Advanced Composites Market

Advanced Composites Market Outlook 2026 to 2033

Advanced composites market has entered structurally resilient growth phase, underpinned by long-cycle industrial demand rather than short-term manufacturing volatility. The global demand is estimated to be valued at USD 31.7 billion in 2026 expanding at a CAGR of 8.5% over the forecast period projecting the market to exceed USD 56.1 billion by 2033 end. Advanced composites are benefiting from shifts towards lightweighting, durability, performance optimization across aerospace, automotive, renewable energy, industrial infrastructure, etc.

Advanced composites enable fuel efficiency gains, longer asset lifespans, corrosion resistance and reduced maintenance, these advantages are becoming critical as manufacturers are facing energy costs, tightening emissions regulations, supply chain volatility and others. Major economies are securing domestic supply chains for critical precursors like polyacrylonitrile and high-grade resins. For instance, U.S. is aiming at deregulation and bolstering their industrial bases is lowering the capex barrier for setting up domestic composite manufacturing facilities.

North America is the largest market owing to its established aerospace, defense, next-generation automotive platforms and other established deep tech sectors. Asia Pacific is the fastest-growing region propelled by large-scale infrastructure investments, electric vehicle manufacturing as well as wind energy expansion.

Advanced Composites Market Scenario & Strategic Insights

Over the past years, advance composites have moved from experimental to commercial in aerospace and high-performance applications. Adoption is further expected in mass-market transportation, civil infrastructure, energy transition assets in the coming years. Thermoplastic composites are growing at higher rates compare to thermosets as the demand is driven by the automotive and urban air mobility sectors.

Government-backed reindustrialization strategies, like that in U.S. and Europe are emphasizing domestic manufacturing of high-value materials. Recent U.S. executive actions aimed at strengthening domestic supply chains, defense readiness and clean energy deployment are benefiting advanced composites for lightweight, high-strength materials for aerospace, wind energy and EV platforms. OEMs are embedding composite strategies into long-term product roadmaps, while Tier 1 suppliers are investing heavily in automated manufacturing to overcome cost and scalability constraints.

Attribute	2026	2033	CAGR (2026 – 2033)
Market Size	USD 31.7 Billion	USD 56.1 Billion	8.5%

Key Market Trends

1. Aerospace and Defense Driving High-Performance Demand

Aerospace is the key application segment for advanced composites, next-generation aircraft programs continue to increase composite content to reduce weight, enhance performance and improve fuel efficiency. Defense modernization programs are prioritizing composites for stealth, durability, performance and other applications. Aircraft platforms developed by Boeing and Airbus are normalizing composite based structures fueling the demand. For instance, Boeing and Airbus ramping up production rates for single-aisle aircraft (737 MAX and A320neo families) to clear backlogs, the demand for prepregs is increasing. Further, Hexcel and Solvay have announced capacity expansions in 2025 specifically to support the next generation narrowbody programs and are expected to utilize thermoplastic wings and fuselages to reduce weight.

• Automotive Lightweighting Accelerates with EV Adoption

Electric vehicles are reshaping materials selection, battery’s weight are in focus pushing automakers to adopt carbon fiber and glass fiber composites. Key automotive players have announced composite-intensive EV platforms, they are working in partnerships with material suppliers and investments in high-volume composite manufacturing technologies, such as, high-pressure resin transfer molding. A major partnership between BMW and SGL Carbon was renewed with a focus on “Carbon-Aluminium Hybrid” structures for battery enclosures. Mixing metals and composites (multi-material design) is becoming the standard for EV players to protect batteries during crashes while minimizing weight.

• Wind Energy Scaling

Substantial growth of the renewable energy sector is boosting the demand for advanced composites especially for wind turbine blades. Large rotor diameters and offshore installations require materials that combine strength, fatigue resistance as well as low weight. This has resulted in development of glass fiber composites and hybrid fiber systems, with manufacturers scaling blade lengths beyond 100 meters where advance composites are applicable.

• Automation and Digital Manufacturing Reduce Cost Barriers

Advanced composites were constrained by labour-intensive processes in the past years. However, now automated fiber placement (AFP), automated tape laying (ATL), digital twin-enabled process controls are improving yield and consistency while reducing labour dependency. These advances are critical in enabling composites to penetrate cost-sensitive applications such as, mass-market automotive and industrial equipment.

Segment & Category Analysis in Advanced Composites Market

The advanced composites market has been categorised based on composite type, resin type, manufacturing process, application and industry vertical, and region

By Composite Type

• Fiber Reinforced Polymer
• Metal Matrix Composite
• Ceramic Matrix Composite
• Carbon Carbon Composite
• Hybrid Composites
• Natural Fiber Composite
• Nanocomposites

Fiber reinforced polymers accounts for 70% of the market owing high strength-to-weight ratios resulting in predominant demand for high performance applications from aerospace, defense and other segments. Established manufacturing processes and material costs work economically in aerospace, automotive and wind energy also fueling the demand. Metal matrix composites hold a specialized niche where thermal management and stiffness requirements especially in aerospace engine components, electronic packaging, high-performance brake systems and others. Ceramic matrix composite are used for high-temperature segment like jet engine and others.

By Resin Type

• Epoxy Resin
• Polyester Resin
• Vinyl Ester
• Polyimide
• Polyether Ether Ketone (PEEK)
• Polyphenylene Sulfide (PPS)
• Others

Thermoset resins including epoxy and polyester accounts for majority of the market share due to their mechanical performance and thermal stability and owing to established supply chains in wind and marine. Whereas, thermoplastic composites such as, PEEK, PPS, are fast growing segments. Their recyclability, faster processing times, compatibility with automated manufacturing making them attractive in automotive and consumer electronics applications. Thermoplastic composites are also shelf-stable at room temperature, eliminating the need for expensive cold-storage logistics required by thermoset prepregs.

By Manufacturing Process

• Hand Layup
• Vacuum Infusion Molding
• Resin Transfer Molding (RTM)
• Compression Molding
• Pultrusion
• Filament Winding
• Autoclave Curing
• Out of Autoclave Processing
• Automated Fiber Placement (AFP)

Hand layup process being used for marine, wind energy and low-scale aerospace applications as the capital requirements are minimal and the process accommodates large geometries which expensive to tool for automated methods. Resin transfer molding and compression molding emerged as the volume manufacturing routes for automotive structural components and semi-structural parts. Automated fiber placement is a premium automation segment where aerospace manufacturers are concentrating their process development spending. These systems lay complex contoured parts with precise fiber orientation control that the application cannot be gained through hand layup.

By Application

• Structural Components
• Exterior Body Panels
• Interior Trim Components
• Pressure Vessels and Tanks
• Fan Blades and Rotors
• Marine Hulls and Superstructures
• Equipment
• Others

Structural components accounts for around 40% of the market value with its demand generating from load-bearing elements in aircraft fuselages, automotive chassis and wind turbine spars. Composites compete on surface finish quality and design freedom along with structural performance for exterior body panels for aircrafts and automotive. Fan blades and rotors requires where composites have essentially displaced metal incumbents in commercial aviation engines and industrial gas turbines since the combination of light weight, fatigue resistance and blade count flexibility enables efficiency gains. Pressure vessels and tanks for hydrogen storage and aerospace propellant systems also are the key application segments for advance composites.

By Industry Vertical

• Aerospace and Defense
• Automotive and Transportation
• Wind Energy
• Marine and Shipbuilding
• Construction and Infrastructure
• Industrial Machinery and Equipment
• Sports and Leisure
• Medical Devices and Healthcare
• Oil and Gas
• Rail and Mass Transit
• Others

Aerospace & defense is the predominant end use segment, followed closely by transportation and automotive. Significant rise in defense spending all over the globe especially in U.S., Russia, European countries and others are driving demand for stealth-capable composite materials for next-gen fighter jets and drones. Wind energy is also a key demand generator for advance composites owing to significant rise in projects announcement for wind power projects and is anticipated to create lucrative incremental dollar opportunities over the coming forecast period. For instance, offshore turbines scale to 15MW+, the longer blades (>100 meters) cannot to build without stiff carbon fiber spars to prevent the blade from hitting the tower. Construction and infrastructure are emerging as long-term growth areas as composite rebar and panels gain regulatory acceptance.

Key Regional Analysis

Region	Market Share (2025)	Key Market Highlight
North America	38%	Concentration of aerospace OEMs, defense spending, advanced manufacturing capabilities have bolstered the demand
Europe	23%	Germany, France, and the Nordics are actively integrating composites into mobility and energy systems.
Asia-Pacific	34%	China, Japan, South Korea are investing in domestic composite manufacturing capacity to reduce reliance on imports.
Rest of the World	5%	Brazil, Mexico, GCC Countries are witnessing surge in demand and increase in investments

Strong collaboration between government agencies, research institutions and private industry supports continuous innovation which has resulted in North America dominating the high-value segment. The region’s dominance is further fueled by the massive U.S. defense budget and the presence of the world’s largest aerospace cluster (Boeing, Lockheed Martin, Northrop Grumman). Reshoring trend triggered by 2025 executive orders is seeing Japanese and European material suppliers (like Toray and Solvay) expand their U.S. footprint to qualify as domestic sources for government contracts.

Asia-Pacific is the fastest growing market owing to rapid industrialization, EV production, renewable energy deployment and other end use sectors growth. China controls a significant portion of the global industrial-grade carbon fiber supply and dominates the wind energy and EV battery housing markets. Japan is an intellectual capital, home to three major fiber giants (Toray, Teijin, Mitsubishi), supplying the critical raw materials that other economies processes.

Europe is the global leader in green composites. Carbon reduction targets and lightweighting mandates across transportation are accelerating composite adoption. Stringent regulations on end-of-life vehicle recycling resulting in manufacturers to adopt bio-based resins and natural fibers (flax/hemp) faster than any other region.

Market Growth Drivers and Opportunities

• Lightweight nature and energy efficiency driving the demand across applications

Demand for lightweight materials to improve energy efficiency also reducing fuel burn in aircraft, extending electric vehicle range or increasing wind turbine efficiency is bolstering new demand creation for advanced composites which deliver measurable performance gains impacting operating economics. There is direct correlation between weight and battery range is the primary economic driver. For every 10% reduction in vehicle weight, fuel/energy economy improves by 6-8%. As EV manufacturers are hitting the limits of battery efficiency, they are focusing to reduce weight. There is a growing shift from steel chassis to hybrid composite-metal architecture. It is cheaper to reduce weight with composites than to add more kWh of battery capacity.

• Hydrogen economy and circular composites creating new white spaces for the market players

There is rise in shift towards hydrogen economy, despite some political fluctuations, hydrogen remains a massive volume driver. High-pressure hydrogen storage tanks (Type IV) require immense amounts of high-strength carbon fiber. Further, demand from the heavy-duty trucking sector for hydrogen tanks is anticipated to surpass aerospace as the key volume growth driver for standard modulus carbon fiber in the EU and China.

The industry is moving beyond downcycling (grinding composites into filler). Major breakthroughs in chemical recycling allowing recovery of virgin-quality fibers from waste products. Toray Industries and Teijin recently scaled pilot plants capable of chemically separating resin from fiber, allowing them to resell as ‘Reclaimed Carbon Fiber’ at 70% of the original strength but at 50% of the cost. This is creating white spaces for mass-market applications in laptop chassis and sporting goods.

Growth Restraining Factors and Challenges

• High material and processing costs affecting new demand generation to some extent

Advanced composites faces growth hindrance due to higher upfront costs compared to metals and other counterparts. This is a growth barrier in price-sensitive markets, where procurement decisions prioritize Capex over lifecycle value. Although having special features and applicability, carbon fiber remains 5-10x more expensive than steel and other counterparts. Furthermore, the manufacturing process for high-quality parts (autoclave curing) is slow and energy intensive. This bottleneck prevents composites from penetrating the high-volume mass-market segments, restricting them to luxury and performance vehicles.

• Recycling and end-of-life management is a key challenge in the advanced composites market

End-of-life management of composite materials is a structural challenge, while progress is being made in recycling technologies, scalability and economics are in the development phase. Regulations around sustainability is intensifying, making this an area for innovation. The industry faces waste management crisis. Thermoset composites are somewhat non-recycle. With thousands of wind turbine blades reaching end-of-life, the industry is under pressure to find a solution before governments start banning landfilling of composite waste.

Competitive Outlook 

The advanced composites market is currently oligopolistic in nature with some players accounting for a fair share of the market. The market is a mix of global material suppliers, specialized composite manufacturers and vertically integrated OEMs. Key players are increasing their investment in capacity expansion, automation, partnerships and regional expansions. Several players have announced new production lines for carbon fiber and thermoplastic composites. Mergers and acquisitions have focused on securing intellectual property, expanding geographic reach, enhancing end user base, increasing supply capability as well as integrating downstream manufacturing capabilities.

• Toray Industries recently announced price hikes for carbon fiber to offset energy costs, demonstrating their pricing power hold.
• Hexcel Corporation focus remains tightly coupled with Airbus and Boeing. They have acquired nimble thermoplastic startups to diversify their portfolio.
• Solvay focusing on the matrix resins and Teijin Limited investing on automotive penetration, supplying GM and Toyota with composite pickup boxes and structural cells.

Some of the key players are

• Toray Industries
• Teijin Limited
• Mitsubishi Chemical Corporation
• Solvay S.A.
• Hexcel Corporation
• SGL Carbon SE
• Gurit Holding AG
• Owens Corning
• Huntsman Corporation
• Victrex plc
• Jushi Group Co., Ltd.
• Kordsa Teknik Tekstil
• Saertex GmbH
• BASF SE
• PPG Industries
• Saint-Gobain
• Royal TenCate
• Axiom Materials
• SIKA AG
• DuPont
• DowAksa Advanced Composites Holdings BV
• Hyosung

Key Developments:

• In June 2025, Dow announced that it has signed a sale and purchase agreement to sell its 50% interest in DowAksa Advanced Composites Holdings BV to Aksa Akrilik, a company of Akkök Holding.
• In 2025, Toray announced expansion of its South Carolina facility to produce defense-grade precursor, securing its position as a key supplier to the U.S. DoD.
• In December 2025, reintegration of Spirit AeroSystems into Boeing has streamlined the supply chain, reducing friction for composite fuselage suppliers but squeezing margins for lower-tier vendors.

Frequently Asked Questions (FAQs) 

1. How is advanced composites market performing at global level?

Advanced composites are engineered materials combining high-performance fibers and resins to deliver superior strength, durability and lightweight characteristics. Advanced composites market is estimated to worth around USD 29.2 billion in 2025 and is projected to reach USD 56.1 million by 2033. The market is also projected to grow at 8.5% annualised growth rates in between 2025 and 2033.

2. How do the 2025 US Executive Orders specifically help this market for domestical growth?

The orders focus on deregulation and growth in domestic production capacity mandates for infrastructure projects. This means any bridge, port, defense project, etc. receiving federal funding is heavily incentivized to use US-made advanced materials. It guarantees a domestic customer base for US composite manufacturers, shielding them from less expensive China based imports.

3. Why are Thermoplastics growing faster than Thermosets?

This is owing to speed and recyclability. Thermoplastics can be stamped out like metal parts in minutes as compare to hours for thermosets and can be melted down and reused at the end of their product life aligning with sustainability goals.

4. Will composites replace steel in regular cars?

Comple replacement is highly unlikely and the cost is still too prohibitive for economy cars. However, there will be hybrid designs where composites are used for specific parts (tailgates, battery boxes, bumper beams) while the main frame manufactured from steel/aluminium.

5. What is a key challenge faced by the market?

Recycling and end-of-life management remain long-term challenges for the key players Also, if geopolitical tensions impacts the supply of raw precursors from Asia to Western finishers, prices could skyrocket, stalling adoption in cost-sensitive sectors like wind energy and automotive.

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