Composites Market

The global composites market size is expected to grow with an annual CAGR of 10.8% and is projected to reach USD 181.7 billion by 2028 from USD 108.8 billion in 2023. Composites are becoming more and more acknowledged as the ideal option across a variety of sectors as global companies concentrate increased emphasis on lightweight, high-performance materials to fulfill growing customer demands and regulatory needs. Composites offer possibilities for lightweight automobiles in the automotive industry, increasing fuel economy and lowering pollutants. Similarly, the aerospace industry expects a spike in demand for composites as manufacturers of aircraft strive to reduce operating costs and improve fuel economy. Furthermore, because of their strength and resistance to environmental deterioration, composites will be used more often in the construction industry for building materials, infrastructure projects, and environmentally friendly housing options.

Composites Market Size, Dynamics & Ecosystem

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Global Composites Market Dynamics:

Drivers: Stringent eco-friendly regulations in automotive applications

One important factor in the production of automobiles is the better strength-to-weight ratio that composites offer. Automobiles with robust construction but low weight provide better mileage and fuel economy. When compared to traditional materials such as steel and aluminum, composites provide significant weight savings of 25% to 70% in the production of car bodies. A mere 10% reduction in the weight of the vehicle yields a 5% improvement in fuel efficiency. Compared to steel, carbon fiber can achieve a 30% gain in fuel efficiency. Strict laws, like the US government's required Corporate Average Fuel Efficiency (CAFE) criteria, are what propel the automobile industry. Because the transportation industry contributes significantly to greenhouse gas emissions, US automakers are required to meet these standards. As a result, there has been a noticeable shift in the manufacturing of lightweight cars to comply with CAFE standards, which call for 36.6 mpg by 2017 and 54.5 mpg by 2025. To reduce greenhouse gas emissions, this endeavor has sparked the development of electric and lightweight, fuel-efficient vehicles. Because carbon fiber composites can reduce diameter, eliminate joints, and sustain greater critical rotations, they are especially sought after for use in automobile engine propeller shafts. The key driver driving the growth of the composites industry is consumers' growing preference for lightweight and fuel-efficient automobiles. Doors, roof panels, windows, headrest back panels, seats, luggage bins, cooling ventilators, and braking materials for luxury and racing cars are a few notable automobile applications for composite materials.

Restraints: Lack of standardization in manufacturing technologies

The growth of composites in a number of industries, including consumer products, marine, and recreational goods, is still hampered by non-recurring development and manufacturing expenses. The three key issues are maintenance technology, process standardization, and design consistency. In the automobile and aerospace industries, mass production and economic viability are hampered by manufacturers' preference for conservative designs due to the lack of standardized materials and procedures. Furthermore, the absence of standards pushes producers to stick with traditional goods rather than investigating composites for a range of uses. Additionally, a barrier to the wider adoption of composites is the lack of human resources with the necessary training and experience.

Opportunities: High demand for carbon fiber composites in CNG and hydrogen storage

Carbon fiber composites are experiencing heightened demand for the storage of compressed natural gas (CNG) and hydrogen due to their exceptional strength-to-weight ratios, rendering them particularly well-suited for pressure vessels necessitating reduced weight and heightened safety standards. Applications for carbon fiber pressure vessels include the storage of hydrogen gas for hydrogen storage tanks, breathing air for firefighting in SCBA/SCUBA systems, and compressed natural gas for CNG storage tanks. Carbon fiber composites are also widely used in industries like marine and aerospace transportation that need to store gases under high pressure. Interestingly, carbon fiber composites have the lightest CNG volume, which increases vehicle range, fuel efficiency, and payload capacity. As a result, it is anticipated that these materials will grow in the years to come.

Challenges: Recycling of composites to be a major challenge for market growth

Composites are being used in a variety of end-use sectors to reduce weight, which improves performance and fuel efficiency and simultaneously lowers CO2 emissions and increases accident safety. However, recycling composites has certain difficulties. Automotive composites are particularly difficult to recycle due to their complex constituent compositions and thermoset resins' cross-linked nature. The recycling process is exacerbated by thermoset polymers' resistance to remolding. End-of-life aircraft structures made of carbon fiber composites primed with hexavalent chromium present a relevant problem. Because hexavalent chromium can seep into the earth, these composites cannot be disposed of on land because they are classified as hazardous waste.

Composites Market: Ecosystem

Composites Market Segmentation & Geographical Spread

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Glass fiber composites segment to dominate the market in terms of value and volume.

Because of its remarkable qualities such as strength, flexibility, stability, durability, and resistance to heat, temperature fluctuations, and moisture—the glass fiber composites market segment commands the largest share in terms of volume and value. This is explained by its affordability, mass-production viability, and significant demand in a variety of industries, including infrastructure, sporting goods, wind energy, and construction. Glass fiber composites are used in underbody systems, deck lids, front-end modules, bumper beams, engine covers, instrument panels, and air ducts, among other components in the transportation sector.

Thermoset resin is expected to hold the largest share in composites market.

Thermoset resins have been the industry leader in the resin type category of composites. Composites are manufactured using a variety of thermoset polymer matrices, such as vinyl esters, polyester, and epoxy. Thermoset composites with high toughness, impact strength, and moisture resistance are produced by fibers inserted in a matrix of thermoset resins. These composites are widely used in many different industries, including infrastructure, electronics, pipes and tanks, transportation, and construction. They are also extensively used in wind energy, marine, construction and infrastructure, transportation, sporting products, and a number of other end-use industries. Specifically, thermoset composites don't expand much in hot, humid settings, which makes them appropriate for applications where corrosive environments and high temperatures are present.

Filament winding process is expected to register the highest CAGR during the forecast period.

There is a notable increase in demand for the filament winding process in the composites manufacturing industry, as seen by its outstanding Compound Annual Growth Rate (CAGR). This method, which is well known for its efficiency and versatility, involves applying continuous fibers, like carbon or glass, in a predefined pattern, onto a revolving mandrel. The resulting composite structures exhibit exceptional strength-to-weight ratios, corrosion resistance, and long-lasting durability, making them highly suitable for a wide range of applications in different industries. One of the main reasons filament winding is growing at a significant rate is that it is being used widely in industries including aerospace, automotive, marine, and energy. Due to their lightweight design and structural integrity, filament wound components are used in rocket motor casings, aircraft fuselages, and wings in the aerospace industry. Similar to this, filament-wound tanks and pressure vessels are becoming more and more popular in the automotive industry for uses such as fuel storage and hydrogen fuel cell technology, which improves fuel economy and environmental sustainability. Furthermore, filament-wound composite pipes and tanks are essential components of solar panel structures and wind turbine blades in the field of renewable energy, helping to efficiently generate and store clean energy. The filament winding industry's growth trajectory is further supported by ongoing advancements in automation, robotics, and material innovations, which provide producers with increased efficiency, precision, and scalability.

Asia Pacific to be the largest and fastest growing regional market in the global composites market.

With significant producers of glass fiber and carbon fiber in China and Japan, as well as emerging economies in India and China, the Asia Pacific region has the lion's share of the worldwide composites market. Notably, the region is seeing tremendous expansion in the wind energy sector, which is a major user of composites. Additionally, the Asia Pacific area is seeing a noticeable growth in the transportation end-use industry, which is another significant consumer of composites. This growth is being driven by OEMs placing a greater emphasis on the manufacture of electric vehicles. All of these elements work together to fuel the region's growing need for composites.

Increasing number of wind energy installations to boost the market

With global fossil fuel capacity on a downward trajectory, there is a pressing need to escalate the utilization of renewable energy sources. Wind energy stands out as a crucial renewable energy source, and its escalating demand is propelling growth in the composites market. In wind turbines, composites are essential because they increase blade strength and provide outstanding fatigue and corrosion resistance. By 2035, renewable energy is expected to produce over 25% of the world's electricity, with wind energy making up a sizable amount of this share, according to the Global Wind Energy Council (GWEC). Because wind energy is a cost-effective way to increase system capacity and lower CO2 emissions, it is becoming a more appealing choice for generating power. For example, the US government wants to develop 30 GW of offshore wind energy by 2030, which would be enough to provide sustainable energy for 10 million homes and encourage supply chain investment.

Key Market Players

Prominent companies in the composites market are Owens Corning (US), Toray Industries, Inc. (Japan), Teijin Limited (Japan), Mitsubishi Chemical Holdings Corporation (Japan), Hexcel Corporation (US), SGL Group (Germany), Nippon Electric Glass Co. Ltd. (Japan)

These companies are attempting to establish themselves in the composite market by employing a range of inorganic and organic approaches. A thorough competitive analysis of these major composite market participants is included in the research, along with information on their company profiles, most recent advancements, and important market strategies.

Read More: Composites Companies

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Scope of the Report

This research report categorizes the composites market based on fiber type, resin type, manufacturing process, end-use industry, and region.

By Fiber Type:

• Glass Fiber Composites
• Carbon Fiber Composites
• Natural Fiber Composites
• Other Fiber Composites

By Resin Type:

• Thermoset Composites
• Thermoplastic  Composites

By end-use industry:

• Aerospace & defense
• Wind Energy
• Automotive & Transportation
• Construction & Infrastructure
• Marine
• Pipe
• Tanks & Pressure Vessels
• Electrical & Electronics
• Others

By Manufacturing Process:

• Lay-up
• Filament Winding
• Injection Molding
• Pultrusion
• Compression Molding
• RTM
• Others

By region:

• North America
• Europe
• Asia Pacific
• Middle East & Africa
• Latin America

Recent Developments

• Dublin City Council has granted approval for an economic development arrangement with INEOS Composites, a company specializing in the production and distribution of various grades of unsaturated polyester and vinyl ester resins, gelcoats.
• In October 2023, Gurit has recently disclosed the signing of a four-year and a three-year supply agreement for core material kits with two prominent Wind Turbine Original Equipment Manufacturers (OEMs).
• In October 2022, Owens Corning is investing USD 24.5 million in machinery and new construction at its new Fort Smith manufacturing facility, which is expected to create 50 jobs. In early 2021, the company began construction on a 550,000-square-foot plant on Planter Road adjacent to the company's existing Fort Smith facility where it is expected to manufacture fiberglass composites, insulation, and roofing materials.

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