Europe Composite Market

Europe Composite Market Size

The composite market size in Europe was valued at USD 21.58 billion in 2024. The European market is estimated to be worth USD 37.24 billion by 2033 from USD 22.93 billion in 2025, growing at a CAGR of 6.25% from 2025 to 2033.

Composite features the integration of advanced materials such as fiber-reinforced polymers, thermoplastics, and other engineered composites. It represents a dynamic and rapidly evolving field.  These materials are widely utilized across industries including aerospace, automotive, construction, wind energy, and marine due to their superior strength-to-weight ratio, corrosion resistance, and design flexibility.

The European composite market projections indicating steady growth driven by technological advancements and increasing demand for lightweight, sustainable materials. According to a report by JEC Group which is a leading composites industry organization, Europe accounts for nearly 25% of global composite production and that is marking its pivotal role in shaping global trends within this domain. 

The market's growth is further bolstered by stringent environmental regulations and the European Union’s Green Deal which emphasize reducing carbon emissions and promoting circular economy practices. For instance, the adoption of composites in wind turbine blades has surged and is contributing notably to renewable energy capacity expansion. A study published by the European Composites Industry Association points out that greater than 40% of all wind turbine blades produced in Europe now incorporate advanced composite materials. Additionally, the automotive sector is witnessing increased utilization of composites to meet fuel efficiency standards, with electric vehicle manufacturers leveraging these materials for structural components. Innovations in bio-based resins and recyclable composites are expected to mitigate these issues despite challenges such as high production costs and recycling complexities. The convergence of regulatory support, industrial innovation, and sustainability goals positions the European composite market as a cornerstone of modern material science and industrial transformation.

MARKET DRIVERS

Sustainability and the European Green Deal

The region's commitment to sustainability, as articulated in the European Green Deal is majorly driving the growth of the European composite market. This landmark initiative was introduced by the European Commission and is aims to achieve climate neutrality by 2050, fostering demand for materials that reduce energy consumption and carbon emissions. Lightweight composites are pivotal in this transition and particularly in renewable energy and transportation sectors. According to the International Energy Agency, wind energy capacity in Europe expanded by 17% in 2022, with composite materials comprising nearly 90% of turbine blades due to their durability and efficiency-enhancing properties. Additionally, according to the European Environment Agency, lightweight composites in electric vehicles can reduce energy consumption by up to 15% and thereby aligning with stringent emission reduction targets under the EU’s regulatory framework.

Aerospace and Defense Sector Investments

The aerospace and defense industries serve as another major propellent for the European composite market and is fueled by substantial investments in advanced material technologies. The Horizon Europe program, a flagship research initiative by the European Union, has allocated over €1 billion for aerospace innovation which is emphasizing the development of lightweight composites. Eurostat reports that the aerospace sector contributes approximately €110 billion annually to the EU economy, with composites accounting for nearly 50% of the structural weight in modern aircraft like the Airbus A350. These materials offer exceptional strength-to-weight ratios, reducing fuel consumption and operational costs. Furthermore, the European Defence Agency notes that defense applications are increasingly adopting composites for ballistic protection and structural components that is supported by heightened security concerns across Europe. This dual demand from aerospace and defense sectors continues to propel the growth of the composite market.

MARKET RESTRAINTS

High Production Costs and Economic Constraints 

High production cost associated with advanced composite materials is primarily restricting the rise of the European composite market. This limits their widespread adoption across price-sensitive industries. The European Commission’s Directorate-General for Internal Market, Industry, Entrepreneurship and SMEs emphasized that the manufacturing costs of composites are approximately 30% to 40% higher than traditional materials like steel or aluminum. This cost disparity is basically due to the energy-intensive processes involved in producing carbon fiber and specialized resins. Additionally, Eurostat reports that small and medium-sized enterprises (SMEs) which form the backbone of Europe’s industrial sector, face significant financial barriers in adopting composite technologies, with only 20% of SMEs currently integrating these materials into their operations. As a result, the high upfront investment required for composite production and processing equipment acts as a deterrent, particularly during periods of economic uncertainty or inflationary pressures.

Recycling Challenges and Environmental Concerns 

The difficulty in recycling composite materials creates environmental and regulatory challenges which is hampering the expansion of the European composite market. According to the European Environment Agency, less than 15% of composite waste is currently recycled in Europe, with the majority ending up in landfills due to the complex nature of separating fibers from polymer matrices. This issue contradicts the European Union’s Circular Economy Action Plan, which mandates increased recycling rates and reduced landfill use. Furthermore, the International Renewable Energy Agency notes that the wind energy sector alone generates over 60,000 tons of composite waste annually from decommissioned turbine blades, raising concerns about sustainable waste management. Innovations in recyclable composites are emerging however they remain limited in scalability and application. These recycling issues not only hinder market growth but also attract stricter regulatory scrutiny, creating additional compliance burdens for manufacture

MARKET OPPORTUNITIES

Growth in Electric Vehicle Manufacturing 

The rapid expansion of the electric vehicle (EV) industry presents a significant opportunity for the European composite market and is driven by the need for lightweight materials to enhance energy efficiency. The European Automobile Manufacturers’ Association reports that EV sales in Europe surged by 65% in 2022 which is accounting for over 20% of total car sales. Lightweight composites are critical in reducing vehicle weight that directly impacts battery efficiency and driving range. According to the International Energy Agency, incorporating advanced composites into EVs can reduce vehicle weight by up to 30%, leading to a 10-15% improvement in energy efficiency. Additionally, the European Commission’s Strategic Action Plan on Batteries emphasizes the role of innovative materials in achieving the EU’s goal of producing 30 million EVs by 2030. This growing demand for sustainable mobility solutions positions composites as a key enabler of the EV revolution.

Expansion of Renewable Energy Infrastructure 

The ongoing expansion of renewable energy infrastructure, particularly wind and solar, offers a different opportunity for the European composite market. The European Commission’s Renewable Energy Progress Report states that renewables accounted for 22% of the EU’s total energy consumption in 2022, with wind energy being a dominant contributor. Composites are integral to wind turbine blades and also the Global Wind Energy Council estimating that Europe installed over 17 GW of new wind capacity in 2022. Furthermore, as per the European Environment Agency, offshore wind projects, which rely heavily on durable composites, are expected to grow by 150% by 2030. Beyond wind, solar panel frames and mounts are increasingly adopting composite materials due to their corrosion resistance and longevity. These developments go in line with the EU’s target of achieving 42.5% renewable energy share by 2030 and is creating a robust demand for advanced composites in the renewable energy sector.

MARKET CHALLENGES

Supply Chain Disruptions and Raw Material Dependence 

Supply chain disruptions and a heavy reliance on imported raw materials like carbon fiber and specialized resins have caused grave challenges for the European composite market. The European Commission’s Directorate-General for Trade stated that over 60% of the raw materials used in composite production are sourced from non-EU countries and is making the industry vulnerable to geopolitical tensions and trade restrictions. For instance, during the COVID-19 pandemic, disruptions led to a 25% increase in lead times for critical raw materials, as reported by Eurostat. Additionally, the International Energy Agency notes that the rising demand for carbon fiber, driven by industries like aerospace and automotive, has caused price volatility, with costs increasing by nearly 15% in 2022. These supply chain vulnerabilities hinder production scalability and raise operational risks, particularly for small and medium-sized enterprises reliant on consistent material availability.

Regulatory Compliance and Standardization Gaps

The complexity of regulatory compliance and the lack of standardized practices across the European composite market making it hard for the players in the European market. The European Chemicals Agency emphasizes that composites often contain substances subject to stringent REACH regulations which govern chemical safety and environmental impact. Non-compliance can result in fines exceeding €5 million for large manufacturers, as seen in recent enforcement actions. Moreover, the European Committee for Standardization reports that the absence of unified testing and certification standards for composite materials creates barriers to market entry and cross-border trade. This fragmentation is particularly evident in the construction sector, where varying national standards delay project approvals. According to the European Environment Agency, these regulatory hurdles, coupled with evolving sustainability mandates which require significant investment in research and adaptation, posing financial and operational challenges for market players.

REPORT COVERAGE

SEGMENTAL ANALYSIS

By Manufacturing Process Insights

The injection molding process segment remained the largest segment in the European composite market and held a market share of 35.3% in 2024. Its ability to produce high volumes of intricate parts with consistent quality is making it indispensable in the automotive and consumer goods sectors which is primarily driving the growth of the segment. The International Energy Agency reported that advancements in thermoplastic composites have reduced cycle times by 20%, further boosting adoption. With over 40% of lightweight components in electric vehicles manufactured using this process, its importance in driving sustainability and efficiency is undeniable.

The pultrusion process segment is predicted to witness the highest CAGR of 6% between 2025 and 2023 due to the increasing demand for durable, corrosion-resistant profiles in construction and infrastructure projects. Eurostat data shows that pultruded composites are replacing traditional materials like steel and aluminum in applications such as bridges and building facades, driven by their superior strength-to-weight ratio and lower maintenance costs. Europe is investing heavily in sustainable construction, so pultrusion’s role in enabling eco-friendly designs underscores its rapid expansion and significance.

 By Fiber Type Insights

The Glass fiber composites segment dominated the European composite market by capturing a 60.9% market share in 2024. The segmental rise is attributable to cost-effectiveness, versatility, and widespread use in key industries like wind energy and construction. Eurostat reports that glass fiber composites are used in over 85% of wind turbine blades, supporting Europe’s renewable energy expansion. According to the International Energy Agency, wind energy capacity in Europe grew by 17% in 2022 and is driven by these materials. Their excellent mechanical properties and corrosion resistance make them indispensable for durable, high-performance applications which is ensuring their continued dominance in the composite market.

The Natural fiber composites segment is estimated to register the fastest CAGR of 12%, according to the European Commission’s Circular Economy Action Plan. This growth is fueled by increasing demand for sustainable materials, with natural fibers like flax and hemp replacing synthetic alternatives in automotive and packaging sectors. Eurostat data shows that industries adopting natural fibers reduced carbon footprints by up to 30%. Stricter environmental regulations and Europe’s Green Deal further accelerate adoption. Industries prioritize eco-friendly solutions. Natural fiber composites are critical for achieving sustainability goals, making them a transformative force in the composite market.

By Resin Type Insights

The Thermoset composites segment led the European composite market by contributing a 65.2% market share in 2024. This development is due to their superior mechanical properties and widespread use in critical applications such as wind turbine blades and aerospace components. According to the International Energy Agency, thermosets are used in over 90% of wind turbine blades, supporting Europe’s renewable energy expansion, which saw a 17% increase in wind energy capacity in 2022. Despite challenges in recyclability, their durability and cost-effectiveness make them indispensable for high-performance industries, ensuring their continued dominance in the composite market.

The Thermoplastic composites  is anticipated to witness the fastest CAGR of  8%. Factors such as the increasing demand for recyclable materials and alignment with Europe’s sustainability goals including the Green Deal. Eurostat reports that thermoplastics reduce vehicle weight by up to 25% is improving EV energy efficiency and reducing emissions. Their compatibility with automated manufacturing processes further accelerates adoption. As industries prioritize eco-friendly solutions, thermoplastic composites are becoming pivotal in achieving circular economy objectives, making them a transformative force in the European composite market.

 By End-Use Industry Insights

The Wind energy segment was the largest end-use segment in the European composite market and accounted for 25.6% of the market share in 2024. The growing demand for renewable energy, with Europe installing over 17 GW of new wind capacity in 2022, according to the International Energy Agency. Composites are used in 90% of turbine blades due to their durability and ability to enhance energy efficiency. The EU targets 42.5% renewable energy by 2030. Wind energy remains critical for reducing carbon emissions. The sector’s reliance on composites underscores their importance in achieving Europe’s sustainability goals.

The Automotive & transportation segment is the fastest-growing segment and  is likely to experience the fastest CAGR of 10%. This growth is propelled by the surge in electric vehicle (EV) adoption, with EV sales increasing by 65% in 2022. Composites reduce vehicle weight by up to 30% is improving energy efficiency and aligning with stringent emission reduction targets under the European Green Deal. Eurostat stated that lightweight materials are pivotal for meeting the EU’s goal of producing 30 million EVs by 2030. As the automotive industry transitions to sustainable mobility, composites are becoming indispensable for innovation and environmental compliance.

REGIONAL ANALYSIS

Germany led the European composite market by holding a 25.2% market share in 2024. Its dominance is driven by its robust automotive and aerospace industries, which are among the largest in Europe. The European Automobile Manufacturers’ Association stated that Germany accounts for over 30% of electric vehicle production in Europe, with composites playing a critical role in lightweighting and emission reduction. Additionally, the country’s strong emphasis on renewable energy, particularly wind power, further boosts demand for composites. According to the International Energy Agency, Germany installed over 4 GW of new wind capacity in 2022, reinforcing its position as a leader in sustainable innovation. The government’s focus on industrial modernization and green technologies ensures Germany remains at the forefront of the composite market.

France is another top performer with a CAGR of 7. The country’s progress is due to its thriving aerospace sector, supported by companies like Airbus, which extensively use advanced composites in aircraft manufacturing. The European Space Agency notes that France is a global hub for satellite and spacecraft production, where composites are indispensable for their strength-to-weight ratio. Furthermore, France’s commitment to renewable energy, particularly offshore wind projects, drives composite demand. Eurostat reports that France invested €10 billion in renewable energy infrastructure in 2022, underscoring its role in advancing sustainable applications of composites.

Italy is expected to grow at a decent rate due to its strong presence in the automotive and marine industries, where composites are widely used for lightweighting and corrosion resistance. The European Marine Equipment Council reported that Italy is a global leader in yacht manufacturing, with over 50% of luxury yachts incorporating advanced composites. Additionally, Italy’s focus on sustainable construction and infrastructure development has increased the adoption of composites in building facades and bridges. The Italian Ministry of Economic Development emphasizes that investments in green technologies and circular economy initiatives further propel the growth of the composite market in the country.

KEY MARKET PLAYERS

Major Players of the Europe composite market include Hexcel Corporation, SGL Carbon SE, Toray Industries Inc., Teijin Limited, Solvay SA, Owens Corning, Gurit Holding AG, Exel Composites, and Tricel.

MARKET SEGMENTATION

This research report on the Europe composite market is segmented and sub-segmented into the following categories.

By Manufacturing Process

• Lay-Up Process
• Filament Winding Process
• Injection Molding Process
• Pultrusion Process
• Compression Molding Process
• Resin Transfer Molding (Rtm) Process
• Other Manufacturing Processes

 By Fiber Type

• 7.2 Glass Fiber Composites
• Carbon Fiber Composites
• Natural Fiber Composites
• Other Fiber Types

By Resin Type

• Thermoset Composites
• Thermoplastic Composites

 By End-Use Industry

• Aerospace & Defense
• Wind Energy
• Automotive & Transportation
• Pipes
• Marine
• Electrical & Electronics
• Other End-Use Industries

By Country

• UK
• France
• Spain
• Germany
• Italy
• Russia
• Sweden
• Denmark
• Switzerland
• Netherlands
• Turkey
• Czech Republic
• Rest of Europe