Envalior Senior Leaders Discuss the Future of HPEM & Market Trends with ObserveNow

The global high-performance engineering materials market is experiencing remarkable growth, with projections indicating a significant increase in value over the next decade. In 2024, the market is valued at USD 66.57 billion, and by 2034, it is expected to reach an estimated USD 159.35 billion, growing at a compound annual growth rate (CAGR) of 9.12%. As industries shift towards sustainability, the market for high-performance composites in the Asia Pacific region is also on the rise, with an anticipated CAGR of 9.23%.
In the midst of this transformation, Envalior—formed through the merger of DSM Engineering Materials and LANXESS High Performance Materials—is emerging as a key player. Envalior is driving innovation and sustainability across sectors such as automotive, electronics, and construction.
ObserveNow Media engaged with senior leaders from Envalior, including Christophe Cazabeau, President, Performance Materials Division, Envalior; Milan Vignjevic, APAC Regional Commercial Director, Envalior and Nileshkumar Kukalyekar, Business Director, South Asia, Middle East, and Africa, Envalior to gain insights into the company’s vision and its role in shaping the future of high-performance engineering materials.
Here are the edited excerpts from the interview:
Q: How do you balance global sustainability priorities with regional market demands, particularly in fast-growing markets like India?
Christophe Cazabeau:
At Envalior, sustainability is at the core of our strategy. We have set ambitious goals, including reducing greenhouse gas emissions by 75% by 2030 and achieving net-zero emissions by 2040. We are transitioning to 100% renewable electricity in our global manufacturing processes.
Our portfolio includes a broad range of solutions, with over 150 products either bio-based or made from recycled materials. For instance, Akulon® Repurposed, which recycles fishing nets, is used in applications such as automobiles and consumer electronics. Another example is Stanyl®Bio-based, which reduces reliance on fossil-based materials and lowers CO2 emissions. We ensure that these solutions meet specific regulations and customer expectations across different regions.
Q: How do you foresee the growth of India’s automotive sector over the next five years?
Nileshkumar Kukalyekar:
India’s automotive sector is poised for significant growth. The country has a large and growing population, and the penetration of four-wheelers remains low. This presents a vast opportunity for growth in the automotive market.
India’s GDP growth, especially in the automotive sector, is encouraging. We are witnessing an increase in middle-class income, and more SUVs are hitting the roads. With this, there is a growing demand for innovations such as Advanced Driver Assistance Systems (ADAS), where we are well-positioned to contribute.
In the next five years, I see strong growth in mid-size and high-end SUVs, as well as a recovery in the two-wheeler segment. The shift towards electric vehicles (EVs) is also gaining momentum, and we expect double-digit growth in this segment as well.
Q: How do you see sustainability in South Asia, especially in the automotive sector?
Nileshkumar Kukalyekar:
Sustainability in South Asia, particularly in India, is evolving. There are three key factors at play: sustainability, performance, and cost. While the industry is still maturing, we’ve seen significant changes in recent years. The Indian government has been pushing for sustainability, particularly through initiatives like the Faster Adoption and Manufacturing of Electric Vehicles (FAME) scheme.
Also, OEMs (Original Equipment Manufacturers) are becoming more receptive to sustainable practices and circularity.
Q: How would you assess the role of the government in promoting sustainability in South Asia?
Nileshkumar Kukalyekar:
The Indian government is taking significant steps to promote sustainability, especially in the automotive sector. For example, the FAME II initiative provides incentives for electric vehicles, and there’s a growing push for recyclable materials in automotive production.
In other South Asian countries, the focus is still on meeting immediate economic needs, but the trends in India are encouraging. There’s a clear move towards sustainability, and government policies are aligning with these needs. The industry and the government are collaborating more to push for sustainable practices, and we are seeing a growing acceptance of these materials among OEMs.
Q: What is your perspective on sustainability in the Middle East and Africa?
Nileshkumar Kukalyekar:
The situation in the Middle East and Africa is quite different. The Middle East, for example, doesn’t have the same automotive or electronics industries as India. However, there is a growing focus on building and construction, and sustainability in these sectors is becoming a priority.
Countries like Saudi Arabia are entering the automotive sector with initiatives like Ceer Automotive, but the main focus in the region is on construction materials. Sustainability efforts in this area often focus on transitioning from thermoset to thermoplastic materials, which can be recycled more easily.
In South Africa, we see a mix of industries, including automotive and electronics, and there is increasing demand for sustainability, especially as the country exports vehicles to Europe. As markets in the Middle East and Africa continue to evolve, we expect growing interest in sustainable materials across industries.
Q: What role does Envalior play in driving the adoption of recycled and bio-based materials?
Milan Vignjevic:
Sustainability is integrated into everything we do at Envalior. Our focus is on three key channels:
Bio-based materials, where raw materials are sourced from renewable resources, such as our bio-based Arnitel and Stanyl products.
Eco-grades, which incorporate industrially recycled glass fibers into our products, with recycling content ranging from 50% to 80%.
Pure recycled materials, like our Akulon® repurposed products made from abandoned fishing nets, which help reduce ocean plastic waste.
We are also developing technologies for both mechanical and chemical recycling, driving the circular economy forward and reducing waste.
Q: With rapid urbanization and digital transformation, how do you foresee the performance materials industry evolving in the next decade?
Milan Vignjevic:
We are witnessing significant changes across the performance materials industry, driven by factors like urbanization, electrification, and government mandates for increased sustainability.
Envalior is well-positioned to lead these changes with products that cater to safety, energy efficiency, and sustainability. For instance, our Stanyl® PA46 material offers superior heat resistance, which is crucial for thermal management in electric vehicles. This product helps mitigate the risks associated with battery fires.
We also offer Tepex®, a lightweight composite material that is stronger than metal and has been used in the world’s first battery housing made from this material.
As industries continue to evolve, we are confident that the demand for high-performance materials will increase significantly, especially in Asia. Envalior is committed to driving innovation to meet the future needs of these industries.
The high-performance engineering materials market is experiencing robust growth, driven by the increasing demand for sustainability and innovation across various sectors. As industries transition toward more sustainable practices, there is a clear emphasis on bio-based and recycled materials that reduce environmental impact while maintaining performance standards. With key sectors like automotive, electronics, and construction undergoing transformation, the demand for advanced materials is expected to rise significantly in the coming years. As the market continues to evolve, the focus on energy efficiency, safety, and the circular economy will play a pivotal role in shaping the future of this industry.