Did the global fiberglass market grow by approximately 3% in 2024?
Overall, the fiberglass market is developing rapidly, driven by technological progress, innovation, and the increasing emphasis on sustainability. With the growth in demand, especially from emerging markets, and the growing application of fiberglass in fields such as transportation and construction, Lucintel predicts that the future market will continue to expand.
The global fiberglass market grew by approximately 3% in 2024, and the demand increased from 16.3 billion pounds in 2023 to 16.8 billion pounds. The demand for fiberglass in the United States has weakened in multiple fields such as construction and shipbuilding. Lucintel forecasts that from 2024 to 2031, the global demand for fiberglass is expected to continue growing at a compound annual growth rate (CAGR) of about 4%.
However, the global fiberglass market faces significant challenges. Among them, the most severe challenge is the intense market competition, especially from Chinese manufacturers. In 1990, China hardly had any involvement in the fiberglass field, but now, China dominates the fiberglass market with 65% of the global production capacity.
On the one hand, China has penetrated the market with the advantage of low-cost fibers, promoting the growth of the entire fiberglass industry. However, this poses a huge challenge to fiberglass suppliers in North America, Europe, and Japan. Since they cannot compete with Chinese suppliers in terms of cost, they are struggling to maintain profitability.
Many fiberglass enterprises are surrendering their market share to Chinese suppliers. Several well-known companies, including PPG, 3B, and Owens Corning, have withdrawn from the market or announced their withdrawal plans due to declining profitability. Fiberglass suppliers in North America, Europe, and Japan may continue to face profit difficulties in the future. Unless they can find ways to compete with Chinese enterprises in terms of cost reduction or performance improvement, they may be forced to cut thousands of jobs.
The Trump administration has announced a 25% tariff on all goods imported from Mexico and Canada and an additional 10% tariff on goods from China. This policy will increase the cost of imported fiberglass, thus making the market more favorable for domestic fiberglass suppliers in the United States.
Another trend in the fiberglass value chain is to prioritize the principles of sustainability and the circular economy. As the industry strives to reduce its environmental impact, manufacturers are committed to developing closed-loop recycling systems to recycle and reuse composites, thereby minimizing resource waste. Companies such as Johns Manville and China Jushi are investing in innovative recycling technologies and sustainable practices to meet global environmental standards. By 2030, it is expected that these efforts will significantly reduce the industry's environmental impact and contribute to a more sustainable future. Original equipment manufacturers and component manufacturers are developing innovative recycling technologies and setting ambitious environmental goals. For example, Vestas is working towards launching a zero-waste turbine by 2040. (Here, "zero waste" means completely eliminating the generation of waste and building a circular economy system for all materials, including the carbon cycle.)
In conclusion, the fiberglass market is dynamic. By leveraging technological progress and effectively addressing existing challenges, enterprises can fully unleash the potential of fiberglass and gain a competitive advantage in the market.
