Asia Pacific sales of ceramic fiber were tipped to be worth USD 972 million in 2023. The sector is expected to have a Y-o-Y growth of 7.4% in 2024, reaching USD 1,049.8 million. With a CAGR of 8% from 2024 to 2034, the product is expected to have a demand of about USD 2,266.4 million by 2034.
High-temperature insulation in furnaces, ladles, and kilns makes iron and steel a major application of ceramic fibers. The Asia Pacific, especially China and India, is a massive steel producer accounting for over 70% of the world's output. According to the World Steel Association, China produced 1.03 billion metric tons of steel in 2022, while India will reach 300 million tons by 2030.
The expansion of the steel industry, driven by enhanced infrastructure and urbanization requirements in Asian countries, is sure to spur higher usage of ceramic fibers for thermal insulation and to enhance energy efficiency. Ceramic fibers result in minimum loss of heat, efficient processes, and energy consumption. All these are essential for high-capacity steel production plants.
Governments in China, Japan, South Korea, and India require stricter environmental regulations and more energy efficiency from the industrial process to significantly diminish pollution and greenhouse gas. Ceramic fibers, especially Alkaline Earth Silicate (AES) wool, are used wherever there are stringent emission controls because they are good environmental practice and produce no reactive particulate during high-temperature operations.
| Attributes | Description |
|---|---|
| Estimated Asia Pacific Ceramic Fiber Industry Size (2024E) | USD 1,049.8 million |
| Projected Asia Pacific Ceramic Fiber Industry Value (2034F) | USD 2,266.4 million |
| Value-based CAGR (2024 to 2034) | 8% |
The aggressive policies that are set forward by the Chinese government concerning energy saving and emission reduction encourage industries to upgrade their insulation materials to high-efficiency levels such as ceramic fibers to conserve energy. According to the International Energy Agency, about 40% of world energy consumption is based in industries in the Asian Pacific where energy-saving targets begin to be achieved through ceramic fibers' low thermal conductivity.
The chemical and petrochemical segment is another major end-user. The Asia Pacific region continues to see robust growth in the chemical sector, especially in China, India, and Southeast Asia as domestic demand for plastics, chemicals, and energy pick up.
As indicated by ICIS Independent Commodity Intelligence Services, China accounts for around 40% of the global chemical sector. Asia Pacific's industrialization and capacity for chemical production will boost demand for fibers in various forms used for high-temperature applications in the chemical industry.
India, China, and Vietnam are gradually increasing their capacities for generating power through thermal and nuclear projects along with new sources of renewable energy. For example, in India, by 2030, 175 GW of renewable energy capacity will be added; new opportunities for high-performance insulation materials like ceramic fibers will arise in power generation equipment.
Further, the use of these fibers in thermal power plants (coal, oil, gas) is also rising since they reduce energy loss and improve heat recovery. According to the World Bank, the Asia Pacific is forecast to account for more than half of the world's energy demand growth by 2040.
Polycrystalline fibers can be used at temperatures that are more than 1,400°C. Their use has gained high popularity in jet engines, aerospace parts, and high-temperature furnaces. The growth in the Asia Pacific region's automotive and aerospace sectors has driven up the demand for such high-performance materials.
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The following table shows the annual growth rates for the Asia Pacific ceramic fiber industry in the period between 2024 and 2034. The information furnished by this research is useful for stakeholders in addition to providing an overall picture of the performance of the sector in the forecast period along with the ability to apply it towards predicting future trends. For H1 in 2023 to 2033, the CAGR is set to be 7.8%. However, there is set to be a significant uptick in the progress rate for H2.
| Particulars | Value CAGR |
|---|---|
| H1 | 7.8% (2023 to 2033) |
| H2 | 8.4% (2023 to 2033) |
| H1 | 7.5% (2024 to 2034) |
| H2 | 8.5% (2024 to 2034) |
For the next period, H1 2024 to H2 2024, the CAGR is expected to dip slightly down to 7.5% in the first half but then pick up steam again in the second half. The sector is witnessed a 30 BPS dip in the first half (H1), but a marginal gain of 10 BPS was recorded for this sector in the second half (H2).
Increasing Adoption of Environmentally Friendly Alkaline Earth Silicate (AES) Wool
AES wool, rather than RCF wool is gaining traction due to its less risk associated with it. China and Japan have strict regulations on environmental conditions. Companies focus on this aspect to monitor and minimize emissions as well as control worker health conditions.
AES wool is becoming popular in areas of petrochemical industries, power generation, and aerospace due to its high thermal insulation. For example, for the cause of sustainability, automotive companies are adopting AES wool in heat shields and exhaust insulation. The trend is set to continue because more and more organizations are realizing the benefits of prioritizing sustainability.
Rising Demand for Energy Efficiency and Sustainability in Industrial Processes
With more attention to energy efficiency in the Asia Pacific region, industries heating up with a desire to save energy costs and reduce carbon emissions. High-performance ceramic fibers, being excellent insulators, find an increasing application in such industries. Even the power generation sectors rely on these fibers in the boilers and turbines for improved efficiency through lesser fuel consumption.
Environmental regulations have been upgraded, which various governments around the world enforce for sustainability. Companies operating in Japan and Australia face environmental regulations that incentivize them to use eco-friendly materials.
Expanding Infrastructure and Industrialization in Emerging Economies Across Asia Pacific
Countries such as India, China, and countries in Southeast Asia are developing industries and infrastructure at a fast pace, thereby generating high-temperature insulation requirements for ceramic fibers. These industries involve iron & steel, petrochemicals, and power generation. These materials are required to ensure safety and efficiency while using furnaces, reactors, and kilns. For example, newly built steel plants in India need ceramic fiber high-temperature insulation processes.
The infrastructure and industrialization projects undertaken by the governments of these emerging economies are further fueling demand. Modernization efforts in manufacturing and energy sectors, particularly in countries like Indonesia and Vietnam, are driving the adoption of high-end materials. Building factories and power plants inherently drive the demand of these fibers for insulation purposes, making them an inevitable product in industry growth.
Health and Safety Concerns Related to Refractory Ceramic Fiber (RCF) Exposure Limiting Growth
Scientists have determined that long-term exposure to the fibers in RCF is a health hazard because it is associated with respiratory diseases and lung conditions of severe lung diseases. Some of the released particles by fibers include respirable crystalline silica. These risks pose a health hazard in industries producing petrochemicals and steel to workers exposed to these fibers. Other health hazards are set to force companies to reduce their usage of RCF. Investing more resources in protection equipment and security measures, however, leads to increasing costs, which also affects the demand for products that are made from RCF.
The occupational health and safety policies adopted by countries like Japan and South Korea are stringent to ensure that employees are not exposed to RCF. Such strict policies are forcing organizations to opt for the safer alternative, AES wool, or meet expensive safety standards. For example, industries have now strictly followed guidelines for the protection of workers; thus, the usage of RCF has declined.
Principal Consultant
The Asia Pacific industry witnessed a CAGR of 4.1% between 2019 and 2023. Total industry revenue reached about USD 972 million in 2023. During the forecast period, Asia Pacific sales are projected to fetch a CAGR of 8.0%.
The Asia Pacific industry witnessed slow but steady growth in the historical period. The primary reasons for this trend were the growth of key industries like iron & steel, petrochemicals, and power generation and the increasing use of the product in these industries for thermal insulation purposes.
Yet problems such as health hazards due to RCF and climbing prices of raw materials posed challenges to the rapid growth of the Asia Pacific sector. Further, the economic aspect uncertainty caused by COVID-19 in 2020 also delayed many industrial projects and reduced production, which further limited growth. However, these were compensated by the increased demand for ceramic fiber products driven by the search for better energy efficiency and safety in high-temperature environments.
The demand is increasing in emerging sectors including renewable energy, primarily solar power and wind turbines, where advanced insulation is highly necessary. Other manufacturing innovations, including 3D printing of ceramic fiber components, reduce cost in production and provide a means for tailoring industrial requirements. As electric vehicle use increases further, demand will continue to rise for lightweight, heat-resistant materials applied in battery compartments and other high-temperature components.
Tier 1 companies include industry leaders with annual revenues exceeding USD 50 million. These companies are currently capturing a significant share of 25% to 30% in Asia Pacific. These frontrunners are characterized by high production capacity and a wide product portfolio.
They are distinguished by extensive expertise in manufacturing and a broad geographical reach, underpinned by a robust consumer base. The firms provide a wide range of products and utilize the latest technology to meet regulatory standards. Prominent companies within Tier 1 include Unifrax LLC, Morgan Advanced Materials, Luyang Energy-Saving Materials Co., Ltd., Rath Group, and a few others.
Tier 2 companies include mid-size players with revenue of USD 10 to 30 million having a presence in specific regions and highly influencing the local industry. These players are technologically advanced and ensure regulatory compliance.
Prominent companies in tier 2 include Shandong Hongyang Insulation Material Co., Ltd., Isolite Insulating Products Co., Ltd., Nutec Group, Double Egret Thermal Insulation Co., Ltd., Zibo Jiuqiang Refractory Co., Ltd., Cangzhou Yufeng Refractory Insulation Materials Co., Ltd., Anhui Hualing Insulation Materials Co., Ltd., SK Gupta Private Limited, and few others.
Tier 3 includes the majority of small-scale companies operating at the local presence and serving niche areas having revenue below USD 1 million. These companies are notably oriented towards fulfilling local demands and are consequently classified within the tier 3 share segment.
They are small-scale players and have limited geographical reach. Tier 3, within this context, is recognized as an unorganized sector, denoting a sector characterized by a lack of extensive structure and formalization when compared to organized competitors.
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The section below covers assessments of ceramic fiber sales across key countries. Countries in the Asia Pacific are anticipated to exhibit promising double-digit growth over the forecast period.
| Countries | CAGR 2024 to 2034 |
|---|---|
| Vietnam | 8.7% |
| Thailand | 8.5% |
| Malaysia | 8.3% |
| South Korea | 8.1% |
| India | 7.8% |
China is the world's largest steel-producing country, accounting for nearly 50-55% of crude steel produced globally in 2023. The iron and steel industry remains one of the main users; they are major consumers in China, utilizing ceramic fibers extensively for high-temperature insulation applications. Because the country is constantly modernizing and increasing its industrial production, the demand for energy-saving materials continues to rise.
High demand comes from the gigantic chemical and petrochemical industries of China. These industries have a large share in global chemical production and ceramic fibers are required in many types of equipment like furnaces and reactors that require superior heat insulation properties.
China has emphasized the reduction of industrial emissions and energy efficiency during recent times. This coincided with the increasing adoption of ceramic fiber materials. With tighter controls over emissions, especially the heavy industries that include iron, steel, and petrochemicals, these fibers are being utilized because they have better thermal efficiency with reduced heat loss.
The Chinese government has outlined green initiatives as part of its 14th Five-Year Plan, mainly emphasizes energy-saving technologies. The various large-scale industrial activities that characterize China further cement the position of the country at the top of the industry for ceramic fibers.
The booming construction, infrastructure, and manufacturing sectors propel massive consumption of ceramic fiber in the country. Consequently, with initiatives such as "Make in India" and large infrastructure projects under development, the demand for high-performance insulation materials is on an upswing.
The government’s plan to increase steel, cement, and petrochemical production has increased the need for ceramic fibers in furnaces, kilns, and boilers due to their high-temperature insulation properties. In 2023, India emerged as the world's second-largest steel producer. This has led to higher consumption of refractory materials.
India ranks among the fastest-growing power generation countries in the world, using ceramic fibers with high intensity within the field of insulation for thermal power plants. Among the areas for decrease in energy consumption along with energy efficiency maximization that feature within the agenda of the Indian government, high-temperature insulation is one. The government is setting up plans to add 175 GW of renewable energy capacity by 2025, which has also spurred the adoption of ceramic fibers.
The petrochemical and refining industries in Indonesia are among the most significant users of ceramic fiber for thermal insulation. With the aspirations for adding capacity into refining under projects like RDMP by Pertamina, a strategy that aims to increase refinery capacity to 1.5 million barrels per day through 2025, the use of ceramic fiber becomes relevant in furnace linings and other high-temperature insulation applications. Growth in domestic consumption coupled with increased exports as the sector of petrochemicals grows bolsters demand.
The cement industry of Indonesia, which is expanding rapidly due to growing infrastructure projects and urbanization, is another significant user. The country produced over 70 million tons of cement in 2023. In addition, ceramic fibers have a wider application in Indonesia's manufacturing industry, covering glass and ceramic industries where high-temperature insulation in industrial processes is required. The government's focus on infrastructural and manufacturing development adds to the heightened demand for the product.
The section explains the growth trajectories of the leading segments in the industry. In terms of product type, the refractory ceramic fiber (RCF) segment will likely dominate and generate a share of around 46.2% in 2024.
Based on the end-use industry, the iron & steel industry segment is projected to hold a share of 37.2% in 2024. The analysis would enable potential clients to make effective business decisions for investment purposes.
| Segment | Refractory Ceramic Fiber (RCF) (Product Type) |
|---|---|
| Value Share (2024) | 46.2% |
The thermal insulation properties of RCF have been proven to be a significant draw. Mainly, it is considered to be suitable for application in industries that demand the management of heat well above temperatures of 1,000°C up to 1,400°C. Such a property is more often found within the iron and steel industry, where RCF products are used mostly for furnace linings and kilns among other high-heat practices.
Although RCF is associated with health problems due to respirable crystalline silica, it is still more economical than other substitutes like Polycrystalline fibers or Alkaline Earth Silicate (AES) wool. Cost-effectiveness along with strong availability supports its ongoing use in all industries in Asia, especially in price-sensitive sectors like China and India.
| Segment | Iron & Steel Industry |
|---|---|
| Value Share (2024) | 37.2% |
Ceramic fibers are critical for the extreme temperature environment in which the iron and steel industry operates. The temperatures often reach above 1,200°C. Increasing production, along with the growing demand in key countries, such as China, India, and Japan, encourages using more of these fibers to increase efficiency, reduce heat loss, and eventually gain a competitive edge.
Using the product in thermal insulation within the steel plants is considered so that companies can reduce the use of fuels, maximize the use of processes, and also have a long life for their equipment. Since Asia Pacific is the hub for manufacturing iron and steel products, the usage of wide ceramic fiber products continues to be applied in the region.
Major players are also implementing partnership and joint venture strategies for the development of new modern products and strengthening their resource base. In this regard, key players are bringing new product lines into the industry due to the high industry potential for advanced offerings in multiple end-use industries. Well-reputed firms are opting for geographic expansion as well.
Industry Updates
Product Types included in the study are Refractory Ceramic Fiber (RCF) (Blankets, Modules, Boards, and Papers), Alkaline Earth Silicate (AES) Wool (Blankets, Modules, Boards, and Papers), Polycrystalline Fiber (Blankets, Modules, and Boards) and Other Product Types.
Temperature ranges included in the study are Up to 1,000°C, 1,000°C to 1,400°C, and Above 1,400°C.
End-Use Industries included in the study are the Iron & Steel Industry, Chemical & Petrochemical Industry, Power Generation, Aerospace & Defense, Automotive Industry, and others.
Countries considered in the study include China, Japan, South Korea, India, Indonesia, Malaysia, Thailand, Vietnam, ANZ, and the Rest of Asia Pacific.
The Asia Pacific sale was valued at USD 972 million in 2023.
The Asia Pacific industry is set to be worth USD 1,049.8 million in 2024.
Asia Pacific demand is anticipated to rise at 8% CAGR.
The industry is projected to reach USD 2,266.4 million by 2034.
The refractory ceramic fiber (RCF) segment dominates in terms of share.
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Asia Pacific Ceramic Fiber Market
