July 30, 2002 -- Within the plastics industry, fillers and reinforcements are used extensively. As marketing and development costs continually increase, the resin industry has concentrated on filling and reinforcing existing plastics to increase performance in strength, temperature resistance, etc. and to meet increasing environmental pressures.

Essentially, new grades of plastics are being developed for existing and new markets. Fillers and/or filler/reinforcement combinations are used more widely than reinforcements by themselves. Compounding with fillers is less costly and widely practiced and has been used, in the past, mostly as a means to reduce costs of thermosets. The industry realized almost 40 years ago that fillers could improve performance as well as reduce costs, and since that time they have enjoyed steady growth.

Within the realm of reinforcements, a major drive in fibrous materials has developed similar to the use of glass reinforcements, e.g. carbon, boron and aramid fibers. The emergence of several new technologies warrants a reappraisal of the reinforced plastics market. Nanocomposites and long-fiber-reinforced thermoplastics are the two most prominent and potentially important examples that could impact this market commercially.

According to a soon-to-be-released study from Business Communications Company, Inc, RP-178 Composites: Resins, Fillers, Reinforcements, Natural Fibers and Nanocomposties, the fiber-reinforced plastic market is estimated at almost 2.3 billion pounds in 2002. It is expected to increase to slightly over 2.6 billion by 2007, as the market grows at an AAGR (average annual growth rate) of 3.0% through 2007.

Automotive applications account for 719 million pounds and are expected to rise at an AAGR of 2.5% to 814 million pounds by 2007. Construction applications will rise at an AAGR of 2.7% to 688 million pounds by 2007. Marine and electronic components applications, rising at AAGRs of 3.5% and 4.5% respectively, are the fastest growing.

Thermosets accounted for about 62% of total volume in 2002 and will maintain that position over the next five years. Fiber-reinforced thermoplastics have become more popular, especially in terms of having a higher recycling profile, but much of this growth will replace non-fibrous reinforcements in plastics and some metals. Within the fiber-reinforced thermoplastic category, long-fiber thermoplastics will become increasingly important.

In addition, the most dominant application for fiber-reinforced thermoplastics is the automotive market, where auto sales are expected to remain relatively flat, and plastic replacement in several sectors has matured. Furthermore, fiber-reinforced thermoplastics do not participate in construction or marine markets.

Nanocomposites are in the very early stages of development and, in regard to fiber-reinforced plastics, will initially make an impact in the automotive market, especially in interiors with polypropylene. Possibly by the end of the decade, nanocomposites might become a factor in automotive exterior body panels, especially with thermoplastics.