Aerospace Composites Market

Aerospace Composites Market Outlook (2025 to 2035)

The global aerospace composites market is projected to increase from USD 46 billion in 2025 to USD 110 billion by 2035, with a CAGR of 9% during the forecast period. Growth is driven by the rising demand for lightweight, fuel-efficient aircraft, as airlines and manufacturers aim to reduce operating costs and comply with stringent environmental regulations.

Aerospace composites are becoming more utilized in the design and production of modern airplanes as they have a higher strength-to-weight ratio than traditional materials. Thus, unlocking greater fuel efficiencies and lower carbon emissions.

What are the Drivers of Aerospace Composites Market?

The growth of the global aerospace composites market is driven by rising demand for fuel-efficient lightweight aircraft. Materials like carbon fiber reinforced polymers (CFRPs), glass fiber composites, aramid fibers, etc., are decreasing a plane’s overall weight while improving structural strength and fatigue resistance.

With commercial aviation looking to reduce operational costs and improve fuel economy, airplane original equipment manufacturers (OEMs), e.g., Boeing, Airbus, and others, are using more composites, especially with primary structures like fuselages and wings. These changes align with the International Air Transport Association (IATA) goals to become net-zero carbon by 2050, providing a key sustainability lever in reducing aircraft weight.

Another major factor fueling market growth is the modernization of fleets and military aircraft reforms and procurements worldwide. The U.S., China, India, and NATO countries are allocating significant portions of their defense budgets toward the development of next-generation aircraft, which incorporate advanced materials to enhance stealth, performance, and maneuverability.

Aerospace composites have been included in these programs because of their radar-absorbing, heat-resistant, and impact-resistant performance, especially in UAVs, fighter jets, and helicopters. The ongoing geopolitical tensions provide even more demand for defense aerospace and demand for superior platforms with advanced technologies.

What are the Regional Trends of Aerospace Composites Market?

North America continues to be the leading market, fueled by strong aerospace manufacturing infrastructures, and could see growth potential due to the presence of tier 1 composites integrators. Boeing, Lockheed Martin, and Raytheon Technologies are all leaders in working on utilizing advanced composites for integration into commercial and defense aircraft. North America has high amounts of R&D funding and also has a very strong existing supply chain for composites to further support such programs.

Europe holds the second position in the global aerospace composites market, with Airbus leading the adoption of composite materials in next-generation aircraft, notably the A350. Countries such as Germany, France, and the UK are actively investing in sustainable aviation technologies, emphasizing the use of lightweight components. Initiatives like the European Green Deal and net-zero emissions targets are further accelerating the integration of composites in both civil and military aviation sectors.

Asia-Pacific will be the fastest-growing region due to increased air travel sped up by the growth of aerospace programs in China, India and Japan (OEMs). Indigenous aircraft manufacturing projects such as COMAC's C919 and HAL's Tejas offer significant opportunities in the market for composite materials. Government projects and government-supported investments, and joint ventures will help spark a growing supply chain across the region.

Latin America and the Middle East & Africa are emerging markets due to Brazil's Embraer (Legacy 1200) and growing aerospace infrastructure in the UAE and Saudi Arabia. These regions still have significant growth ahead of them; however, low-cost manufacturing and joint partnerships with major global OEMs have brought on significant composite investment opportunities for composites.

What are the Challenges and Restraining Factors of Aerospace Composites Market?

A significant hurdle is the capital outlay of composite materials and processing. Advanced materials like carbon fiber are significantly more expensive than traditional metals, and manufacturing processes such as autoclave curing and resin transfer molding involve substantial capital investment. Therefore, adoption has been restrained, especially for smaller manufacturers and regional aircraft programs.

Another important restraint is the difficulty related to the repair and recyclability of composites. Composite structures have fundamental problems in inspection, repair, and recycling, which contribute to higher maintenance costs and increase the complexity of life cycle management. Airlines and defense forces have been hesitant to use materials that lack ratified repair protocols or end-of-life solutions.

The aerospace sector's long certification cycles and stringent regulations are also a deterrent to market growth. Aerospace composite-based components must be subject to stringent validation, which can delay time-to-market and increase development costs. As such, it will create challenges for new suppliers and new entrants in the space, trying to introduce a new product or a better system.

Lastly, there remains the limited availability of skilled labor and expertise regarding composite integration and fabrication. The lack of trained technicians and engineers reduces the ability to scale production, particularly in emerging aerospace hubs. A well-resourced process of training is needed to address the skills gap that will help fully utilize aerospace composites in all regions and settings.

Country-Wise Outlook

U.S. Aerospace Composites Market sees Growth Driven by Innovation-Driven Defense & Sustainability Push

The U.S. market for aerospace composites is being propelled by advanced military programs and civilian sustainability initiatives that are composed of specific government mandates. OEMs, including Boeing, Lockheed Martin, etc., are looking to incorporate next-generation composites into their design processes to reduce weight and fuel consumption, or to improve upon or replace traditional manufacturing methods. Examples abound of emerging trends in composite technology, automation in composite layup, and work on hybrid materials.

The FAA mandates lengthy certification cycles, which constitute a major hindrance to their adoption in US airframes. Meanwhile, the CHIPS Act and massive government-initiated defense funding efforts are stimulating domestic sourcing and production of composites and materials. The significant ongoing demand for new UAV airframes, burgeoning demand for commercial payloads for space exploration, and expanding aftermarket MRO demands provide major growth avenues despite the aforementioned challenges. The U.S. is clearly at the forefront in the market, which continues to behave in a shifting and ongoing cycle influenced by cost, ease of repair, and carbon footprint concerns.

China witnesses Rapid Market Growth Backed by Government Led Aerospace Expansion & Localization Drive

The aerospace composites market in China is going through a period of rapid expansion, fueled by government-subsidized programs like COMAC and AVIC. Key market drivers include the growth of domestic air traffic, increasing self-reliance, and a greater demand for military aircraft. Emerging trends include increased investment in resin systems and thermoplastics. The CAAC is the authoritative agency setting national safety standards in China, while the government subsidies hopefully incentivize and foster innovation of domestic composite materials and address environmental concerns. Strategic opportunities lie within space, UAV, and the development of regional jets.

Barriers to market entry include challenges related to quality standardization, assurance protocols, and the complexities of navigating intellectual property during research and development. China is closing the technology gap with Western markets and is beginning to reshape the supply chain for composites as the state begins to promote an entirely new culture of innovation and compete against the West through vertical integration.

Japan sees Precision Engineering Meets Global Aerospace Supply

The Japan's aerospace composites market flourishes with precise fabrication using carbon fiber, with Toray and Mitsubishi leading the way. Growth is driven by include export relationships with Boeing and Airbus, and preference for high-tensile low-weight materials. The trends include inspection systems driven by artificial intelligence and the use of nanocomposites.

The Japan Civil Aviation Bureau (JCAB) has clear interpretations of safety compliance consistent with the FAA/EASA. Japan recognizes the opportunity for space-related technology and electric and hydrogen-fueled aviation platforms, but domestic airframe production is limited. Japan is transitioning to become an R&D hub for advanced materials and strive to be a quality supplier rather than a volume producer.

Category-wise Analysis

Carbon to Exhibit Leading by Fiber

In the aerospace composites market, carbon fiber has been and will likely continue to be the market leader based on its excellent strength-to-weight ratio, stiffness, and fatigue resistance. Because of its excellent mechanical properties, carbon fiber is used extensively in both commercial and military applications for structural components such as airframe fuselages, wings, and empennages. Aircraft examples include Boeing’s 787 Dreamliner and the Airbus A350, which consist of over 50% carbon fiber composites in their overall structural design.

Ceramic fiber composites are the fastest growing segment in aerospace composites and are the best option in high-temperature environments, but their growth is driven by a lack of alternatives. They have low thermal conductivities compared to metals and excellent insulating qualities.

Applications are developing in hypersonic vehicles, engine components, and heat shields where traditional fibers perform poorly. The U.S. Defense and space programs are broadening interest in ceramic matrix composites (CMCs), recognizing that these composites are essential in the development of next-generation propulsion systems, next-generation engines and thermal protection systems.

Polymer to Exhibit Leading by Lead

Polymetric matrix composites command the largest markets due to their lightweight, cost-effectiveness and corrosion-resistant properties. Thermosetting polymers and thermoplastic polymers are widely used in fuselage, wings, and interiors because they can be molded into complex shapes and repaired, making them ideal for use in commercial and defense aviation. OEMs have largely preferred polymer matrices for primary structures, resulting in a very broad adoption rate across civil aviation programmes like Boeing 787 and Airbus A350.

Ceramic matrix composites (CMCs) are growing at the fastest rate, due to their unique ability to resist extreme temperatures and mechanical stress. They are well suited for engine parts, exhausts, thermal shields and all types of systems to gain greater fuel efficiency and performance. Aerospace engine manufacturers like GE and Safran are deploying OEM CMCs in their engines, constantly improving fuel efficiencies and lowering costs to comply with stricter fuel burn requirements.

Exteriors to Exhibit Leading by Application

Exteriors held the highest share of the aerospace composites market as they are utilized in all critical load-bearing structures such as wings, fuselage, empennage and landing gear components. Carbon fiber composites are widely used in the exteriors of civilian and military aircraft to reduce weight and improve fuel economy.

First tier and original equipment manufacturers prioritize composite integration in the exteriors to meet emission regulations, improve performance, improve durability and extend the life of their composite aero structures; therefore, this is the main application area for aerospace composite materials.

Interiors have been segmented as the fastest growing application space in aerospace composites due to the growing demand for lightweight, fire-retardant, and aesthetically pleasing components for new aircraft cabins and commercial aircraft cabin retrofits. Composite materials will continue to be used in seats, overhead bins, cabin panels, and lavatory components, contributing to improved fuel efficiency and passenger comfort.

Airlines are also retrofitting aging aircraft fleets with composite cabin interiors to enhance performance and extend service life. New aircraft designs are seeking to maximize cabin weight savings internally, while also improving passenger comforts; the application of aerospace composites in interiors is a high-growth area, both in commercial aviation and business aviation.

AFP/ATL to Exhibit Leading by Manufacturing Process

The layup of materials, whether manual or automated, continues to dominate the aerospace composites market, due to its flexibility, cost effectiveness, and appropriateness for complex geometries. Layup is used extensively in both interior and structural components. Due to the ability to custom laminate materials in layers using carbon or glass fibers, layup has become a preferred method for OEMs and Tier-1 suppliers.

It is especially popular for low-volume production and prototype needs, such as those found in business jets and defense programs. In addition to being very labor-intensive, the fact that layup has become an industry standard for aerospace composite manufacturing is due to its proven reliability.

Automated Fiber Placement (AFP) and Automated Tape Layup (ATL) are the fastest growing processes due to increased demand for functions producing composites rapidly, accurately, and with low waste. The use of robotic systems is drastically changing manufacturing production lines to maximize the ability to fabricate composite parts with superior performance in a rapid time and high numbers.

AFP and ATL are core functions for next-level aircraft, such as wings and fuselage sections, able to provide consistency of the composite and optimization of weight and cycle-time performance that will be central to scalable aerospace of the future.

Commercial to Exhibit Leading by Aircraft Type

Commercial aircraft dominate the aerospace composites industry, as there is worldwide demand for fuel-efficient, longer-range airliners. Aircraft, such as the Boeing 787 and Airbus A350, have over fifty percent composite structures to help reduce weight and emissions.

Airlines are looking for the lowest operational costs possible and are considering environmental compliance. This led to OEMs investing time and money into innovative incorporation of advanced composites into fuselage, wings, and control surfaces.

Military aircraft is the fastest growing segment due to the increasing global defense budgets and the consistent need for high agility and stealth capability in platforms. Composites can absorb radar, are durable, and can minimize weight, which can be critical characteristics for military fighter jets, UAVs, and helicopters.

Countries from around the world have increased investment in next-generation defense aircraft programs. As defense aircraft increasingly incorporate composite materials in airframes and propulsion systems, the military aviation segment is driving significant growth in the ultra-high-performance, mission-critical sector. This trend reflects the growing demand for lightweight, durable materials that enhance operational efficiency and combat readiness.

Competitive Analysis

The aerospace composites market is moderately consolidated, with a combination of global material manufacturers, specialty composite fabricators, and integrated aerospace suppliers.

Key players in the aerospace composites industry include Albany Engineering Composites, BASF SE, Hexcel Corporation, Mitsubishi Chemical Holdings, SGL Group, Solvay, Teijin Limited, and Toray Industries, Inc., and other players. All compete on technical innovation, product performance, and long-term supplier agreements with OEMs, such as Boeing, Airbus, Lockheed Martin, and Embraer.

Strategic initiatives such as mergers, capacity expansions, joint ventures, and technology licensing are changing the competitive landscape significantly. To illustrate, Hexcel and Woodward previously contemplated a merger to create a super-supplier of aerospace materials. Toray has already invested in additional automated production lines to meet demand.

From a strategic perspective, companies are returning to an exclusive focus on automation, sustainability, and materials innovation such as thermoplastics, out-of-autoclave processing, and ceramic matrix composites to keep a lid on costs and up-scale production. Geopolitically driven nationalism is making alliances locally more advantageous, while defence policy is driving businesses to rethink their manufacturing footprint and supplier networks across North America, Europe and Asia-Pacific.

Recent Development

• In March 2024, Arkema and Hexcel completed the first aeronautical structure made of thermoplastic composites. This achievement stems from the strategic partnership between Hexcel and Arkema. The high-performance thermoplastic composite structure was designed and manufactured using HexPly thermoplastic tapes.
• In January 2024, Materion Beryllium & Composites entered into an exclusive strategic partnership with Liquidmetal Technologies Inc. This collaboration makes Materion Beryllium & Composites a new member of the Certified Liquidmetal Partners Program.

Segmentation of Aerospace Composites Market

• By Fiber

  • Carbon Fiber
  • Ceramic Fiber
  • Glass Fiber

• By Matrix :

  • Polymer Matrix
  • Ceramic Matrix
  • Metal Matrix

• By Application :

  • Interiors
  • Exteriors

• By Manufacturing Process :

  • AFP (Automated Fiber Placement)/ ATL (Automated Tape Layup)
  • Layup
  • Resin Transfer Molding
  • Filament Winding

• By Aircraft Type :

  • Commercial Aircraft
  • Business & General Aviation
  • Civil Helicopters
  • Military Aircraft

• By Region :

  • North  America
  • Latin America
  • Western Europe
  • Eastern Europe
  • East Asia
  • South Asia & Pacific
  • Middle East & Africa