Market Dynamics
Introduction
Electrical and Electronics (E&E) composite materials are specially crafted combinations of fibers, resins, and fillers that enhance properties like electrical insulation, flame resistance, thermal stability, and lightweight performance. These materials play a crucial role in today’s electronics, ensuring the structural integrity and reliability needed for everything from printed circuit boards (PCBs) and semiconductor packaging to enclosures, housings, and high-voltage insulation components. By utilizing fibers like glass and carbon, along with resin systems such as epoxy, polyester, and thermoplastics, E&E composites provide customized solutions that meet the growing demands for miniaturization, durability, and energy efficiency in advanced electronic systems.
The global market for E&E composite materials is experiencing impressive growth, fueled by the rapid rise of consumer electronics, telecommunications, electric vehicles, renewable energy infrastructure, and cutting-edge technologies like 5G and the Internet of Things (IoT). Glass fiber composites remain the frontrunners due to their affordability and dependable electrical properties, while carbon fiber and thermoplastic composites are quickly gaining traction, driven by trends in lightweight design, sustainability, and high-performance electronics. With the Asia-Pacific region leading in manufacturing capabilities and tech adoption, and developed markets in North America and Europe concentrating on high-end applications, the industry is set for steady growth. Ongoing advancements in materials science, innovations focused on sustainability, and integration into next-gen electronics are expected to further boost market development in the coming years.
Recent Market JVs and Acquisitions:
A small number of strategic alliances, including M&As, JVs, etc., have been performed over the past few years:
- In March 2021, Composites One acquired Solvay’s Process Materials business, rebranded as Aerovac, which supplies composite processing materials like vacuum bagging films and tooling products essential for prepregs, lamination, and vacuum infusion, core to composite fabrication for E&E applications.
- In November 2024, Toray Advanced Composites acquired Gordon Plastics’ assets and IP, boosting its capacity in continuous fiber reinforced thermoplastic tapes and high-temperature polymer systems.
Recent Product Development:
Companies in the E&E composite materials market are focusing their product development efforts on improving thermal and electrical stability across applications, integrating sustainable fiber and resin sources such as bio-based and recyclable materials, and enhancing material performance to meet the demands of miniaturization, durability, and high-frequency electronics. Some of the recent product developments are:
- In 2024, researchers developed graphene-enhanced polyether composites with high conductivity and 330 °C heat resistance, aimed at high-voltage electrical applications
Segments Analysis
|
Segmentations
|
List of Sub-Segments
|
Segments with High-Growth Opportunity
|
|
Material-Type Analysis
|
Glass fiber, Carbon fiber, Thermoset, Thermoplastic
|
Glass fiber currently leads the market and is expected to maintain this dominance in the future.
|
|
Manufacturing Process -Type Analysis
|
Lay-up, Filament winding, Injection molding, Resin Transfer Molding
|
Injection molding is projected to dominate the market throughout the forecast period.
|
|
Application- Type Analysis
|
Printed Circuit Boards (PCBs), Enclosures & Housings, Connectors, Battery Components & Casings, and Other Electronic Components.
|
Printed circuit boards are leading the market, whereas battery components and casings are growing at the fastest pace.
|
|
End-Use Industry -Type Analysis
|
Consumer Electronics, Telecommunication, Automotive & Electric Vehicles (EVs), Energy & Power, Aerospace & Defense
|
The consumer electronics consumer base remains the largest, with the automotive & electric vehicles segment expanding more rapidly than others.
|
|
Region Analysis
|
North America, Europe, Asia-Pacific, and The Rest of the World
|
Asia Pacific is anticipated to lead the market, with North America driving innovation and steady growth.
|
By Material Type
“While glass fiber remains the most popular material type, thermoplastic composites are emerging as the fastest-growing material.”
Based on type, the E&E composite materials market is divided into carbon fiber, glass fiber, thermoset, and thermoplastic.
Glass fiber composites hold the largest share in the E&E composite materials market, owing to their balance of cost-effectiveness, mechanical strength, and excellent dielectric properties. They are widely adopted in printed circuit boards (PCBs), enclosures, and insulation components, making them indispensable for consumer electronics, industrial equipment, and power distribution systems. Continuous product advancements, such as the development of low-loss glass fabrics for high-frequency PCBs used in 5G networks, are reinforcing their dominance. Their versatility and scalability in mass production further ensure glass fiber composites remain the backbone of the industry.
On the other hand, Thermoplastic composites are emerging as the fastest-growing material type in the market, driven by increasing demand for lightweight, durable, and recyclable solutions. Their short processing cycles and compatibility with high-volume techniques like injection molding make them attractive for large-scale electronics manufacturing. Moreover, their toughness, chemical resistance, and ability to integrate with advanced fibers such as carbon enable applications in EV battery casings, connectors, and high-performance housings. Growing emphasis on sustainability and circular economy practices is accelerating the shift from traditional thermosets to thermoplastics, positioning them as the most dynamic growth area in the E&E composites market.
By Manufacturing Process Type
“Injection molding process is most popular among manufacturers, but resin transfer molding is growing at the fastest rate.”
Based on the manufacturing process, the E&E composite materials market segmentation includes lay-up, filament winding, injection molding, and resin transfer molding.
Injection molding remains the dominant manufacturing process in the E&E composite materials market due to its scalability, cost-efficiency, and ability to produce complex geometries with precision. It is widely adopted for consumer electronics housings, connectors, circuit board components, and automotive electronic parts, where high production volumes are critical. The process supports both thermoset and thermoplastic composites, offering design flexibility and consistent quality. Its capability to integrate advanced fillers and fibers while ensuring mass production efficiency continues to make injection molding the cornerstone of composite manufacturing in the E&E sector.
Resin Transfer Molding (RTM) is the fastest-growing process, gaining traction in advanced electronics and high-performance applications. RTM enables the production of lightweight, high-strength, and void-free composite parts with excellent dimensional stability, making it ideal for aerospace electronics, EV battery components, and telecommunication housings. The increasing demand for miniaturized, durable, and thermally stable electronic systems has accelerated RTM adoption, especially as manufacturers seek precision and reduced material waste. Its compatibility with automation and ability to support innovative resin systems, including thermoplastics, further positions RTM as the fastest-expanding process in the market.
By End-Use Industry
“The consumer electronics consumer remains the largest end-use industry for E&E composite materials, with the automotive & electric vehicles segment expanding more rapidly than other applications.”
Based on end-use industry, the market is segmented into consumer electronics, telecommunication, automotive & electric vehicles (EVs), energy & power, aerospace & defense.
When it comes to the E&E composite materials market, consumer electronics take the lead, thanks to the extensive use of composites in printed circuit boards (PCBs), enclosures, and connectors. Glass fiber composites play a vital role in multilayer PCBs that power our smartphones, laptops, tablets, and other personal gadgets. As electronics continue to shrink in size and the rollout of high-speed 5G devices ramps up, the demand for lightweight, thermally stable, and durable composites is on the rise. With the need for mass production and constant innovation, the consumer electronics sector remains a key driver of demand for E&E composites.
Conversely, the automotive and EV sector is quickly becoming the fastest-growing area for E&E composites. The shift towards electric mobility has sparked a huge demand for lightweight yet flame-retardant materials used in battery casings, high-voltage insulation, connectors, and control systems. Thermoplastic composites are particularly popular due to their recyclability and ability to handle high thermal and mechanical stresses. Plus, the rise of advanced driver-assistance systems (ADAS) and the increasing amount of electronics in each vehicle are boosting the use of composites. As car manufacturers focus on efficiency, safety, and sustainability, EVs are leading the charge in growth for the E&E composite materials market.
By Application Type
“Printed circuit boards are the leading application for E&E composite materials, whereas battery components and casings are the fastest growing application.”
Based on application, the market is segmented into printed circuit boards (PCBs), enclosures & housings, connectors, battery components & casings, and other electronic components.
Printed circuit boards are the leading application for E&E composite materials. Glass fiber composites reinforced with epoxy resins form the backbone of multilayer PCBs found in nearly every electronic device, from smartphones and laptops to industrial automation and telecommunications systems. Their outstanding dielectric properties, flame resistance, and dimensional stability make them the go-to choice for high-density circuit integration. As 5G networks expand and the demand for high-speed computing devices grows, the dominance of PCBs is only set to strengthen, ensuring they remain the largest application for composite materials in the electronics industry.
Meanwhile, battery components and casings are quickly becoming the fastest-growing segment, driven by the surge in electric vehicles and energy storage systems. Composite materials, especially thermoplastics and carbon fiber-reinforced options, are increasingly favoured for their lightweight, flame-retardant, and thermally resistant qualities, which are essential for safety and efficiency in lithium-ion battery packs. With the global adoption of electric vehicles on the rise and renewable energy storage gaining momentum, the use of composites in battery applications is experiencing rapid growth, outpacing traditional electronic applications in market expansion.
Regional Analysis
“Asia Pacific region dominates E&E composite materials market, while North America experiences dynamic growth fueled by product innovation.”
The Asia-Pacific region is leading the E&E composite materials market, holding the largest share due to its robust electronics manufacturing ecosystem. Countries such as China, South Korea, Japan, and Taiwan have become global powerhouses for semiconductors, printed circuit boards, and consumer electronics, which in turn drives a huge demand for glass fiber and thermoplastic composites. With major OEMs in the mix, along with cost-effective manufacturing and a growing appetite for smartphones, laptops, and electric vehicles, it's no wonder Asia-Pacific is leading the way. Plus, government backing for electronics and EV production only bolsters the region's stronghold in this market.
North America is quickly becoming the fastest-growing region, spurred on by the rise of electric vehicles, advancements in 5G infrastructure, and significant investments in aerospace and defense electronics. The U.S. is particularly pushing the demand for high-performance thermoplastic and carbon fiber composites used in EV battery systems, semiconductor manufacturing equipment, and cutting-edge telecommunication devices. Strategic moves to bring semiconductor production back home and expand renewable energy infrastructure are also ramping up the demand for composites, making North America the most dynamic growth area in the upcoming forecast period.
