Carbon Fiber Market - Forecast(2025 - 2031)
Carbon Fiber Market Overview
Carbon Fiber Market size is forecast to reach $15.3 billion by 2030, after growing at a CAGR of 11% during 2024-2030. Carbon fiber is a high strength, low weight, high stiffness, conductive to electricity, and is one of the most corrosion and heat resistant material. Growing demand for lightweight products from aerospace & defense, automotive, and wind energy industries and minimizing carbon emissions are driving the market growth. Whereas, the growing building and construction sector in the emerging country is also driving the market growth. As carbon fiber is used primarily in the strengthening and reinforcement of concrete, steel, timber, and masonry. Furthermore, increasing demand for carbon fiber composite in consumer electronics has made the products lighter and thinner, and more textured is likely to drive the market growth. The carbon fiber market is witnessing a significant trend with an increased adoption in the automotive industry. As automotive manufacturers strive to enhance fuel efficiency and reduce emissions, carbon fiber composites offer a lightweight alternative to traditional materials. This shift is driven by the demand for electric and hybrid vehicles, where minimizing weight is crucial for optimizing energy efficiency and extending battery range. Carbon fiber's high strength-to-weight ratio contributes to improved vehicle performance and structural integrity. Moreover, advancements in manufacturing processes and cost reductions are making carbon fiber more economically viable for mass-produced automobiles. This trend signals a transformative shift in the automotive sector, with carbon fiber playing a pivotal role in the development of next-generation, sustainable transportation solutions. A notable development in the carbon fiber market is the increasing focus on sustainable production methods. With rising environmental concerns and a push for eco-friendly materials, carbon fiber manufacturers are exploring ways to minimize the environmental impact of their production processes. Innovations include the use of bio-based precursors, recycling of carbon fiber waste, and energy-efficient manufacturing techniques. This trend aligns with global efforts to achieve carbon neutrality and reduce the overall carbon footprint of industries. Sustainable carbon fiber production not only addresses environmental concerns but also caters to the growing demand for green products in various sectors, including aerospace, automotive, and renewable energy. As sustainability becomes a key consideration for businesses and consumers alike, the carbon fiber market is evolving to meet these changing expectations and contribute to a more environmentally responsible future.
Market Snapshot:
Carbon Fiber Market Report Coverage
The report: “Carbon Fiber Market – Forecast (2024-2030)”, by IndustryARC, covers an in-depth analysis of the following segments of the Carbon Fiber Industry.?
By Raw Material: Polyacrylonitrile Based (PAN), Pitch Based (Mesophase Pitch Based, and Petroleum Pitch Based), and Others (Ultra High Elastic Modulus (UHM), High Elastic Modulus (HM), and Low Elastic Modulus (LM)).
By Tow Type: Continuous, and Chopped.
By Application: Composite, Non-Composite, Molding Compound, Woven Fabric, and Others.
By End-Use Industry: Aerospace & Defense (Fighter Jets, Armored Vehicles, Commercial Jets, Rotorcraft, Satellites, and Others), Automotive (Interior, Exterior, and Others), Sporting Goods (Tennis Rackets, Golf Club, Hockey Sticks, Archery, Others), Energy and Power (Wind, Solar, and Others), Building & Construction (Residential, Commercial, and Others), Marine, Healthcare, Electric & Electronic, and Others.
By Geography: North America, South America, Europe, Asia-Pacific, and Middle East & Africa
Key Takeaways
Carbon Fiber Market Segment Analysis - By Raw Material
Polyacrylonitrile Based (PAN) segment held the largest share of more than 65% in the carbon fiber market in 2023. The PAN based component offers various benefits like low density, high strength, high modulus, high-temperature resistance, wear resistance, corrosion resistance, fatigue resistance, creepage resistance, electric conduction, heat conduction, and far-infrared radiation. These properties of PAN make it suitable to use across various end-use industries like the aerospace & aviation industry, automotive industry, wind turbines, anti-flame materials & clothes, and sports equipment. Thus, growth in these end-use industries further drive the market growth.
Carbon Fiber Market Segment Analysis - By Tow
Continuous tow segment held the largest share of more than 60% in the carbon fiber market in 2023. Continuous tow is the most widely used tow, due to its weight, compatibility with resins, and various range of sizing available for optimal processing. These are heavy tows with 50,000 filaments, each of these tows have heavy mechanical properties, which can be transferred to the finished products and components to enhance their properties such as strength, durability and structural properties. Furthermore, Continuous tows provide cost advantage, especially when used in a high-volume process, increases the reliability of the end product, enhance production efficiency and can be merged with all thermoset and thermoplastic resin systems. Continuous tow also makes carbon fiber far superior to glass and aramid fibers because of their added strength & stiffness and are used in manufacturing wind turbines, industrial, and automotive manufacturing. Therefore, these properties & advantages of continuous tow will further drive its demand in the market.
Carbon Fiber Market Segment Analysis - By Application
Composite segment held the largest share of more than 55% in 2023 and is forecasted to be the most utilized application of carbon fiber. The high strength, high thermal & electrical conductivity, light weight, and high modulus properties of composite makes them suitable to use across aerospace & defense, automotive, sports, and wind turbine industry, which are ideal for its growth. According to a 2022 report released by Aerospace Industries Association (AIA), in 2022 American aerospace & defense industry export amounted for $100.4 billion, which rose by 11.2 percent from 2021. The other industry driving the markets growth is automobile industry. For instance, a report released by Indian Brand Equity Foundation (IBEF) in 2023, In the first quarter of 2023-24, total production of passenger vehicles, commercial vehicles, three wheelers, two wheelers, and quadricycles was 6.01 million units. Furthermore, the growing demand for BMW i3 is also driving the market growth. As the BMW i3 is still the only car with a significant amount of carbon composite content.
Carbon Fiber Market Segment Analysis - By End User
Aerospace and Defense segment held the largest share of more than 25% in the carbon fiber market in 2020. Airbus A350 XWB, JSF, F18 E/F, A380, Eurofighter Typhoon, Global Express, Airbus A400M, V22 Osprey, Boeing 787, and GEnx Engines are some of the end products where these composites are used and are ideal for the growth of the market. The use of carbon fiber in manufacturing narrow-body aircraft is also witnessing growth and creating a demand for the market. According to Indian Machine Tool Manufacturers' Association (IMTMA) report, the Aerospace and Defense (A&D) market in India is estimated to reach $70 billion by 2030, which will further create the demand for carbon fiber in the region.
Carbon Fiber Market Segment Analysis - By Geography
Among the regions, Europe held the largest share of more than 38% in the carbon fiber market in 2023. With countries such as UK, France, and Germany are driving the market growth. The presence of major aircraft, defense, and electric vehicles manufacturers in the region like Airbus, Safran, Rolls Royce, BAE Systems and others are likely to boost the demand for the market. Whereas, the stringent environment norms and growing demand for electric vehicles is also contributing to the carbon fiber market growth in the region. As per International Energy Agency report in 2022, Electric car markets are seeing exponential growth as sales exceeded 10 million in 2022. A total of 14% of all new cars sold were electric in 2022, up from around 9% in 2021.
Carbon Fiber Market Drivers
Increasing use of carbon fiber in Sports & Fitness Industry
With Carbon Fibers high-strength and light-weight characteristics, they are being widely used in the manufacturing sports equipment. Sports equipment such as tennis racquets, oars, pickleball paddles, archery, hockey sticks, fishing rods, baseball bats, and bicycles are made of carbon fiber. Carbon Fibers provide design flexibility, when designing a highly-specific applications. The exact shape of equipment is very critical for its performance and can easily be achieved by using carbon fiber composites. Carbon fiber helps to enhance the performance of bikers and golfers. The most specific use of carbon fiber in sporting equipment can be seen in the tennis racket. Therefore, the above factors are driving the demand for the carbon fiber market in various sporting equipment. According to International Health, Racquet & Sports club Association (IHRSA) report released in 2022, the global fitness industry total revenue was $94 billion in 2022, which will further rise in coming years, and in return will drive the demand for carbon fiber in the forecasted period.
Increase in demand from Clean Energy Sector?
One of the major factors that driving the Carbon Fiber Market is the wind energy sector. With the depletion of fossil fuels, the world is now acknowledging the synthesis of energy from renewable resources. Carbon fiber is widely used in manufacturing turbine blades, which makes blades slender resulting in higher aerodynamic efficiency, lighter, longer, stiffer, and overall, more efficient wind turbine providing lower Levelized Cost of Energy (LCOE). The advancements in the wind energy sector will lead to the increasing use of carbon fiber. With the world government focusing on environmental issues, an increase in investment in wind energy is favorable for the growth of the market. For instance, according to Global Wind Energy Council, the global onshore wind power capacity was 835 GW in 2022, which was an increase from 539.5 in 2018, and is expected to reach 1,787 GW by 2030, such significant growth in wind energy will propel the demand for carbon fiber market in the forecasted period.
Carbon Fiber Market Challenges
High Cost & Availability of Substitutes
The high cost of carbon fiber is a major concern associated with the market growth. These composites are not used in wide applications due to its high cost and developing low-cost technologies is the main challenge for the manufacturer. In the automotive industry, carbon fiber composites are only used in high-end and luxury cars. Moreover, substitute composites of carbon fibers such as glass fiber, aluminum, copper, basalt fiber, and natural fiber pose a serious challenge to the growth of the market. As these substitutes have similar end-use applications and are durable & cost effective.
Emergence of COVID 19
COVID-19 has disrupted many businesses, markets, and the overall supply chain and continues to impact on people, communities, and global economies. The pandemic has severely hindered the growth of carbon fiber market, as the automotive, and aviation industry are facing slow growth due to travel restriction, slowing demand for spare parts as maintenance in reduced, passengers stop traveling, customers postponing delivery of new aircraft and no discretionary spending by consumers. Moreover, in the long run the aircraft manufacturer will face a cash crunch this will further decrease the demand for carbon fiber.
Carbon Fiber Market Landscape
Technology launches, acquisitions and R&D activities are key strategies adopted by players in the Carbon fiber market report. Major players in the Carbon Fiber Market are Hexcel Corp., Formosa Plastics Corp., TEIJIN Aramid B.V., Hyosung Advanced Materials, ESE Carbon Co., Mitsubishi Chemical Corp., Stratasys Ltd., SGL Carbon SE, Zoltek Corporation, Hengshen Co., Ltd., and DowAksa Advanced Composites Holding B.V., among others.
Acquisitions/Technology Launches
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