Transportation Composites Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Material Type (Glass Fiber, Natural Fiber, Carbon Fiber Composite), By Resin (Thermoset, Thermoplastic), By Application (Interior, Exterior, Underbody), By Vehicle Type (Passenger Cars, Commercial Vehicles, Agriculture, Threshers), By Region, Competition 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 41.16 Billion
CAGR (2026-2031)	12.65%
Fastest Growing Segment	Passenger Cars
Largest Market	Asia Pacific
Market Size (2031)	USD 84.11 Billion

Market Overview

The Global Transportation Composites Market will grow from USD 41.16 Billion in 2025 to USD 84.11 Billion by 2031 at a 12.65% CAGR. Transportation composites are high-performance engineering materials engineered by combining a polymer matrix with reinforcement fibers, such as carbon or glass, to deliver superior strength-to-weight ratios for automotive, aerospace, and marine applications. The primary drivers propelling market growth include stringent government regulations mandating lower carbon emissions and the critical industrial imperative for vehicle lightweighting to enhance fuel efficiency and battery range. According to the AVK Federation of Reinforced Plastics, in 2024, the transport sector accounted for nearly 50% of the total composites market volume in Europe, underscoring the sector's pivotal role in material consumption.

Despite this robust demand, the market faces a significant challenge regarding the high cost of raw materials and complex manufacturing processes relative to traditional metals like steel and aluminum. This economic barrier, frequently exacerbated by the technical difficulties and expenses associated with recycling end-of-life composite structures, could impede broader adoption across cost-sensitive mass-production vehicle segments.

Key Market Drivers

The rapid expansion of the Global Electric Vehicle (EV) sector is a primary force reshaping the transportation composites market. As automotive manufacturers pivot away from internal combustion engines, the critical need to offset the significant mass of battery systems has made lightweight materials essential for maximizing vehicle range and energy efficiency. Thermoplastic and thermoset composites are increasingly utilized in battery enclosures, chassis components, and structural parts to achieve these weight savings without compromising safety or structural integrity. This shift is quantitatively supported by the surging adoption of electrified platforms; according to the International Energy Agency (IEA), April 2024, in the 'Global EV Outlook 2024', electric car sales approached 14 million in 2023, creating a direct and expanding channel for advanced material consumption in automotive production lines.

Simultaneously, the resurgence in commercial and defense aerospace manufacturing is driving substantial market growth. Aircraft OEMs are aggressively ramping up production rates to meet renewed global travel demand, relying heavily on carbon fiber reinforced polymers to reduce fuel burn and lower maintenance costs in next-generation airframes. According to Airbus, January 2024, in its annual commercial aircraft orders and deliveries report, the company delivered 735 commercial aircraft in 2023, representing an 11 percent increase over the previous year. This industrial recovery extends beyond large commercial liners to smaller aviation segments, further broadening the demand for high-performance composites. According to the General Aviation Manufacturers Association (GAMA), in 2024, global airplane shipments across general aviation sectors rose to 3,050 units in 2023, underscoring the broad-based momentum across the aerospace industry.

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Key Market Challenges

The substantial expense of raw materials and the complexity of manufacturing processes constitute a formidable economic barrier restricting the Global Transportation Composites Market. While aerospace sectors may absorb these premiums for performance gains, the automotive mass-production segment operates on thin margins that often favor traditional, lower-cost metals. This cost disparity is aggravated by intricate fabrication cycles, which are slower and more capital-intensive than metal stamping, thereby suppressing volume growth in cost-sensitive vehicle categories. According to the American Composites Manufacturers Association (ACMA), in 2024, the global market for light vehicle composite materials reached 4.9 billion pounds but resulted in flat year-over-year volume, indicating that despite lightweighting trends, these economic hurdles are actively stalling expansion.

Furthermore, the difficulty of recycling end-of-life structures compounds these financial risks. Unlike aluminum or steel, which benefit from established circular economies, cross-linked composite materials are technically challenging to reprocess. This lack of viable recycling infrastructure creates additional disposal costs and regulatory uncertainties for manufacturers, effectively discouraging the widespread displacement of metals in high-volume transportation applications.

Key Market Trends

The integration of natural fiber biocomposites into automotive interiors and semi-structural components is emerging as a critical trend, driven by the need to reduce cradle-to-gate carbon footprints beyond simple lightweighting. Unlike traditional carbon or glass reinforcements, bio-based alternatives such as flax and hemp offer superior vibration damping and unique aesthetic qualities while significantly lowering energy consumption during production. This shift towards sustainable material substitution is rapidly moving from niche prototyping to industrial-scale adoption. According to Bcomp, April 2024, in its Series C funding announcement, the company secured US$40 million to scale its flax-based composite solutions, explicitly targeting expanded production capabilities for the automotive and mass transportation sectors.

Simultaneously, the industry is witnessing significant advancements in composite recycling and circular economy solutions to address the persistent challenge of end-of-life disposal. Manufacturers are increasingly establishing closed-loop ecosystems where cured composite waste and prepreg scraps are reclaimed and repurposed into valuable secondary materials, thereby mitigating environmental liability and raw material costs. This transition is characterized by strategic partnerships between material suppliers and specialized recycling firms to industrialize upcycling processes. According to Toray Composite Materials America, July 2024, in the press release 'Toray Partners with Elevated Materials to Repurpose Carbon Fiber Prepreg Waste', the initiative has successfully diverted 200,000 pounds of carbon fiber waste from landfills, demonstrating the commercial viability of reclaiming high-value scrap for new industrial applications.

Segmental Insights

The passenger cars segment represents the fastest-growing category within the global transportation composites market. This expansion is primarily driven by stringent emission regulations and fuel economy mandates enforced by agencies such as the U.S. Environmental Protection Agency and the European Commission. Automotive manufacturers are increasingly integrating composite materials to achieve significant weight reduction, which is essential for compliance with these environmental standards. Additionally, the rising production of electric vehicles necessitates lightweight components to extend battery range, further accelerating the adoption of composites in the passenger vehicle sector.

Regional Insights

Asia Pacific maintains a leading position in the global transportation composites market, driven primarily by high-volume automotive and aerospace manufacturing in China, Japan, and India. The region’s dominance is underpinned by stringent government regulations regarding fuel economy and carbon emissions, compelling manufacturers to adopt lightweight composite materials for substantial weight reduction. Furthermore, the rapid expansion of the electric vehicle sector supports this trend, as composites are essential for offsetting heavy battery components to improve range. This strong industrial demand ensures the region remains the central hub for composite material consumption.

Recent Developments

• In October 2025, Hyundai Motor Group and Toray Industries, Inc. finalized a Strategic Joint Development Agreement to advance material innovation for future mobility solutions. Building upon a preliminary cooperation framework established in 2024, this partnership aims to integrate Toray’s expertise in carbon fiber-reinforced plastics with Hyundai’s automotive technologies. The collaboration focuses on developing lightweight, high-strength materials essential for enhancing the performance and safety of next-generation vehicles, including electric and special-purpose mobility platforms. Both companies committed to working closely across the entire value chain, from research and development to the commercial production of these advanced composite components.
• In May 2024, Teijin Automotive Technologies inaugurated a new topcoat and assembly facility in Huntington, Indiana, to support the production of modular painted roofs for the Ford Bronco. This expansion, representing an investment of more than $100 million, enhances the company's capabilities in advanced composite manufacturing, specifically for the automotive sector. The 164,000-square-foot facility is designed to streamline the manufacturing process, including compression molding and priming, to meet the growing demand for durable, lightweight vehicle components. The Chief Executive Officer of Teijin Automotive Technologies emphasized that this development positions the company to better serve key OEM customers with sustainable composite solutions.
• In March 2024, Hexcel Corporation and Arkema achieved a significant breakthrough in aeronautical structures by producing a high-performance thermoplastic composite demonstrator. This accomplishment resulted from a strategic partnership intended to develop out-of-autoclave manufacturing technologies for commercial aerospace applications. The companies successfully designed and manufactured a thermoplastic composite panel using high-performance materials that offer cost and time reduction benefits for high-rate production. This collaboration demonstrates the viability of thermoplastic composites in replacing metallic parts, thereby contributing to lighter, more fuel-efficient aircraft and supporting the aviation industry's sustainability goals.
• In February 2024, the Mitsubishi Chemical Group announced the development of a novel ceramic matrix composite (CMC) offering exceptional heat resistance up to 1,500 degrees Celsius. This breakthrough material, which utilizes pitch-based carbon fibers instead of traditional ceramic fibers, was designed primarily for demanding applications in the space and aerospace industries. The company showcased this innovation at the International Space Industry Exhibition in Tokyo, highlighting its potential for use in heat shields and engine components for reusable space transportation systems. By achieving high strength and thermal stability, this new composite material supports the advancement of next-generation aerospace vehicles that require lightweight solutions capable of withstanding extreme environments.

Key Market Players

• Hexcel Corporation
• Solvay S.A.
• Owens Corning
• Toray Industries, Inc.
• Teijin Limited
• Mitsubishi
• Chemical Holdings Corporation
• Jushi Group Co. Ltd.
• SGL Group

By Material Type	By Resin	By Application	By Vehicle Type	By Region
Glass Fiber Natural Fiber Carbon Fiber Composite	Thermoset Thermoplastic	Interior Exterior Underbody	Passenger Cars Commercial Vehicles Agriculture Threshers	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

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

• Transportation Composites Market, By Material Type:

• Glass Fiber
• Natural Fiber
• Carbon Fiber Composite

• Transportation Composites Market, By Resin:

• Thermoset
• Thermoplastic

• Transportation Composites Market, By Application:

• Interior
• Exterior
• Underbody

• Transportation Composites Market, By Vehicle Type:

• Passenger Cars
• Commercial Vehicles
• Agriculture
• Threshers

• Transportation Composites Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE