The transportation composites market is estimated to be valued at USD 45.75 Bn in 2024 and is expected to reach USD 105.85 Bn by 2031, growing at a compound annual growth rate (CAGR) of 12.73% from 2024 to 2031. The increase in demand for lightweight and fuel-efficient vehicles across major industries such as automotive, aerospace, and defense is driving the need for advanced transportation composite materials.

Market Driver - Rising Demand for Electric Vehicles due to Increased Awareness of Reducing Emissions

With the heightened focus on reducing carbon emissions across the globe, demand for electric vehicles has increased significantly in the recent past. People are making efforts in their own capacity to contribute towards minimizing their carbon footprint.

Early adopters of electric vehicles were majorly motivated by the minimal operating costs and maintenance involved as compared to internal combustion engine vehicles. The social acceptability of electric vehicles has improved over time as more and more people switching to EVs signals others that electric is the future of mobility.

Also, the battery technology advancements have increased the driving range of EVs which has made longer-distance travel more feasible and further boosted people's confidence in them. This is expected to drive production of EVs, and consequently push growth of the transportation composites market.

Market Driver - Advancements in Composite Materials Technology Providing Weight Reduction and Efficiency in EVs

Continuous R&D efforts are improving composites in terms of engineering performance and manufacturability which is expanding their applications.

When it comes to electric vehicles, transportation composites play a vital role by helping overcome two major challenges - weight reduction and longer driving range. Automakers have started extensively utilizing composites in exterior body panels, chassis, seats etc. to make EVs as light as possible. Another important aspect for customer acceptance of EVs is the driving range which is still considered insufficient compared to gasoline vehicles. Also, composites provide resistance to corrosion which is critical for battery enclosures.

Advances in resin systems, reinforcement methods, manufacturing technologies have made carbon fiber composites affordable, reliable and manufacturable in high volumes. Automakers thus see composites as the game changing material to develop future generations of ultra-efficient EVs with increased ranges.

The materials nanotechnology revolution will further improve composite properties like toughness and recyclability. Thus, bolstering their adoption in electric vehicles for enhanced sustainability of mobility will continue to drive growth of the transportation composites market.

Market Challenge - Non-biodegradability and Recycling Issues of Composite Materials

One of the major challenges faced by the transportation composites market is the non-biodegradable and difficult to recycle nature of composite materials. The fibers and resins used in composite manufacturing do not degrade in landfills and remain in the environment for very long periods without disintegrating. This poses serious threats to the ecological environment, creating a major challenge in the transportation composites market.

Additionally, composite materials are complex to recycle due to heterogeneity in composition and bonding of fibers with matrix. Separation and recovery of individual components from end-of-life composite waste is an engineering challenge. The high costs and efforts involved in recycling/disposal is a major discouraging factor for both composite producers and users. The regulations around extended producer responsibility adds to compliance difficulties for companies.

Hence, non-biodegradability and difficulties in feasible recycling present a barrier to higher adoption of transportation composites in various applications.

Market Opportunity - Growth in Racing Events Driving Demand for High-Performance Vehicles Using Composite Materials

The rising popularity of global racing events such as Formula 1, MotoGP, NASCAR, etc. is fueling the demand for high-performance racing vehicles which use advanced transportation composite materials extensively to achieve weight savings, durability and design flexibility. Carbon fiber composites in particular are increasingly being incorporated in drivetrains, chassis and body panels of racing cars to gain competitive edge.

With growing television viewership and sponsorship revenues, racing teams and manufacturers are making heavier investments in R&D of advanced materials to gain an edge on track. This drives the demand for innovative transportation composites.

Their widespread adoption at grassroots level also boosts broader composite component adoption in high-end consumer vehicles aiming for similar performance and design benefits. The thriving racing culture hence presents significant prospects for the transportation composites market.

Material innovation - One of the most successful strategies adopted by major players has been continuous investment and innovation in material science to develop superior materials. For example, Toray developed its carbon fiber reinforced thermoplastic resin, which offers 40% higher strength and 30% lighter weight compared to aluminum. This opened up new applications in electric vehicles, and aircraft.

Strategic partnerships - Players have formed strategic collaborations with OEMs to gain access to new applications and markets. For example, in 2020, Hexcel partnered with BMW to develop carbon fiber reinforced passenger cars. This ensured a ready customer and market access for its materials.

M&A activity - Companies have augmented their technology and production capabilities through targeted acquisitions. For example, Toray acquired TenCate in 2019, gaining access to advanced materials and associated technologies to capture a larger transportation pie. Such acquisitions aided market dominance.

Focus on emerging trends - Major players are aligning their R&D investments and manufacturing to capitalize on emerging trends of lightweighting and sustainability in the sector. For instance, Hexcel dedicated resources towards developing low-carbon and green materials to leverage on the switch toward electric vehicles.

Insights, By Resin: Strength and Durability Drive Thermoset Dominance

In terms of resin, thermoset segment is expected to account for 55.3% share of the market in 2024, owning to its inherent strength and durability advantages over thermoplastics. Thermosets exhibit high heat resistance and greater dimensional stability, making them better suited for applications that require parts to retain their shape and withstand high temperatures over the life of the product.

Their molecular structure transforms irrevocably during the curing process, locking them into a rigid configuration that resists deformation. Hardness and thermo-stability have enabled their wide utilization in areas requiring long-lasting performance under demanding operating conditions. This is driving an important trend in the transportation composites market.

Further, thermosets also provide stronger adhesion in transportation composites, allowing for thin and lightweight designs. Their cured state allows thermosets to be easily molded into complex geometric shapes for intricate load-bearing applications. As transportation infrastructure and vehicles continue to demand higher strength-to-weight ratios and operational durability, thermoset resins will remain the staple transportation composite material across industries.

Insights, By Manufacturing Process: Compression Molding Optimizes Manufacturability

In terms of manufacturing process, compression molding is projected to hold 48.3% share of the transportation composites market in 2024. This is mainly due to its versatility and ability to optimize manufacturability. Compression molding excels at producing large, hollow, and intricate composite parts in an efficient, cost-effective manner.

Determinism and repeatability streamline automation on production lines for high-volume component manufacturing. Compression molding also offers short cycle times and minimal wasted material relative to other transportation composite forming techniques. Its closed mold conception reduces styrene emissions and ensures fiber distribution and resin mixing for consistent part quality.

Insights, By Transportation Type: Roadways Demand Drives Growth in Transportation Composites

In terms of transportation type, roadways contribute the highest share of the transportation composites market in 2024. It’s due to immense projected growth in infrastructure development and automotive vehicles worldwide. As roads, highways, and bridges age across regions, maintenance and expansion projects will rely heavily on lightweight yet durable composite materials.

Transportation composites offer corrosion resistance and longevity while reducing infrastructure lifecycle costs versus traditional materials. In automotive, composites allow innovative designs and styles meeting modern performance and emissions targets. Their use in exterior body panels, drive shafts, and under-body shields helps reduce vehicle weight and improve fuel efficiency standards.

Beyond passenger cars, commercial vehicles are also moving toward transportation composites for enhanced payloads and operational life. Global road network build-outs and automotive demand will spur continuous growth in transportation composites market over multiple decades.

• Asia Pacific held the largest share in the transportation composites market in 2023, driven by developments in the railway sector and the availability of raw materials in countries like India and China.
• Global demand for EVs has increased the demand for transportation composites used in vehicle weight reduction and battery efficiency improvements.
• Europe's transportation composites market growth is driven by increasing EV demand, with major investments in the automotive sector.

The major players operating in the transportation composites market include Mitsubishi Chemical Holdings Corporation, Jushi Group, Toray Group, Teijin Ltd, Solvay S.A SGL Group, Owens Corning, Hexcel Corporation, Gurit Holding AG, and Royal DSM.

• In April 2024, Toray Group partnered with Hyundai Motor Group to collaborate on the development of lightweight and high-strength materials for high-performance vehicles. This partnership aims to enhance material technology, particularly focusing on carbon fiber-reinforced plastics (CFRP) to improve the performance and safety of electric vehicles (EVs)​.
• In February 2024, Hexcel launched its new HexTow IM9 24K carbon fiber, specifically designed for the aerospace sector. This transportation composite material is an intermediate modulus (IM) fiber composed of 24,000 filaments, offering significant improvements in tensile strength—about 12% greater than its predecessor, the Hexcel IM7 fiber.
• In October 2023, Solvay S.A. announced the launch of SolvaLite 716 FR, an innovative fast-curing epoxy prepreg solution specifically designed for structural parts in premium battery electric vehicles (BEVs). This new material aims to provide superior flame retardancy, addressing the automotive industry's need for effective fire protection solutions for battery components.

• By Resin
  • Thermoset
  • Thermoplastic
• By Manufacturing Process
  • Compression Molding
  • Injection Molding
  • Resin Transfer Molding
• By Transportation Type
  • Roadways
  • Airways
  • Railways
  • Waterways