Global aerospace composites market to triple by 2034 as demand for lighter, greener aircraft accelerates

Rising investment in carbon-fibre innovation, new public-private partnerships and a surge in aircraft production are propelling the aerospace composites sector towards $65 billion in value, according to Allied Market Research

The global aerospace composite market will soar to $64.9 billion by 2034, up from $22.4 billion in 2024, new research suggests.

The study by Allied Market Research attributes the rise to growing demand for fuel-efficient and lightweight aircraft, increased production of commercial and defence fleets, and advances in carbon-fibre and resin technologies.

Expanding air travel and renewed investment in space exploration are also fuelling a compound annual growth rate of 11.3 per cent over the next decade.

High manufacturing costs, complex repair processes and recycling challenges continue to limit progress, but opportunities lie in urban air mobility (UAM), unmanned aerial vehicles (UAVs) and next-generation aircraft programmes.

Allied Market Research says investment in sustainable and recyclable composites, particularly in Europe and North America, will open further room for innovation and expansion through 2034.

Rising foreign direct investment (FDI) and public-private partnerships (PPP) are also driving the market.

Policy reforms in India have eased FDI norms, allowing up to 100 per cent foreign investment in the aerospace sector under the automatic route and attracting global manufacturers.

Tata Advanced Systems Ltd (TASL) and Airbus are establishing India’s first privately operated helicopter final assembly line in Karnataka, producing the Airbus H125, while the government has opened the development of its indigenous Advanced Medium Combat Aircraft (AMCA) fighter to private-sector participation alongside Hindustan Aeronautics Limited (HAL).

The report says these initiatives “underscore India’s commitment to bolstering its aerospace manufacturing capabilities through increased FDI and robust public-private collaborations”.

It also details the macro- and micro-economic influences shaping the sector. Global GDP growth—especially in emerging markets such as India and China, expanding at around 6–7 per cent—continues to drive air-travel demand, boosting aircraft production and composite usage. Volatile fuel prices further support adoption, as composites can reduce aircraft weight and fuel consumption by up to 20 per cent.

Defence spending, led by the United States, which accounts for nearly 40 per cent of global expenditure, is accelerating investment in advanced composite materials for military aviation.

Policies to reduce carbon emissions are another driver, encouraging lighter structures to improve efficiency. Trade conditions and tariffs on carbon-fibre imports remain influential, affecting supply-chain costs and raw-material availability.

At the production level, composites remain 30–50 per cent more expensive than conventional metals, prompting manufacturers to adopt automated tape-laying (ATL), filament winding, and resin-transfer moulding to increase efficiency.

Fleet renewals—especially for narrow-body aircraft such as the Boeing 737 MAX and Airbus A320neo, which use large proportions of composite materials—are expected to sustain growth.

The study names major players as Evonik Industries, Hexcel Corporation, Teijin Limited, DuPont, Mitsubishi Chemical Advanced Materials, Solvay, SGL Carbon, Toray Industries, Copps Industries, and Sumitomo Bakelite Co.

Industry activity has intensified over the past three years. In 2025, Hexcel Corporation participated at Aero India 2025 in Bengaluru, displaying new lightweight composite materials designed to reduce aircraft weight, lower carbon emissions and improve performance—confirming its long-term partnership with India’s aerospace sector.

In 2023, DuPont exhibited its aerospace materials at the 54th International Paris Air Show at Le Bourget, showcasing high-performance polymers, specialty films and coatings for both aviation and space exploration, designed to endure extreme conditions and enhance structural durability.

And in 2022, Solvay announced a research partnership with Wichita State University’s National Institute for Aviation Research (NIAR) in Kansas to develop future aerospace materials and testing solutions. The collaboration combines Solvay’s composite expertise with NIAR’s certification facilities to accelerate the creation of lighter, safer and more sustainable components.

Allied Market Research says these developments illustrate a wider trend towards collaborative research and industrial partnerships that merge academic and commercial strengths to meet new performance and environmental targets.

While production costs and recycling constraints remain obstacles, the report concludes that sustained investment, rising environmental regulation and expanding aircraft production will keep the aerospace composites sector among the fastest-growing fields of advanced materials worldwide.

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