Market Overview
Global chemical distribution market (in bn USD)
Global composite revenue (in bn USD)
Global demand for composites (in mt)
Source: JEC Observer, Composite United e.V.
The market is expected to reacha value of 47bn USD in 2028, growing at a CAGR of 3,4% which is driven by their unparalleled ability to meet rising global demands for lightweight, high-performance, and environmentally sustainable solutions across automotive, aerospace, and construction industries.
Most Recent Market Trends and Associated Challenges
Demand for Lightweight and Sustainable Materials: Increasing emphasis on reducing emissions and improving energy efficiency is driving the adoption of composites in key industries like automotive and aerospace.
M&A and Innovation as Growth Drivers: Companies are using M&A to expand market presence, access advanced technologies, and achieve scale, while launching innovative products to meet evolving industry demands and drive adoption of composites.
Technological Advancements and Broader Applications: Innovations such as 3D printing, advanced resin technologies, and cost-efficient production methods are enabling new applications of composites in renewable energy and infrastructure.
Challenges in Standardization and Workforce Expertise: The lack of standardized manufacturing technologies hinders mass production. Additionally, limited availability of human resources further slows down industry growth and adoption.
Market Segmentation
Segmentation of the Composite Market
Resins: Duroplasts, thermoplastics and elastomeres
Manufacturing Process: Lay-up, filament, winding, injection molding, pultrusion, compression molding, RTM and others
Fiber: Glass fiber, carbon fiber, aramid, natural fiber and other fiber
End-Use Industry: Aerospace & defense, automotive & transportation, construction, pipe & tank, electronics and others
Source: Deloitte, MarketandMarkets
Growth rate by end-use industry:
Deepdive: A closer look into the Wind Energy Industry
Initial use in the wind energy industry:
- Lightweight and High-Performance Properties: Composites are crucial in the wind energy sector to reduce blade weight while offering superior features like fire retardancy, corrosion resistance, design flexibility, and durability.
- Rapid Growth in Wind Energy Applications: The wind energy sector is expected to be the fastest-growing application for composites, driven by increasing adoption and the rising installation of wind farms globally.
Initial use in the wind energy industry:
Source: GrandViewResearch, Environment Energy Leader
Global key players for composites in the wind industry:
Market Overview Europe
European Composite Market Analysis
Country market share (in %)
End-industry market share (in %)
- Germany remains the largest European composites market, holding a 19.4% share of the 8bn EUR European market, with strengths in automotive and electronics applications.
- Growth in SMC/BMC and CFK materials signals promising opportunities in advanced composites.
- Optimistic outlook for NCF driven by wind energy: According to Composites Germany’s latest survey, industry participants overwhelmingly anticipate growth, with only 2% (2023: 9%) expecting a future market decline.
Source: Federation of Reinforced Plastic, Composite‘s Germany
Deepdive: Composites production volume in Europe (in kt)
Short Fibre Reinforced Thermoplastics are vital for Europe due to their versatility, cost-effectiveness, and recyclability, aligning with the region’s focus on sustainable and circular economies. Their high production volume is driven by their widespread use in automotive manufacturing, a cornerstone of Europe’s industrial base.
Source: GrandViewResearch, Environment Energy Leader
International Peers
Selected Peer Group
Valuation & KPI‘s
Valuation Trends in the market
- With the stock market at a peak, multiples have rebounded by 25%.
- Declining multiples are driven by supply chain issues, conflicts and inflation.
- New manufacturing techniques have enabled faster and more cost-effective production of composite materials. This leads to a broader application of composite and has positive effects on company valuations.
Key Performance Indicators
The above graph shows a ratio analysis between a peer group of Composite companies (12) and the broader sector of Basic Materials (400) in which the peer group is embedded.
Composites have demonstrated stronger growth in net sales and earnings per share (EPS) compared to their competitors within the broader peer group. This growth is further complemented by their lower risk profile, making them a more stable option in the market. While their profitability lags slightly behind the industry average, this minor disadvantage is outweighed by their robust performance and reduced exposure to risk.
Selected Transactions
Latest M&A Activity, selected Partnerships
