Advanced Composites Market Snapshot

Key Players

  • Toray Industries (Japan)
  • Hexcel Corporation (United States)
  • SGL Carbon (Germany)
  • Teijin Limited (Japan)
  • Solvay (Belgium)
  • Mitsubishi Chemical Group (Japan)
  • Gurit Holding AG (Switzerland)
  • Formosa Plastics Corporation (Taiwan)
  • Plasan (Israel)
  • Exel Composites (Finland)

Market Size

Base Year 2024
$ 40.66 Bn
CAGR
9.29%
Forecast 2034
$ 98.86 Bn

Market Segments

By Matrix
  • Polymer matrix composites (PMCs)
  • Ceramic matrix composites (CMCs)
  • Metal matrix composites (MMCs)
By Manufacturing Process
  • Hand Lay-Up
  • Injection Molding Process
  • Resin Transfer Molding (RTM)
  • Filament Winding
  • Compression Molding
  • Pultrusion
  • Others
By End Use
  • Automotive
  • Building & Construction
  • Consumer Goods
  • Electrical & Electronics Goods
  • Pipes & Tank Manufacturing
  • Wind Power
  • Maritime
  • Defense & Aviation
  • Others

Market Dynamics

Drivers
  • Rising demand in aerospace industry
  • Growing automotive lightweighting trends
Restraints
  • High production and material costs
  • Limited recycling infrastructure
Opportunities
  • Lightweight automotive component demand
  • Aerospace structural material innovation
Trends
  • Growing aerospace composite demand
  • Lightweight automotive component adoption

Market Size

The Advanced Composites Market is valued at 44.43 Billion USD in 2025 and is projected to reach 98.86 Billion USD by 2034, with a CAGR of 9.3%. The market starts at 40.66 Billion USD in 2024 and exhibits a steady growth path through the following years, reflecting increasing demand for advanced materials in various industries. Growth is driven by advancements in technology and a rising need for lightweight, high-strength materials. In 2024, the regional share mix stands at 32.5% for North America, 34.8% for Asia Pacific, 27.3% for Europe, 4.2% for LATAM, and 1.2% for MEA.

Key Takeaways

  • By Matrix - Polymer matrix composites (PMCs) led the market accounting for a significant share with favorable growth prospects in 2024.
  • By Manufacturing Process - Injection Molding Process grew fastest driven by efficiency and high demand in 2024.
  • By End Use - Automotive held the largest share reflecting the growing need for lightweight materials in vehicle manufacturing in 2024.
advanced-composites-market market size

Key Driving Factors

Implementation of Stringent Environmental Regulations

In an effort to combat climate change, many nations have implemented stringent environmental regulations that limit carbon dioxide emissions. These standards have increased the pressure on industries such as aerospace, automotive, and construction to reduce their carbon footprint. Advanced composites possess the unique property of being lightweight yet durable, making them a desirable alternative to heavier materials like steel or aluminium. By integrating advanced composites into their material lineup, these industries could substantially reduce their overall product weight, thus lowering energy consumption and emissions. This has led to a surge in demand for advanced composites in these sectors and is a key driving factor affecting the market.

Surge in Wind Energy Generation

The global transition towards renewable energy, specifically wind energy, has become a significant driver for the advanced composites market. Wind turbine blades are traditionally made from fibreglass. However, advanced composites, specifically carbon composites, offer superior strength and stiffness qualities. This allows for the design and manufacture of longer, more efficient blades capable of harnessing more wind energy. With nations worldwide increasing their wind energy capacity as part of their green energy initiatives, the demand for advanced composites for wind turbine blades has notably increased, significantly driving the expansion of the advanced composites market.

Market Evolution by Timeline

2019-2023
During the period from 2019 to 2023, the Advanced Composites Market was marked by strong demand from sectors such as aerospace, automotive, and renewable energy. Notable buyers included Boeing and Airbus, which adopted carbon fiber reinforced composites in aircraft sections to improve fuel efficiency. The automotive sector saw companies like Ford and Tesla using composites for lightweighting vehicles and enhancing performance. In Europe, initiatives like the European Composites Industry Association (EuCIA) promoted the adoption of composite materials through awareness campaigns. On the supply side, companies such as Hexcel and Toray increased production capacity for prepregs and thermoplastics, facing constraints from raw material shortages. Regulations, such as the FAA's certification process for new materials, impacted deployment timelines. Pricing trends showed moderate increases driven by higher raw material costs, particularly for carbon fibers. Contract models typically involved long-term supply agreements with major manufacturers, while the risk of production delays due to supply chain disruptions was managed through diversified sourcing strategies.
2024
In 2024, the Advanced Composites Market began to witness a shift towards more sustainable practices. Buyers increasingly included companies focused on reducing carbon footprints, such as those in the wind energy sector. The certification of biocomposites gained attention, supported by initiatives like the EPA's Sustainable Materials Management Program, pushing eco-friendly materials into mainstream use. On the supply front, advancements in automated production techniques improved integration and reduced costs, allowing smaller firms to enter the market. Partnerships formed between material suppliers and manufacturers, such as BASF teaming up with Siemens for composite applications in energy production. Price stabilizations occurred due to increased competition among suppliers and a greater emphasis on recycling composite materials, as highlighted by the Circular Composites project. Practical risks included regulatory delays in material approvals and performance certification, but these were addressed by increased collaboration between stakeholders to streamline procedures, thus managing certification timelines effectively.
2025-2029
During the 2025–2029 timeframe, the Advanced Composites Market expanded further into emerging technologies, such as aerospace structures using lighter composite materials. Major buyers included military organizations like the U.S. Department of Defense, which invested in advanced composites for next-generation fighter jets. Regions like Asia Pacific, particularly in countries like China and India, began to adopt composites extensively in auto manufacturing, supported by government policies promoting lightweight vehicles for pollution reduction. Technologically, the industry saw significant progress in resin systems and manufacturing processes, with 3D printing of composites being explored. Key regulatory frameworks, including ISO 13022 for fiber-reinforced composites, began to standardize material properties and testing methods. Pricing trends indicated a gradual decrease as production methodologies matured, while commercial contracts often included performance-based clauses to ensure quality over time. Risks during this period included market saturation in certain sub-segments, countered by innovation in new applications, easing pressure on existing players and fostering a more diversified market landscape.
2030-2034
The period from 2030 to 2034 is characterized by further saturation of the Advanced Composites Market, with widespread adoption across sectors like construction and consumer electronics. Major buyers such as tech firms like Apple and Samsung integrated composites to create lightweight and durable devices. The global approach to sustainability drove demand for circular economy practices, focusing on recycling and lifecycle management of composites, guided by frameworks such as the European Green Deal. On the technology side, artificial intelligence-enhanced manufacturing processes enabled customized production with improved efficiency. Geopolitical tensions may pose risks to supply chains, prompting firms to localize supply sources, especially in North America. Prices for advanced composites remained volatile due to fluctuating raw material availability and geopolitical factors, influencing contract structures that included risk-sharing agreements. The rise of composite-based bioengineering applications indicated a growing diversification of use cases. Adoption barriers included the need for ongoing employee training in advanced processing techniques, prompting firms to invest in comprehensive workforce development programs.

Future Market Outlook

Technology Trends

In recent years, advanced composites have gained significant traction across various sectors due to their favorable properties such as lightweight, high strength, and improved durability. Companies like Boeing and Airbus have turned to carbon fiber reinforced composites for their aircraft models, particularly in the Boeing 787 and Airbus A350, which employ these materials extensively to enhance fuel efficiency. The automotive industry is also adopting advanced composites; for instance, automakers such as BMW with its i series and Lamborghini with the Urus are incorporating materials like carbon fiber to improve performance while reducing vehicle weight. Regulatory bodies, including the Federal Aviation Administration, have established guidelines for the use of composite materials in airframe construction, which has spurred further research and development in the field. Standards developed by organizations such as ASTM International provide frameworks for testing and certification of these materials, ensuring safety and reliability are upheld in applications like aerospace and automotive. The growth in renewable energy sectors such as wind energy is also noteworthy, with turbine blades made from advanced composites becoming standard. As of 2023, the International Renewable Energy Agency reported increasing installation of composite-based wind turbines across Europe, further solidifying the material's position in green technologies. Overall, these trends indicate a steady shift toward the increased use of advanced composites in various industries, shaped by both technological advancements and regulatory support.

Future Opportunities

The advanced composites market is poised for significant opportunities driven by the expansion of electric vehicles, aerospace advancements, and renewable energy initiatives. As automobile manufacturers, such as Tesla, focus on electric vehicles, the need for lightweight, high-performance materials is becoming more pressing. This shift is evident with partnerships between companies like Ford and materials firms to incorporate advanced composites into their electric vehicle designs. In aerospace, initiatives from companies like NASA emphasize the development of composite materials for future space vehicles, anticipating their role in enhancing structural integrity while minimizing weight. Additionally, the global push for sustainability aligns well with the potential of advanced composites; for example, advancements in bio-based composites are being explored as alternatives to traditional petroleum-derived materials, with researchers at universities like MIT studying their applications. Furthermore, regulatory changes in many countries are promoting the use of advanced composites to reduce emissions, especially within the EU, where strict carbon reduction policies are influencing material choices in transportation sectors. Industries are also examining the circular economy potential of composites, with innovations in recycling methods garnering attention from firms looking to optimize resource usage. In conclusion, the ongoing developments in electric mobility, aerospace, and sustainability initiatives are creating a fertile ground for the growth and diversification of applications for advanced composites.

Segmentation Analysis

The advanced composites market is segmented into Matrix (Polymer Matrix Composites (PMCs) [Fiber (Glass, Carbon, Aramid, Others), Resin (Thermoset, Thermoplastic)], Ceramic Matrix Composites (CMCs), Metal Matrix Composites (MMCs)), Manufacturing Process (Hand Lay-Up, Injection Molding Process, Resin Transfer Molding (RTM), Filament Winding, Compression Molding, Pultrusion, Others), and End Use (Automotive, Building & Construction, Consumer Goods, Electrical & Electronics Goods, Pipes & Tank Manufacturing, Wind Power, Maritime, Defense & Aviation, Others).

By Matrix

By Matrix, the market is segmented into polymer matrix composites (PMCs), ceramic matrix composites (CMCs), and metal matrix composites (MMCs). The polymer matrix composites (PMCs) subsegment accounted for the largest revenue share in 2024. The ceramic matrix composites (CMCs) subsegment is expected to grow at the fastest CAGR during the forecast period.

Largest Revenue Share

Polymer matrix composites (PMCs)

Market Share Leader

Polymer matrix composites currently lead in revenue within the composite materials market primarily due to their superior performance characteristics, lightweight properties, and versatility across various applications. The increasing demand in automotive, aerospace, and construction sectors notably drives their consumption. These sectors prioritize weight reduction to enhance fuel efficiency and performance, which PMCs uniquely offer through materials such as carbon and glass fibers. Industries are increasingly adopting advanced composite materials to meet stringent regulatory standards for emissions and performance. Geographically, North America and Europe are key markets, due to established aerospace and automotive manufacturing hubs that actively integrate these materials into their designs. Additionally, the established supply chains and partnerships enhance the availability of PMCs, further enabling their widespread use. Purchasing criteria emphasize durability, strength, and performance, alongside a cost-benefit analysis that favors PMCs due to their long-term value despite potentially higher initial costs. Switching costs are relatively moderate, as firms invest in new technologies and training. This combination of demand drivers, regulatory pressures, and geographic concentration highlight why polymer matrix composites dominate revenue streams in the composites market today.

Fastest CAGR

Ceramic matrix composites (CMCs)

Forecast Period Growth Leader

Ceramic matrix composites are poised for the fastest growth primarily due to their unique properties, including high thermal resistance, low density, and exceptional strength, which are increasingly sought after in aerospace, defense, and high-performance automotive applications. The aerospace sector particularly values CMCs for engine components, where heat resistance is critical. However, adoption barriers include higher production costs and technical challenges associated with manufacturing CMCs, which could impact scaling. Recent technological advancements in processing techniques have the potential to alleviate some of these barriers, making CMCs more accessible. Furthermore, partnerships between material suppliers and manufacturers are expected to drive innovation and collaboration, enhancing product development cycles. Policy shifts favoring lightweight solutions for fuel efficiency in transportation also act as catalysts for growth. However, near-term risks include economic fluctuations that can affect capital expenditure in key sectors, potentially dampening investment in advanced materials like CMCs. Overall, the combination of increasing demand in specific high-value sectors, proactive technological advancements, and supportive regulatory frameworks positions CMCs as the fastest-growing subsegment in the composite materials market.

By Manufacturing Process

By Manufacturing Process, the market is segmented into hand lay-up, injection molding process, resin transfer molding (RTM), filament winding, compression molding, pultrusion, and others. The injection molding process subsegment held the largest revenue share in 2024. The filament winding subsegment is expected to grow at the fastest CAGR during the forecast period.

Largest Revenue Share

Injection Molding Process

Market Share Leader

The Injection Molding Process leads in revenue due to its broad applicability across various industries, including automotive, consumer goods, and healthcare. This subsegment benefits from high production efficiency and the ability to produce complex shapes at scale, allowing companies to meet diverse customer demands. Furthermore, increased automation and technological advancements have reduced manufacturing costs and improved the precision of molded parts, further enhancing profit margins. Relevant industries are investing heavily in innovation, driving demand for specific applications using injection molding. Geographically, North America and Asia-Pacific lead the market due to a concentration of manufacturing facilities and strong demand from end-users. Regulatory frameworks favor processes that reduce waste and improve sustainability, pushing manufacturers toward injection molding technologies that align with these goals. Additionally, purchasing criteria heavily focus on turnaround times and cost-effectiveness, favoring suppliers with robust injection molding capabilities. High switching costs tied to specialized molds and supplier relationships contribute to customer retention, ensuring ongoing revenue for businesses investing in this process.

Fastest CAGR

Filament Winding

Forecast Period Growth Leader

Filament Winding is expected to have the fastest growth due to a surge in demand for lightweight and high-strength materials in sectors such as aerospace and renewable energy. The technology allows for the efficient production of composite parts with excellent mechanical properties, meeting the evolving needs of industries prioritizing performance and energy efficiency. While adoption barriers exist, including high initial investment in machinery and specialized workforce training, recent technological advancements are lowering these barriers. Collaborative partnerships between manufacturers and material suppliers are fostering innovation that enhances process capabilities, making filament winding more accessible. Moreover, government policies promoting the use of composite materials, particularly in energy and transportation sectors, serve as catalysts for development and encourage investment in this area. However, risks include fluctuating material costs and potential changes in regulatory frameworks that could impact operational practices. Overall, the prospects for filament winding are optimistic, driven by an expanding application base and innovations enhancing its production efficiency and viability.

By End Use

By End Use, the market is segmented into automotive, building & construction, consumer goods, electrical & electronics goods, pipes & tank manufacturing, wind power, maritime, defense & aviation, and others. The automotive subsegment accounted for the largest revenue share in 2024. The wind power subsegment is expected to grow at the fastest CAGR during the forecast period.

Largest Revenue Share

Automotive

Market Share Leader

The automotive subsegment leads in revenue due to a combination of consistent demand, technological advancements, and regulatory frameworks promoting electric vehicles. As the automotive industry continues to evolve with the rise of electric and autonomous vehicles, manufacturers are increasingly investing in new technologies, materials, and manufacturing processes. The growing consumer preference for fuel-efficient and environmentally sustainable vehicles is driving both production and sales. Major automotive markets such as North America, Europe, and Asia-Pacific are witnessing a surge in demand, fueled by rising disposable incomes and a focus on modernization. Moreover, government regulations encouraging emissions reductions and sustainability play a critical role; these incentives promote investments in cleaner technologies. Purchasing criteria for manufacturers focus on high-quality materials that enhance safety, reduce emissions, and comply with stringent regulations. The automotive supply chain is becoming increasingly complex, necessitating strong partnerships with suppliers of advanced materials and components. Switching costs for consumers remain moderate, as they consider factors like performance and brand reputation. Overall, the automotive subsegment stands out as the revenue leader due to its robust demand and alignment with technological and regulatory trends shaping the future of transportation.

Fastest CAGR

Wind Power

Forecast Period Growth Leader

The wind power subsegment exhibits the fastest growth outlook, driven by an escalating demand for renewable energy and significant technological advancements in turbine efficiency. Government policies aimed at reducing carbon emissions and transitioning to sustainable energy sources have led to increased investments in the wind power sector. Key catalysts include favorable tax incentives, grants, and commitments to international climate agreements that encourage the development of renewable energy projects. Despite these growth drivers, challenges such as fluctuating energy prices and infrastructure limitations pose adoption barriers. The initial capital expenditure for establishing wind farms can be high, deterring some investors. Additionally, regional disparities in wind energy potential necessitate consideration of local conditions, which can complicate project deployment. Strategic partnerships with local governments and energy providers can significantly mitigate these hurdles, enhancing investment feasibility. Near-term risks include supply chain disruptions, which might arise from geopolitical tensions or raw material shortages, impacting project timelines. However, as technology continues to improve and the global push for clean energy intensifies, wind power positions itself as an attractive growth opportunity within the energy landscape.

Competitive Analysis

Key Market Players

The Advanced Composites Market is competitive, with a mix of large established companies and smaller regional players. Most companies focus on improving their products/services, keeping prices attractive, and strengthening relationships with key customers. They also use partnerships, acquisitions, and new launches to expand their presence in existing and new markets. Overall, players compete on quality, reliability, and value, and competition is expected to remain strong over the forecast period.

Manufacturers / OEMs

Toray Industries, Inc.
Japan
BASF SE
Germany
Hexcel Corporation
US

Key Suppliers & Raw Materials

Cytec Industries Inc.
US
Solvay S.A.
Belgium
SABIC
Netherlands

Distributors, Integrators & Channel Partners

3M Company
US
Hexion Inc.
US
JEC Group
France

Porter’s Five Forces Analysis

This analysis evaluates the competitive landscape of the Advanced Composites Market, focusing on key industry dynamics.

Supplier Bargaining Power

Medium

Suppliers are few, leading to moderate pricing power due to specialized materials and technologies.

Buyer Bargaining Power

Medium

Buyers include large OEMs with some leverage, but switching costs can deter them from changing suppliers.

Threat of Substitutes

High

Alternative materials exist, and advancements in substitutes can pose significant competitive threats.

Threat of New Entrants

Medium

Barriers include high capital requirements and the need for advanced technology and certifications.

Competitive Rivalry

High

The market is crowded, with numerous players competing on innovation, quality, and price.

Regional Analysis

Geographic market dynamics and growth opportunities across key regions

Global Market Outlook

advanced-composites-market market regional share

North America

In 2024, the North American advanced composites market is driven by growing demand across the aerospace, automotive, and energy sectors. The increasing emphasis on lightweight materials to enhance fuel efficiency and reduce emissions is a key factor. Regulatory frameworks such as the U.S. EPA’s stringent emissions standards compel manufacturers to adopt advanced composites. Concurrently, continuous investment in research and development fosters innovation, with the automotive sector yielding notable advancements in composite materials that improve safety and performance. Recent technological additions, such as automated production methods, enhance efficiency and reduce costs, impacting supply dynamics favorably.

Trends indicate a marked shift towards sustainable manufacturing practices, with buyers prioritizing eco-friendly materials. Partnerships between material suppliers and OEMs in the automotive and aerospace industries are increasing, streamlining the supply chain and enhancing product offerings. Furthermore, the enforcement of industry standards, such as those from the FAA, necessitates compliance with checked and certified composite materials, influencing purchasing decisions. The healthcare sector is also adopting advanced composites for medical devices, highlighting a diversification in usage. Overall, the advanced composites market in North America reflects a strategic alignment of technology, regulation, and consumer preferences, shaping its landscape in 2024.

Asia Pacific

In 2024, the Advanced Composites Market in Asia Pacific demonstrates robust growth, driven by increasing industrial demand and technological advancements. Key drivers include substantial investments in aerospace and automotive sectors, particularly in China and India, as manufacturers seek lighter materials to enhance fuel efficiency and reduce emissions. Regulatory mandates, such as Japan's stringent environmental standards, further accelerate adoption, compelling companies to integrate advanced composites into their supply chains. Additionally, the rise in military spending in South Korea fuels demand for advanced materials used in defense applications.

Trends within the market reveal shifting buyer behaviors, with enterprises seeking specialized composite solutions to meet unique applications, notably in the renewable energy sector. This shift encourages collaboration and partnerships among manufacturers and research institutions, enhancing innovation. Notably, the integration of digital technologies in production processes is becoming standard, improving efficiency and reducing costs. Mergers and acquisitions among composite manufacturers are also on the rise, driven by a quest for technological synergies and broader market reach. Policies such as China’s Made in China 2025 seek to stimulate domestic production of advanced materials, influencing channel dynamics and prioritizing local sources over imports. These developments underscore the sector’s vital role across numerous industries, including automotive, aerospace, and renewable energy.

Europe

In 2024, the advanced composites market in Europe is characterized by increasing demand across sectors such as automotive, aerospace, and renewable energy. Key drivers include the ongoing shift towards lightweight materials, spurred by stringent emissions regulations aimed at reducing carbon footprints in the automotive and aviation industries. Investment in advanced manufacturing technologies such as automation and 3D printing further enhances the production capabilities of composite materials, leading to improved supply dynamics. Pricing pressures arise as raw material costs fluctuate, particularly with carbon fiber and resin production impacted by global supply chain challenges.

Trends reveal a growing preference among buyers for sustainable materials, prompting manufacturers to innovate in bio-based composites. There is a marked increase in partnerships and mergers within the sector, exemplified by collaborations between established aerospace firms and startups specializing in composite technologies. Additionally, regulatory standards such as the European Union's REACH regulation influence material compliance, shaping sourcing decisions for manufacturers. In the Nordics and Benelux, considerable investment in wind energy infrastructure drives demand for composites, while Central and Eastern European countries witness increased adoption in various industrial applications, reflecting broader regional growth in high-performance materials.

Latin America

In 2024, the Advanced Composites Market in Latin America experienced significant development, driven by increasing demand across various sectors. The aerospace and automotive industries, particularly in Brazil and Mexico, propelled growth as manufacturers sought lightweight, high-strength materials to enhance fuel efficiency. Additionally, Brazil’s investment in infrastructure development led to heightened demand for composites in construction applications. Regulatory frameworks, such as Argentina's initiatives promoting sustainable materials, further intensified interest and adoption within the sector.

Trends reflected a shift toward sustainable and recyclable composite materials, as consumers and businesses increasingly prioritized environmental considerations. The uptake of technology allowing for the integration of advanced materials in production processes was notable, enhancing performance and reducing waste. Collaborative partnerships emerged among manufacturers, research institutes, and government entities aimed at fostering innovation in composite applications, particularly in Colombia and Chile.

Moreover, buyers displayed a growing preference for localized suppliers to reduce lead times and costs, reshaping supply chain dynamics. The push for compliance with international standards and regulations prompted manufacturers to invest in quality assurance and certification processes. Consequently, major players intensified their efforts in mergers and acquisitions to bolster their market share and enhance product offerings in the region.

Middle East & Africa

In 2024, the advanced composites market in the Middle East and Africa is characterized by increasing demand across diverse sectors, significantly influenced by regional investment initiatives and technological advancements. Key drivers include rising activities in the oil and gas sector, particularly in Saudi Arabia and the UAE, where the drive for enhanced efficiency and lighter materials prompts a shift towards composite materials. Government regulations focusing on environmental sustainability in transportation and construction sectors further stimulate market growth, as seen in Qatar's National Vision 2030. Furthermore, the adoption of advanced manufacturing technologies, such as automated fiber placement, is increasingly prevalent, particularly in aerospace applications within Israel.

Trends indicate evolving buyer behavior, with an inclination towards lightweight, durable materials driven by industries like automotive and aerospace, which are recognizing the long-term cost benefits of composites. Partnerships between local suppliers and international composite manufacturers are becoming common in Egypt and South Africa, enhancing the local expertise and production capabilities. Additionally, the enforcement of standards around safety and performance in multiple sectors creates a more structured market environment, compelling both new entrants and established players to adapt. Overall, the dynamics in this region highlight a transformation towards advanced composite solutions across industries, primarily driven by technological and regulatory influences.

Recent Industry Developments

Latest market innovations, product launches, and strategic initiatives

August 2025

Karma Automotive launched advanced composite structural components that utilize thermoplastic UD tape platforms validated for compression molding. This innovation targets electric vehicle battery enclosures with integrated EMI shielding to reduce weight and enhance performance.

June 2025

Marshall Group completed the sale of its subsidiary Slingsby Advanced Composites Ltd. to Mangohojden AB, a Swedish private company. The acquisition aims to build a group of specialized aerospace and defense companies to support European defense industry growth.

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