Advanced Composite Materials Market - Forecast(2024 - 2030)

Advanced Composite Materials Market Overview

Advanced Composite Materials market size is forecast to reach $65.17 billion by 2030, after growing at a CAGR of 9.5% during 2024-2030. The automotive industry is tackling increasing demands for fuel economy and emission control improvements. Therefore, the use of advanced materials to manufacture lightweight vehicle allow higher fuel efficiency, enhanced vehicle performance. Further, enhance the overall market demand for Advanced Composite Materials during the forecast period.

The application of advanced Composite Materials is growing in several areas such as sporting goods, marine equipment and construction. The manufacturing of turbines is one of the major applications of advanced Composite Materials. These turbines are used in aerospace and, more recently, for sustainable sources of energy such as hydropower and wind power. 

With growing environmental concerns and the need for sustainable solutions, there is a trend towards the development of bio-based and sustainable composite materials. Composite materials can be sustainable if they are made with the right raw materials. For example, hybrid polymer Composite Materials are more sustainable than synthetic polymer Composite Materials because synthetic fibers are non-biodegradable and biodegradable polymers are expensive. Composite materials can also be sustainable if they are made with renewable raw materials like cellulose, sugar cane, and corn. Composite Materials made from biologically degradable polyester amide and plant fibers like cotton and flax are also biodegradable and water resistant. Composite materials are more sustainable than conventional materials because they are produced using low-emission methods. They also require less energy and emit fewer emissions during production.

Market Snapshot:

COVID-19 Impact

• The COVID-19 pandemic had a mixed impact on the advanced Composite Materials market. Initially, the market experienced disruptions in manufacturing and supply chains due to lockdowns, travel restrictions, and workforce shortages. Many production facilities were temporarily shut down, leading to delays in project timelines and decreased demand from industries such as aerospace, automotive, and construction. However, the pandemic also highlighted the importance of lightweight, high-performance materials for applications such as medical equipment, personal protective equipment (PPE), and healthcare infrastructure. As a result, there was an increased focus on research and development of advanced Composite Materials for medical applications, including ventilators, face shields, and hospital equipment. Additionally, the recovery of industries post-pandemic is driving a resurgence in demand for advanced Composite Materials, particularly in sectors prioritizing efficiency, sustainability, and technological innovation.
• The report covers Advanced Composite Materials Market size by type and Manufacturing Process, Advanced Composite Materials Market share by top 5 companies and also the market share by start-ups during the forecast period.

Report Coverage

The report: “Advanced Composite Materials Market – Forecast (2024-2030)”, by IndustryARC, covers an in-depth analysis of the following segments of the Advanced Composite Materials Market.
By Fiber Type: Carbon Fiber Composite Materials, Aramid Fiber Composite Materials, S-Glass Composite Materials
By Resin Type: Advanced Thermosetting Composite Materials, Advanced Thermoplastic Composite Materials
By Manufacturing Process: AFP/ATL, Compression Molding Process, Hand Layup/Spray Layup Process, Resin Transfer Molding Process, Filament Winding Process, Injection Molding Process, Pultrusion Process
By End Use Industry: Aerospace and Defence, Wind Energy, Transportation, Sporting Goods, Pipes and Tanks, Marine, Civil Engineering, Electrical and Electronics, Medical
By Geography: North America (USA, Canada, and Mexico), Europe (UK, Germany, France, Italy, Netherlands, Spain, Russia, Belgium, and Rest of Europe), Asia-Pacific (China, Japan, India, South Korea, Australia, and New Zealand, Indonesia, Taiwan, Malaysia, and Rest of APAC), South America (Brazil, Argentina, Colombia, Chile, and Rest of South America), and Rest of the World (Middle East, and Africa).

Key Takeaways

• It is estimated that increasing adoption of advanced Composite Materials in lightweight vehicles would open up new growth opportunities for the market in the coming years.
• Key industrial manufacturers focused on the production and development of high-performance products for specific applications with growing their market share.
• Due to the increased demand for low weight and high-strength materials in aircraft production, the use of aramid fiber for aerospace and defense application has anticipated a CAGR of 10.6% during the forecast period.
• The ceramic matrix Composite Materials (CMC) are used in high temperature and severe stress applications such as automobile, and aircraft gas turbine engines. It has advantages like high strength and modulus and also reduces weight which in turn decreases fuel consumption. The increasing demand will fuel market growth.

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Fiber Type - Segment Analysis

Aramid fiber Composite Materials segment held the largest share in the Advanced Composite Materials Market in 2023. Aramid fiber Composite Materials have excellent characteristics such as high strength, high thermal resistance and impact resistance which are used in the end-use industry. Increasing use of the material in the manufacture of tires, body armors and defence vehicle components would fuel market demand over the predicted era.

Resin Type - Segment Analysis

Polymer Matric Composite Materials (PMC) is classified into 3 types Thermoset, Thermoplastic, and rubber. Advanced Thermosetting Composite Materials segment held the largest share in the Advanced Composite Materials Market in 2023. The automotive industry aims at producing vehicles that consume less fuel, emit less emission, and offer high durability and strength. Using thermoset resins for manufacturing lightweight and durable materials for automobiles reduces the weight of components, and in turn, lowers fuel consumption and emission.

Manufacturing Process - Segment Analysis

AFP/ATL segment held the largest share in the Advanced Composite Materials Market in 2023. The growth of this market segment is due to the ease of production of complex structures that is difficult in any other manufacturing process. The AFP / ATL Process enables companies to develop lightweight, longer durability and processing time components. Furthermore, composite components based on AFP / ATL do not get damaged easily. Hence, aircraft manufacturers and tier players can reduce their costs in terms of repair. These advantages increase the demand for AFP / ATL Composite Materials that continually replace traditional hand-made composite components and metal-cast and stamped parts.

End-Use Industry - Segment Analysis

Aerospace and the defense sector have been the primary market for Advanced Composite Materials is growing at a CAGR of 10.6% in 2024-2030. Transport is the fastest-growing market due to the mass production of parts using advanced composite due to the properties offered by advanced Composite Materials in terms of shape stability, high strength, excellent damage resistance, and high longitudinal stiffness.

Geography - Segment Analysis

Europe dominated the Advanced Composite Materials Market share, followed by North America and APAC in 2023. The rising disposable income and growing aerospace industry in countries such as Germany and France are likely to increase market growth in Europe. In addition, growing consumer preferences for air travel and growth in the aviation market likely fuel market growth in these countries. Growing passenger traffic is anticipated to fuel market growth in commercial aircraft in the next few years. Increased passenger traffic is anticipated to boost the market growth in the coming years, thus boosting demand for commercial aircraft. In June 2023, IndiGo ordered 500 jets, which is estimated to be worth $55 billion.

Advanced Composite Materials Market Drivers

Increasing demand for lightweight materials that ensure the high efficiency of Aerospace & Defense industry

The growing adoption of advanced Composite Materials in the Aerospace & Defense industry ensures lightweight and high efficiency. According to an American science magazine, Plativision, fuel economy is growing by 6–8 % with one-tenth of its weight reduction. With this view, the Aerospace & Defense industry is increasingly focused on design that is lightweight and energy-efficient. The use of advanced Composite Materials in Aerospace & Defense industry is steadily increasing and this trend is expected to continue. In addition, Aerospace & Defense industry production is expected to increase due to rising demand. This aspect implies strong growth in the demand for advanced Composite Materials.

Advanced Composite Materials Market Challenges

High prices of advanced Composite Materials materials

The high prices of advanced Composite Materials produced is one of the major challenges that are hindering the growth of the global advanced Composite Materials market. Although they have several benefits, carbon fiber demand is more likely to decrease because their production is many times more expensive than their traditional counterparts. To achieve the desired effects, these also require a controlled environment and high temperatures. Such high prices would make the companies think twice, even though they have better properties than many others. Which is likely to disrupt this market's growth trajectory over the coming years. 

Market Landscape

Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the Advanced Composite Materials market. Major players in the Advanced Composite Materials Market are 

1. Arkema S.A.
2. BASF SE
3. Hexcel Corporation
4. Solvay S.A. (Cytec Industries Inc.)
5. Koninklijke Ten Cate N.V.
6. TPI Composite Materials Inc.
7. Toray Industries Inc.
8. Mitsubishi Chemical Advanced Materials
9. Teijin Limited.
10. American Securities LLC (Hexion)
11. SGL Carbon SE

Acquisitions/Technology Launches

• In January 2024 Tata Advanced Systems Ltd. (TASL) has signed a contract with Boeing Commercial Airplanes to manufacture and supply advanced composite assemblies for Boeing 737 MAX, 777X, and 787 Dreamliner.
• In March 2022, American Securities has acquired Hexion to accelerate growth in advanced Composite Materials by offerings high performance Composite Materials for end – use industries like aerospace, space and communications and high-performance industrial markets.

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