Market environment

Market environment

 

Exel Composites operates worldwide in the composites market, serving customers in three different customer segments:

Industrial Applications

Telecommu-
nication
Paper
industry
Electrical
industry
  Machine
industry
Transportation
industry

 

Construction & Infrastructure

 

Other Applications

Building, construction and infrastructure Energy
industry
Cleaning &
Maintenance
Sports &
Leisure
Other
industries

 

According to industry associations, such as JEC and Lucintel, composites represent only 1% of the global materials market, which is dominated by steel, plastic and aluminum. Furthermore, pultruded composites market, with an estimated size of 3 billion dollars, represents less than 5% of the total composites market. Exel Composites sees growth potential for composites as a material as well as for pultrusion as a production technology within the composites market.

Growth drivers

Annual growth rate estimated for the global composites market vary, according to industrial segment, market area and source, between approximately 2%-5% during 2018-2023.

Transportation, including aerospace, is currently the largest market in terms of value, while energy industry shows the strongest growth.

Geographically, Asia is the largest and the fastest-growing market globally. China alone is expected to represent over half of the global growth. The North-American market is the second largest composites market globally in terms of value and growth. Growth is expected to be slower in the mature European market, which already today is behind Asia and North-America in size.

Interest towards composite materials is steadily growing, supported by global megatrends such as urbanization, sustainability and total life cycle cost management. For example:

  • Increased energy efficiency requirements especially within the transportation industry
  • Escalating need for anti-corrosive applications
  • Greater focus on life cycle costs and durability of end products for example in the construction industry
  • Increasing demands on telecommunication networks due to digitalization

Market share

The composites market is fragmented. Whereas Exel Composites is not a large company, it is nevertheless a leading player and the only pultrusion company with significant presence on all major markets: Europe, Asia and North America. This global presence differentiates Exel from other pultrusion companies and enables head to head competition with global suppliers of traditional materials.

Exel Composites estimates that during 2019 the company’s market position within the global pultrusion market has improved. Exel’s revenue has increased particularly in the North American market where the company has been physically present since the acquisition of Diversified Structural Composites, DSC, in April 2018.

Exel Composites’ customer base is wide-spread over several segments and markets, which means that also its competitors are found within specific segments and markets rather than across. Some of the main competitors include for example Fiberline from Denmark, Epsilon from France as well as Creative Pultrusion and Strongwell in the United States.

 

Exel Composites Oyj, Vantaa head office, Mäkituvantie 5, FI-01510 Vantaa, Finland