The global ceramic matrix composites market is expected to exhibit a healthy CAGR of 12.21% during the forecast period. The growth of the global market is primarily driven by the widespread use of CMCs in major end-use industries such as aerospace, automotive, electrical & electronics, energy & power, industrial, and others. This is due to their properties such as lightweight, excellent wear and corrosion resistance, high strength to weight ratio, high strength retention at elevated temperatures, high chemical stability, and hardness. The demand for lightweight, fuel-efficient, and durable aircraft and automobiles is increasing on account of the stringent environmental regulations pertaining to emission of greenhouse gases. Moreover, extensive research and development for new products based on CMCs as well as their use in fuel rod cladding of nuclear reactors are likely to offer lucrative opportunities to the players in this market. This is also expected to fuel the demand for CMCs in the coming years.
The key players operating in the global ceramic matrix composites market include 3M (US), CeramTec (Germany), CoorsTek Inc (US), Ube Industries, Ltd (Japan), General Electric (US), KYOCERA Corporation (Japan), Rolls-Royce plc (UK), Safran (France), Ultramet (US), Lancer Systems (US), Applied Thin Films, Inc (US), DACC Carbon (South Korea), Schunk GmbH (Germany), Axiom Materials (US), and SGL Carbon (Germany). The market comprises tier-1 and tier-2 players with a wide global presence and vast product portfolio along with local players. Major players such as KYOCERA Corporation, General Electric, and CoorsTek Inc are focused on expansion, acquisitions, and product development to meet the rising demand for CMCs in major end-use industries. With the increasing focus of the players on growth initiatives, the degree of rivalry is expected to increase.
Michael Porter’s five forces model gives a framework that models the global ceramic matrix composites market. The strategic business managers, trying to create an edge over competitive firms in the global ceramic matrix composites market can utilize this model to comprehend better industry connection in which the firm operates. The components of each of the forces and the degree of impact of each component in the context of the global ceramic matrix composites market have been broken down and analyzed.
Threat of New Entrants The threat of new entrants in the global ceramic matrix composites market is expected to be low due to the complex and capital- intensive manufacturing process. The manufacturing of CMCs requires several equipment such as furnaces, reactors, weaving equipment, as well as machining tools. A large space is required for installing all these equipment, which is a major challenge for the new entrants. All these factors are expected to act as a barrier in the entry of new players.
Threat of R ivalry
The global ceramic matrix composites market is expected to witness a high threat of rivalry. This is because the major players in the market, such as Ceramtec, Coorstek, General Electric, Rolls Royce plc, and Kyocera, are undergoing various strategic growth initiatives. The differentiation in product offerings is also expected to intensify the rivalry.
Threat of Substitutes
The threat of substitutes in the global ceramic matrix composites market is expected to be low. This is due to the lack of availability of close substitutes. Also, CMCs exhibit favorable characteristics such as lightweight, temperature resistance, and corrosion resistance, among others, owing to which their demand is increasing at a significant rate.
Bargaining Power of Suppliers The bargaining power of suppliers is expected to be low on account of the presence of a large number of suppliers in the market. Moreover, the lack of availability of close substitutes and high demand for temperature and corrosion resistant as well as lightweight products across major end-use industries is also expected to lower the bargaining power of suppliers.
Bargaining Power of Buyers The bargaining power of buyers in the global market is projected to be high due to large presence of participants. The presence of a large number of well-established players, coupled with high brand identity in the market, is expected to increase the bargaining power of buyers. Moreover, CMCs are lightweight and offer various other beneficial properties, which compels the buyers to buy CMCs due to stringent regulations regarding greenhouse gas emissions.
