Market Dynamics
In the aerospace industry, prepregs are increasingly being used owing to their advantages, such as weight reduction, ease of use, low void content, exceptionally low thermal expansion coefficient, and control of laminate thickness. In the aerospace industry, epoxies are used for highly loaded parts and supreme toughness, BMI systems for high-temperature performance, phenolics for fire, smoke, and toxicity performance in aircraft interiors, and cyanate esters for space structures and satellite applications.
The primary drivers of the market’s growth are the relentless pursuit of lightweighting in core end-use industries, particularly in the aerospace & defense industry, where prepregs contribute to enhanced fuel efficiency and performance. The dwindling demand from wind energy is a key factor impacting not only market growth but also the leading player’s revenues and strategies.
After a slump in demand for carbon fibers for the wind industry, SGL Carbon’s earnings fell during 2023-2024. The company is now in the initial phase of restructuring its Carbon Fibers Business Unit. In May 2025, its production base in Lavradio was shut down.
The automotive industry is increasingly adopting prepregs for structural lightweighting and next-generation applications in EVs.
Recent Market Movements:
A considerable number of strategic alliances, including M&As, JVs, etc., have been performed over the past few years. Also, a recent wave of restructuring and divestitures has taken place in the market. Hexcel shut down two of its wind energy prepreg facilities at Windsor in 2020 and Tianjin in 2022. The company has recently announced its interest in exploring strategic options for its operations in Austria as well.
The year 2023 proved to be a key year of splits and divestitures.
- Solvay split into two independent publicly traded companies: SOLVAY and SYENSQO with distinct business capabilities.
- Teijin agreed to sell its entire stake in GH Craft, an equity-method subsidiary of its composites business in Japan, to TIP Composite Co., Ltd.
- SGL sold its Composite Solutions Business Unit operations in Gardena, California, to Tex Tech, a portfolio company of Arlington Capital Partners.
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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End-Use Industry-Type Analysis
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Aerospace & Defense, Sporting Goods, Automotive, Marine, and Other End-Use Industries
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Aerospace & defense is likely to continue to generate the highest demand for prepreg in the North American region.
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Resin-Type Analysis
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Thermoset Prepreg and Thermoplastic Prepreg
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Thermoset prepreg took an indubitable lead in the market; thermoplastic prepreg, on the other hand, is expected to mark the higher growth during 2025-2035.
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Fiber-Type Analysis
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Carbon Fiber Prepreg, Glass Fiber Prepreg, and Aramid Fiber Prepreg
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Carbon fiber prepreg is likely to remain the most-preferred fiber type throughout the study period.
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Form-Type Analysis
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UD Prepreg and Fabric Prepreg
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UD prepregs are likely to maintain their lead in the market.
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Country Analysis
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The USA, Canada, and Mexico
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The USA is expected to continue to fuel the North American prepreg market by 2035.
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By End-Use Industry Type
“The aerospace & defense industry held an irrefutable lead in the North American prepreg market and is expected to maintain its leading position by 2035.”
Based on end-use industry type, the market is segmented into aerospace & defense, sporting goods, automotive, marine, and others.
The aerospace & defense industry grabbed a major chunk of the market in 2024 and is expected to remain the growth engine of the market until 2035. Thermoset UD prepreg, especially epoxy UD prepreg, is used to fabricate primary structures, including fuselage and wings, of the next-generation aircraft, such as the B737 and A350XWB. Thermoplastic UD prepreg is found usage in small parts, such as clips, clits, brackets, and profiles. However, applications are now expanding to larger structures as well.
Incessantly increasing use of advanced composites (including prepreg) in the next-generation commercial aircraft programs. B787 and A380, for instance, have ~35 tons of carbon composites per aircraft. Similarly, B777 has ~10 tons, A350XWB ~62 tons of carbon composites per aircraft. Around 35% of the F-35’s weight is of composite materials, of which carbon prepreg is one of the key materials.
In the automotive industry, light-weighting initiatives (especially in trucks and EVs) are driving more carbon-fiber components, which boosts carbon-prepreg usage. There has been a shift in prepreg demand for wind energy over the past few years. This strongly reflects in Hexcel’s restructuring strategies, which have been carried out for the past few years.
By Resin Type
“Thermoset prepreg captured a higher share of the market, whereas thermoplastic prepreg is likely to mark a higher growth by 2035.”
The market is segmented into thermoset prepreg and thermoplastic prepreg.
Thermoset prepreg, especially carbon fiber-reinforced UD prepreg, is mostly found in the aerospace industry for a wide range of applications, including primary aerostructures. Key applications other than the aerospace industry are car body panels and monocoque; golf shafts, fishing rods, and other sporting goods; wind turbine blades; and MRI/CT scan tables.
Thermoplastic prepreg manufacturers have been effective in creating a greater presence in the high-performance markets such as the A&D and automotive industries. Thermoplastics offer exceptional properties such as higher toughness, high chemical resistance, easier & quicker consolidation, quick cycle time, recyclability, and unlimited shelf life. PEEK, PEKK, PAEK, PEI, and PPS are among the most used high-performance thermoplastic resins. Carbon fiber PPS is the most preferred composite material for A&D applications. In terms of applications, airframes are where the most thermoplastic composites lie.
By Fiber Type
“Carbon fiber (CF) prepreg is likely to remain the fastest-growing category, primarily driven by increasing demand from aerospace & defense and automotive industries.”
Based on the fiber type, the market is segmented into carbon fiber prepreg, glass fiber prepreg, and aramid fiber prepreg.
Most of the major aerospace structural applications, fuselage, wings, spars, and control surfaces, are preferably manufactured using CF prepreg. Spar sections of longer wind turbine blades are also fabricated using CF prepreg. Golf shafts, hockey sticks, and fishing rods are also fabricated using CF prepreg. The unmatched dominance of carbon fiber is driven by excellent performance over other fiber prepregs, including excellent weight reduction, high strength-to-weight ratio, high tensile and compressive strength, low coefficient of thermal expansion, and high fatigue resistance.
Automotive and aircraft interiors are the major markets for glass fiber prepreg. Glass fiber prepreg offers durability, toughness, good tensile strength, excellent impact and chemical resistance, and excellent stiffness.
By Form Type
“Unidirectional or UD prepregs took center stage in 2024 and are likely to remain in the limelight throughout the study period.”
Based on form type, the market is segmented into UD prepreg and fabric prepreg.
UD prepregs exhibit higher strength in comparison to woven fabric prepregs, offering higher strength in the direction of fiber and almost no strength across fibers. Surface smoothness and stability of UD prepregs are primarily dependent upon the construction style.
While the weight, area, porosity, and wet out are determined by selecting the right combination of fiber textures and the number of fibers per cm area. They are often used for structural applications such as fuselage, wings, control surfaces, and engine & nacelles.
Fabric prepregs are based on woven fabrics, non-crimp textiles, and non-woven fabrics. The mechanical properties depend upon the type of fiber used, the weaving parameter, the stacking, and the orientation of various layers. They are mainly used in applications that require excellent strength and stiffness in two directions, good handling characteristics, and a balanced weight.
Country Analysis
“The USA is expected to remain the dominant market for prepreg, and is projected to witness a healthy growth over the forecast period.”
The United States is by far the largest market (home to all the major prepreg producers and end-users like Boeing, Airbus US operations, GM, Ford, GE, Pratt & Whitney, etc.). The country has the highest demand and capacity for carbon prepreg.
Canada plays a smaller role, with modest aerospace and wind markets (e.g., Bombardier jets, Canadian airlines, and some manufacturing). Mexico is a smaller base but is the fastest-growing market in North America, driven by the rapid expansion of automotive assembly plants and manufacturing shifts into Mexico drive increased composite part production.
