Composites Market To Hit Value 3.97 Billion By 2030 |Grand View Research, Inc.

Posted by Mrudula Anil Karmarkar on February 24th, 2023

The global composites market size is expected to reach USD 163.97 billion by 2030, registering a CAGR of 7.0% over the forecast period,according to a new report by Grand View Research, Inc. The demand for composites is expected to witness significant growth owing to the rising fuel prices and stringent government regulations have shifted automobile manufacturers focus on light-weighted components which would further propel the market demand over the forecast period.

Composite products play an essential role in the manufacturing of automotive and aircraft parts. The growing concerns regarding fuel consumption and CO2 emission levels have prompted the manufacturers to use carbon fiber composite materials as substitutes for metal components. Technological innovations to minimize the manufacturing cycle time is expected to propel the usage of composites in the automotive sector.

The high cost of composites has limited their application scope to premium segment cars. However, key players are conducting extensive R&D activities to develop low-cost composite grades with similar mechanical properties as that of the high-cost variants. This is expected to spur the demand for the product in the automotive industry over the forecast period.

Aerospace is one of the fastest-growing sectors in the global composites market. High-performance materials are required to be used in aircraft, rockets, satellites, and missiles in the aerospace industry. The consumption of composites in the aerospace industry is increasing owing to their lightweight and high rigidity. The U.S. and Europe are the key markets in the aerospace & defense sector with the demand being driven by aircraft manufacturers such as Boeing and Airbus.

Major players have established a strong distribution network and product brands in the global composites market. Companies such as Teijin Limited, Toray Industries, Owens Corning, and PPG Industries Inc. acquired a large share of the market globally. The ongoing research & development activities in the composites market present several growth and expansion opportunities to market players, which in turn are projected to positively influence the overall composites market.

Manufacturers are aiming to achieve optimum business growth and a strong market position through the implementation of various strategies such as integration, through acquisition, joint ventures, production capacity expansion, new product development, promotion of key product brands, and significant investments in research & development.

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This growth is attributed to the rising demand for lightweight components in the automotive and transportation industry. Furthermore, increasing utilization of advanced lightweight components across the manufacturing industries is anticipated to support the market growth during the forecasted years. Composites find application in the aerospace & defense sector owing to their ability to reduce the body weight of military aircraft and helicopters to a large extent. A reduction in weight is considered important in order to increase fuel efficiency and overall performance and is expected to emerge as the key driver propelling the industry’s growth.

Composites Market Report Highlights

• The glass fiber segment accounted for the largest market share in 2021 and is further expected to grow at a CAGR of 6.2% on account of increased penetration in pipe manufacturing applications owing to the strength and durability of these composites. Additionally, glass fiber comprises several thin that find application in building & construction, automotive, industrial, energy, and consumer goods
• The layup process segment is forecasted to grow at a CAGR of 8.8% by 2030. The market is again forecast to grow due to easier technology applications and the requirement of less expensive machinery. The process involves placing multiple layers of composite fiber in a sequence by using a matrix of resin and hardener
• The automotive & transportation segment dominated the composites market with a revenue share of USD 18.84 billion in 2021. This is attributed to its advantages such as fuel saving to the transportation sector as the components are significantly lighter in weight that allows ascending fuel efficiency
• The demand for composites in Asia Pacific was the largest in the global market due to the increase in air passenger traffic, rise in automotive vehicle production, and ambitious electrical & electronics production capacity addition targets set by various governments in the Asia Pacific including China, India, Japan, and South Korea
• Various initiatives such as technology innovations, research & development, partnerships, and merger & acquisitions to manufacture cost-effective and lightweight composite products have been undertaken by the key market players. Prominent players have patented technologies used for composites manufacturing

The COVID-19 outburst across the globe has significantly impacted the supply chains as major economies suspended trade operations. Moreover, demand for the product across various end-use industries such as aerospace, automotive, and construction has been reduced in 2020. However, with the ease of trade restrictions, the situation is expected to recover in 2021, which is expected to restore the growth trajectory of the market.

The U.S. composites market is expected to grow in aerospace & defense on account of the increasing penetration of the product coupled with the presence of the leading aircraft manufacturer in the country i.e. The Boeing Company. The rapid growth of the aerospace industry in the country and expected growth in the defense sector is likely to drive the demand over the forecast period.

The growing environmental concerns and stringent regulations regarding pollution control have forced automotive manufacturers to enhance their technologies and develop vehicles having low pollution. Moreover, the implication of environmental regulations primarily in Europe and the U.S. has forced automotive manufacturers to include composites in automotive production. This is expected to accelerate the market growth progressively.

List of Key Players in Composites Market

• Teijin Ltd.
• Toray Industries, Inc.
• Owens Corning
• PPG Industries, Inc.
• Huntsman Corporation LLC
• SGL Group
• Hexcel Corporation
• DuPont
• Compagnie de Saint-Gobain S.A.
• Weyerhaeuser Company
• Momentive Performance Materials, Inc.
• Cytec Industries (Solvay, S.A.)