North America Composite Market Outlook to 2030

North America Composite Market Overview

• The North America composite market, valued at USD 30 billion in 2023, is primarily driven by rising demand across industries such as aerospace, automotive, and construction. Increased use of lightweight, high-strength materials has bolstered this market's growth, with composites being favored due to their ability to enhance fuel efficiency, durability, and performance.

• The United States dominates the North American composite market, largely due to its advanced aerospace and defense sectors, as well as its strong automotive manufacturing base. The concentration of major aerospace companies like Boeing and Lockheed Martin in the U.S. has solidified its market leadership. This regional dominance is reinforced by the presence of robust R&D activities and government support for advanced material innovation.
• The Federal Aviation Administration (FAA) and the European Union Aviation Safety Agency (EASA) have strict regulations governing the use of materials in aircraft manufacturing, including composites. In 2023, the FAA certified over 200 new composite materials for use in commercial and defense aircraft. These certifications are essential for ensuring the safety and performance of composite materials in high-stress environments. The certification process also involves rigorous testing to meet the regulatory standards set by aviation authorities

North America Composite Market Segmentation

By Material Type: The North American composite market is segmented by material type into carbon fiber composites, glass fiber composites, aramid fiber composites, metal matrix composites, and polymer matrix composites. Recently, carbon fiber composites have gained a dominant market share under this segmentation. Their superior strength-to-weight ratio, corrosion resistance, and fatigue tolerance make them ideal for use in industries such as aerospace and automotive.

By End-Use Industry: The North American composite market is also segmented by end-use industry into aerospace & defense, automotive, construction, renewable energy, and electronics & consumer goods. The aerospace & defense industry has emerged as a dominant segment, driven by the increasing demand for lightweight materials in aircraft manufacturing. The U.S. governments heavy investments in defense technologies and the need for high-performance, fuel-efficient aircraft have cemented composites importance in this sector.

North America Composite Market Competitive Landscape

The North America composite market is dominated by several key players that have established a strong foothold through extensive R&D, strategic partnerships, and government contracts. Companies like Toray Industries and Hexcel Corporation are at the forefront due to their strong supply chains and wide product portfolios catering to high-demand industries such as aerospace and defense. Additionally, companies are leveraging advancements in manufacturing processes to deliver high-quality composites for next-generation applications.

North America Composite Market Analysis

Growth Drivers

• Rising Demand from Aerospace and Defense Sector: The aerospace and defense sectors are significant consumers of composite materials, driven by their demand for lightweight, high-strength materials. The Federal Aviation Administration (FAA) mandates stringent safety standards, pushing for advanced composite usage in the sector. In 2023, the U.S. Department of Defense budget allocated over $140 billion for aircraft procurement, maintenance, and R&D, which includes composite materials for defense applications. Composites now constitute more than 50,000 tons of materials used annually in aerospace structures.
• Increased Usage in Automotive Lightweighting: With Corporate Average Fuel Economy (CAFE) standards tightening, manufacturers are turning to composites for lighter vehicle structures. In 2022, the U.S. automotive sector produced around 9.2 million cars, with advanced composites being critical for electric vehicle (EV) development. EV sales surged by over 800,000 units in 2023, with lightweight composite materials playing a key role in improving energy efficiency. The U.S. Environmental Protection Agency (EPA) continues to emphasize emission reductions, boosting composite demand .
• Shift Towards Renewable Energy: Wind turbine blades are primarily made from composites due to their strength and durability. In 2023, the U.S. wind energy capacity surpassed 140 GW, with composite materials contributing to the construction of turbines. Each megawatt of wind power requires approximately 7.6 metric tons of composite materials. The Department of Energy (DOE) has committed over $120 million to wind energy projects, spurring further demand for composites in turbine manufacturing .

Challenges

• High Production Costs of Advanced Composites: The production of advanced composites, especially carbon fiber-reinforced polymers, remains cost-intensive, deterring their wider adoption in cost-sensitive industries. For instance, the average cost of carbon fiber per ton in 2023 was approximately $30,000. The high costs are attributed to energy-intensive manufacturing processes and limited scalability. Government subsidies, like the U.S. Advanced Manufacturing Offices $8 million investment, aim to reduce production costs but remain insufficient to completely offset the expense for manufacturers.
• Complex Manufacturing Processes: Manufacturing composite materials is labor-intensive and requires specialized equipment, which limits scalability. In 2022, the average setup cost for advanced composite manufacturing facilities was around $1.5 million, creating barriers for smaller manufacturers. Complex fabrication methods, including autoclaving and hand lay-up, add significant time and labor costs.

North America Composite Market Future Outlook

North American composite market is expected to experience robust growth driven by technological advancements and increasing demand in high-growth industries such as aerospace, automotive, and renewable energy. With the growing focus on sustainability and lightweighting, composites will continue to play a vital role in improving energy efficiency in electric vehicles (EVs) and reducing the carbon footprint of manufacturing processes. The development of bio-based composites and advancements in 3D printing technologies are poised to further enhance the material performance and adoption across various sectors.

Market Opportunities

• Increased Adoption in Construction and Infrastructure: The U.S. construction industry, valued at $1.9 trillion in 2023, is gradually adopting composites for bridges, pipelines, and other infrastructure projects. In particular, fiber-reinforced polymers (FRP) are being utilized in bridge construction. The Federal Highway Administration (FHWA) is investing over $10 billion annually in infrastructure development, creating substantial opportunities for composite material applications.
• Development of High-Performance Hybrid Composites: Innovations in hybrid composite materials, combining different fibers and resins, present significant opportunities for the North American composite market. In 2023, several research institutions in the U.S. received $50 million in federal funding to develop high-performance hybrid composites with improved mechanical properties. These materials are particularly attractive for the automotive and aerospace sectors, offering enhanced durability and reduced costs.