Functional Composite Market Overview and Growth Drivers
The global functional composite market is expected to grow at a CAGR of 9.0% during the projected period. The market value is projected to increase from USD 56.7 billion in 2024 to USD 134 billion by 2034.
| Attributes |
Details |
| Market Size, 2024 |
USD 56.7 billion |
| Market Size, 2034 |
USD 134 billion |
| Value CAGR (2024 to 2034) |
9.0% |
Functional Composite Market Size and Share Forecast Outlook
- The increasing demand for lightweight materials in various industries such as aerospace, automotive, and construction.
- Functional composites are known for their lightweight properties, which make them an ideal choice for these industries, as they help reduce fuel consumption, enhance performance, and lower overall costs.
- The increasing demand for renewable energy sources. The growing need for sustainable energy has led to an increased demand for wind turbines, which use functional composites in their manufacturing process.
- The use of composites in wind turbines helps to reduce weight and enhance performance, which in turn leads to cost savings and more efficient energy production.
- The growing demand for high-performance materials in various end-use industries. The use of advanced composites in the aerospace and defense industries is a prime example of trend. These industries require materials that can withstand extreme temperature and pressure conditions, and functional composites are well-suited for this purpose.
- The growing trend of automation in various industries is driving the growth of the functional composites market.
- The use of composites in automation equipment helps to reduce weight and increase the efficiency of these machines. This, in turn, leads to cost savings and increased productivity.
Potential Opportunities Driving the Demand for Functional Composite
The functional composite market is a rapidly growing sector with a wide range of opportunities for manufacturers.
- The increasing demand for carbon fiber composites in the aerospace industry.
- Carbon fiber composites are lightweight, strong, and offer excellent resistance to heat and corrosion, making them ideal for use in aircraft structures.
- With the global aerospace industry projected to grow steadily in the coming years, manufacturers of carbon fiber composites can expect a surge in demand for their products.
- With the growing demand for fuel-efficient vehicles, manufacturers are turning to lightweight materials such as composites to reduce the weight of vehicles and improve fuel efficiency.
- Functional composites offer excellent performance in terms of strength, stiffness, and durability, and can be used to make various automotive components such as body panels, chassis, and suspension systems.
- Manufacturers of functional composites can capitalize on the growing demand for sustainable and energy-efficient buildings.
- Composites are resistant to moisture, corrosion, and rot, making them suitable for use in harsh environments which is expected to create lucrative opportunities during the forecast period.
Factors Restraining the Demand for Functional Composite
The functional composite market has been growing consistently over the past few years. However, there are several challenges that manufacturers face in the market.
- The high cost of raw materials is expected to hamper the market during the forecast period. The cost of raw materials used to manufacture functional composites is much higher than that of traditional materials. The high cost of raw materials makes it difficult for manufacturers to price their products competitively.
- The complexity of the manufacturing process. The production process involves several steps, including mixing, molding, curing, and finishing. Each step requires specialized equipment and skilled labor, which adds to the cost of production.
- The functional composite market is highly regulated. Manufacturers need to comply with various environmental, health, and safety regulations while producing and transporting their products.
- The lack of awareness about the benefits of functional composites among end-users. Manufacturers need to invest in marketing and education to create awareness about the advantages of functional composites over traditional materials. Marketing is likely to help in increasing the demand for these products and create new opportunities for growth in the market.
Functional Composite Industry Analysis by Top Investment Segments
The Metal Matrix Segment Dominates the Market by Matrix Type
| Attributes |
Details |
| Matrix Type |
Metal Matrix |
| Market CAGR from 2024 to 2034 |
8.7% |
- The aerospace industry has been a significant driver of demand for metal matrix composites due to their high strength-to-weight ratios, excellent thermal stability, and good fatigue properties.
- The automotive and electronics industries are also emerging as significant consumers of metal matrix composites, as they offer excellent wear resistance, thermal stability, and electrical conductivity.
- On the other hand, the defense industry uses metal matrix composites in armor applications.
- The electronics industry in various regions uses metal matrix composites in the production of heat sinks and electrical contacts due to their thermal stability and electrical conductivity.
The Aerospace & Defense Segment Dominates the Market by End Use Industry
| Attributes |
Details |
| End Use Industry |
Aerospace & Defense |
| Market CAGR Form 2024 to 2034 |
8.6% |
- The aerospace industry, in particular, has increasingly been adopting composite materials for use in aircraft components to achieve weight reduction, enhanced fuel efficiency, and improved performance.
- The high demand for advanced composites in the aerospace industry can be attributed to their superior strength-to-weight ratio, corrosion resistance, and durability, which make them ideal for critical components such as wings, fuselage, and engine parts.
- The defense sector has also been a significant driver of growth in the functional composite market, particularly in the production of armor systems, ballistic protection, and unmanned aerial vehicles (UAVs).
- The military's increasing focus on lightweight, high-strength materials has led to the adoption of advanced composites in various applications, from body armor to aircraft components.
Analysis of Top Countries Producing, Engineering, and Adopting Functional Composite
| Countries |
CAGR through 2024 to 2034 |
| United States |
9.1% |
| United Kingdom |
9.4% |
| China |
9.8% |
| Japan |
10.1% |
| South Korea |
10.0% |
Growing Demand for Sustainable and Eco-Friendly Products in the United States
- The growing demand for lightweight and durable materials in various industries, including aerospace, automotive, and construction in the United States.
- The increasing demand for renewable energy sources in the region. The use of composites in wind turbine blades, for example, has increased significantly over the past few years, as these materials offer superior performance and efficiency compared to traditional materials.
- The United States has a robust manufacturing industry, which is driving demand for functional composites in the country. Many manufacturers are looking to reduce costs and improve efficiency, and functional composites offer an excellent solution.
- The growing demand for sustainable and eco-friendly products is also driving the growth of the functional composite market in the United States. Many consumers are looking for products that are environmentally friendly and have a lower carbon footprint and functional composites offer an excellent solution.
Increasing Demand for Lightweight and High-Performance Materials across Various Industries in the United Kingdom
- The growth of the automotive industry in the United Kingdom. With the shift towards electric vehicles and the need for more fuel-efficient cars, manufacturers are increasingly turning to composite materials to reduce weight and improve performance.
- The construction industry is a significant contributor to the functional composite market in the United Kingdom. Composite materials are used in the construction of bridges, buildings, and other infrastructure projects due to their durability, strength, and resistance to corrosion.
- The increasing demand for lightweight and high-performance materials across various industries, including automotive, aerospace, renewable energy, and construction, is driving the growth of the functional composite market in the United Kingdom.
- With advancements in technology and increasing awareness about the benefits of composite materials, this trend is expected to continue in the coming years.
Rising Government's Massive Investments in Infrastructure Projects in China
- China is one of the fastest-growing economies in the world, and its demand for functional composites has been increasing steadily over the years.
- Infrastructure development is a key driver of the functional composite market in China.
- The government's massive investments in infrastructure projects, including highways, airports, bridges, and high-speed railways, have created a huge demand for lightweight, durable, and corrosion-resistant materials.
- Rising consumer awareness toward environment-friendly products in China. As consumers become more health-conscious and environmentally aware, they are looking for products that are safer, more durable, and more sustainable.
- Functional composites, such as biodegradable plastics and composites made from recycled materials, are gaining popularity among consumers who are looking for eco-friendly alternatives to traditional materials.
Need For Functional Composites in Manufacturing Industries in Japan
- Japan is a country that has been at the forefront of technology and innovation for decades. The country has a highly advanced manufacturing sector, which has been a key driver of its economy.
- The country's aging population is expected to drive the demand for functional composites. As the population ages, there is a growing need for products that can improve the quality of life for seniors.
- Functional composites are being used in the production of a range of products, including medical devices, prosthetics, and even housing materials that can improve the safety and comfort of older people.
- The need for functional composites in manufacturing industries in Japan. Japanese companies are increasingly using these materials in the production of a range of products, including electronics, automotive components, and aerospace parts.
Increasing Focus on Innovation and Sustainability in South Korea
- South Korea's economy has been growing at a steady rate in recent years, making it one of the fastest-growing economies in the world. The growth leads to an increase in demand for advanced materials such as functional composites, which are used in a wide range of applications across various industries.
- The country's focus on innovation and sustainability.
- With a growing awareness of the environmental impact of traditional materials and a desire to reduce carbon emissions, many South Korean companies are turning to functional composites as a more sustainable alternative
- The South Korean government has also been supportive of the functional composites industry, providing funding and incentives to companies to encourage innovation and growth. As a result of government initiatives, the development of new technologies and products, further drives the demand for functional composites.
Key Functional Composite Market Players and Concentration
The market is constantly evolving. With the increasing demand for lightweight and high-strength materials in various industries, the market is becoming more crowded with new players and innovative solutions.
Companies are focused on product innovation, strategic partnerships, and mergers & acquisitions to expand their market presence and stay ahead of the competition. Additionally, the market is also witnessing the emergence of several start-ups and niche players that are disrupting the traditional market dynamics with their unique offerings and agile business models.
Recent Development in the Functional Composite Market
- In 2022, 3A Composites Core Materials, based in Sins, Switzerland, has introduced the Engicore series of core materials for the markets of North and South America. This new portfolio offers a range of custom core solutions that are designed to meet the specific requirements of each customer's manufacturing process and standard needs. Engicore is aimed at customers who are looking for innovative and sustainable procurement solutions.
Leading Suppliers of Functional Composite
- Toray Industries Inc.
- Hexcel Corporation
- Owens Corning
- Solvay, SGL Carbon
- Teijin Limited
- Mitsubishi Chemical Holdings Corporation
- Gurit
- Henkel AG & Co. KGaA
- Huntsman Corporation
- BASF SE
Top Insights Covered in the Functional Composite Market Report
- Engineered Composite Market Landscape
- Smart Composite Materials Adoption Assessment
- Hybrid Composite Industry Outlook
- High-Performance Composite Market Analysis
- Tailored Composite Pricing Scenario
