Advanced Composites Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Fiber Type (S-Glass Composite, Aramid Fiber Composite, Carbon Fiber Composite, Others), By Manufacturing Process (Hand Lay Process, Injection Molding, Compression Molding, Pultrusion, Others), By End User (Transportation, Aerospace, Electricals & Electronics, Others), By Region and Competition, 2020-2030F

Market Overview

Advanced Composites Market was valued at USD 34.23 billion in 2024 and is expected to reach USD 42.74 billion by 2030 with a CAGR of 3.89%. Advanced Composites are materials that are composed of more than two constituent elements possessing different chemical or physical properties. The advanced composite, also known as the polymer matrix, showcases extraordinary properties, including high-strength fibers with remarkable stiffness, elasticity, temperature resistance, chemical resistance, dimensional stability, and more. These composites have a wide range of applications, particularly in replacing metal components, and are extensively utilized in the aerospace industry.

These advanced composites play a crucial role in the manufacturing of high-performance supercars and aircraft parts, such as engine nacelles, wings, elaborators, floor beams, ailerons, rudders, landing gear doors, and various other components. Their exceptional strength combined with reduced weight significantly enhances operational efficiency. By employing advanced manufacturing processes, multiple components are blended to create advanced composite materials (ACM) that possess high specific strength and stiffness. Compared to the traditional composite materials commonly used in reinforced concrete, structures made from advanced composites are lightweight and exhibit exceptional strength.

The Advanced Composites Market is expected to experience substantial growth due to increasing demand in the automotive and aerospace industries. These industries value advanced composites for their outstanding technical properties, including high strength, stiffness, fatigue resistance, and abrasion resistance. The adoption of advanced composites is driven by the need for high-performance components in supercars and aircraft, as they provide excellent strength while reducing overall weight. The rapid pace of urbanization and improved lifestyle will contribute to an increase in the number of airline passengers, accompanied by reduced airfare prices. For instance, it is projected that global air traffic will grow by over 5% by 2025. In 2022, global aircraft deliveries reached 1,239 units, marking a 19.1% increase from 2021. Most of these deliveries, along with new orders for 2023, consist of next-generation narrow-body jets primarily destined for airlines in Asia Pacific, Europe, and North America, the top three passenger markets. However, aircraft manufacturers have noted ongoing supply chain disruptions, which are expected to delay production and future deliveries.dditionally, the automotive industry will play a significant role in the growth of the Advanced Composites Market, especially in countries like China, Japan, and the United States. Automobile manufacturers are increasingly incorporating polymer composites into their vehicles as part of their initiatives to enhance performance and efficiency.

The utilization of advanced composites presents a promising future in various industries, driven by their exceptional properties and the continuous efforts of manufacturers to innovate and improve their products.

Key Market Drivers

Growing Demand of Advanced Composites in Transportation Industry

Advanced composites, often referred to as high-performance composites, are engineered materials made by combining high-strength fibers such as carbon or glass with polymer resins. These materials exhibit exceptional mechanical properties, including a superior strength-to-weight ratio, excellent corrosion resistance, and enhanced durability. These characteristics make advanced composites highly suitable for a wide range of applications across the transportation sector.

In recent years, the transportation industry has increasingly adopted advanced composites to meet the growing demand for lighter, more fuel-efficient, and environmentally sustainable vehicles. By integrating these materials into vehicle structures—such as frames, body panels, interiors, and propulsion systems—manufacturers can significantly reduce overall weight, resulting in improved fuel economy and lower emissions. Unlike conventional materials like steel or aluminum, advanced composites offer better resistance to wear and corrosion, reducing maintenance requirements and extending the operational life of vehicles, which ultimately leads to long-term cost savings. 

Beyond automotive applications, the use of advanced composites is expanding into aerospace, marine, and rail industries. Their lightweight and high-performance characteristics are particularly beneficial in sectors where weight reduction directly contributes to energy efficiency and payload optimization. As a result, demand for advanced composites continues to grow globally. In response to this trend, manufacturers are heavily investing in research and development to produce new composite formulations that cater to specific industry needs. These efforts are focused not only on performance but also on improving manufacturing efficiency and cost-effectiveness. The broader shift toward sustainable transportation solutions has further accelerated the adoption of advanced composites. As environmental regulations tighten and industries pursue net-zero goals, these materials are seen as a key enabler of cleaner, more efficient mobility systems. The global demand for transport is expected to grow significantly over the next three decades, with passenger transport set to nearly triple by 2050, increasing from 44 trillion to 122 trillion passenger-kilometres. Freight demand is also projected to experience similar growth. This surge in demand presents opportunities for advanced composites, which are increasingly being used to address the industry's need for lighter, more fuel-efficient vehicles. Advanced composites offer exceptional strength, durability, and corrosion resistance, making them ideal for the transportation sector. As manufacturers continue to prioritize sustainability and fuel efficiency, advanced composites will play a critical role in the development of next-generation transportation solutions, driving growth in aerospace, automotive, and rail industries.

Advanced composites represent a transformative opportunity for the transportation industry. Their continued evolution is expected to play a central role in shaping the future of mobility across multiple modes of transport.

Growing Demand of Advanced Composites in Electronic Industry

Advanced composites are cutting-edge materials formed by combining high-strength fibers, such as carbon or glass, with polymer resins. This innovative blend results in materials that offer exceptional mechanical properties, including an outstanding strength-to-weight ratio, superior corrosion resistance, and remarkable durability. These characteristics make advanced composites highly versatile and suitable for a wide array of applications across various industries. The electronics industry has increasingly adopted advanced composites to enhance product performance and longevity. Due to their lightweight nature, exceptional strength, superior electrical insulation properties, and resistance to environmental factors, these composites have become the preferred choice for many electronic applications. The growing miniaturization of electronic devices has further driven the demand for materials capable of withstanding high temperatures, maintaining dimensional stability, and offering effective electromagnetic shielding. Advanced composites meet these requirements, positioning them as an ideal solution for evolving industry needs.

Advanced composites are widely utilized in the manufacturing of electronic components such as circuit boards, connectors, insulators, and enclosures. They are also critical in the production of semiconductors, capacitors, resistors, and other essential electronic devices. Their unique properties allow them to meet the stringent demands of modern electronics, supporting the industry's focus on improving device performance, reliability, and efficiency. The rising demand for advanced composites in the electronics sector is significantly impacting the global market. As more manufacturers recognize the advantages of these materials, the need for advanced composites is expected to continue growing. This demand is driving substantial investment in research and development, encouraging the creation of new, high-performance composites tailored to the specific requirements of the electronics industry.

The sustained growth of the electronics industry, fueled by rapid technological advancements and increasing consumer demand, is expected to provide a substantial boost to the advanced composites market in the coming years. In conclusion, advanced composites are transforming the electronics industry, offering critical performance enhancements. As innovation continues, these materials will remain integral to the advancement of electronic technologies.

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Key Market Challenges

Volatility in Price of Raw Materials

Advanced composites, also known as composite materials, are a class of high-performance materials that are created by combining strong fibers, such as carbon fibers, with polymer resins. These materials possess exceptional mechanical properties, including a high strength-to-weight ratio and resistance to corrosion. As a result, they are increasingly being utilized across a wide range of industries and applications, including aerospace, automotive, and construction. The production process of advanced composites relies on several key raw materials, such as carbon fibers, epoxy resins, and thermoplastic polymers. These raw materials play a crucial role in determining the quality and performance of the final composite product. However, the prices of these raw materials can be subject to significant fluctuations due to various factors, including changes in supply and demand dynamics, geopolitical tensions, natural disasters, and regulatory policies.

The price volatility of these raw materials presents a significant challenge for manufacturers operating in the advanced composites market. To ensure smooth operations and maintain profitability, manufacturers often need to carefully plan their production schedules and budgets well in advance. However, sudden, and unpredictable changes in raw material prices can disrupt these plans, leading to increased production costs and reduced profit margins. This inherent uncertainty regarding raw material prices can complicate the pricing strategies of manufacturers. While they strive to remain competitive in the market, they must also ensure that their products are priced adequately to cover costs and maintain profitability. Failure to strike this delicate balance can potentially impact their market share and overall competitiveness.

Given these challenges, manufacturers in the advanced composites industry must closely monitor the market dynamics, establish strong supplier relationships, and implement effective risk management strategies to mitigate the impact of price volatility. By doing so, they can navigate these complexities and maintain their position in a highly competitive market landscape.

Key Market Trends

Advancements in Manufacturing Technologies

As the demand for advanced composites continues to grow, there is an increasing need for efficient, scalable, and cost-effective manufacturing technologies that can meet these demands. In recent years, significant advancements have been made in this area, with the development of new techniques and processes aimed at improving the production of advanced composites. One notable advancement in this field is the use of automated fiber placement (AFP) and automated tape laying (ATL) technologies. These cutting-edge methods allow for the precise placement of composite materials, resulting in improved product quality and reduced waste. By precisely controlling the arrangement of fibers, manufacturers can enhance the strength and durability of composite structures, making them ideal for a wide range of applications.

Another emerging trend in the advanced composites sector is additive manufacturing, commonly known as 3D printing. This innovative technology enables the creation of complex, custom-designed composite parts with minimal waste. By building up the material layer by layer, manufacturers can achieve intricate geometries and optimize the use of materials, leading to greater design flexibility and reduced production costs. This opens up new possibilities for the use of advanced composites in industries such as aerospace, automotive, and healthcare. Advancements in curing technologies, such as out-of-autoclave (OOA) curing and microwave curing, are revolutionizing the efficiency and quality of composite production. OOA curing eliminates the need for expensive autoclave equipment, reducing manufacturing costs and increasing production capacity. Microwave curing, on the other hand, offers faster curing times and improved material properties, enhancing the overall performance of composite products.

These remarkable advancements in manufacturing technologies are not only transforming the advanced composites market but also driving innovation within the sector. As manufacturers continue to adopt and refine these technologies, we can expect to witness the emergence of new composite materials and applications. This will further expand the possibilities for utilizing advanced composites in diverse industries, unlocking new levels of performance, sustainability, and cost-effectiveness.The continuous development and integration of advanced manufacturing technologies are propelling the advanced composites industry to new heights. These advancements are enabling manufacturers to produce higher-quality products more efficiently and at a lower cost, democratizing the use of advanced composites across various sectors. As technology continues to evolve, we can anticipate even more groundbreaking discoveries and applications in the field of advanced composites.

Segmental Insights

End User Insights

The aerospace segment is projected to experience rapid growth during the forecast period. The aerospace industry is experiencing positive year-on-year growth, fueled by increasing investments. This growth is expected to drive the demand for composites in the industry over the projected period. The automotive industry segment is also anticipated to witness notable growth. This growth can be attributed to the rising penetration of composites in vehicles. With the automotive industry's increasing demand for durable, lightweight, and conductive raw materials, the advanced composites market is poised to thrive over the forecast period. The integration of these advanced composites will contribute to the development of innovative and high-performance vehicles, meeting the industry's evolving demands.

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Regional Insights

North America emerged as the largest market in the Global Advanced Composites Market in 2024, holding the largest market share in terms of value. The growing demand in the automotive and aerospace and defense industry can be attributed to several factors. In the automotive sector, North America stands out as one of the largest markets in the world, with the United States being a major producer of automobiles. This market size is driven by the significant disposable income of consumers, which allows for increased spending on vehicles. The ability of mass production and high product variation has further fueled the growth of the automotive industry in the country. As for the aerospace and defense industry, advancements in technology and the need for innovative solutions have contributed to its expansion. The increasing complexity of aerospace systems and the growing importance of defense capabilities have created a demand for cutting-edge technologies and expertise. Together, these factors have propelled the growth of both industries, making them vital contributors to the overall economic landscape.

Recent Developments

• In 2022, Insight Polymers and Compounding, a leading provider of advanced compounding solutions, expanded its state-of-the-art facilities in Tennessee with the installation of a cutting-edge twin-screw extrusion line. This latest addition opens up a world of possibilities, as it enables high-temperature processing and reactive extrusion techniques. With the new extrusion line, Insight Polymers can now achieve exceptional results in nanoparticle dispersion, graft polymerization, and exfoliation, further enhancing their ability to deliver innovative polymer solutions to their customers.
• In 2022, the Bioproduct Chemistry team made a significant breakthrough in the development of eco-friendly materials. They successfully engineered a process to produce robust and flexible cellulosic films that retain their strength even when exposed to moisture. What sets this material apart is the ingenious combination of biodegradable polymers and wood-based components, without the need for any chemical modification. By maximizing the inherent benefits of each component, the team has created a sustainable solution that offers superior performance and environmental advantages. This innovation opens up new possibilities for a wide range of applications, from packaging to biomedical materials, driving the transition towards a greener and more sustainable future.

Key Market Players

• Toray Industries, Inc.
• Koninklijke Ten Cate NV
• Teijin Limited
• Hexcel Corporation
• SGL Carbon Corp
• Cytec Industries Inc
• Owens Corning
• E. I. Dupont De Nemours and Company
• Huntsman Corporation
• Momentive Performance Materials Inc.

Report Scope:

In this report, the Global Advanced Composites Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Advanced Composites Market, By Fiber Type:

o   S-Glass Composite

o   Aramid Fiber Composite

o   Carbon Fiber Composite

o   Others

• Advanced Composites Market, By Manufacturing Process:

o   Hand Lay Process

o   Injection Molding

o   Compression Molding

o   Pultrusion

o   Others

• Advanced Composites Market, By End User:

o   Transportation

o   Aerospace

o   Electricals & Electronics

o   Others

• Advanced Composites Market, By Region:

o   North America

§  United States

§  Canada

§  Mexico

o   Europe

§  France

§  United Kingdom

§  Italy

§  Germany

§  Spain

o   Asia-Pacific

§  China

§  India

§  Japan

§  Australia

§  South Korea

o   South America

§  Brazil

§  Argentina

§  Colombia

o   Middle East & Africa

§  South Africa

§  Saudi Arabia

§  UAE

§  Egypt

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Advanced Composites Market.

Available Customizations:

Global Advanced Composites Market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

• Detailed analysis and profiling of additional market players (up to five).