Fire-resistant Fabrics Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

The Fire-resistant Fabrics Market is expected to register a CAGR of over 6% during the forecast period (2021-2026).

The market was negatively impacted due to COVID-19 in 2020. Owing to the pandemic scenario, several countries around the world went into lockdown, to curb the spread of the virus. This completely disrupted the supply and demand chain, which negatively affected the market. The outbreak of COVID-19 is likely to bring several short-term and long-term consequences in various industries, such as transportation, mining, and other industrial manufacturing sectors, which may affect the fire-resistant fabrics market. According to a study ’Global trade impact of the Coronavirus (COVID-19) epidemic’ by a division on International Trade and Commodities, United Nations Conference on Trade and Development (UNCTAD), the coronavirus epidemic has affected the global textile and apparel industry worth more than USD 1.2 billion. However, the condition is expected to recover in 2021, which is expected to drive the market during the forecast period.

• Over the short term, the increasing demand for fire-resistant fabrics in home and commercial furnishing, stringent industrial standards for fabrics, and growing demand from the mining industry in South America are driving the market's growth.
• On the flipside, the high price of raw materials used to make fire-resistant fabric, lack of safety compliances, and negative impact of COVID-19 pandemic are expected to hinder the growth of the market studied.
• Rapid industrialization in BRICS countries is likely to act as an opportunity in the forecast period.
• Asia-Pacific region is expected to account for the largest share during the forecast period, owing to increasing consumption from countries such as China and India.

Key Market Trends

Transport Segment to Dominate the Market

• Fire-resistant fabrics are used in the transport industry during the construction of railways, automotive, aircraft, and marine. The global transport sector is expected to grow at a healthy rate in response to foreign investments for the construction of better railways, metro, and rail networks.
• The global automobile industry witnessed a rapid decline in 2019. After registering continuous growth for a period of 10 years, the automobile industry registered a negative growth of 15.8% in production, from 92.18 million units produced in 2019 to 77.62 million units produced in 2020. This, in turn, decreased the demand for fire-resistant fabrics from this sector in 2020.
• Asia-Pacific, the largest automotive manufacturing hub, witnessed a production decline of around 10.2% in 2020. The major countries in the region, like China, Japan, India, South Korea, Thailand, and Indonesia, registered negative growth in production, majorly due to factors, like the pandemic situation, decline in domestic demand, increasing labor costs, and implementation of new vehicle norms (such as BS Stage 6 vehicles in India).
• The car sales for 2020, in major global car markets of Europe, United States, Japan, Brazil, India, and China were down by 21.1%, 27.9%, 11.4%, 28.6%, 17.8%, 6%, respectively in comparison to the previous year.
• However, the development of electric vehicles is expected to continue to gain momentum in the future, especially in Europe and China, owing to government programs that are promoting the shift away from fossil fuels, due to the various environmental concerns, where designers in all the automotive segments are discovering new possibilities.
• In the automotive sector, growing demand for electric vehicles in Asia-Pacific countries, like India, has also fuelled the studied market’s growth.
• According to IEA, in 2030, global electric vehicle sales are expected to reach 125 million as per the New Policies Scenario (excluding two/three-wheelers). In the EV30@30 Scenario, in 2030, around 70% of the vehicle sales in China are expected to be EVs. Also, half of the vehicles sold in Europe are EVs, 37% in Japan, 30% in Canada and the United States, and 29% in India.
• Growing railway construction across the world is expected to drive the demand for fire-resistant fabrics.In India, the government has plans to develop metro rail projects in over 30 Indian cities.
• The aviation industry is another popular mode of transportation, which has been growing at a notable pace, as it is known to be the fastest means of commute for travelling distant places. In aircraft production, the selection of the correct fabric material is as important as any other component, as a substantial percentage of aircraft accident deaths are caused due to fire and smoke inhalation, and/or asphyxiation from toxic gases released during a fire.
• The growing passenger volumes and increasing retirements of aircraft are expected to drive the need for new jets over the next two decades. According to Boeing Commercial Market Outlook 2020–2039, 43,110 aircrafts are expected to be delivered during 2020-2039. Of this regional flight deliveries are 2,430 units, single aisle are 32,270 units, widebody aircrafts at 7,480 units, and 930 freighter deliveries
• According to Boeing, the market value for commercial aircraft is expected to reach USD 3.1 trillion by 2028, as operators are expected to replace older jets with more fuel-efficient models and expand their fleets to accommodate the steady rise in air travel across emerging and established markets. Hence, with the production of new jets, the demand for fire-resistant fabrics from the aerospace industry is also expected to increase over the forecast period, though it is likely to remain affected in the next two years, due to the impact of COVID-19.
• All the afore-mentioned factors are expected to drive the fire-resistant fabrics market over the forecast period.

China to Dominate the Asia-Pacific Market

• In the Asia-Pacific region, China is the largest economy in terms of GDP. The country witnessed about 6.1% growth in its GDP during 2019, even after the trade disturbance caused due to its trade war with the United States. The economic growth rate of China in 2020 was initially expected to be moderate as compared to the previous year. However, due to the onset of COVID-19 in 2020, the economic growth of China is estimated to contract to 1.90% and is expected to witness recovery at a rate of 8.20% in 2021.
• The demand for fire-resistant fabrics in China is mainly driven by the growing manufacturing activities of the aerospace industry in the country.
• This growth in the industry is primarily dependent on the rising passenger traffic, due to the higher consumer spending power and better air connectivity. This increasing passenger traffic is further creating a robust demand for an increase in the number of aircraft.
• The Chinese aerospace policy represents one of the most comprehensive attempts to enter the top levels of aerospace development and production. China is expected to be the world’s largest single‐country market for civil aircraft sales, over the next 20 years. Under the plan ‘Made in China 2025’, it is expected that China is likely to supply over 10% home-made commercial aircraft to the domestic market by 2025. This is expected to provide opportunities for fire-resistant fabrics market in aerospace sector during the forecast period.
• The automotive industry is one of the major consumers of fire-resistant fabrics. China is the leading producer of vehicles with a total production volume of 25.75 million vehicles as of 2019 and reached 25.23 million vehicles by the end of 2020, registering a decline rate of about 2%, thus negatively impacting the market demand for fire-resistant fabrics.
• Moreover, the government's focus on the production of electric vehicles is likely to drive the demand for fire-resistant fabrics market during the forecast period.
• The Chinese government is planning to have a minimum of 5,000 fuel cell electric vehicles by 2025 and 1 million by 2030. With the government promoting the use of electric, hybrid, and fuel cell electric vehicles is expected to drive the market studied during the forecast period.
• All the above-mentioned factors are expected to drive the demand for fire-resistant fabrics in the country, over the forecast period.

Competitive Landscape

The global fire-resistant fabrics market is fragmented in nature. The major companies include DuPont, Indorama Corporation, Solvay, KANEKA CORPORATION, and TenCate Fabrics - EU among others.

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