Vulcanized Fibre Market Size, Share & Growth | Forecast 2031

Report Description

Vulcanized Fibre Market Outlook

The Global Vulcanized Fibre Market was estimated at USD 301.2 Million in 2022 and is anticipated to reach USD 495.3 Million by 2031, expanding at a CAGR of 5.8% during the forecast period.

Vulcanized fibre is one of the oldest plastics. It was first commercialized in 1879. This material is extremely adaptable and are employed in a wide range of mechanical and electrical applications. Vulcanized fibre have high dielectric strength. This fibre can be machined, shaped, bent, sheared, punched, milled, turn, and drilled to make a wide range of products.

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Cotton and/or cellulose fibre webs are passed through a parchmentizing bath containing zinc-chloride solution or sulphuric acid, which partially dissolves the fibre to create vulcanized fibre. Individual fibres and webs are then joined by pressing the liquid out, without the use of any bonding chemicals. Vulcanized fibre is utilized not only for punched parts, seals, and laminate backings but also is used as backing material for abrasive discs. This is because of its exceptional ductility, mechanical strength, and stability at a low weight.         

Macro-economic Factors

Government Investments in Infrastructure Development

Government investments in infrastructure development have a direct impact on the vulcanized fibre market. Infrastructure projects such as construction of buildings require proper electrical wiring systems.

These systems have many components made of vulcanized fibre, as they have good dielectric properties. Therefore, increased government spending on infrastructure leads to high demand for vulcanized fibre, as they are essential for the efficient functioning and reliability of these infrastructure networks.

In 2022, the US government announced an investment of USD 13 billion to expand and modernize the electric grid, thus boosting the electric transmission and distribution infrastructure in the country. This investment is projected to increase the demand for electrical insulators such as vulcanized fibre in the coming years.

Inflation

Inflation refers to the rate of increase in prices over a given period of time, which decreases the purchasing power for both consumers and businesses. Inflation plays an important role in almost every industry. It plays a significant role in the electric and electronic industries. It affects the price of electronic components and the overall operations of manufacturing electronic components.

Vulcanized fibre is used as an electrical insulator in various components. Vulcanized fibre is often used in textile machinery for gaskets, seals, and other protective elements that ensure proper functioning

According to International Monetary Fund, the global inflation rate accounted for approximately 4.7% in 2021 and 8.8% in 2022, and is projected to decline to 6.5% in 2023. Increasing prices of vulcanized fibre is boosting the prices of final electrical components.

Vulcanized Fibre Market Dynamics

Market Driver- Increasing demand from Electrical Industry

Vulcanized fibre is widely used as electrical insulation material in various electrical applications. It provides excellent dielectric strength, electrical insulation properties, and resistance to high temperatures.

Vulcanized fibre is used for insulating components such as electrical transformers, motor windings, coil formers, electrical switches, and other electrical apparatus. Growing electrical industry, including power generation, distribution and electrical equipment manufacturing, is driving the demand for vulcanized fibre for insulation purposes in the market.

Rising demand for electric vehicles is boosting the use of vulcanized fibre in the electrical industry. Vulcanized fibre is used in EV components such as battery packs, motor windings, electrical connectors, and insulation materials.

As per EEI (Edison Electric Institute), in the US, the stock of electric vehicles (number of electric vehicles on the roads) was 2.4 million in 2021 and it is projected to be around 26.4 million in 2030, contributing about 32% sales to the total annual sales of light-duty vehicles.

Market Driver- Rising Demand from Textile Industry

Vulcanized fibre is used in the production of components and parts for textile machinery. These components include washers, gaskets, gears, handles, and insulating elements, which are essential for smooth functioning and efficient operation of textile machinery. Reliability, strength, and durability of vulcanized fibre make it suitable for these applications, thus contributing to the overall performance of textile machinery.

Ongoing investments from governments and foreign direct investment (FDI) are boosting the textile industry in developing countries such as India. Textile and apparel exports from India are projected to reach a value of USD 65 billion by 2025-26 and are projected to expand at a CAGR of 11% during the forecast period. These factors are anticipated to boost the demand for vulcanized fibre from the textile industry.

Market Driver- Growing Demand for Sustainable and Eco-friendly Material

Vulcanized fibre is an environmentally friendly material that is derived from cotton. It is biodegradable and recyclable, and does not release toxic substances when decomposed. Rising awareness and emphasis on sustainable practices is boosting the preference for vulcanized fibre as an alternative to non-recyclable or non-biodegradable materials.

Adoption of vulcanized fibre in various industries is driven by the need for sustainable and eco-friendly solutions. In 2022, the US government announced an investment of USD 13.4 million funding for advanced plastic technologies.

Market Restraint- Raw Material Price Fluctuation

Production of vulcanized fibre relies on raw materials such as cotton linters. Availability and cost of these materials are affected by various factors such as weather conditions and global demand & supply dynamics. Fluctuations in the availability or cost of raw materials impact the production cost of vulcanized fibre, which restrains the market growth.

In the US, the per kg price of cotton was around USD 1.72 in 2019, which dropped to USD 1.56 in 2020 during COVID-19. Prices increased to USD 1.91 in in 2021, due to the sudden increase in demand and shortage of supply. The trend continued in 2022 and the price of cotton reached to USD 2.61. These fluctuations in the prices of cotton affect the total production cost of vulcanized fibre, which directly restrains the market growth.

Market Restraint - Easy Availability of Substitutes

Substitute materials of vulcanized fibre offer similar properties or serve similar applications. Synthetic materials such as nomex papers, leather or rubber are used as substitutes for vulcanized fibre in specific applications.

These substitute materials offer advantages such as enhanced durability, improved resistance to chemicals or cost effectiveness. Availability of these substitutes impacts the demand for vulcanized fibre in certain applications, which restrains the market growth.

Market Opportunity - Growing demand in emerging markets

Emerging markets such as countries in Latin America and Africa offer significant growth opportunities in the vulcanized fibre market. These regions are developing, due to rapid urbanization and infrastructure development. Thus, the demand for vulcanized fibre in electrical, textile, and other industries is growing. Manufacturers target these emerging markets to expand their customer base and tap into the increasing demand for vulcanized fibre products.

As per International Trade Administration (ITA), Brazil is the largest electricity market in Latin America and accounts for the seventh largest electricity generation capacity in the world. In 2021, the total installed capacity reached 181.6 GW, which increased by 3.9% as compared to 2020. The electricity sector in Brazil is expected to be valued at USD 94 billion by 2029. This is expected to increase the demand for vulcanized fibre in Brazil in the coming years.

Market Opportunity - Technological Advancements

Ongoing technological advancements create opportunities for manufacturers to enhance the performance and versatility of vulcanized fibre. Innovations in manufacturing processes, such as advanced cutting technologies, high-pressure molding techniques, and automation, improve the efficiency, consistency, and cost-effectiveness of vulcanized fibre production.

Additionally, research and development efforts focused on developing formulations or composite materials that incorporate vulcanized fibre, expand its potential applications, and improve its performance characteristics, provides opportunities to the market players.

Scope of Vulcanized Fibre Market Report    

The report on the global Vulcanized Fibre Market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Vulcanized Fibre Market Segmental Outlook

Based on type, the global vulcanized fibre market is categorized into commercial grade, electrical grade, and others. The commercial grade segment is anticipated to expand at a significant rate during the forecast period. It is one of the common grade of vulcanized fibres. This grade has good physical and chemical properties.

They are available in different colors such as red, grey, and black. Commercial grade vulcanized fibre is durable and resistant to most solvents & oils. It is an insulating material of electrical grade that can resist temperatures of up to 115 degree Celsius. It is employed in numerous mechanical devices including washers, arc barriers, gaskets, seals, packings, and others.

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Based on end use, the global vulcanized fibre market is categorized electrical, textile, and others. The electrical segment is anticipated to expand at a substantial rate during the forecast period. Vulcanized fibres are used as electrical insulation for coils, fuse tubes, and electrical switches, due to their high insulating properties.

Vulcanized fibres are used as insulating components providing improved electrical protection. This is, due to their di-electric properties, electric stability, thermal stability, mechanical strength, and high resistance to chemicals. They are used as insulation for coils in transformers, motors, and generators.

The fibres provide electrical insulations and prevent any kind of overheating. Vulcanized fibers are used in fuse tubes as well. It is used as protective casings for fuses to provide electrical and mechanical support to the fuse element.

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Regional Outlook

Based on region, the global vulcanized fibre market is categorized into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. The market in Asia Pacific is projected to expand at a significant rate during the forecast period, owing to the increasing demand for lightweight and cost-effective materials in the automotive, aerospace, and electrical industries in the region.

Emphasis on reducing overall weight and operational cost is high in these industries, resulting in the high adoption of durable, versatile, and eco-friendly alternatives, such as vulcanized fibre. Additionally, the market is propelled by the electrical insulation and mechanical properties of vulcanized fibre, which make it suitable for an array of applications, such as circuit-breaking devices, electrical insulation, and sound damping in vehicles.

The market in North America is expected to register significant growth, due to the increasing focus on renewable energy and environmentally friendly products. Presence of key market players and technological advancements fuel the demand for vulcanized fibre in this region.

Focus on sustainable manufacturing and stringent environmental regulations propel the market in Europe region. Several industries, including automotive, electrical, and construction industries, are adopting vulcanized fibre, due to their cost-effectiveness, recyclability, and biodegradability. Countries, such as Germany, contribute significantly to the market growth, as they are supported by a robust manufacturing sector and innovations in material science.

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Key Benefits for Industry Participants & Stakeholders

• In-depth Analysis of the Global Vulcanized Fibre Market

• Historical, Current and Projected Market Size in terms of Value

• Potential & Niche Segments and Regions Exhibiting Promising Growth Covered

• Industry Drivers, Restraints, and Opportunities Covered in the Study

• Recent Industry Trends and Developments

• Competitive Landscape & Strategies of Key Players

• Neutral Perspective on Global Vulcanized Fibre Market Performance