding Compound Industry Enjoying Progress in South Korea?

“Increasing Sustainability Measures in Industrial Production Leading to Rapid Growth of the Market in South Korea”

South Korea is another Asian country that is full of promise for the sheet molding compound market, with the rate of progress estimated to be even higher than Japan. The market value of sheet molding compound in South Korea for 2024 is marked at US$ 99.9 million. The market is expected to register an invigorating CAGR of 8.2% in the country over the forecast period, reaching a valuation of US$ 220.3 million by 2034.

Consumer interest and government regulations are forcing industrial manufacturers to step up sustainable practices. There has been encouragement for the adoption of electric and lightweight motor vehicles, and producers are heeding the demand. Thus, sheet metal compounds are being used in greater quantities in South Korea.

Category-wise Insights

Glass fiber wins out over carbon fiber in the fiber segment. In 2024, glass fiber is expected to account for 63.1% of the market share. Carbon fiber is anticipated to take up the remaining 36.9% in 2024.

Why is Glass Fiber the Preferred Type of Fiber in the Sheet Molding Compound Market?

“Lower Cost of the Product Combined with the Strength of it Make Glass Fiber Dominant in the Market”

Glass fiber is expected to contribute to 63.1% of the industry share of fiber in 2024. Through 2034, the product is expected to progress at a CAGR of 5.3%. By the end of the forecast period, the share of glass fiber is expected to have risen to 63.4%.

Glass fiber offers a cheaper option to manufacturers than carbon fiber. Despite the lower price, however, the benefits of sheet metal compounds, such as low mold shrinkage, rigidity, and others, are still retained. Thus, glass fiber triumphs over carbon fiber, and its share is only set to increase over the forecast period.

Competitive Landscape

The production of sheet metal compounds of strength that eclipse earlier products is a key concern for market players. Manufacturing affordable products to get a leg up over the competition is another strategy being utilized.

Both local players and multinational companies are looking to tap into the significant opportunities represented by East Asia. These local companies and multinational companies are also forging partnerships to obtain a bigger piece of the pie.

Some key companies in the sheet molding compound industry include IDI Composites International, Menzolit, Polynt, Continental Structural Plastics Inc., Zoltek Corporation, DIC Corporation, Changzhou Tianma Group Co., Ltd., Core Molding Technologies, Zhejiang Sida New Materials Co., Ltd., Molymer SSP Co., Ltd., Showa Denko K.K., Devi Polymers Private Limited, Zhejiang Yueqing SMC & BMC Manufacture Factory, Changzhou City Jianghsi Composite Technology Co., Ltd., Huayuan Advanced Materials Co., Ltd., Jiangsu Zhaojun New Material Co., Ltd., and Beijing New Friend Insulation Material Co., Ltd.

Recent Developments in the Market Include:

• In March 2022, Evonik developed a new generation of battery packs called Pure Performance Battery. Built using sheet molding compounds, it is a lightweight solution for electric vehicles.

• Since 2021, Patz Materials has collaborated with Lawrence Livermore National Laboratory to develop carbon fiber monoliths for space satellites.

• In August 2020, Japan Composite Co., Ltd. announced it had agreed to a deal to acquire the sheet molding compound business of DIC Kako Inc.

Segmentation of Sheet Molding Compound Market Research

• By Fiber:

  • Glass Fiber
  • Carbon Fiber

• By End Use:

  • Automotive
  • Electrical & Electronic
  • Aviation & Defense
  • Construction
  • Consumer Goods
  • Healthcare
  • Marine

• By Region:

  • North America
  • Europe
  • Latin America
  • East Asia
  • South Asia & Oceania
  • The Middle East & Africa