CARBON FIBER MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2024-2031)

Carbon Fiber Market Size and Trends

Carbon fiber market is estimated to be valued at USD 5.22 Bn in 2024 and is expected to reach USD 9.34 Bn by 2031, exhibiting a compound annual growth rate (CAGR) of 8.7% from 2024 to 2031.

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Carbon fibers witness huge demand from industries, such as aerospace & defense, wind energy, automotive & transportation, and others, due to its lightweight and high tensile strength properties. Key factors boosting the demand for carbon fiber include growing aerospace industry with increased aircraft deliveries and development of low-cost carbon fibers. Stringent environmental regulations mandating the reduction of vehicular weight also boosts the adoption of carbon fiber composites in the automotive industry. Other trends include the development of low-cost carbon fiber manufacturing processes and increased R&D investments by manufacturers.

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Insights, By Raw Material - Pursuit of lightweight and high strength materials boosts demand for PAN based carbon fiber

In terms of raw material, PAN based segment is estimated to contribute the highest market share of 71.5% in 2024, owing to its superior mechanical properties compared to pitch-based carbon fiber. PAN based carbon fiber offers high tensile strength, reaching over 5GPa and modulus exceeding 250GPa, making it an irreplaceable material for numerous high-performance applications. Its low density of around 1.8 g/cm3 further boosts its appeal from a weight saving perspective.

Insights, By Tow Size - Superior properties of small tow carbon fiber spur usage in smaller composite components

In terms of tow size, small tow segment is estimated to contribute the highest market share of 52.3% in 2024, owing to its suitability for fabrication of intricate, compact composite parts. In contrast, the finer filaments of small tow carbon fiber can be more precisely arranged and deposited using automated fiber placement (AFP) and filament winding techniques. This enables intricately shaped or hollow components to be mass produced for applications such as turbine blades.

Insights, By Application - Growing use of carbon fiber in automotive drivetrains and chassis propels application in this segment

In terms of application, automotive segment is estimated to contribute the highest market share of 20.3% in 2024, owing to ongoing mass adoption in drivetrain and body construction. Meeting increasingly stringent emissions regulations drives automakers to decrease vehicle weight and improve efficiency. Carbon fiber helps achieve this goal through applications like transmission gears, half-shafts, battery housings and motor casings in electric vehicles.

Regional Insights

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Dominating Region - Europe

Europe is expected to dominate the carbon fiber market in 2024, with an estimated market share of 32.2%. The market growth can be attributed to the region's well-established aerospace and automotive industries. Major players like Boeing, Airbus, and Ford have boosted demand for fibers. Government initiatives to boost advanced manufacturing have also contributed to an expansive ecosystem for carbon fibers in the region.

Fastest-Growing Region- Asia Pacific

Asia Pacific exhibits the fastest growth due to growing end-use industries in China, Japan, India, and other emerging economies. Government policies supporting infrastructure development and mobility have accelerated carbon fiber adoption in the industrial and transportation sectors. Regional giants like Toyota, Honda, and Hyundai are localizing carbon fiber production to meet demand.

Carbon Fiber Market Outlook for Key Countries

Rapid Market Expansion Driven by Domestic Production and Strategic Partnerships

China's market is growing aggressively following initiatives to build domestic manufacturing capacity. State funding and partnerships between global firms and local players have positioned China as both a key consumer and emerging producer of carbon fiber. According to macropolo.org data published in 2023; China’s wind power boom gave the incentive the private sector needed to kick carbon fiber production into high gear—a feat never achieved by the state firms that poured money into the material in the mid-2000s.

Leading Carbon Fiber Innovation and Adoption in Automotive and Aerospace Sectors in Japan

Japanese companies such as Toray Industries and Mitsubishi Chemical have pioneered high-performance carbon fiber manufacturing, focusing on material strength, weight reduction, and temperature resilience. Innovations in resin-infused carbon fiber composites and high-tensile materials have propelled Japan to the forefront of carbon fiber technology. Japan has invested heavily in automated manufacturing processes, which reduce production costs and increase the scalability of carbon fiber production.

Pioneering High-Performance Carbon Fiber Applications in Automotive and Renewable Energy in Germany

Advanced engineering capabilities makes Germany an important market for carbon fiber application. Carbon fiber usage is rising across industries ranging from aerospace to renewable energy supported by firms like SGL Group. Automotive (especially electric vehicles), aerospace, and wind energy are primary consumers of this fiber. Germany is a leader in wind energy technology, and demand for high-performance materials like carbon fiber has been rising.

Driving Carbon Fiber Demand Through Aerospace Innovation and Green Energy Initiatives in France

French aerospace industry, led by companies like Airbus, is a key consumer of carbon fiber. The government’s commitment to green energy boosts demand in renewable sectors. Aerospace, wind energy, and construction industries are the main consumers of this fiber. France’s push for decarbonization and sustainable aviation fuels highlights carbon fiber’s role in lightweighting aircraft.

Emerging Carbon Fiber Market Fueled by Industrialization and Renewable Energy Growth in India

India’s growing industrialization and renewable energy sector, particularly wind energy, boosts the demand for carbon fiber. The automotive sector is also shifting towards lighter, more fuel-efficient designs. Wind energy, automotive, and defense sectors are key consumers of carbon fiber. India’s focus on renewable energy aligns well with carbon fiber’s applications in large turbine blades.

Market Concentration and Competitive Landscape

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Top Strategies Followed by Carbon Fiber Market Players

• Established players in this market focus heavily on research and development to maintain an edge over competitors. Industry leaders like Teijin, Toray Industries and Hexcel Corporation invest over 5% of their annual revenue in R&D. This helps them introduce high-performance carbon fiber materials for applications in aerospace, e-mobility, and wind energy.
• Mid-sized players strive to enhance efficiency and cut costs. For example, Celanese Corporation focuses on process innovation to commercialize low-cost carbon fiber solutions. This makes carbon composites accessible for mass applications in automotive and consumer goods.
• Small-scale players often specialize in highly specific applications or customized solutions, such as artisanal or design-focused uses of carbon fiber. This allows them to serve unique client needs without competing on scale. Being smaller, these companies can quickly adapt to changes in demand or pivot to new applications, which gives them an edge in experimental and prototype-driven markets.

Emerging Startups in the Carbon Fiber Market

In terms of innovative technologies, startups like Anthropic, Gramatite, and Carbice are developing advanced materials using artificial intelligence and data analytics. Anthropic focuses on using AI to design fibers with tailored thermal, electrical and mechanical properties. These startups have the potential to disrupt existing materials and manufacturing methods used across industries.

Some startups are working on sustainability. For example, U.S.-based, Pyrograph, is commercializing a novel approach to produce carbon fiber from wood waste or agricultural residues. This offers an eco-friendly solution to manufacture carbon composites.

New entrants also address specific niche areas. For instance, Canada-based, Plasma Waste Recycling, focuses on upcycling carbon fiber scrap and composites using plasma technology. Greece-based C-Crete manufactures cementless, carbon-enhanced concrete using recycled carbon fibers.

Carbon Fiber Industry News

Top Strategies Followed by Carbon Fiber Market Players

• • Established players in this market focus heavily on research and development to maintain an edge over competitors. Industry leaders like Teijin, Toray Industries and Hexcel Corporation invest over 5% of their annual revenue in R&D. This helps them introduce high-performance carbon fiber materials for applications in aerospace, e-mobility, and wind energy.
  • Mid-sized players strive to enhance efficiency and cut costs. For example, Celanese Corporation focuses on process innovation to commercialize low-cost carbon fiber solutions. This makes carbon composites accessible for mass applications in automotive and consumer goods.
  • Small-scale players often specialize in highly specific applications or customized solutions, such as artisanal or design-focused uses of carbon fiber. This allows them to serve unique client needs without competing on scale. Being smaller, these companies can quickly adapt to changes in demand or pivot to new applications, which gives them an edge in experimental and prototype-driven markets.

Emerging Startups in the Carbon Fiber Market

In terms of innovative technologies, startups like Anthropic, Gramatite, and Carbice are developing advanced materials using artificial intelligence and data analytics. Anthropic focuses on using AI to design fibers with tailored thermal, electrical and mechanical properties. These startups have the potential to disrupt existing materials and manufacturing methods used across industries.

Some startups are working on sustainability. For example, U.S.-based, Pyrograph, is commercializing a novel approach to produce carbon fiber from wood waste or agricultural residues. This offers an eco-friendly solution to manufacture carbon composites.

New entrants also address specific niche areas. For instance, Canada-based, Plasma Waste Recycling, focuses on upcycling carbon fiber scrap and composites using plasma technology. Greece-based C-Crete manufactures cementless, carbon-enhanced concrete using recycled carbon fibers.

Top Strategies Followed by Carbon Fiber Market Players

• Emerging Startups in the Carbon Fiber Market
• In terms of innovative technologies, startups like Anthropic, Gramatite, and Carbice are developing advanced materials using artificial intelligence and data analytics. Anthropic focuses on using AI to design fibers with tailored thermal, electrical and mechanical properties. These startups have the potential to disrupt existing materials and manufacturing methods used across industries.
• Some startups are working on sustainability. For example, U.S.-based, Pyrograph, is commercializing a novel approach to produce carbon fiber from wood waste or agricultural residues. This offers an eco-friendly solution to manufacture carbon composites.
• New entrants also address specific niche areas. For instance, Canada-based, Plasma Waste Recycling, focuses on upcycling carbon fiber scrap and composites using plasma technology. Greece-based C-Crete manufactures cementless, carbon-enhanced concrete using recycled carbon fibers.

Market Report Scope

Market Dynamics

Market Driver- Increasing demand from aerospace and defense industries

Aerospace and defense industries have witnessed significant development in recent years. With commercial aviation growing rapidly to support increased global air travel, there has been huge demand for innovative yet lightweight materials that can enhance aircraft performance. Aerospace industry opt for carbon fiber composites to replace aluminum, steel and titanium, based on studies by NASA. According to the studies conducted by NASA from 2021-2022, the use of carbon fiber on commercial aircraft can reduce fuel costs by 7-15% over the lifetime of the aircraft through lower fuel burn.

Market Challenge- Availability of substitute materials

Key challenges faced by carbon fiber market include availability of substitute materials. While carbon fiber composites provide higher strength and lesser weight compared to traditional materials like steel and aluminum alloys, their cost is also significantly higher. For example, glass fiber is gaining more acceptance in transportation industry especially in passenger vehicles. Glass fiber composites are nearly 50% cheaper than carbon fiber composites and offer significant weight savings compared to metals.

Market Opportunity- Emerging applications in new industries

The market can benefit tremendously from emerging applications of carbon fiber composites in new and growing industries. With its high strength-to-weight ratio and corrosion resistance, carbon fiber is increasingly being adopted in applications beyond the existing uptake in aerospace and automotive industries. As per the 'Global Wind Energy Council' Report published in 2022, the wind energy industry is witnessing exponential growth worldwide. Carbon fiber is beginning to make inroads into this sector for manufacturing wind turbine blades.

Market Segmentation

•  Raw Material Insights (Revenue, USD Bn, 2019 - 2031)
• • PAN Based
  • Pitch Based
•  Tow Size Insights (Revenue, USD Bn, 2019 - 2031)
• • Small Tow
  • Large Tow
• Application Insights (Revenue, USD Bn, 2019 - 2031)
• • Automotive
  • Aerospace & Defense
  • Wind Turbines
  • Sports/Leisure
  • Molding & Compound
  • Construction
  • Others
• Regional Insights (Revenue, USD Bn, 2019 - 2031)
  • North America
    • U.S.
    • Canada
  • Latin America
    • Brazil
    • Argentina
    • Mexico
    • Rest of Latin America
  • Europe
    • Germany
    • U.K.
    • Spain
    • France
    • Italy
    • Russia
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • Australia
    • South Korea
    • ASEAN
    • Rest of Asia Pacific
  • Middle East
    • GCC Countries
    • Israel
    • Rest of Middle East
  • Africa
    • South Africa
    • North Africa
    • Central Africa
• Key Players Insights
  • A&P Technology Inc.
  • Anshan Sinocarb Carbon Fibers Co. Ltd
  • DowAksa USA LLC
  • Formosa Plastics Corporation
  • Hexcel Corporation
  • Holding company Composite
  • Hyosung Advanced Materials
  • SGL Carbon
  • Solvay
  • Teijin Limited
  • Toray Industries Inc.
  • Zhongfu Shenying Carbon Fiber Co. Ltd
  • Jiangsu Hengshen Co. Ltd
  • Mitsubishi Chemical Corporation
  • Nippon Graphite Fiber Co. Ltd