Advanced Composite Materials Market to Witness Growth 8.40%

Advanced Composite Materials Market Size, Trends and Forecast 2025 to 2034

The global advanced composite materials market size was measured at USD 41.35 billion in 2024 and is anticipated to reach around USD 91.75 billion by 2034, growing at a compound annual growth rate (CAGR) of 8.40% from 2025 to 2034. The growing need for light, high-strength materials across industries like aerospace, automotive, and construction. These materials provide improved performance, fuel economy, and lower carbon emissions, thus becoming a must for innovation in these industries. Also, innovations in manufacturing technologies and sustainability objectives are further driving market growth. 

The advanced composite materials market is centred on high-performance composite materials composed of fibers and resins, providing strength, durability, and lightness. The materials are used extensively in the aerospace, automotive, and construction industries. Advances in manufacturing and the need for environmentally friendly solutions are the major drivers of the market.

One of the key drivers in the advanced composite materials market is the growing need for lightweight and high-strength materials in the aerospace and automotive sectors. They lead to better fuel efficiency and reduced emissions. In addition, they are extremely resistant to corrosion and long-lasting, hence suitable for harsh environments. All these are driven by manufacturing technology advancements.

Advanced Composite Materials Market Latest Investments

• In July 2023, Toray Industries Inc. will increase its production capacity for carbon fiber tow by more than 20% at its Spartanburg, S.C., and Gumi, Korea, plants. This expansion, which will bring annual capacity to 35,000 metric tons by 2025, addresses increasing demand for pressure vessel applications in clean energy markets such as hydrogen and natural gas. The firm anticipates a 17% per annum increase in demand for carbon fiber tow, spurred by decarbonization trends, such as application in CNG vehicles, gas tanks, and fuel cell transport.
• In March 2024, Jindal Advanced Materials (JAM) has collaborated with MAE S.p.A. for investing ₹2,700 crore in a plant for carbon fibers with an annual capacity of 3,500 metric tons. The plant would supply a host of carbon fiber intermediates and solutions. The plant, due to be operational in 30 months, will span the whole value chain from PAN precursor to carbon fiber intermediates, and has plans to double capacity to 10,000 MT by 2027. MAE S.p.A. will supply engineering and equipment for the project.

Advanced Composite Materials Market Key Highlights

• The U.S. advanced composite materials market is projected to grow from USD 11.94 billion in 2024 to approximately USD 24.49 billion by 2034.
• North America led the global market with the highest revenue share of 38.5% in 2024, driven by strong industrial demand and advanced manufacturing capabilities.
• The Asia Pacific region is experiencing rapid growth, capturing a 24.4% market share in 2024, fueled by expanding automotive, aerospace, and electronics sectors.
• By product, the carbon fiber emerged as the dominant segment, accounting for a significant 66% of total revenue in 2024, owing to its lightweight and high-strength properties.
• By type, advanced thermosetting composites held the largest revenue share in 2024, favored for their durability and performance in structural applications.
• By application, the automotive sector led the market with a 14.60% revenue share in 2024, reflecting the growing use of composites to reduce vehicle weight and improve fuel efficiency.

Advanced Composite Materials Market Important Factors

Demand in Aerospace and Automotive Sectors

Automotive and aerospace industries are applying weight reduction, fuel efficiency, and environmental compliance using composite materials, the latter one being very sophisticated. The performance at high end makes them highly suitable for the aforementioned applications. For example, carbon fiber composite is applied in aircraft by Boeing and Airbus for weight reduction as well as increasing fuel efficiency. Similarly, in the automotive sector, composites are being increasingly used in electric vehicles (EVs) to enhance driving range and efficiency overall.

• In April 2025, Boeing and Airbus will deliver a stunning boost in production of next-generation planes to about 100 per month each. Both are investigating lighter plastic materials and robotic assembly to expedite production. They are researching composites and thermoplastics, which offer benefits of reheatability, remolding, welding with new methods, and reduced reliance on autoclaves. While there are no new plane launch plans on the horizon at present, these projects are designed to boost production capacity for future requirements.

Growth in Renewable Energy Applications to Fuel the Market Growth

Renewable energy industries, particularly wind energy, are also the key growth drivers for the industry. Composites are utilized for wind turbine blades because they provide strength, robustness, and resistance to withstand extreme weather. The rise of renewable energy schemes globally is promoting demand for the materials as it enhances the efficiency and lifespan of wind turbines and other energy-related installations.

• In September 2021, Siemens Gamesa introduced the RecyclableBlade, the world’s first recyclable wind turbine blade ready for commercial offshore use. These 81-meter blades use a new resin that allows them to be dissolved in a mild recycling process at the end of their service life, preserving the reinforcement materials for reuse. The first six RecyclableBlades were produced in Aalborg, Denmark, and will be installed at the Kaskasi offshore wind power plant in Germany with RWE Renewables. Siemens Gamesa is also partnering with EDF Renewables and WPD Offshore for future deployments. This initiative is part of Siemens Gamesa’s Sustainability Vision, which aims for fully recyclable turbines by 2040.

High cost of production and raw materials May Restrain the Market’s Growth

The production and material cost, high as it is, is the biggest hindrance in the market for advanced composite materials. Complicated and energy-intensive manufacturing processes contribute to the cost. It becomes challenging to use on a large scale, particularly in price-sensitive industries.

• For instance, in April 2021, Composites are of greatest significance in the automotive, particularly in electric vehicles (EVs), as they offer weight reduction and efficiency. Although there are numerous strengths of carbon fiber reinforced polymers (CFRP), there are constraints with high material cost and complexity in manufacturing. Businesses are working on green composites through sustainable sources with a bid to lessen environmental degradation, with the advances such as Aptera's solar electric vehicle and Bcomp's natural composite fiber driving the market towards heightened sustainability even as further research would need to be performed to engineer affordable, sustainable long-term all-green composites.

Growing Demand for Sustainable And Eco-Friendly Solutions to Revolutionize Market Growth

One of the biggest opportunities in the advanced composite materials industry is the expanding market for sustainable products, particularly in aerospace, automotive, and renewable energy. As companies focus on complying with environmental standards and lowering carbon emissions, tough yet lightweight composites provide a sustainable option that enhances fuel efficiency and minimizes environmental footprint. It opens up opportunities for advanced composites to move beyond their niche applications into environmentally friendly uses.

• For instance, the Airbus A350, launched in January 2022, employs an "Intelligent Airframe" philosophy that addresses environmental sustainability, efficiency, and reduced maintenance. The aircraft has 70% advanced materials, such as 54% composites, titanium, and alloys, and is 20 tons lighter than comparable aircraft. Features include a 4-panel fuselage, advanced aerodynamics, and Rolls-Royce Trent XWB engines that cut fuel burn, CO2 emissions, and noise, making the A350 one of the most efficient, eco-friendly aircraft in the skies.

Advanced Composite Materials Market Scope

Advanced Composite Materials Market Regional Insight

Europe is Expected to Grow at the Fastest Rate During the Forecast Period

Europe is poised for considerable expansion in the market for advanced composite materials due to a sustainability and innovation focus. Strict environmental regulation, as well as incentives, compel businesses to turn to composites that are energy-efficient and decrease emissions. The automotive and aerospace industries, specifically with the increased use of electric vehicles (EVs) and fuel-efficient airplanes, are leading the charge to lighter, long-lasting materials, further fueling demand for advanced composites to achieve sustainability objectives.

• For instance, in April 2025, Nippon Electric Glass (NEG), a Japanese company, faces the potential closure of its Wigan, UK, factory unless a buyer is found. The factory supplies specialized glass products for industries like automotive and wind energy. NEG, a leader in glass technology since 1949, is undergoing business and technology changes, including executive shifts and strategic reviews of its composites business, to adapt to evolving market conditions. The closure could impact local employment and the UK's industrial strategies.

North America Dominated the Advanced Composite Materials Market in 2024

North America dominates the advanced composite materials industry, spurred by its robust aerospace, automotive, and renewable energy industries. The United States is host to top aerospace manufacturers such as Boeing, Lockheed Martin, and General Electric, which apply advanced composites to their products. Furthermore, increasing the use of lightweight materials in electric vehicles (EVs) and adhering to renewable energy, particularly wind, contributes further to increased demand for advanced composites in turbine blades and infrastructure.

• For instance, in October 2024, Honeywell plans to spin off its Advanced Materials business into an independent, publicly traded company by late 2025 or early 2026. The new company will focus on sustainability-driven specialty chemicals and materials, with an expected FY24 revenue of USD 3.8 billion and an EBITDA margin of over 25%. Brands like Solstice, Spectra, and Aclar will be part of the spin-off, allowing Honeywell to concentrate on its strategic priorities in automation, aviation, and energy transition.

Advanced Composite Materials Market Segmental Insight

By product, the carbon fiber composites segment led the market

Carbon fiber composites are the most sophisticated composite materials with high strength-to-weight ratio, high performance, and toughness. They have extensive usage in aerospace, automotive, and sporting goods for the purpose of weight reduction and improvement in efficiency. Carbon fiber increases fuel efficiency and performance in aerospace and reduces energy usage in automotive, hence making it a very sought-after material for high-performance applications.

• For example, in September of 2024, Tesla's carbon-shielded motor architecture, employing a carbon fiber sleeve over permanent magnet motor rotors, improves efficiency, power density, and thermal management along with decreased weight. Automated Fiber Placement (AFP) technology, such as Addcomposites' AFP-XS, is central to accurately producing these sleeves. AFP facilitates cost-effective, high-quality production, enhancing EV performance and scalability as well as overcoming precision, heat management, and material choice challenges through sophisticated control systems and advanced materials.

By application type, the aerospace & defense segment led the market

The defense and aerospace industry powers the advanced composite materials industry, particularly carbon fiber composites, that lower the weight of aircraft without compromising strength. These composites enhance fuel efficiency, emissions reduction, and performance in aircraft. In defense, composites are highly resistant to hostile environments and are well suited for military aircraft and UAVs. Composites are relied on by aircraft producers to create light but sturdy parts. Usage of such materials is growing day by day due to their performance benefits for commercial as well as defense applications.

• For instance, in December 2024, Boeing is investing USD 1 billion to increase production of its 787 Dreamliner at its non-union facilities in North Charleston, South Carolina, to reach a rate of 10 aircraft per month by 2026 and create 500 jobs in the next five years. This investment came after Boeing faced production quality issues and a strike that halted production of other models, although 787 productions continued in South Carolina during that period. In late November, Boeing had over 6,200 aircraft in its order book. Boeing also resumed production of the 737 in its Seattle-area plant.

Advanced Composite Materials Market Major Breakthroughs

• In September 2024, Formosa Plastics Corp. and the Taiwan Textile Research Institute (TTRI) developed a recycled carbon fiber-reinforced polycarbonate (rCF) thermoplastic composite. This material uses PC fiber spinning and dry hybrid nonwoven technology with recycled carbon fiber, offering a lightweight, strong, and recyclable solution. It eliminates the need for additional matrix resin and can be molded into complex shapes, making it ideal for consumer electronics and sporting goods. The material reduces cycle time, manufacturing costs, and CO2 emissions, improving the product's life cycle assessment.
• In March 2025, Huntsman Corporation and Advanced Material Development Ltd (AMD) are partnering to create carbon nanotube-integrated functional composite materials in the U.S. This collaboration will combine AMD's all-carbon technology with Huntsman's resin systems to develop electrically enhanced materials for the Defense and Aerospace sectors. AMD's teams, associated with Rice University and the University of Sussex, will work with Huntsman’s technical experts to create cost-effective and reliable solutions.
• In March 2025, Hexcel and FIDAMC formed a strategic partnership to drive innovation in advanced composite materials. The collaboration combines FIDAMC’s expertise in advanced manufacturing technologies with Hexcel’s industrial leadership to explore new applications across aerospace, automotive, and other industries. The partnership will integrate digitalization, AI, and advanced manufacturing techniques to enhance material performance, reduce production costs, and contribute to sustainability goals. This effort aims to accelerate the transition from research to real-world applications.

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