Thermoplastic Composites Market to Reach USD 27 Bn by 2031, Growing at 6% CAGR

The global thermoplastic composites market was valued at over USD 14.3 billion in 2020 and is projected to reach USD 27 billion by the end of 2031, growing at a CAGR of 6% from 2021 to 2031. This growth is driven by increasing demand from automotive, aerospace, and construction industries due to the material's lightweight, high strength, and recyclability.

The increasing popularity of thermoplastic composites for manufacturing lightweight components of vehicles is driving the global market. Penetration of electric vehicles across the world, rising disposable income, and increasing applications of thermoplastic composites in various end-use industries are key factors contributing to the global market growth.

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There is an increasing demand for thermoplastic composites for use in various applications in automobiles, transportation, construction, aerospace & defense, electronics, etc. Thermoplastic composites are becoming popular, owing to their excellent recyclable properties. Companies in the global thermoplastic composites market should accelerate their product development and unlock revenue opportunities to obtain competitive benefits. Moreover, market stakeholders are extending their services arms to gain competitive edge.

Market Segmentation

The thermoplastic composites market is highly diverse, segmented across various parameters to reflect its wide-ranging applications:

By Resin Type:

Polyamide (PA): Dominates the market, accounting for over 55.35% revenue share in 2021 and maintaining a leading share (around 38% in 2024). Its superior mechanical performance, corrosion resistance, chemical inertness, abrasion performance, and thermal properties at a reasonable cost make it highly sought after.

Polypropylene (PP): Expected to show notable growth, acting as a versatile matrix.

Polyetherimide (PEI)

Others

By Fiber Type:

Glass Fiber: The dominant fiber type, capturing over 88% of the market volume in 2024, due to its low investment cost and widespread use in transportation.
Carbon Fiber: Anticipated to expand significantly, particularly in aerospace and hydrogen-tank adoption, where its higher modulus justifies the price premium.
Others

By Product Type:

Short Fiber Thermoplastic (SFT): Accounted for the largest share (over 81.35% in 2021 and 38% in 2024), primarily used in injection molding.

Long Fiber Thermoplastic (LFT): Expected to be a fast-growing category (5.23% CAGR), seeking improved strength without the full cost of continuous fibers.

Glass Mat Thermoplastics (GMT)
Continuous Fiber Thermoplastics (CFT)

By Application/End-Use Industry:

Transportation (Automotive & Aerospace): The largest segment, accounting for over 28.75% of revenue in 2021. Driven by the critical need for lightweighting to improve fuel efficiency and reduce emissions in both conventional and electric vehicles (EVs). Thermoplastic composites are replacing metals for components like body panels, structural parts, and interior elements.

Aerospace & Defense: A key growth area, driven by demand for lightweight, fuel-efficient aircraft and advancements in military applications. Thermoplastics enable reduced weight, improved corrosion resistance, and faster production of complex structures. The aerospace thermoplastic composites market alone is estimated to reach US$14.3 Billion by 2031, growing at a CAGR of 14.7% from 2025-2031.

Construction: Growing demand for durable, corrosion-resistant, and sustainable building materials.

Electrical & Electronics: Used for slim casings, thermal diffusion, and durable components in consumer electronics.

Wind Energy: Critical for larger and more efficient wind turbine blades due to superior fatigue resistance.

Consumer Goods
Marine
Oil & Gas
Others (including sporting goods, industrial, and medical)

By Sourcing Type (Not explicitly detailed in provided info but relevant for composites):

Virgin
Recycled
Bio-based

By Service Type (Not explicitly detailed in provided info but relevant for composites):

Fabrication
Molding
Testing
Design and Engineering
Regional Analysis

Asia Pacific: Currently holds the largest market share (around 40.22% in 2023) and is projected to be the fastest-growing region. This growth is fueled by rapid industrialization, expanding manufacturing sectors, and significant investments in automotive, aerospace, and construction industries, especially in China, India, and Japan. The burgeoning EV market in China further bolsters demand.

North America: Accounts for a significant revenue share (29.00% in 2021) due to the presence of developed economies (U.S., Canada) and leading aerospace and defense manufacturers. High R&D activities in sustainable composite materials also drive regional growth.

Europe: Expected to exhibit a high CAGR, driven by stringent environmental regulations demanding lightweight and fuel-efficient materials, particularly in automotive and aerospace, coupled with aggressive investments in renewable energy.

Market Drivers and Challenges

Market Drivers:

Lightweighting and Fuel Efficiency: The paramount need to reduce vehicle and aircraft weight for improved fuel economy and lower emissions (e.g., meeting CAFE standards in the US and Euro 7 in Europe).

Sustainability and Recyclability: Thermoplastic composites are inherently recyclable, unlike thermosets, aligning with growing environmental concerns and regulatory pressures.

Technological Advancements: Innovations in fiber reinforcement, matrix materials, and manufacturing techniques (e.g., automated fiber placement (AFP), automated tape laying (ATL), 3D printing, and additive manufacturing) enhance performance and reduce production costs and lead times.

Expanding End-Use Applications: Increasing adoption in diverse sectors beyond traditional automotive and aerospace, including construction, consumer goods, and renewable energy.

Growth of Electric Vehicles (EVs): EVs benefit significantly from lightweight materials to extend range and improve performance, driving demand for thermoplastic composites in battery enclosures and structural components.

Challenges:

High Cost of Raw Materials: Thermoplastic resins are often more expensive than thermoset resins, impacting the final product cost.

Complex Manufacturing Processes: Production involves specialized equipment and expertise, leading to potentially higher initial investment and longer lead times for some processes compared to conventional materials.

Lack of Standardization: Insufficient standardization in manufacturing technologies can hinder widespread adoption, particularly for smaller enterprises.

Competition from Alternative Materials: While offering superior properties, thermoplastic composites still face competition from established materials and other advanced alternatives.

Market Trends

Integration with Advanced Manufacturing Technologies: Increased adoption of 3D printing, additive manufacturing, AFP, and ATL for precise, high-speed, and complex part production.

Focus on Bio-based and Recycled Content: Growing interest in bio-based resins and recycled carbon fiber to enhance sustainability.

Development of Hybrid Molding Cells: Combining long-fiber injection and over-molding for improved efficiency and design flexibility.

Increasing Use in Hydrogen Tank Programs: Filament-wound thermoplastic tanks show promise in reducing boil-off losses in hydrogen storage.

Strategic Partnerships and Collaborations: Companies are forming alliances (e.g., Solvay and Leonardo for aerospace) to drive innovation and expand market reach.

Future Outlook

The future of the thermoplastic composites market appears highly promising. The ongoing shift towards lighter, more efficient, and sustainable solutions across industries will continue to be the primary growth engine. The aerospace industry, with its stringent demands for performance and ongoing efforts to reduce carbon footprint, will remain a significant driver. The proliferation of electric vehicles and advancements in renewable energy infrastructure will create new and substantial opportunities. Continued R&D in material science and manufacturing processes will further reduce costs and expand the application scope, making thermoplastic composites an increasingly vital material for advanced engineering.

Key Market Study Points

The market is fundamentally driven by the need for lightweighting, fuel efficiency, and sustainability.

The automotive and aerospace sectors are critical demand generators.
Asia Pacific will remain the largest and fastest-growing region.

Polymer and fiber type choices directly impact application areas and market share.

Technological advancements in processing and material development are crucial for overcoming cost barriers and expanding adoption.

Competitive Landscape

The thermoplastic composites market is competitive, featuring both established global players and emerging innovators. Key market participants are focused on product development, expanding manufacturing capacities, and strategic collaborations to gain a competitive edge. Leading companies include:

BASF SE
Dow Chemical Company
Arkema Group
SNF Group
Ashland Inc.
Kuraray Co. Ltd.
Kemira Oyj
DuPont de Nemours, Inc.
CP Kelco U.S., Inc.
Solvay
Hexcel Corporation
Toray Industries, Inc.
Celanese Corporation
Hanwha Advanced Materials
SGL Group

Recent Developments

February 2025: TORAY INDUSTRIES, INC., announced a carbon-fiber-reinforced plastic with metal-like thermal conductivity, improving battery heat dissipation and opening new design possibilities in electronics housings.

March 2024: Arkema and Hexcel Corporation completed the first full aeronautical structure manufactured entirely from thermoplastic composites, validating industrial-scale welding of large airframe parts and signaling OEM acceptance.

Early 2024: Successful completion of the world's largest thermoplastic composite aircraft fuselage segment by welding two 8-meter-long CFRP half-shells, demonstrating the scalability of the technology.

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