Sheet Molding Compound (SMC) Market Research Report by Type (General Purpose, Flame Resistance, Corrosion Resistance, Electronic Insulators, Others), Application (Automotive, Building & Construction, Electrical & Electronics, Others), and Region-Global Forecast to 2023

Competitive Dashboard

Key players operating in the sheet molding compound (SMC) market include Molymer SSP Co., Ltd. (Japan), Menzolit (Germany), Zhejiang Sida New Materials Co., Ltd. (China), Huayuan Advanced Materials Co., Ltd. (China), Zoltek Corporation (U.S.), Devi Polymers Private Limited (India), Zhejiang Yueging SMC & BMC Manufacture Factory (China), Beijing New Friend Insulation Material Co., Ltd. (China), Changzhou Tianma Group Co., Ltd. (China), Continental Structural Plastics Inc. (U.S.), Polynt (Italy), Jiangsu Zhaojun New Material Co., Ltd. (China), IDI Composites International (U.S.), DIC Corporation (Japan), Changzhou City Jianghsi Composite Technology Co., Ltd. (China), Core Molding Technologies (U.S.), and Showa Denko K.K. (Japan).

Market Overview

Sheet Molding Compound (SMC) Market Growth is poised to touch a valuation of USD 2,042.4 million by 2023, as per the latest report by Market Research Future (MRFR). It was previously worth USD 1,550.8 million in 2017. Sheet molding compound is a ready-to-mold composite material which finds use in numerous applications. Increasing demand for SMC in automotive and electronic sectors is expected to propel market demand from 2018 to 2023 (forecast period).

Rising demand for lightweight materials for production of parts is expected to bolster market demand in the forthcoming years. This is further substantiated by the demand for commercial and passenger vehicles which are enveloped by stringent emission regulations. Furthermore, growing electric vehicle sales can positively impact the market.

The expanding construction industry is expected to induce demand for SMC in the forthcoming years owing to high usage of carbon fiber and glass grids in modern projects. Use of sustainable materials is projected to bode well for th SMC market over the forecast period.

Factors fueling market growth include continuous sales of electric and commercial vehicles, demand for fuel-efficient vehicles, and lightweight materials in the construction sector. Stringent policies related to emissions is likely to influence market growth over the forecast period. Development of composite materials to be used in concrete structures for meeting sustainability goals can portend high growth for the SMC market in the forthcoming years.

But issues regarding the recyclability of SMC continue to pose a challenge to the market.

Segmentation Analysis

The sheet molding compound (SMC) market is segmented on the basis of type and application.

By type, the market is segmented into electronic insulators, flame resistance, corrosion resistance, general purpose, and others. The flame resistance segment accounted for 30% share of the SMC market in 2017, followed by electronic insulators (24.6%), corrosion resistance (19.9%), general purpose (15.2%), and others (10.3%). Flame resistance type can reach a valuation of USD 607.7 million by 2023 at a CAGR of 4.66% during the forecast period owing to high demand for SMCs in transportation and realty sectors. Electronic insulators can grow at the highest CAGR of 5.21% during the forecast period to touch a value of USD 513.6 million by 2023.

Major applications comprise automotive, electrical & electronics, building & construction, and others. The automotive segment accounted for USD 537.3 million in 2017. It is predicted to touch USD 722.3 million by 2023. Stringent environmental regulations coupled with rising production of lightweight vehicles is anticipated to fuel the segment growth till the end of the forecast period. The electrical & electronics application is predicted to accrue USD 504.6 million by 2023. This can be attributed to demand for carbon fiber reinforced plastic (CFRP) or glass reinforced fibers derived products.

Regional Analysis

The worldwide sheet molding compound (SMC) market covers the latest trends and opportunities across Latin America, North America, Europe, Asia Pacific (APAC), and the Middle East & Africa (MEA).

The APAC region accounted for nearly 34% share in 2017. It is expected to touch a size of USD 716.5 million by 2023. Rising demand for automobiles coupled with improved living standards can boost the market volume exponentially till 2023. Increasing production of electric vehicles in China is touted to positively impact the market. The APAC SMC market can accumulate demands totaling 631.9 KT by 2023 at a 5.06% CAGR over the forecast period.

North America assumed the second position in the SMC market with 29% share in 2017, followed by Europe (24.4%). The North American region is expected to contribute to market revenue owing to high demand for automobiles. The need for luxury cars coupled with inclination towards electric vehicles is likely to spur the sheet molding compound (SMC) market by 2023. Europe can perform well owing to stringent emission policies outlined by regulatory bodies in the region. The inclination of consumers towards composite materials is expected to favor the market till the end of the forecast period.

The Latin America region is driven by needs of consumers in Brazil and Mexico. Changing lifestyles of consumers coupled with increased disposable income levels can expedite the demand for SMCs in the region. New infrastructural projects by nations can also create opportunities. The MEA market can expand at a 4.99% CAGR over the forecast period to touch a valuation of USD 110.3 million by 2023. It is forecasted to command a market volume of 96.7 KT in the same year.