Market Dynamics
Introduction
Defense composites refer specifically to the application of composite materials within military and defense systems, where performance, durability, and weight savings are critical. These materials are used extensively in the production of armored vehicles, aircraft, rotorcraft, UAVs, missiles, etc. By enabling lightweight yet robust structures, defense composites improve mobility, survivability, and operational efficiency on the battlefield. Additionally, they contribute to stealth technologies by minimizing radar signatures and enhancing thermal insulation properties, thereby giving armed forces a technological edge.
The defense composites market is poised for significant growth, driven by multiple factors. Increasing defense budgets across major economies, modernization initiatives for military fleets, and rising geopolitical tensions are creating sustained demand for advanced lightweight materials. The growing adoption of unmanned aerial vehicles (UAVs), next-generation fighter jets, and rotorcraft requires composites that can balance structural strength with reduced weight, thereby extending range and fuel efficiency. Furthermore, the rising focus on soldier protection through body armor and helmets made from aramid and carbon fiber composites is fueling demand in the personal protection category.
Technological advancements are also playing a crucial role in shaping the defense composites market. Innovations in resin transfer molding, additive manufacturing, and hybrid composite development are enabling faster production cycles, cost efficiency, and enhanced material performance. Additionally, sustainability considerations are driving research into recyclable and bio-based composites, which are likely to gain importance in future defense procurement strategies. As armed forces continue to seek materials that enhance survivability, mobility, and cost-effectiveness, composites are expected to remain at the forefront of defense modernization programs worldwide.
Recent Market JVS & Acquisitions:
A considerable number of strategic alliances, including M&As, Collaboration, Long Term Agreement etc., have been performed over the past few years:
- In 2025, TexTech acquired FMI for $165 million to expand into carbon–carbon composites, strengthening its ability to support hypersonic and missile defense systems.
- In 2025, Hexcel and Konsberg came in a long-term agreement for the supply of HexWeb® engineered honeycomb materials for defense & aerospace application.
- In 2025, Syensqo and Terma collaborated to integrate Syensqo’s high-performance adhesives, polymers, and composites into Terma’s aerospace & defense system.
- In 2024, Toray acquired Gordon Plastics to expand its continuous-fiber thermoplastic tape production via a Colorado facility, enabling advanced high?temperature defense applications like lightweight ballistic structures and rugged UAV parts.
- In 2019, Hexcel acquired ARC Technologies LLC, a leading supplier of custom RF / EMI and microwave absorbing composite materials for military, aerospace and industrial applications for growth and market penetration.
Segment Analysis
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Segmentations
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List of Sub-Segments
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Segments with High Growth Opportunity
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Reinforcement Type Analysis
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Carbon Composites, Glass Composites, Aramid Composites, and Ceramic Composites
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Carbon composites are expected to be the dominant while ceramic composites are projected to fastest growing reinforcement type in the market during the forecast period.
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Resin Type Analysis
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Thermoset Composites, Thermoplastic Composites, and Ceramic Matrix Composites
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Thermoset composites are projected to lead the market with majority of market share whereas thermoplastic composites are likely to witness the highest-growth rate during the forecast period.
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Application Type Analysis
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Military Aircraft, Naval Systems, Land Vehicles, Personal Protection, Arms & Ammunition, and Others
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Military aircraft are anticipated to hold the major share in the market, while missiles are projected to experience the faster growth during the forecast period.
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Regional Analysis
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North America, Europe, Asia-Pacific, and Rest of the World
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North America is expected to retain its leading position throughout the forecast period, while the Asia-Pacific region is projected to experience the fastest growth.
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By Reinforcement Type
“Carbon composites are likely to retain the leading share among reinforcement types, with ceramic composites positioned to register the most rapid growth in the foreseeable future.”
By reinforcement type, the defense composites market is classified into carbon composites, glass composites, aramid composites, and ceramic composites. Carbon composites are projected to remain the dominant reinforcement type due to their exceptional balance of strength, weight, and performance. These materials are nearly five times stronger and about 30% lighter than aluminum, offering superior heat tolerance and design flexibility. Such attributes directly enhance the operational efficiency of combat aircraft, helicopters, and missile systems by reducing drag, increasing range, and improving stealth capabilities. Modern defense programs are heavily reliant on carbon composites, with next-generation military aircraft projected to comprise over two-thirds composite materials, of which carbon composites constitute the majority. A prime example is the F-35 stealth fighter, where large sections of the wings, fuselage, and internal structures are constructed from carbon composites.
Ceramic composites are anticipated to be the fastest-growing segment by reinforcement type, driven by their ability to endure extremely high temperatures beyond the capacity of metals or carbon composites. This makes them indispensable for cutting-edge defense applications such as hypersonic weapons, scramjet engines, missile nose tips, and advanced jet propulsion systems. With increasing global investments in hypersonic and high-speed weapon programs, the demand for ceramic composites is expected to accelerate rapidly.
By Resin Type
“Thermoset composites are projected to command the largest market share, whereas thermoplastic composites are expected to register the highest growth rate throughout the forecast period.”
By resin type, the defense composites market is classified into thermoset composites, thermoplastic composites, and ceramic matrix composites. Thermoset composites are anticipated to remain the dominant resin type during the forecast period, primarily due to their proven strength, durability, and rigidity in demanding defense applications. These materials are especially well-suited for structural components that experience extreme mechanical stress, including military aircraft fuselages, wings, and control surfaces, as well as armored vehicle panels, and ballistic protection systems. A significant share of carbon fiber-reinforced composites used in defense platforms are thermoset-based, particularly those using epoxy and bismaleimide (BMI) resins. For example, advanced combat aircraft such as the F-35 fighter jet, Eurofighter Typhoon, and rotary-wing platforms like the Apache and Black Hawk helicopters rely heavily on thermoset composites to ensure structural integrity under high G-loads and extreme environmental conditions.
Thermoplastic composites are expected to register the highest growth rate during the forecast period. Their rising adoption stems from unique advantages such as high impact resistance, excellent durability, and superior damage tolerance, which are increasingly critical for next-generation defense applications. Moreover, thermoplastic composites offer faster manufacturing cycles, reprocessability, and recyclability, aligning with defense programs’ growing emphasis on sustainability and cost efficiency. Their ability to enable rapid production while maintaining structural performance makes them attractive for both new-build platforms and repair or retrofit applications.
By Application Type
“Military aircraft are anticipated to continue being the foremost application of the market and missiles are likely to be the fastest-growing application type during the forecast period.”
Based on application type, defense composites market is segmented into military aircraft, military rotorcraft, UAVs, missiles, land vehicles, and other applications. Military aircraft are expected to be the dominant application in the defense composites market during the forecast period. Modern combat aircraft are increasingly composite-intensive platforms, with composites accounting for 30–50% of their total weight. With global air forces prioritizing modernization and replacement of legacy fleets, demand for military aircraft composites is expected to remain strong. Production ramp-ups in flagship programs further reinforce this trend. For example, Lockheed Martin plans to deliver around 190 F-35 fighter jets in 2025, up from its current annual production rate of 156, with continued growth anticipated in subsequent years.
Missiles are projected to be the fastest-growing application of defense composites during the forecast period. This growth is driven by escalating geopolitical tensions, which are fueling unprecedented levels of missile procurement and development across the globe. Composites are indispensable in missile systems, where they are used in nose cones, airframes, fins, and propulsion components to provide high strength, thermal resistance, and lightweight properties essential for speed and maneuverability. Countries are not only expanding their missile stockpiles but also investing heavily in advanced systems such as long-range, hypersonic, and precision-guided missiles. As hypersonic and next-generation missile programs demand materials capable of withstanding extreme thermal and structural stresses, the adoption of composites in this segment is set to accelerate at the highest rate.
Regional Analysis
“North America is anticipated to maintain its market dominance by region over the forecast period, whereas the Asia-Pacific region is poised to emerge as the fastest-growing market.”
North America is likely to remain the dominant market by region throughout the forecast period, underpinned by its strong defense industrial base and sustained investments in advanced military programs. A major growth driver is the region’s emphasis on composite-rich military aircraft, rotorcraft, missiles, lightweight land vehicles, and personal protection equipment such as body armor and tactical helmets. Furthermore, North America is home to global aerospace and defense giants such as Boeing and Lockheed Martin, which have established assembly lines for major aircraft programs. Boeing produces platforms like the P-8A Poseidon, F/A-18E/F Super Hornet, and F-15E Strike Eagle, while Lockheed Martin manufactures the F-35, F-16, C-130J Super Hercules, and Black Hawk helicopters, all of which rely extensively on composites for structural efficiency, durability, and stealth performance. This concentration of OEMs, coupled with high defense spending by the U.S., ensures that North America remains the largest market for defense composites.
In contrast, the Asia-Pacific region is poised to be the fastest-growing defense composites market, driven by significant military modernization programs and expanding procurement budgets. Countries such as China, India, Japan, and South Korea are investing heavily in upgrading their fleets of modern aircraft, naval vessels, and missile systems to strengthen defense capabilities amid rising regional security challenges. These platforms increasingly incorporate advanced composites to achieve weight reduction, enhanced strength, and improved stealth performance. For example, China and India are rapidly advancing indigenous fighter jet and missile programs, while Japan and South Korea are procuring next-generation aircraft and expanding missile defense capabilities.
