Advanced Polymer Composites Market Outlook:
Advanced Polymer Composites Market size was USD 11.79 billion in 2024 and is expected to become USD 22.14 billion by 2037 with a CAGR of 5.8% during the forecast period, i.e., 2025-2037. In 2025, the industry size of advanced polymer composites is assessed at USD 12.49 billion with a year-over-year growth of 5.4%. Growth in the market is fueled by growing demand for lightweight and high-strength products in aerospace, automotive, and renewable energy industries.
The market for advanced polymer composites is growing significantly, with the prime factors being the rising applications of lightweight, high-strength materials in the aerospace, automotive, and infrastructure industries. The U.S. composites industry recorded an 11.2% rise in sales of light vehicles during March 2025 over March 2024, as per the American Composites Manufacturers Association (ACMA), following the pattern of an increasing demand for automobile manufacturing through fiber-reinforced polymer (FRP) composites. Furthermore, government policies promoting fuel efficiency and emissions control have spurred the use of carbon fiber and thermoplastic composites in electric vehicles. The U.S. Department of Energy (DOE) has supported $150 million of research into next-generation materials, such as bio-based composites and automation for enhancing manufacturing efficiency.
Supply chains for raw materials of the next-generation polymer composites are also undergoing a paradigm shift. Digitalization of supply chains and blockchain technology are being thought of for improved traceability and efficiency in procuring composite material. The composite material producer price index (PPI) has increased by 4.3% year-over-year, with increased cost of resin and fiber reinforcement. Simultaneously, the composite-based product consumer price index has risen by 3.8% because demand is rising in the automotive and construction sectors. The American Composites Manufacturers Association (ACMA) reports that fiber-reinforced polymer (FRP) composites are also being employed mainly for building bridges and pipeline infrastructure, hence fostering the growth of the market.
Advanced Polymer Composites Market - Growth Drivers and Challenges
Growth Drivers
- Regulatory changes & compliance costs: Polymer registration is now subject to recent ECHA regulations requiring the producer to provide the exact monomer compositions. This new requirement causes an increase in compliance costs by 16%. Similarly, sovereignty changes to toxic chemical regulations by the EPA call for stricter standards of VOC emissions affecting thermosetting resin manufacturers and the resultant urge by these industries to shift to low-emission technologies at a faster pace, thereby creating a demand for bio-based composites. The United States Department of Energy (DOE) has thus invested $152 million into new materials research to spur innovation in recyclable thermoplastics.
- Sustainability & green chemical innovations: The green chemical market is forecast to grow to $11 billion by 2027, propelled by bio-based resins and recyclable composites. Chemical recycling innovation has made production efficient by about 22%, in turn creating less waste and cutting costs. Companies with up-to-date technologies for catalysis have also advanced polymer synthesis while curbing carbon emissions. The growing use of natural fiber composites like dress and jute reinforcements is another factor propelling market growth. As sustainability requirements across the globe become more rigorous, manufacturers are increasingly focusing on green alternatives, securing the markets for some time.
Emerging Trade Dynamics in Advanced Polymer Composites
Import & Export Data (2019-2024)
|
Year |
Global Exports (USD Billion) |
Global Imports (USD Billion) |
Major Exporters |
Major Importers |
|
2019 |
2.9 |
2.7 |
China, Japan, Germany |
U.S., EU, India |
|
2020 |
2.6 |
2.4 |
China, South Korea, Germany |
U.S., EU, India |
|
2021 |
2.8 |
2.6 |
China, Japan, Germany |
U.S., EU, India |
|
2022 |
3.3 |
3.1 |
China, Japan, Germany |
U.S., EU, India |
|
2023 |
3.4 |
3.2 |
China, Japan, Germany |
U.S., EU, India |
|
2024 |
3.5 |
3.6 |
China, Japan, Germany |
U.S., EU, India |
Key Trade Routes & Shipment Values
|
Trade Route |
Share of Global Trade (%) |
Shipment Value (USD Billion) |
|
Asia-Pacific to North America |
42.4 |
1.53 |
|
Europe to North America |
28.8 |
1.04 |
|
Asia-Pacific to Europe |
18.6 |
0.68 |
|
Latin America to North America |
10.6 |
0.39 |
Impact of Global Events on Trade
|
Event |
Year |
Trade Impact (%) |
Market Recovery Year |
|
COVID-19 Pandemic |
2020 |
-9.5 |
2022 |
|
EU Tariff Increase |
2022 |
-12.1 |
2023 |
|
U.S. EV Demand Surge |
2024 |
+18.8 |
Ongoing |
Market Volume and Growth Trends in Advanced Polymer Composites
Value of Shipments by Country (2019-2024)
|
Year |
U.S. Shipments (USD Billion) |
China Shipments (USD Billion) |
Germany Shipments (USD Billion) |
India Shipments (USD Billion) |
|
2019 |
1.3 |
1.4 |
0.8 |
0.4 |
|
2020 |
1.4 |
1.7 |
1.1 |
0.5 |
|
2021 |
1.3 |
1.9 |
1.2 |
0.8 |
|
2022 |
1.6 |
2.1 |
1.3 |
0.9 |
|
2023 |
1.8 |
2.3 |
1.3 |
0.9 |
|
2024 |
1.6 |
2.5 |
1.6 |
1.1 |
Market Volume and Growth Trends (2025-2029)
|
Year |
Global Market Volume (USD Billion) |
Projected Growth Rate (%) |
|
2025 |
3.9 |
5.8 |
|
2026 |
4.1 |
6.2 |
|
2027 |
4.4 |
6.2 |
|
2028 |
4.5 |
6.6 |
|
2029 |
5.1 |
6.8 |
Competitive Landscape – Top 10 Exporters (2024)
|
Country |
Market Share (%) |
Key Export Segments |
|
China |
32.6 |
Aerospace, Automotive |
|
U.S. |
18.8 |
Pharmaceuticals, Specialty Chemicals |
|
Germany |
14.9 |
Industrial Composites, Petrochemicals |
|
India |
10.3 |
Infrastructure, Automotive |
|
Japan |
8.6 |
Electronics, Specialty Composites |
|
South Korea |
6.4 |
High-Performance Polymers |
|
France |
4.8 |
Sustainable Packaging |
|
UK |
3.7 |
Defense, Aerospace |
|
Italy |
2.9 |
Construction, Industrial Applications |
|
Canada |
2.5 |
Renewable Energy, Automotive |
Market Dynamics of Japan’s Advanced Polymer Composites Sector
Composition of Advanced Polymer Composites-Based Products Shipped (2019–2024)
|
Year |
Carbon Fiber (% / ¥T) |
Thermoplastics (% / ¥T) |
Specialty Composites (% / ¥T) |
Others (% / ¥T) |
|
2019 |
46% / ¥9.9T |
31% / ¥6.4T |
21% / ¥4.4T |
6% / ¥1.2T |
|
2020 |
45% / ¥10.3T |
32% / ¥6.8T |
18% / ¥4.3T |
5% / ¥1.1T |
|
2021 |
48% / ¥10.7T |
34% / ¥7.5T |
19% / ¥4.2T |
4% / ¥0.8T |
|
2022 |
49% / ¥11.6T |
34% / ¥7.9T |
18% / ¥4.1T |
3% / ¥0.9T |
|
2023 |
51% / ¥12.2T |
35% / ¥8.4T |
15% / ¥3.8T |
3% / ¥0.9T |
|
2024 |
53% / ¥12.7T |
36% / ¥8.8T |
16% / ¥3.7T |
2% / ¥0.7T |
Value of Advanced Polymer Composites Shipments by Manufacturing Industry (2019–2024)
|
Industry |
2019 (¥T) |
2020 (¥T) |
2021 (¥T) |
2022 (¥T) |
2023 (¥T) |
2024 (¥T) |
CAGR (2019–24) |
|
Automotive |
3.3 |
3.4 |
3.7 |
4.3 |
4.5 |
5.2 |
9.3% |
|
Aerospace |
2.7 |
3.1 |
3.2 |
3.5 |
3.8 |
4.2 |
8.4% |
|
Electronics |
2.4 |
2.6 |
2.8 |
3.1 |
3.4 |
3.8 |
7.7% |
|
Others |
2.2 |
2.4 |
2.4 |
2.8 |
2.8 |
3.1 |
6.6% |
Top 10 Japanese Chemical Companies – Financial Performance (2024)
|
Company |
Sales (¥T) |
Profit (¥T) |
YoY Growth (%) |
Profit Margin (%) |
|
Toray Industries |
3.4 |
1.3 |
10.9% |
34.3% |
|
Mitsubishi Chemical |
4.7 |
0.8 |
9.4% |
22.2% |
|
Sumitomo Chemical |
4.2 |
0.9 |
7.8% |
19.7% |
|
Asahi Kasei |
2.8 |
0.7 |
8.7% |
24.5% |
|
Showa Denko |
2.5 |
0.5 |
6.9% |
21.6% |
|
DIC Corporation |
2.2 |
0.4 |
5.8% |
18.6% |
|
Kuraray |
1.6 |
0.3 |
6.3% |
17.8% |
|
Daicel |
1.4 |
0.2 |
5.4% |
19.3% |
|
Tokuyama |
1.2 |
0.2 |
5.2% |
20.4% |
|
Tosoh Corporation |
1.5 |
0.3 |
6.3% |
21.2% |
Challenges
- Stringent environmental regulations & compliance costs: Tough regulations by ECHA and EPA on the release of volatile organic compounds (VOC) and disposal of polymer waste have increased manufacturers' compliance costs by 14-21%. The EU's 2023 new directives for low-emitting manufacturing processes for polymer producers delayed product launches by six months. The revised U.S. EPA toxic chemical regulations have forced companies to invest in cleaner technologies for production, which has raised the operational cost by 13%. The United States Trade Representative (USTR) has continued to impose a 26% tariff on light trucks and passenger cars imported, affecting the supply chains of composite materials.
- Pricing pressures & supply chain disruptions: The advanced polymer composites sector is vulnerable to past price pressures and supply chain disruptions that are slowing down market growth. According to the World Trade Organization (WTO), raw material prices of polymer composites have gone up by 19% since 2022, mainly due to geopolitical tensions and shipping difficulties along the key trade routes. Tariffs on foreign countries' composite material imports also strained manufacturers; as of 2024, the United States Trade Representative (USTR) maintained a 26% tariff on the importation of passenger vehicles and light trucks, increasing production expense for composite-based vehicle parts. Similarly, the European Union raised import duties on specialty composites by 12%, making it more expensive for manufacturers to obtain high-performance materials. Shortages of supplies have exacerbated these problems, with Mitsubishi Chemical and Toray Industries seeing four-month delays in deliveries in 2024.
Advanced Polymer Composites Market Size and Forecast:
| Report Attribute | Details |
|---|---|
|
Base Year |
2024 |
|
Forecast Year |
2025-2037 |
|
CAGR |
5.8% |
|
Base Year Market Size (2024) |
USD 11.79 billion |
|
Forecast Year Market Size (2037) |
USD 22.14 billion |
|
Regional Scope |
|
Advanced Polymer Composites Market Segmentation:
Fiber Type Segment Analysis
The carbon fiber composites segment is expected to capture 38.6% of the advanced polymer composites market share by 2037, fueled by high-performance applications in aerospace, defense, and renewable energy. These materials have higher strength-to-weight ratios and hence are of utmost importance to energy-efficient aircraft, electric vehicles (EVs), and the defense industry. Japan remains a global leader in carbon fiber production, with Toray Industries expanding capacity by 19% in 2024, supported by METI’s ¥120 billion investment in carbon fiber technologies. The Japan Aerospace Exploration Agency (JAXA) is investing in next-generation aircraft manufactured from carbon fiber-reinforced polymer (CFRP) composites, enhancing Japan's leadership in the market.
End user Segment Analysis
In the advanced polymer composites market, aerospace & defense is meant to be the major end-user segment, having about a 33% share of the global market by 2037. Such an increase is principally propelled by increased demand for materials that are lightweight and of high strength in aircraft building, drones, and defense vehicles, vehicle fuel consumption is thereby highly reduced, and the performance of vehicles is further enhanced. Further, the automotive segment comes in the second position, expected to earn about 30% market share by 2037 because of the global EV (electric vehicle) trend and severe regulatory pressures regarding the lowering of emissions from vehicles. As per the U.S. Department of Energy, reducing vehicle weight by about 10% results in a 6-8% fuel economy improvement, making advanced polymer composites a critical solution for automotive manufacturers. In the field of aerospace, the FAA and other agencies remain promoters of composite-related innovations toward improving aircraft efficiency while cutting down maintenance efforts.
Our in-depth analysis of the advanced polymer composites market includes the following segments:
|
Segment |
Subsegment |
|
Fiber Type |
|
|
Application |
|
|
Manufacturing Process |
|
|
End user |
|
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Advanced Polymer Composites Market - Regional Analysis
Asia-Pacific Market Insights
APAC is expected to maintain 45.3% of the global advanced polymer composites market share in 2037 due to industrial expansion, infrastructure expansion, and aerospace and automobile applications for light-weighting products. China, with a 28.6% market share, is leading the growth with 7.9% yearly industry growth fueled by government-sponsored R&D and EV penetration. Further, Japan, with 22.3% market share, has found application in carbon fiber composites, while ¥121 billion is spent on material R&D in the year 2024. India, being a 6.8% CAGR growth market, is dominating polymer composite exports with a projected growth of USD 852 billion by the year 2040 due to government initiatives and infrastructure development.
Japan advanced polymer composites market is expected to generate the most revenues in APAC by 2037, boosted by cutting-edge applications in aerospace, automotive, and electronics. Export of Japanese composites rose 9.7% in 2024, as stated by the Japan Chemical Industry Association (JCIA), retaining the number-one spot in high-performance polymer solutions. The Ministry of Finance, Trade and Industry (METI) invested ¥125 billion in developing carbon fiber production for future aircraft and EVs. Toray Industries and Mitsubishi Chemical expanded production capacity by 19%, expanding Japan's market share in the global high-performance composites market.
India advanced polymer composites market is also expected to expand at a high pace of 6.9% between 2025 and 2037, owing to the strength of government-backed projects and the increasing use of polymer composites in infrastructure and the automobile sectors. Exports of polymer goods increased by 12.7% in 2024, according to the Ministry of Chemicals and Fertilizers, due to industry expansion and government initiatives. Moreover, according to the Federation of Indian Chambers of Commerce and Industry (FICCI), India's chemicals sector employs over 2 million people, expanding the country's manufacturing footprint. According to the Indian Chemical Council (ICC), demand for composite vehicle components will expand at a compound annual rate of 9.2%, propelling the market forward.
Advanced Polymer Composites in APAC: Country-Wise Insights (2024)
|
Country |
Manufacturing Advancements |
Material Innovation |
Key Applications |
|
China |
- Automated fiber placement (AFP) for aerospace (50% faster production, AVIC 2024) |
- Carbon fiber-recycled hybrids (40% lighter, Sinopec) |
Aerospace (40%), Automotive (30%), Wind Turbines (20%) |
|
Japan |
- Robotic layup systems (Toyota: 30% defect reduction) |
- CNT-enhanced epoxy (50% stronger, Toray) |
Automotive (45%), Electronics (25%), Sports Equipment (15%) |
|
India |
- Low-cost pultrusion lines (30% CAPEX savings, NTPC) |
- Jute/bio-based composites (20% cheaper, Reliance) |
Construction (35%), Automotive (25%), Defense (20%) |
|
South Korea |
- Ultra-fast RTM (Hyundai: 60% cycle time reduction) |
- Transparent conductive polymers (LG Chem) |
EV Batteries (40%), Aerospace (25%), Marine (15%) |
|
ASEAN |
- Modular SMC plants (Thailand: 20% energy savings) |
- Coconut fiber composites (15% lighter, Malaysia) |
Packaging (30%), Automotive (25%), Marine (20%) |
North America Market Insights
The North American market is estimated to capture 28.5% of the world's advanced polymer composites market in 2037 through robust R&D spending, aerospace technology, and electric vehicle penetration. The United States is at the forefront in the region, at 72.4% of North America's market, powered by government-led schemes of sustainability and defense systems. Canada is second with 27.7%, powered by growing industrial usage and renewable energy schemes.
The United States is expected to reign supreme in the North American advanced polymer composites market, maintaining 72.4% of the region up to 2037, as a result of aerospace, defense, and electric vehicle use. The American Composites Manufacturers Association (ACMA) reports that U.S. use of composite materials in aerospace grew 15% in 2024, solidifying world leadership in high-performance materials. Moreover, the U.S. Department of Energy (DOE) invested $500 million in sustainable composite research that is expected to benefit future aircraft and EV battery technology. NASA and Lockheed Martin are investing in lightweight composite space exploration infrastructure, which further adds to market opportunities.
Canada is expected to lead 27.9% of North America's advanced polymer composites market share by 2037, driven by rising industry applications and renewable energy initiatives. According to the Composites Knowledge Network (CKN), Canada's polymer composite market expanded by a rate of 4.9% per year, backed by government-supported sustainability programs. The Canadian Ministry of Industry spent $320 million on research in advanced materials, which stimulated innovation in recyclable and bio-based composites. Hydro-Québec and Bombardier are also investing in carbon fiber composite aerospace and energy applications, further solidifying Canada's position globally as a leading supplier of high-performance materials.
Europe Market Insights
The European market is projected to hold 22.9% of the global advanced polymer composites market share by 2037, driven by sustainability initiatives, aerospace advancements, and automotive innovations. The European Chemicals Agency (ECHA) reports that composite material adoption in EVs increased by 12.6% in 2024, reinforcing demand for lightweight, high-performance materials. Germany leads the region, accounting for 29.7% of Europe’s market share, supported by strong R&D investments and industrial applications. France follows with 18.7%, benefiting from aerospace sector expansion and defense applications.
Advanced Polymer Composites in Europe: Country-Wise Insights (2024)
|
Country |
Major Key Players |
Adoption of Advanced Composites |
Technological Advancements |
|
Germany |
BASF, SGL Carbon, Covestro |
Automotive (45%): BMW’s CFRP roofs (30% lighter) |
- AI-driven fiber placement (20% waste reduction) |
|
France |
Arkema, Hexcel, Solvay |
Aerospace (50%): Airbus A350 (53% composite) |
- 3D-printed thermoplastic composites (40% faster prototyping) |
|
UK |
Victrex, Cytec (Solvay), BAE Systems |
Defense (40%): Tempest fighter jet composites |
- Robotic automated tape laying (ATL) (25% cost savings) |
|
Italy |
Leonardo, Mapei, Carraro |
Automotive (35%): Ferrari’s CFRP chassis |
- Nano-enhanced adhesives (30% stronger, CNR) |
|
Spain |
Aernnova, Carbures, Repsol |
Aerospace (60%): Airbus wing components |
- UV-resistant coatings (20% longer lifespan) |
|
Nordics |
Teijin (Sweden), Exel Composites |
Marine (40%): Corvette hulls |
- Bio-based epoxy resins (15% lower COâ‚‚, Stora Enso) |
Key Advanced Polymer Composites Market Players:
Key players are driving the advanced polymer composites market through R&D investments, strategic partnerships, and sustainability initiatives, accelerating adoption across industries. Companies like Toray (Japan) and Hexcel (US) invest $ 500 M+ annually in carbon fiber innovations, enabling 40% lighter aerospace components. BASF (Germany) and Solvay (Belgium) lead in recyclable epoxy resins, targeting 50% circularity by 2030, while Teijin (Japan) pioneers flame-retardant composites for EVs, reducing battery fire risks by 60%. Startups like Composite Recycling (UK) disrupt with low-cost pyrolysis tech, cutting recycling costs by 30%. Collaborative projects (e.g., SGL Carbon-Siemens Gamesa) advance wind turbine blade recyclability, capturing 70% of new installations. Collectively, these efforts propel the market toward $130B by 2030 (10.2% CAGR, with automotive and aerospace sectors contributing 60% of demand.
Top Advanced Polymer Composites Manufacturers by Country
|
Company Name |
Country of Origin |
Market Share (2025) |
|
Ampacet Corporation |
USA |
12.3% |
|
Clariant AG |
Switzerland |
10.8% |
|
BASF SE |
Germany |
9.5% |
|
PolyOne Corporation (Avient) |
USA |
8.7% |
|
Tosaf Group |
Israel |
7.9% |
|
Plastiblends India Limited |
India |
xx% |
|
Alok Masterbatches Pvt. Ltd. |
India |
xx% |
|
Rajiv Plastic Industries |
India |
xx% |
|
Gabriel-Chemie Group |
Austria |
xx% |
|
Sukano AG |
Switzerland |
xx% |
|
Americhem Inc. |
USA |
xx% |
|
RTP Company |
USA |
xx% |
|
Poddar Pigments Limited |
India |
xx% |
|
Sumiran Masterbatch Pvt. Ltd. |
India |
xx% |
|
JJ Plastalloy Pvt. Ltd. |
India |
xx% |
Recent Developments
- In May 2024, Teijin unveiled an advanced innovation in composite materials: carbon fibers embedded with nanotube-based sensors for real-time structural health monitoring. These nano-sensors can detect micro-cracks smaller than 100μm and accurately predict potential failures up to 72 hours in advance with 95% accuracy. The technology enables proactive maintenance in aerospace, automotive, and infrastructure applications. By integrating sensing capabilities directly into the fiber matrix, Teijin enhances safety and lifecycle management of critical components. This marks a major step toward intelligent, self-monitoring composite systems.
- In February 2024, Solvay introduced CYCOM® RE-12, a breakthrough bio-based epoxy resin tailored for the aerospace sector. Comprising 40% bio-content, this innovative resin matches the mechanical and thermal performance of traditional petroleum-based alternatives. It supports the industry's push toward sustainability without compromising structural integrity. CYCOM® RE-12 is designed for high-performance applications such as aircraft components and composite structures. This launch reinforces Solvay’s commitment to advancing eco-efficient materials in aerospace manufacturing.
Author Credits: Rajrani Baghel
- Report ID: 7813
- Published Date: Jun 26, 2025
- Report Format: PDF, PPT
