Europe's Composite Production Trends: Declining Now, Projected to 2026

Figure 1. Composites production volume in Europe since 2011 (in kilotons/kt). Source (All Figures) | AVK

Against the backdrop of a continuously growing global market, the production volume of composites in Europe is declining. According to current market figures from the AVK – Industrievereinigung Verstärkte Kunststoffe e.V. (Federation of Reinforced Plastics, Frankfurt am Main, Germany), this general trend is expected to continue even in 2026. A positive development can be found in the rising overall demand for fiber-reinforced plastics — both raw materials and end products — though this demand is increasingly not being met by European suppliers, but rather by non-European ones. This highlights a growing need for European manufacturers to take more targeted advantage of the many opportunities and possibilities available to them evolving from current industry trends and requirements.

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“The AVK is the German trade association for FRPs/composites and represents the interests of manufacturers and processors at national and European levels,” says Dr. Elmar Witten, managing director, AVK. “With more than 200 member companies and a history spanning more than 100 years, the AVK is one of the largest and most influential industry associations in the composites sector in Europe.”

Its range of services includes specialist working groups, seminars and conferences, as well as the provision of market-relevant information. Nationally, the AVK is one of the five supporting associations of the German Association of Plastics Converters (GVK) and internationally a member of the European Composites Industry Association (EuCIA). The AVK is a founding member of Composites Germany.

For many decades now the AVK has been monitoring and analyzing market trends in carbon- and glass fiber-reinforced polymer (CFRP, GFRP) production in Europe. Findings are summarized each year in the organization’s “Composites Market Report.” The data for the survey and the subsequent report is primarily based on personal interviews with raw material producers and other relevant market partners. In addition, evaluations of public, official and statistical data are included.

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The AVK’s annual market report, detailed below, primarily analyzes all GFRP materials — which account for more than 90% of the total European composites market — though it covers other materials in the region’s major market segments as well, like noncrimp fabrics (NCF). The report explicitly includes the thermoplastic composites (TPC) market covering long fiber-reinforced thermoplastics (LFT), glass mat-reinforced thermoplastics (GMT) and continuous fiber-reinforced thermoplastics (CFRTP). The European production volume for short glass fiber-reinforced thermoplastics, natural fiber- and carbon fiber-reinforced plastics is displayed only as aggregated quantities.

An initial market assessment

A fundamental negative trend was seen in 2025. Nearly halfway into 2026, challenges for the European composites industry remain. Causes include ongoing macroeconomic weakness in many regions in general — such as international competitive pressure, price competition and various economic events — and industrial production weakness in key application areas (e.g., transportation and construction/infrastructure) in Europe in particular. However, the slight decline in European composites production is significantly lower than was forecast in mid-2025. Overall, production volume in Europe declined by 3%.

The reason for a generally more optimistic view is the positive trend in demand for composite components. In addition to current demand, there is also much potential for additional growth in the use of composites that European manufacturers and suppliers might take advantage of. In opposition to challenging environmental factors, lightweight construction and product optimization continue to favor the use of FRP products. Sustainability assessments are also increasingly coming into focus, and composites show great potential here — not only for substituting existing material solutions, but also for developing new, innovative products.

Europe vs global development

According to current estimates by JEC (Paris, France), global composites market volume in 2025 was between 13.3 and 15.9 million tons. The reason for the wide variance is a division of expectations according to a “lower case” and “upper case” estimate — i.e., a range of possible outcomes, costs and other factors used to account for uncertainty and risk. The wide range in market estimates stem from significant uncertainties regarding the production volume of composites in Asia, particularly in China. Consequently, estimates range from relatively low production volumes to very high production volumes. Overall global market growth of around 1% is expected.

In comparison, AVK data shows that European composites production volume declined by 3% in 2025. The total European composites market thus comprised a volume of 2,281 kilotons (kt) in 2025, compared to 2,351 kt in 2024 (Fig. 1, opening image). The AVK believes the market will continue to decline, falling even further behind the years affected by COVID-19.

Overall, 2025 market momentum in Europe was weaker than in the global market. Europe’s share of the global market is 17% in the lower case scenario and 14% in the upper case scenario.

Figure 2. Total composites market by application area in 2025 (in %).

Market shares are thus continuing to shift in favor of the Americas and Asia. As in previous years, development within Europe is not uniform. Differences can be attributed to regionally very different core markets, high variability of the materials processed, a wide range of different manufacturing processes and widely varying areas of application.

In terms of volume, the largest share of total European composites production goes to the transportation sector, which accounts for almost 50% of the region’s market volume (Fig. 2). The transportation sector in this case encompasses the automotive industry, as well as aviation, public transport and commercial vehicles. Other major segments include electrical/electronics (such as control cabinets, connectors and enclosures) and applications in infrastructure and construction. This latter area includes, for example, pipe, tank and plant construction, as well as structural profiles and fittings.

Thermoset composites

The total production volume of European thermoset composites in 2025 was 952 kilotons (kt), down from 983 kt in the previous year. This means that this material group accounted for 41.7% of the total market in Europe.

For about 15 years, there has been a noticeable shift in the resin systems used in industry. The proportion of thermoplastic materials is increasing relative to thermosetting systems. Compared to this long-term trend, however, the transition from thermosets to TPC has slowed, according to 2025 data. This change is led by the automotive industry, which has a high dependence on TPC. Currently, more than 60% of these materials are used in transportation, but European OEMs are facing a structural crisis and production figures are declining (more on this below). These factors are therefore having an adverse impact on TPC use.

The two main areas of application for thermoset composites remain construction/infrastructure and transportation (Fig. 3). There has been a shift in production volumes in recent years. The share of the transportation sector is declining, while the share of products for the construction and infrastructure sector is increasing.

Figure 3. Thermoset composites by area of application in 2025 (in %).

Thermoplastic composites

The market for TPC in Europe had a total volume of 1,329 kt in 2025, down from 2024’s 1,368 kt.

The market share of these systems in the overall European market rose to 58.3% in 2025 after 58.2% in 2024. Compared to the previous year, the market volume fell by 2.9%, which is roughly the same as the overall market.

The main area of application for TPC is the transportation sector, which accounts for almost two-thirds of the market. Within this segment, passenger cars dominate. Together with electrical/electronic applications, this results in a market share of 86% for 2025 (Fig. 4).

Figure 4. Thermoplastic composites (TPC) by application area in 2025 (in %).

The passenger car market is of central importance for TPC demand. While the automotive industry acknowledged economic weakness in the first 2 years following COVID-19, 2025  reveals the full extent of the structural problems facing the European — and, above all, German — automotive industry: a car that is not manufactured in Europe does not necessarily need European components. The AVK found that, while commercial vehicle registration grew by 5.5% in 2024, last year saw marked decline in this area across regions like France, Germany and Italy. Similar trends took place with trucks (medium- and heavy-duty) and buses. This development is becoming an increasing problem for European composite component manufacturers and suppliers.

GFRP market: Trends in processes/parts

As in 2024, all material and process segments covered in detail in the AVK market report were affected by absolute declines in production volume (Fig. 5). SMC/BMC was the largest single segment in the European GFRP market (all thermoset, LFT and CFRTP materials). These are often used in large-scale series applications in electrical/electronic and transportation sectors, but also in construction and infrastructure sectors.

NCF formed the second largest group. So-called “open mold processes” followed in third place. In terms of volume, the other composites processes mentioned here were at a similar level.

The complete AVK market report examines and analyzes individual material groups and processes in greater detail. It compares trends in composites production volumes with broader economic trends and highlights the corresponding interdependencies. In addition, it outlines the most important application areas and their developments. The market report also includes an analysis of trends and a comprehensive commentary on current developments.

Figure 5. Long-term development of selected composites market segments (in kt).

Regional market development

The percentage shifts by regional focus in 2025 compared to 2024 again changed only by a fraction of a percent (Fig. 6). Only thermoset composite materials are considered here. Overall, there were absolute declines in all regions surveyed. The German thermoset market reached a volume of 180 kt in 2025 (2024 = 187 kt), corresponding to an 18.9% share of the total market. As a result, Germany lost a slight share of the market but remained the largest producer of composites in Europe. Declines are primarily attributable to the high dependence on the automotive market, as previously explained.

Figure 6. Regional distribution of the European thermoset market.

Eastern European countries, with a market share of 19.1% and an absolute volume of 182 kt, surpassed Germany for the first time, although this is believed to be because they comprise a variety of regions consisting of Poland, the Czech Republic, Hungary, Romania, Serbia, Croatia, Macedonia, Latvia, Lithuania, Slovakia and Slovenia. In almost all regions, the composites industry has very different focal points. Accordingly, various countries/regions are often affected very differently by overall economic developments. A pan-European analysis can therefore only ever provide a rough indication of trends or offer insights into general developments.

Reviving Europe’s driving force in the composites market

The challenges currently facing the European composites industry are manifold. Overall economic weakness is weighing on the economy, especially the manufacturing sector and industry. Composites are also affected by this, as the above market analysis shows.

Key application markets such as the automotive sector are in a deep structural crisis. Sales figures are stagnating or declining. Market shares are increasingly being lost. Europe is experiencing an enormous exodus of industrial production. In addition, competition with non-European regions is intensifying, both in terms of raw material supply and the production of semi-finished and finished parts. Economic policies in formerly important export regions that are increasingly focused on isolating domestic markets are further exacerbating the situation.

The goal must be to strengthen/grow the composites industry. European industry must be bolder, set itself new goals and consistently exploit the opportunities and possibilities that arise. The industrial future rarely emerges on its own — it requires active perception and shaping.

The complete 2025 market report, including commentary, is available for free download on the AVK website at https://www.avk-tv.de/en/publications-new/.

About the Author

Volker Mathes

Volker Mathes has been working in business development and market analysis at AVK – Industrial Association for Reinforced Plastics since April 2009. Previously, he worked as a project manager in the International Business Development/Strategy Projects department at TÜV Rheinland Kraftfahrt GmbH. He gained further professional experience in the field of service development at TÜV Rheinland Akademie. He also supported the central innovation process manager at TÜV Rheinland Holding in implementing a group-wide, systematic innovation management system. volker.mathes@avk-tv.de