The global carbon fiber market was valued at USD 5.26 billion in 2022 and is estimated to reach approximately USD 15.84 billion by 2031, at a CAGR of 13.0% from 2023 to 2031.

Since its start, the carbon fibre market has experienced enormous expansion and innovation. Carbon fibre is a strong, lightweight material that has found widespread use in a number of sectors, including wind energy, sports and recreation, aerospace, and the automobile industry. Carbon fibre, which was first used in the middle of the 20th century, is made by heating synthetic polymers to form fibers largely made of carbon atoms. These fibers are well known for having an outstanding strength-to-weight ratio, which makes them a popular option for applications requiring both strength and low weight. One of the first industries to use carbon fibre composites to lighten aeroplanes and increase fuel efficiency was the aerospace sector. Following suit, the automotive industry used carbon fibre to lighten and improve the performance of vehicles while upholding safety regulations. Carbon fibre is frequently utilized in sporting equipment, such as tennis rackets, bicycles, and golf clubs, improving the performance of sportsmen. Wind turbine blades made of carbon fibre composites have established a benchmark in the field of renewable energy due to their strength and effectiveness. The carbon fibre market is still growing as technology improves and production prices fall, with continual advancements in manufacturing processes and materials fueling this expansion across numerous industries. The future of this adaptable material is bright as it supports advances in numerous fields looking for solutions that are strong, light, and sustainable.

CARBON FIBER MARKET: REPORT SCOPE & SEGMENTATION

Global Carbon Fiber Market Dynamics

The market for carbon fibre is exposed to dynamic dynamics that have influenced its development and growth in recent years. Growing demand for lightweight and high-strength materials across a variety of industries is one of the main factors propelling this market. Carbon fibre composites continue to be used in industries like aerospace, automotive, and wind energy to reduce weight, increase fuel efficiency, and improve overall performance. Carbon fibre is also being used more frequently in sectors striving to create eco-friendly products as a result of the focus on sustainability and lowering carbon emissions. But there are also difficulties in the carbon fibre industry. The cost of production is one of the main issues, which has prevented its broad usage in price-sensitive industries. To solve this problem, efforts are being undertaken to create affordable manufacturing processes and materials. Another obstacle to the market's expansion is competition from substitute materials like fibreglass and sophisticated metals. The market for carbon fibre is also impacted by the overall economic climate, which also includes changes in trade laws and regulations, raw material pricing, and restrictions. Additionally, technological developments like the creation of new carbon fibre grades and enhanced production processes have an impact on market dynamics by broadening the scope of possible applications. The dynamics of the carbon fibre industry are characterized by a complex balancing act between increasing demand across industries, cost-related difficulties, competition from substitute materials, and the impact of global economic variables. The future direction of the market will be shaped by ongoing research, innovation, and initiatives to address these issues.

Global Carbon Fiber Market Drivers

• Lightweight Materials Demand

Numerous industries are heavily influenced by the desire for lightweight materials, which has broad ramifications for environmental sustainability, energy efficiency, and product performance. This driver is mostly caused by the ongoing quest for greater mobility, better fuel economy, and a desire to lighten the overall composition of buildings and goods in industries like aerospace, automobile, sports, and leisure. The use of lightweight materials, such as carbon fibre composites, is crucial in the aerospace and aviation industries to achieve reduced aircraft weight, which improves fuel efficiency and lowers operational costs. This is especially important now that airlines are attempting to reduce their environmental impact while maintaining economic competitiveness. Similar to this, the automotive industry is going through a major shift towards lightweight materials to satisfy strict emissions rules and improve the performance of electric vehicles (EVs). It is clear that lighter vehicles have better energy efficiency and longer EV ranges, both of which are important selling points for consumers and essential for automakers to reach their emission goals. Additionally, to produce high-performance gear, the sports and leisure sector uses lightweight materials, particularly carbon fibre. Athletes can obtain greater outcomes with less effort because to the weight reduction achieved through the use of carbon fibre, which is beneficial for tennis rackets, bicycles, golf clubs, and even professional racing gear.

• Adoption of Carbon Fiber in Wind Turbine Blades for Improved Energy Efficiency

A crucial factor in maximizing the overall performance and dependability of wind energy systems is the material choice for wind turbine blades. Wind energy has quickly developed into a significant participant in the global transition towards clean and sustainable electricity generation. For wind turbine blades, carbon fibre is the material of choice due to its many benefits. Its outstanding strength-to-weight ratio enables longer, lighter blades, which are able to capture more wind energy and produce more electricity. Turbines can start functioning at lower wind speeds and continue to generate electricity at higher wind speeds thanks to carbon fiber's ability to reduce the weight of the blades. The adoption of carbon fiber aligns with the broader goal of reducing the levelized cost of energy (LCOE) in the wind energy industry, making wind power more competitive with traditional energy sources. It supports the growth of wind energy as a reliable and sustainable energy source, contributing to the reduction of greenhouse gas emissions and the transition to a cleaner and more efficient energy landscape.

Restraints:

• High Production Costs

The acceptance and broad usage of particular materials or technologies are both impacted by high production costs, which pose a substantial barrier in a number of industries. The need for cost-effective solutions is growing, making this problem particularly important in industries including aerospace, automotive, and advanced manufacturing. Complex manufacturing procedures raise the cost of production. Precursor materials must be heated to extremely high temperatures in order to make carbon fibres, which requires energy-intensive and technically challenging procedures. In addition, the cost of the raw materials needed in the production of carbon fibres, such as polyacrylonitrile (PAN), is substantial. They restrict the use of carbon fibre in sectors where price sensitivity is critical.  In sectors like automotive, where affordability is a key concern for consumers, high material costs can hinder the adoption of carbon fiber, especially in mainstream vehicle production.

• Limited Recycling Options for Carbon Fiber Composites, Posing Environmental Challenges

Although carbon fibre composites, known for their excellent strength and lightweight characteristics, are employed more frequently in a variety of industries, from aerospace to automotive, their limited capacity for recycling creates a number of environmental issues. The main problem is that recycling carbon fibre composites is a difficult and costly procedure. It can be technically challenging to separate these components for recycling because these composites are often formed by joining carbon fibers with polymer resins. As a result, a lot of carbon fibre parts that are no longer useful frequently wind up in landfills and contribute to environmental trash. Ineffective recycling of carbon fibre composites results in waste production as well as the depletion of precious natural resources. Furthermore, the environmental implications extend to the use of resins and chemicals in the manufacturing and disposal of carbon fiber composites. Some of these substances can have adverse ecological effects, emphasizing the need for eco-friendly recycling processes.

Opportunities:

• Potential Use in Lightweight, Durable Components for Solar Panels and Energy Storage Systems

The incorporation of carbon fibre offers various benefits when it comes to solar panels and energy storage devices, which are essential parts of the clean energy environment. Carbon fibre can be used to make structural components for solar panels that increase their overall efficiency and durability. Carbon fibre supports for solar panels are incredibly light while still being sturdy, which lowers the quantity of materials needed and installation costs. Even under adverse climatic circumstances, such as inclement weather and strong winds, their endurance guarantees continued functioning. As a result, the solar panel's ability to gather energy is improved over its lifespan, making it a more affordable and environmentally friendly option for producing renewable energy. Carbon fibre can be utilized to create strong, lightweight enclosures or battery casings for energy storage devices. By incorporating carbon fiber into solar panel and energy storage system components, the opportunity lies in achieving higher efficiency, reduced maintenance costs, and longer lifespans, ultimately contributing to a more sustainable and reliable renewable energy infrastructure.

• Adoption of Carbon Fiber in Building Materials for Improved Strength, Durability, and Reduced Maintenance

With its excellent qualities, carbon fibre can be used to improve a variety of construction materials, such as concrete, reinforcing bars (rebar), and composites. Enhancing the stability of structures is one of the main opportunities. The strength and load-bearing capability of a structure are greatly increased by materials reinforced with carbon fibre. This not only enables more creative and environmentally friendly architectural designs, but also lessens the demand for surplus materials, which helps to decrease costs and preserve the environment. Durability is another important consideration. Carbon fibre is a great option for building materials in severe locations because of its resilience to corrosion, weathering, and chemical deterioration. Extreme weather conditions can be withstood by infrastructure and buildings reinforced using carbon fibre materials, preserving long-term integrity and safety. Reduced maintenance requirements are a notable advantage. Carbon fiber's low maintenance nature results in lower operational costs over the building's lifecycle. It minimizes the need for repairs and replacements, reducing downtime and inconvenience for building occupants.

Segment Overview

By Type

Based on type, the global carbon fiber market is divided into continuous carbon fiber, long carbon fiber, short carbon fiber. The continuous carbon fiber category dominates the market with the largest revenue share in 2022.  Continuous carbon fiber, as the name suggests, consists of uninterrupted fibers that are exceptionally long. This category is renowned for its outstanding strength and stiffness, making it a preferred choice for high-performance applications, such as aerospace and automotive components, where exceptional structural integrity is vital. Continuous carbon fiber composites offer a high strength-to-weight ratio, enabling the production of lightweight, durable, and high-stress-resistant parts. Long carbon fiber, while not as extended as continuous fibers, still provides a balance between strength and cost-effectiveness. These fibers are used in applications like wind turbine blades and structural components, offering good mechanical properties and economic advantages. Long carbon fiber composites often find a middle ground between performance and affordability, making them suitable for various industries. Short carbon fiber, on the other hand, is characterized by relatively small fiber lengths. These fibers are primarily used to enhance the mechanical properties of polymers and resins, making them stronger and stiffer. Short carbon fiber composites are often employed in consumer goods, sporting equipment, and construction materials, where lightweight and improved performance are desired, but cost considerations play a significant role.

By Raw Material

Based on the raw material, the global carbon fiber market is categorized into PAN-based carbon fiber, pitch-based and rayon-based carbon fiber. The PAN-based carbon fiber category leads the global carbon fiber market with the largest revenue share in 2022. PAN (Polyacrylonitrile) is the most common precursor material for carbon fiber production. PAN-based carbon fiber is known for its exceptional strength-to-weight ratio, making it a preferred choice for high-performance applications. It has widespread use in the aerospace industry, automotive sector, and sporting goods, where strength, lightweight properties, and durability are critical. Pitch-based carbon fiber is produced from carbon-rich pitches and is known for its superior thermal and electrical conductivity. This type of carbon fiber is typically used in applications where these properties are essential, such as in the production of advanced electrical materials, heat shields, and brake systems in high-performance vehicles. Rayon-based carbon fiber is produced from regenerated cellulose fiber and is less common than PAN-based and pitch-based carbon fibers. It is often used in niche applications, including in the manufacturing of electrical conductors, insulation materials, and specialty composites where specific material properties are required

By Tow Size

Based on tow size, the global carbon fiber market is divided into continuous small (<=24k), large (>24k). The small (<=24k) category dominates the market with the largest revenue share in 2022. Carbon fibers in this category consist of bundles with a relatively smaller number of filaments, typically 24,000 or fewer per bundle. Continuous small carbon fibers are valued for their ability to offer a fine level of control over mechanical properties, which is essential for specific applications that require tailored performance characteristics. Industries, such as aerospace and automotive, often use continuous small carbon fibers in high-performance composite materials for structural components, as they can be precisely engineered to meet the required strength, stiffness, and lightweight properties. Continuous large carbon fibers consist of bundles with a higher number of filaments, typically exceeding 24,000 per bundle. These fibers are chosen when an application demands higher strength and stiffness without the need for fine-tuned customization, making them a more cost-effective option for certain industries. Sectors like wind energy and marine applications often favor continuous large carbon fibers for the production of components such as wind turbine blades and boat hulls, where structural integrity and performance are essential, and where mass production considerations may prioritize cost-effectiveness.

By End-Use Industry

Based on end-use industry , the global carbon fiber market is segmented into aerospace and defense, sports/leisure, wind turbines, molding and compounds, automotive, pressure vessels, civil engineering, marine, pultrusion misc., misc. consumer, sailing/yacht building, and others. The aerospace and defense segment dominates the carbon fiber market. Carbon fiber is widely used in the aerospace and defense sectors for its lightweight, high-strength properties, making it ideal for aircraft components, missiles, and military equipment. Carbon fiber is a critical component in the construction of wind turbine blades, where its lightweight nature and high strength contribute to improved energy efficiency and durability. Carbon fiber-reinforced materials are used in various molding and composite applications, including automotive parts, consumer goods, and industrial components. The automotive industry incorporates carbon fiber into vehicle components to reduce weight, improve fuel efficiency, and enhance performance, particularly in high-performance or electric vehicles. Carbon fiber composites are employed in the manufacturing of pressure vessels for various applications, including gas storage and transportation. In the field of civil engineering, carbon fiber is used to reinforce and strengthen infrastructure components like bridges, buildings, and tunnels, contributing to their longevity and structural integrity. Carbon fiber is essential in boat and shipbuilding, where its lightweight, corrosion-resistant properties provide excellent strength and durability. The pultrusion process involves the continuous production of composite materials with carbon fiber, used in applications like rods, profiles, and structural shapes.  Carbon fiber is used in various consumer products, such as electronic goods, luxury accessories, and other items where lightweight, high-strength materials are advantageous.

Global Carbon Fiber Market Overview by Region

The global carbon fiber market is categorized into North America, Europe, Asia-Pacific, and the Rest of the World. Europe emerged as the leading region, capturing the largest market share in 2022. The robust aerospace and automotive sectors in Europe are a significant contributing factor. In order to improve the performance of their goods while abiding by stringent environmental rules, these industries were early users of carbon fibre composites. In order to reduce vehicle weight and increase fuel efficiency in both conventional and electric vehicles, the European automotive industry has been at the forefront of employing carbon fibre. Additionally, sustainability and environmental awareness have received a lot of attention in European nations. This emphasis has prompted the use of lightweight materials like carbon fibre to lower carbon emissions and improve energy efficiency. Governments and institutions in Europe have aided in research and development, promoting advancements in carbon fibre technology and environmentally friendly production methods. The fact that Europe is home to a large number of top carbon fibre producers and research facilities has also been crucial to the region's supremacy. These organizations have worked together on innovative projects that have made it possible to produce new carbon fibre grades and better manufacturing processes. The region's dedication to innovation, sustainability, and the adoption of cutting-edge materials across numerous industries is reflected in Europe's leadership in the carbon fibre market, ensuring that the continent remains a major force in the advancement and application of carbon fibre technology on a global scale.

Global Carbon Fiber Market Competitive Landscape

In the global carbon fiber market, a few major players exert significant market dominance and have established a strong regional presence. These leading companies remain committed to continuous research and development endeavors and actively engage in strategic growth initiatives, including product development, launches, joint ventures, and partnerships. By pursuing these strategies, these companies aim to strengthen their market position, expand their customer base, and capture a substantial share of the market.

Some of the prominent players in the global carbon fiber market include A&P Technology Inc.; Anshan Sinocarb Carbon Fibers Co. Ltd; DowAksa USA LLC; Formosa Plastics Corporation; Hexcel Corporation; Holding company Composite; Hyosung Advanced Materials; Jiangsu Hengshen Co. Ltd; Mitsubishi Chemical Corporation; Nippon Graphite Fiber Co. Ltd; SGL Carbon; Solvay; Teijin Limited;, and various other key players.

Global Carbon Fiber Market Recent Developments

• In May 2023, Manufacturing of Aircraft with Carbon Fibre. A carbon-containing substance, such as pitch, rayon, or polyacrylonitrile (PAN), is heated to an extremely high temperature in an inert atmosphere to create carbon fibre.
• In November 2023, through a business combination with Twin Ridge Capital Acquisition Corp., Carbon Revolution, a leading global manufacturer of carbon fibre wheels for the automotive industry, will list in the United States. With more than 60,000 carbon fibre wheels on the road for some of the most prominent brands in the world, Carbon Revolution is a pioneer in next-generation automotive technology. With international OEMs like Ford Motor Company, Ferrari NV, General Motors Company, and Renault Group, Carbon Revolution has been awarded 13 programmes to far. Another six programmes are in development under engineering agreements.

Scope of the Global Carbon Fiber Market Report

Carbon Fiber Market Report Segmentation

Objectives of the Study

The objectives of the study are summarized in 5 stages. They are as mentioned below:

• Global Carbon Fiber Market Size and Forecast:

To identify and estimate the market size for the global carbon fiber market segmented by type, by raw material, by tow size, by end use industry, region and by value (in U.S. dollars). Also, to understand the consumption/ demand created by consumers of carbon fiber between 2019 and 2031.

• Market Landscape and Trends:

To identify and infer the drivers, restraints, opportunities, and challenges for the global carbon fiber market

• Market Influencing Factors:

To find out the factors which are affecting the sales of carbon fiber among consumers

• Impact of COVID-19:

To identify and understand the various factors involved in the global carbon fiber market affected by the pandemic

• Company Profiling:

To provide a detailed insight into the major companies operating in the market. The profiling will include the financial health of the company's past 2-3 years with segmental and regional revenue breakup, product offering, recent developments, SWOT analysis, and key strategies.

Intended Audience

• General Public
• Customers and Clients
• Governments, Associations, and Industrial Bodies
• Investors and Trade Experts