Composite Materials Market Report 2026

The composite materials market size has grown strongly in recent years. It will grow from $11.24 billion in 2025 to $12.26 billion in 2026 at a compound annual growth rate (CAGR) of 9.1%. The growth in the historic period can be attributed to growth of aerospace composite applications, rising demand for lightweight automotive materials, expansion of wind energy installations, increasing use of glass fiber composites in construction, development of basic polymer matrix composites.

The composite materials market size is expected to see strong growth in the next few years. It will grow to $17.53 billion by 2030 at a compound annual growth rate (CAGR) of 9.3%. The growth in the forecast period can be attributed to rising adoption of carbon fiber composites in mobility sector, expansion of electric vehicle manufacturing, increasing demand for sustainable composite materials, growth in aerospace modernization programs, adoption of advanced automated composite manufacturing technologies. Major trends in the forecast period include increasing use of lightweight composite materials in electric vehicles and aerospace applications, rising adoption of carbon fiber composites for high performance structural applications, growth of sustainable and bio based composite material development, expansion of automated manufacturing processes for composite production, rising demand for high strength and corrosion resistant materials in construction and wind energy.

The growing demand for lightweight materials in the aerospace and defence sector is expected to drive the growth of the composite materials market going forward. Lightweight materials in aerospace and defence refer to advanced materials engineered to reduce structural weight while maintaining high strength, durability, and performance, thereby improving fuel efficiency and operational effectiveness. The rising demand for lightweight materials in aerospace and defence is driven by enhanced fuel efficiency and reduced aircraft weight, which improves performance and lowers operational costs. Composite materials support lightweight materials in aerospace and defence by combining high strength with low weight, enabling reduced structural mass, improved fuel efficiency, and enhanced overall aircraft performance without compromising durability. For instance, in January 2023, according to Airbus SE, a Netherlands-based aircraft manufacturing company, the A350 incorporates around 70% advanced materials to achieve the lowest operating weight per seat and deliver up to 25% lower fuel consumption and operating costs in the upper widebody segment. Therefore, the growing demand for lightweight materials in aerospace and defence is driving the growth of the composite materials market.

Key companies operating in the composite materials market are focusing on developing advanced manufacturing solutions, such as large-scale carbon composite production systems, to enhance structural performance, reduce weight, and improve production efficiency in aerospace and industrial applications. Large-scale carbon composite production systems refer to advanced automated manufacturing setups designed to mass-produce high-strength, lightweight carbon fiber-reinforced composite structures with high precision and efficiency. For example, in August 2024, Rocket Lab, a US-based aerospace manufacturer, began installing a large carbon composite rocket manufacturing machine to expand its composite production capabilities. Designed to support the production of advanced lightweight rocket structures, the system enables high-precision fabrication of carbon composite components, improves structural efficiency, reduces launch vehicle weight, and enhances overall performance in space missions.

In January 2024, Boeing, a US-based provider of commercial airplanes, defense systems, space platforms, and aviation services, acquired Aerospace Composites Malaysia for an undisclosed amount. Through this acquisition, Boeing seeks to strengthen its internal composite manufacturing capabilities, deepen its production footprint across Southeast Asia, and enhance supply chain control for commercial aircraft structures and subassemblies. Aerospace Composites Malaysia is a Malaysia-based provider of composite products and subassemblies used on all current Boeing commercial airplanes.

Major companies operating in the composite materials market are Saudi Arabian Oil Company, BASF SE, ADNOC International Germany Holding AG, Mitsubishi Chemical Group Corporation, 3M Company, Wanhua Chemical Group Co. Ltd., Toray Industries Inc., DuPont de Nemours Inc., DSM-Firmenich AG, Arkema SA, Lanxess AG, Teijin Limited, Syensqo SA, Huntsman Corporation, Avient Corporation, Hexcel Corporation, SGL Carbon SE, Trex Company Inc., Gurit Holding AG, Hyosung Advanced Materials Corporation.

North America was the largest region in the composite materials market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the composite materials market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the composite materials market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The composite materials market consists of sales of composite decking panels, insulation panels, ballistic composite panels, and structural laminate panels. Values in this market are ‘factory gate’ values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

This product will be delivered within 1-3 business days.