Transportation Composites Market

The transportation composites market is estimated to develop at an impressive 12.7% Compound Annual Growth Rate (CAGR) this year. Based on projections, the market is expected to grow from current 2024 valuation of USD 44.7 billion to USD 81.4 billion by 2029. Transportation composites are becoming more and more recognized as the material of choice for a variety of industries, as global businesses increase their attention to lightweight, high-performance materials to satisfy changing customer needs and regulatory requirements. These composites offer prospects for the automobile industry to design lightweight vehicles, hence improving fuel efficiency and lowering pollution. In the same way, the aerospace sector expects a spike in demand for composites due to aircraft makers' efforts to reduce operating costs and improve fuel economy.

Attractive Opportunities in Transportation Composites Market

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Global Transportation Composites Market Dynamics:

Drivers: Increasing requirement for composite materials in aerospace sector

Composite materials are widely utilized as sandwich structures in various industries including aerospace, marine, rail, and automotive sectors, both internally and externally. Their lightweight properties and impressive tensile strength play a crucial role in enhancing fuel efficiency, reducing maintenance costs, and assisting Original Equipment Manufacturers (OEMs) in meeting stringent environmental regulations prevalent in Europe and North America. Initiatives such as the mandate set forth by the Advisory Council for Aeronautics Research in Europe (ACARE), which urges aircraft OEMs to prioritize environmentally sustainable practices and substantially decrease CO2 and nitrogen oxide emissions, have driven the adoption of composite materials. Airbus, a prominent aircraft manufacturer, has embraced this directive, resulting in a significant 25% improvement in fuel efficiency for its A350XWB model. The utilization of composite materials has led to a notable reduction of approximately 20% in aircraft weight, thereby stimulating demand within the aerospace industry. Projections outlined in Boeing's commercial aircraft outlook for 2023-2042 suggest a global fleet size of approximately 48,575 aircraft by 2042. This anticipated growth is fueled by the increasing demand for air travel globally and the gradual replacement of older, less fuel-efficient aircraft with newer models. Both the International Air Transport Association (IATA) and Airbus anticipate a substantial expansion in the air travel industry. According to IATA, air travel demand is poised to double by 2040, with an average annual growth rate of 3.4%. Similarly, Airbus foresees a parallel trajectory, projecting an annual increase of 3.6% in passenger traffic from 2019 to 2042.

Restraints: Obstacles in scaling up production

In the transportation composites market, ramping up production poses a substantial challenge due to inherent inefficiencies. Composites play a pivotal role in modern aircraft construction, enhancing both fuel efficiency and performance. However, meeting the escalating demands necessitates navigating a complex landscape. A significant obstacle lies in the intricate processes involved in composite manufacturing. Unlike traditional materials, composites demand meticulous attention to detail during fabrication, including precise material layering and stringent quality control protocols. As production scales up, maintaining consistency becomes increasingly challenging, often resulting in compromised quality and elevated rejection rates. Moreover, the specialized machinery and expertise required for composite production compound these inefficiencies. Upgrading existing facilities or constructing new ones requires significant investments of time and resources. Additionally, stringent safety standards in the aerospace industry mandate rigorous testing and certification procedures, further prolonging the production timeline. Challenges arising from supply chain disruptions, stemming from the reliance on specialized raw materials, also loom large.

Addressing these inefficiencies demands a multifaceted strategy, encompassing advancements in automation, process optimization, and supply chain resilience. By overcoming these hurdles, the transportation composites market can unlock its full potential, ushering in a new era of innovation and sustainability in aviation.

Opportunities: Increased demand for commercial aircraft

Even with the difficulties caused by the recession in 2020, major aircraft manufacturers experienced a noteworthy rebound in 2021–2023. Airbus is anticipated to quickly revert to pre-pandemic levels, but Boeing is now on track to shatter past delivery records. The recovery of consumer confidence, the restart of international trade, and the growth of airline fleets are the main drivers of this rebound in the market for commercial aircraft. The aviation industry's future appears bright with these tendencies. Airbus accomplished major milestones, setting new industry records for backlog (8,598 aircraft), gross (2,319 aircraft), and net new orders (2,094 aircraft), as reported by Flightglobal in December 2023. Boeing, meanwhile, revealed a record backlog of 6,216 aircraft. With 1,000 aircraft delivered annually, Airbus is poised to become the first producer of commercial aircraft. Airbus delivered 112 aircraft in December 2023 alone, more than Boeing's 67 deliveries. Moreover, Airbus delivered 735 aircraft in total in 2023, compared to 528 deliveries from Boeing. Airbus has now held its advantage over Boeing for five years running. The commercial aircraft business is driven by innovation and efficiency because to the healthy competition between these two manufacturers.

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

Transportation industry is using composites to reduce weight, which boosts safety in accidents, increases performance and fuel efficiency, and simultaneously lowers CO2 emissions. However, there are inherent challenges with recycling composites.

Because of their intricate component compositions and the cross-linked nature of thermoset resins, automotive composites are especially challenging to recycle. The reluctance of thermoset polymers to remolding aggravates the recycling process. Hexavalent chromium-primed carbon fiber composite aircraft structures that are nearing the end of their useful lives provide a pertinent issue. These composites are categorized as hazardous waste and cannot be disposed of on land due to the possibility of hexavalent chromium seeping into the environment.

Transportation Composites Market: Ecosystem

The airways transportation held the largest segment of the global transportation composites market in terms of value.

The transportation composites market is dominated by the airways industry, primarily due to the significant demand from the commercial and defense aircraft segments. Transportation composites are more expensive than other materials, which has restricted their use to the aerospace and defense sectors. On the other hand, the benefits of composites—like their remarkable tensile strength and light weight—help to improve fuel economy, lower maintenance costs, and help Original Equipment Manufacturers (OEMs) comply with strict environmental standards in North America and Europe. As a result, the aviation industry is seeing a discernible rise in demand for transportation composites.

The interior application to be the fastest growing application of the transportation composites market.

Because of its remarkable properties, which include strength, flexibility, durability, lightweight design, and resistance to heat, temperature, and moisture, transportation composites are widely used in interior automotive and aerospace applications. According to forecasts, the transportation composites market's interior segment is expected to grow at the fastest rate. There is a noticeable demand for composites, especially from the transportation and aerospace industries in North America and Europe. Moreover, the growing market for electric vehicles (EVs) is a major factor in the rise in composite demand for interior applications.

The compression molding manufacturing process is projected to lead the market in terms of volume.

Compression molding stands out as the predominant manufacturing process in the transportation composites market, commanding the largest share due to its efficiency and versatility. Using pressure and heat to mold composite materials into the correct shapes, this process is perfect for creating intricate pieces with exceptional strength and longevity. The car industry's extensive use of compression molding is a powerful case study demonstrating its supremacy. Compression molding is a process used by big automakers to create a variety of parts, including body panels, interior trim, and structural reinforcements. For instance, a well-known automaker in North America used compression molding to create strong, lightweight carbon fiber parts for its range of electric vehicles. The company significantly reduced weight while preserving the structural integrity of the vehicle, improving its performance and range. This was accomplished by utilizing compression molding.

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

The glass fiber composites sector dominates the market in terms of volume and value because of its remarkable qualities, which include resistance to heat, temperature fluctuations, and moisture, strength, flexibility, stability, and durability. Its supremacy can be ascribed to its affordability, mass-production adaptability, and broad demand in a variety of applications. Glass fiber composites are widely used in a wide range of transportation-related components, such as air ducts, engine covers, deck lids, front-end modules, underbody systems, and bumper beams.

North America holds the largest share in the global transportation composites market.

North America's strong automotive, aerospace, and marine industries account for the region's largest market share in the transportation composites sector. Strict regulatory requirements, a focus on innovation, and technology advancements support this dominance. The use of composite materials in airplane building by the aerospace industry is a compelling case study that highlights North America's leadership. Prominent companies such as Boeing and Lockheed Martin have incorporated cutting-edge composite materials into their airplanes to improve their endurance, performance, and fuel economy. For example, composite materials are used extensively in Boeing's Dreamliner 787, which reduces weight significantly and improves fuel efficiency. In the automobile industry, too, top producers like Ford and General Motors have adopted composites to create strong, lightweight car parts that improve sustainability and fuel economy.

Increasing demand for high speed rails to boost the market globally

In the last few years, there has been a rise in demand for high-speed trains, which employ a greater proportion of composite components than other rails. Many nations, including China, Japan, Austria, Belgium, Britain, France, Germany, Russia, Poland, and Spain, have constructed high-speed trains as a result of their rapidly expanding populations. After the introduction of InterCity Express, which can travel at a maximum speed of 280 km/h, Germany became the second nation in Europe to introduce high-speed trains. The governments of Europe and Asia have actively backed high-speed rail.

The High-speed Rail Corporation of India Limited, or HSRC, has established high-speed railroads in India through a number of initiatives. The group has worked on a number of projects, including as Delhi-Chennai, Chennai-Bengaluru-Mysore and Mumbai-Ahmedabad.

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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), and Syensqo S.A.  (Belgium) are some of the key players of the transportation composites market. 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.

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Scope of the Report

This research report categorizes the transportation composites market based on fiber, resin, manufacturing process, application, transportation type, and region.

By Resin:

• Thermoset
• Thermoplastic

By Manufacturing Process:

• Compression Molding
• Injection Molding
• Resin Transfer Molding
• Others

By Fiber:

• Glass
• Carbon
• Natural
• Others

By Application:

• Interior
• Exterior
• Others

By Transportation Type:

• Airways
• Railways
• Waterways
• Roadways

By Region:

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

Recent Developments

• In Nov 2023, Solvay has achieved a successful spin-off of its Specialty activities to Syensqo, representing a pivotal milestone in its extensive history. This action signifies a noteworthy strategic transition for the Group, establishing it as a leading force in vital chemicals worldwide. Syensqo SA will be dealing with composites from now.
• In May 2024, Syensqo Syensqo launched Aerospace 1003, a new grade of its epoxy based structural paste adhesive which is designed for bonding of composite parts due to its high temperature strength performance.
• In Jan 2024, Toray Industries, Inc. developed TORAYCA M46X carbon fiber. The new offering is around 20% stronger than others in the TORAYCA™ MX series while maintaining a high tensile modulus. Utilizing TORAYCA™ M46X reduces the weight of carbon fiber-reinforced plastic materials, lowering its environmental impact.

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