The global Polyether Ether Ketone (PEEK) market is projected to reach USD 664.3 Million by 2021, at a CAGR of 6.3% from 2016 to 2021. In the global PEEK market, newer applications and product grades are expected to be developed in industries such as aerospace and defence.
Key manufacturers are working on newer applications, and sample trials are being undertaken to test PEEK performance across verticals. Apart from this, rapid growth in the use of PEEK in the aerospace and medical industries in North America is expected to lead to the high growth of the PEEK market during the next five years..
Market Dynamics
Drivers: Rising demand for PEEK in aerospace and automotive industries
PEEK is used to manufacture various interior and exterior components in the automotive and aerospace industries. The most valued properties of PEEK are its high heat resistance, light weight, high dimensional stability, and high chemical resistance. In the aerospace industry, it is important to use materials that are fire retardant and emit less smoke & toxic gases in case of fire. PEEK fulfils these important requirements, resulting in its high demand in the aerospace industry.
The past decade has witnessed a rapid increase in the implementation of stringent emission regulations, especially in the North American and European regions. To achieve greater fuel efficiency and meet these stringent emission regulations, the automotive industry is continuously in search of materials that can help in the weight reduction of vehicles. Though engineering plastics meet weight reduction requirements, increased compactness in under-the-hood components requires high heat resistance, which is provided by PEEK. As PEEK meets all these requirements, there is a rapid increase in its demand in the automotive industry.
Restraint: High price of PEEK compared to conventional materials
The manufacturer of PEEK requires considerably high investment, as the manufacturing process is highly complex than that for any other group of polymers. In addition, manufacturing PEEK products that can withstand high temperatures requires a high level of technical competency. Due to these factors, the production of PEEK is costly, and thus the cost of end-products is also very high. The high price of PEEK limits its applicability, and thus restrains the growth of the market. The high cost of production also bars the entry of mid- and small-level market players, which, in turn, reduces the size of the PEEK market.
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Opportunity: Emerging applications for PEEK
Due to the properties of PEEK polymers, they are becoming the material of choice to replace traditional materials, such as steel, aluminum, and wood, among others. In comparison to other traditional materials, they have higher chemical and impact resistance, as well as higher strength-to-weight ratios. They also offer greater design flexibility. Thus the market for high-performance polymers is expected to be extremely strong and grow at a high rate during the next five years and beyond.
These polymers are expected to have many emerging applications from aerospace, automotive, oil & gas, medical and electronics industry in the near future, which will further enhance the growth prospects of PEEK globally. The unique properties of PEEK are also expected to drive the demand for PEEK products across various industries in the coming years. Thus, PEEK is expected to be in high demand globally over the coming years.
Challenge: Challenging processing conditions
The major challenge faced by key players in the PEEK market is the lack of availability of quality compounders and distributors, due to the high level of technical competency that is involved in compounding or processing PEEK. The compounding of PEEK is much more complex than that of high-performance polymers and requires specialized equipment and systems. Another problem faced by PEEK compounders is the requirement of high temperature for processing. These high temperatures are difficult to maintain during the compounding process, and fluctuations affect the quality of the end product.
Victrex plc (U.K.) is projected to continue its dominance in the market over the coming years. It is a debt free company, and generated the highest profit margins in the PEEK market in 2015. To establish its strong hold in the North American region and to compete with Solvay S.A. in North America, the company acquired Kleiss Gears, a US polymers gears producer for USD 6 million in 2015. The company has established a major Polymer Innovation Centre in northern England in 2015, and has added new capacities to cater to the increasing demand in the PEEK market. The company also expanded its distribution network for Victrex PEEK globally.
Solvay S.A. (Belgium), another key player operating in the PEEK market, recently expanded its PEEK production capacity to 2,500 tons by establishing a new plant for PEEK production in Georgia (U.S.) in 2016. In addition, the company is investing in high-growth areas and regions such as, North America, Europe, and the Asia-Pacific. The company has adopted new product launches, acquisitions, and expansions strategies to strengthen its market position as a leader in the PEEK market. For instance in 2015, Solvay S.A. acquired EPIC Polymer (Germany), a long-fiber thermoplastics technology provider, to provide innovative products to its customers.
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