Advanced composites Market Expected to Reach $88.7 Billion by 2031—Allied Market Research

According to a new report published by Allied Market Research, titled, “Advanced composites Market," The advanced composites market was valued at $34.0 billion in 2021, and is estimated to reach $88.7 billion by 2031, growing at a CAGR of 10.2% from 2022 to 2031.

Advanced composites, or polymer composites, are prized for their exceptional strength-to-weight ratio, high stiffness, durability, and resistance to corrosion, chemicals, and environmental exposures. They can be tailor-made to deliver strength and stiffness in specific directions or certain areas depending on the use due to their nearly limitless possibilities and versatility, material engineers and designers have the freedom and creativity to create new material combinations to uniquely serve new applications.

Advanced composite materials are often used to replace a metal, wood, or other traditional material. A polymer composite gives the product strength and stiffness, while adding benefits, such as resistance to moisture and corrosion. Using a composite reduces the weight of the part, which improves fuel efficiency and makes the final product easier to transport, handle, and install. 

More specifically, advanced composites can equal or exceed the strength of steel, aluminum, and other traditional materials. Advanced composites offer many properties for a variety of applications such as reduced weight — composites are up to 75% lighter than steel and up to 25% lighter than aluminum, and durability — composite structures have a very long lifespan, resisting fatigue and withstanding many types of weather conditions, design flexibility — composites can be molded into complex shapes and textures at a relatively low cost, fewer maintenance-composites are considered low-maintenance materials because they do not rust or corrode and are resistant to high temperatures.

The advanced composites market growth is propelled by a rise in demand for carbon fiber and S-glass fiber composites in the aerospace & defense industry and a surge in the need for carbon fiber composites in end-use industries such as civil engineering, medical, and pipes & tanks. Further, industrialization in emerging markets such as China, India, and Japan and the rising demand for environmentally safe specialty products in the construction sector are driving the demand for advanced composites. However, the high cost of advanced composites and the availability of its substitute are hampering the growth of the market.

In addition, formerly, the glass fiber and carbon fiber composites industry was concentrated in Japan, North America, and Europe. However, there has been a noticeable trend in recent years toward the developing economies in Asia-Pacific and LAMEA region. For instance, the significant demand for low-cost carriers has boosted the market for glass fiber and carbon fiber composites in the aircraft, wind energy, and transportation sectors in emerging countries such as India, Brazil, and China. Numerous countries, including China, have started research projects involving composites composed of glass and carbon fibers, and its rapid industrialization will likely be able to meet the increasing demand for such advanced composites.

The advanced composite market is segmented on the basis of product type, resin type, end-use industry and region. On the basis of product type, advanced composite market is segmented into aramid fiber composites, carbon fiber composites and glass fiber composites. On the basis of resin type, advanced composite market is segmented into thermosets and thermoplastic. On the basis of end-use industry, advanced composite market is segmented into aerospace & defense, thermoplastic, electrical and electronic, wind energy, sporting goods, marine, medical and others. The regional market is analyzed across North America, Europe, Asia-Pacific, and LAMEA. 

On the basis of product type, carbon fiber product type was the largest revenue generator, in 2021 and is anticipated to register a CAGR of 10.3% during the forecast period.  The carbon fiber composites offers many properties such as high corrosion resistance, low thermal expansion, and exceptional durability and thereby majorly utilized in the production of aerospace parts. Furthermore, increasing aircraft production will further escalate carbon fiber composites industry expansion over the forecast period. 

On the basis of resin type, thermoplastic segment was the largest revenue generator, in 2021 and is anticipated to register a CAGR of 10.3% during the forecast period. Rising focus on introducing high molecular weight thermoplastic resins is fostering the product penetration. There is a significant opportunity for the market to flourish across the globe, owing to the increasing applications in various industries, including transportation, electronics, and others. 

On the basis of end-use industry, in 2021, the aerospace and defense was the largest revenue generator, and is anticipated to register a CAGR of 10.5% during the forecast period. The growing demand for sports goods, construction, and automotive industries are driving the Asia pacific carbon fiber composite market.

Region-wise, the advanced composite market is analyzed across North America, Europe, Asia-Pacific, and LAMEA. The Asia-Pacific advanced composite market size is projected to grow at the highest CAGR of 5.6% during the forecast period owing to the growing demand for advanced composites in sports goods, construction, and automotive industries in the region.

The major players operating in the industry include Toray Industries, Inc., Koninklijke Ten Cate NV, Teijin Limited, Hexcel Corporation, SGL Group, Cytec Solvay Group, Owens Corning, E. I. Dupont De Nemours, Huntsman Corporation, Momentive Performance Materials Inc. These players have adopted product launch, acquisition, and business expansion as their key strategies to increase their market shares.

KEY FINDINGS OF THE STUDY

• On the basis of product type, the carbon fiber segment is projected to grow at the highest CAGR of approximately 10.3%, in terms of revenue, during the forecast period.
• On the basis of resin type, the thermoplastic segment is projected to grow at a CAGR of approximately 10.3, in terms of revenue, during the forecast period.
• On the basis of resin end-use industry, the aerospace and defense segment is projected to grow at the CAGR of approximately 10.5%, in terms of revenue, during the forecast period.
• On the basis of region, the Asia-Pacific segment is projected to grow at the CAGR of approximately 10.3%, in terms of revenue, during the forecast period.

IMPACT OF COVID-19 ON THE GLOBAL ADVANCED COMPOSITE MARKET

The Advanced Composite market has been negatively impacted due to the wake of the COVID-19 pandemic owing to its dependence on automobile, aerospace & defense, and building & construction industries.

According to a report published by Energy and Economic Growth Survey, the oil & gas sector is among the hardest hit sector with an average contraction of -2.8% in 2020. This has hampered the usage of advanced composite amid the COVID-19 period. Also, more than 100 countries have locked their international borders for transportation and non-essential trade activities which in turn have reduced the consumption of advanced composite among the automotive sectors.