Growth and Innovation in Composites

The composites market thrives with sustainability trends, emerging technologies, and strategic investments shaping its future.

Composite Materials

Market Analysis

The composites market demonstrates robust growth dynamics, with the global market projected to rise from $82.92 billion to $132.98 billion. The U.S. market is expected to grow at a CAGR of 5.3%, expanding from $16.39 billion in 2024 to $22.99 billion in 2030, reflecting a maturing yet expanding industry. Asia Pacific leads regionally with a 41.9% revenue share. Market growth is propelled by rising demand for lightweight materials in automotive and aerospace sectors, stricter pollution regulations, and expanded air and space travel. Nonetheless, the industry faces hurdles from high costs, recycling challenges, and lack of manufacturing standardization.
$
16.4
B

Market Value 2024 (U.S)

$
23
B

Market Value 2030 (U.S)

5.3
%

CAGR (U.S)

Key Market Drivers

Increasing demand for lightweight materials in the automotive industry

Growth in air passenger traffic, leading to an increase in fleet sizes

Expansion of commercial space aircraft manufacturing activities for space exploration missions

Market Inhibitors

High processing and manufacturing costs

Lack of standardization in manufacturing technologies

Automotive composites are particularly difficult to recycle due to their complex constituent compositions and thermoset resins' cross-linked nature.

Our Insights

The composites market offers robust growth potential but demands strategic agility amid rising regulatory and competitive pressures. Industry players should prioritize differentiation through specialized, sustainable solutions and rapid customization, leveraging digital tools like AI and digital twins to optimize operations. M&A remains a dominant route for growth—however, larger, high-value deals suggest a consolidating landscape where only the most innovative and compliant companies will thrive. To remain competitive, invest in advanced recycling technologies, monitor emerging global threats—especially from Asia—and foster collaborations. Business owners must proactively align with evolving regulations, diversify sourcing, and build resilient supply chains to unlock long-term value.

Key Players in The Industry

North American Composites (NAC)

Full-service supplier of composite raw materials and equipment, emphasizing local service and inventory.

Composites One

A leading distributor of composite materials and fiberglass reinforcements in North America.

Hexcel Corporation

A global leader in manufacturing advanced composite materials for the commercial aerospace, defense and space, and industrial markets.

Recent
M&A Activity

The industry emphasizes expanding capabilities, enhancing market positions, and tapping into emerging technologies. The slowdown in M&A from mid-2023 could shift focus to organic expansion over acquisitions.
Acquisition
November 2024
Arkema acquired PI Advanced Materials (PIAM)
Expand high-performance polymer portfolio; seize growth in advanced electronics & electric mobility.
Acquisition
November 2024
Groupe Michelin acquired Flex Composite Group (FCG)
Reinforce leadership in high-tech engineered fabrics & films; enhance polymer composites.
Acquisition
September 2022
Avient Corporation acquired DSM's Protective Materials division (Dyneema brand)
Expand high-performance materials portfolio; enter new markets like ballistic protection.

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