Functional Composites Market - Forecast(2024 - 2030)

The Functional Composites market size is estimated to reach more than US$85.5 billion by 2030, after growing at a CAGR of 7.8% during the forecast period 2024-2030. The rising demand from end-user industries such as aerospace & defense, automobile, building & construction and consumer goods & electronics is driving the functional composites market. Functional composites are compounds with unique electrical, optical and magnetic properties and it includes metal matrix composites, polymer matrix composites, ceramic matrix composites and hybrid matrix composites. The COVID-19 pandemic majorly impacted the functional composites market due to restricted production, supply chain disruption, logistics restrictions and a fall in demand. However, with robust growth and flourishing applications across major industries such as transportation and others, the Functional Composites market size is anticipated to grow rapidly during the forecast period.

 

Functional composites represent a burgeoning trend in modern industries, where materials are engineered to possess enhanced functionalities beyond traditional composite structures. These composites integrate diverse materials, including polymers, ceramics, and metals, to offer tailored properties such as strength, conductivity, or insulation, meeting specific application requirements across various sectors. One notable trend within functional composites is the focus on sustainability and environmental impact reduction, driven by growing consumer awareness and regulatory pressures. Manufacturers are investing in research and development to create eco-friendly composites that minimize carbon footprint and waste generation throughout their lifecycle. Additionally, advancements in nanotechnology and additive manufacturing techniques are revolutionizing the production of functional composites, enabling precise control over material properties and intricate designs. As industries continue to demand lightweight, durable, and multifunctional materials, the evolution of functional composites remains pivotal in shaping future innovations and driving competitiveness in global markets.

The “Functional Composites Report – Forecast (2024-2030)” by IndustryARC, covers an in-depth analysis of the following segments in the Functional Composites industry.

 

                                                            

 

By Type: Metal Matrix Composites, Polymer Matrix Composites, Ceramic Matrix Composites and Hybrid Matrix Composites.

By Function: Thermally Conductive, Electrically Conductive, Magnetic, Barrier, Functional Composite Matrix, Optics and Others.

By Application: Sensor, Body Panels, Valve Covers, Truck Beds, Storage Tanks, Electrical Components and Others.

By End-use Industry: Transportation (Automotive, Aerospace, Marine and Locomotive), Building & Construction (Residential, Commercial, Industrial and Infrastructure), Electrical & Electronics, Consumer Goods, Energy Industry and Others.

By Geography:  North America (U.S, Canada, Mexico), Europe (Germany, UK, France, Italy, Spain, Russia, Netherlands and Others), APAC (China, Japan India, South Korea, Australia & New Zealand, Indonesia, Malaysia, Taiwan and Others), South America (Brazil, Argentina, Chile, Colombia and others), and RoW (Middle East and Africa).

• Asia-Pacific dominates the Functional Composites market size. The increase in demand from end-user sectors, such as transportation and others, is the main factor driving the region's growth. The automotive sector in Asia-Pacific is rapidly growing due to a flourishing base for automotive manufacturers, demand for automotive compounds and production rise.

• One of the primary factors contributing to the Functional Composites market's favorable outlook is significant growth in the electronics sector around the world. The widespread use of Functional Composites in the consumer goods sectors also drives demand for items made with these composites.

• An increased focus on lightweight materials for enhanced efficiency and sustainability is evident. The demand for advanced functional composites with superior strength and durability is rising. Additionally, there's a notable trend towards incorporating eco-friendly materials and production processes.

The Polymer Matrix Composites segment held the largest share in the Functional Composites Market in 2023 and is projected to grow at a CAGR of 8% during the forecast period 2024-2030, owing to the extensive characteristics of polymer matrix composites over metal matrix composites, ceramic matrix composites and hybrid matrix composites. Polymer matrix composites are regarded for their low cost and simple fabrication methods. It is widely used in applications like scanners, devices, body panels and others, thereby increasing demand in various end-use industries. Thus, owing to tremendous advantages and better availability over other types, the demand for polymer matrix composites is growing for applications in major industries, thereby boosting the growth opportunities for Functional Composites in the projected years.

The Transportation segment held the largest share of the Functional Composites Market in 2023. The segment is projected to grow at a CAGR of 7.5% during the forecast period 2024-2030, owing to the increasing usage of ceramic balls in transportation components. Functional Composites are expected to drive demand for transportation applications as it is widely used in the body panel, sensors, valve covers and others, thereby boosting the functional composites market. According to the Energy Information Administration (EIA), by 2035, there would be 1.7 million automobiles worldwide. The third quarter of FY 2023–24 (Q3 FY 24) saw a significant increase in sales for India's electric two-wheeler market, up 34.42 percent from the previous quarter (Q2 FY 24), according to data available from VAHAN. With the increasing transportation production, the demand for functional composites is also likely to increase, as a result of which the Functional Composites industry would be flourished over the forecast period.

The Asia-Pacific held the largest share in the Functional Composites Market in 2023 and is projected to grow at a CAGR of over 8% during the forecast period 2024-2020. The automotive sector in Asia-Pacific is rapidly growing due to a flourishing base for automotive manufacturers, demand for automotive compounds and production rise. According to the India Equity Foundation, by 2030, the Indian aerospace and defense (A&D) sector is expected to reach US$70 billion. According to the Society of Indian Automobile Manufacturers (SIAM), the total number of passenger vehicles sold rose from 30,69,523 to 38,90,114 units. In comparison to the previous year, sales of passenger cars increased from 14,67,039 to 17,47,376, sales of utility vehicles from 14,89,219 to 20,03,718, and sales of vans from 1,13,265 to 1,39,020 units in FY-2022–2023. With the robust growth of the transportation industry in Asia-Pacific, the demand for functional composites for application in automotive would rise. Thus, the growth of functional composites in the region is being aided by the increasing transportation sector in APAC, thereby dominating the market in the Asia-Pacific region.

  

                                                 

                                                      

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Functional Composites have growing applications in the electrical & electronics industry. Functional Composites are widely used in electrical & electronic components. The electronics industry is growing rapidly due to the high demand for electrical devices and consumer electronics such as smartphones, TV, PC and others in the work-from-home scenario. According to the India Brand Equity Foundation (IBEF), the electronics manufacturing industry in India is projected to reach US$520 billion by 2025. According to the U.S. International Trade Commission, global semiconductor sales hit a record $574 billion in 2022. It's expected to exceed $1 trillion by 2030. With the increasing growth in electronics production, the demand for functional composites for applications is growing. The growing electrical and electronics sector is driving the market and offering major growth opportunities in the Functional Composites industry.

Government investment is boosting the building and construction sector in various countries. The Indian government now places great emphasis on the infrastructure sector. India intends to invest US$1.4 trillion in infrastructure between 2019 and 2023 in order to achieve sustainable national development. The Indian government has proposed spending INR 5,000,000 crores (US$ 750 billion) on rail projects between 2018 and 2030. Additionally, the building sector frequently makes use of wood-based products like furniture and coating chemicals that are necessary for these wood products to be resilient and long-lasting. Therefore, it is anticipated that demand for functional composites would expand significantly as construction activities increase around the world. As a result, such government investments and activities in the construction industry would boost the growth of the Functional Composites market share.

The complex technique is a significant concern regarding the growth of the Functional Composites market. There is a high possibility of error due to the high accuracy and complexity of the techniques. The lack of experts in some regions can lead to significant drops in market adoption. The incompatibility of the modern technique is a challenge. The increasing need for high accuracy to achieve the desired result, as well as the increasing complexities in functional techniques, are expected to hinder the market growth during the forecast period. Moreover, limited labor supply and higher costs of material hamper the growth of the functional composites market. All of these factors may have an impact on the overall growth of the Functional Composites market.

Technology launches, acquisitions and R&D activities are key strategies adopted by players in the Functional Composites market. The top 10 companies in the Functional Composites market are:

 

1. Arkema S.A.
2. BASF SE
3. Hexcel Corporation
4. Solvay
5. Toray Composite Materials America, Inc.
6. Mitsubishi Chemical Group Corporation
7. Teijin Limited.
8. SGL Carbon SE
9. Coherent Corp.
10. Materion Corporation

• In 18 May 2023, Pacific Coast Composites ("PCC"), has acquired by GracoRoberts in order to greatly increase the range of composite materials that it offers and to strengthen its position as the world's largest, fastest-growing, and most technically advanced distributor of aerospace specialty chemicals.