Market Overview/Outlook (2022 to 2030)
The Global Carbon Fiber Market was valued at USD 4.93 Billion in 2022 and is projected to reach USD 11.71 Billion by 2030, registering a CAGR of 11.1% for the forecast period 2023-2030.
Market Definition
The carbon fiber market is fueled due to production of automotive body parts such as hoods, roofs, doors and bumper beam is in high demand and the increasing use of carbon fiber composite in high end and racing vehicles. Lightweight vehicles provide better fuel efficiency and the rising global automotive industry and increase the need of lightweight vehicles fueling the growth of carbon fiber market. Additionally, ground defense, marine defense, military marine all make use carbon fiber reinforced plastic therefore increasing use of carbon fiber in aerospace and defense industry boosting the growth of carbon fiber market. In 2022, according to Knauf Industries, the automobile industry is integrating new car production process and searching cutting edge material to make car safer while also being lighter at a time when energy efficiency is becoming more and more crucial innovative formed polymer may prove to be an intriguing alternative to material utilized in aerospace industry, such as carbon fiber and Kevlar.
Market Size:
- 2022: USD 4.93 billion
- 2030: USD 11.71 billion
- CAGR (2023-2030): 11.1%
Carbon Fiber Market Dynamics
Drivers Propelling the Demand for Carbon Fiber include:
Increasing product usage in automotive industry drive the growth of carbon fiber market:
With a low weight to strength ratio, carbon fiber is particularly strong and light material. It is twice as stiff as steel and five times stronger compared to steel, it is more resistance to chemical. Due to product advantage in producing lightweight and incredibly duration automobile, the automotive industry is using it more frequently. The toughness of the car is increased, and the body pieces have a longer lifespan thank to graphite fiber. The demand for producing car body pieces such hoods, roofs, doors, and bumper beams is increasing drastically, the rising consumption of carbon fiber composite in luxury and race cars is fueling the growth of carbon fiber market.
Modern material like carbon fiber is seen to be the best option for meeting the needs automakers. Businesses are making investment in R&D and implementing strategies to develop new techniques that would use this fiber to reduce the overall weight of vehicles. A lightweight vehicle provides better fuel efficiency and 10% weight reduction, saving 6 to 8% in fuel. The rising global automotive industry and increase the need for lightweight vehicles are the factors fueling the growth of carbon fiber market.
For instance, in June 2023, according to Cox Automotive, the U.S. new vehicles market has been surprisingly strong with the sales volume increases more quickly, the June sales pace has been estimated at 15.7 million, higher than the Cox Automotive forecast 15.2 million. New vehicle sales to increase more than 11.3% year over year through the first half of 2023.
The growing aerospace industry across the globe fuel the growth of carbon fiber market:
The aerospace sector has grown over the past few years as result of rising demand for commercial aircraft brought on by rising disposable income and globalization. Because they provide exceptional strength, endurance and stability, carbon fiber is ideal for numerous aerospace and defense applications. Ground defense, missile defense and military marine all make use of carbon fiber reinforced plastic, therefore increasing carbon fiber use in the aerospace and defense industries increases the global market growth of carbon fiber.
For instance, in January 2023, sgl carbon stated that, carbon fiber reinforced plastics and composites have long been used in aerospace industry due to their many exceptional material properties such as particular low weight, high tensile strength and stiffness as well as excellent fire protection capabilities.
Restraint in the Carbon Fiber Market
High cost of the product may hinder the growth of carbon fiber market:
Due to its high performance and lightweight qualities, carbon composites are frequently employed in the wind energy, oil & gas, construction, aerospace, and automotive industries. The cost of making carbon fiber contributes to the products overall prices increases. The high cost of product prevents carbon composites from being widely used in variety of industries. The yield and price of the precursor used to make CF have direct impact on its price. Currently PAN based carbon fiber have a conversion efficiency of just 50% and cost an average of US$ 21.5 per kg for non-aerospace grade material. Due to this high price, it is challenging for local and small-scale producers to enter the market, which hinder the growth of carbon fiber market.
Challenges in the Carbon Fiber Market
Raw material shortage and shipping delays have an impact on the carbon fiber market
A number of basic materials, including rayon, petroleum pitch, and polyacrylonitrile are used to create carbon fiber. Production interruption and price increase for carbon fiber might result from shortage of certain basic resources. PAN, the most prevalent precursor to carbon fiber has been in short supply on a global scale recently. Numerous factors, including growing demand from the automotive and aerospace industries and supply disruption by COVID 19 Pandemic have contributed to this lack. The carbon fiber market significantly impacted by shipping delays, raw material and completed goods must be delivered on time to makers of carbon fiber products. Delay in shipping can affect production and time it takes to deliver final items to client, overall, these factors are challenge for the carbon fiber market.
Opportunities in the Carbon Fiber Industry
Rising demand from FCEV’s (Fuel Cell Electric Vehicles):
Hydrogen tanks for the use in mobile pipeline and fuel tank application are made from carbon fiber and composite material. The market for FCEV’s is anticipated to expands quickly as a result of strict environmental regulations that emphasis using clean fuel. The market for FCEV’s is currently quite modest. However, it is anticipated to expand quickly during the course of the forecast. By 2030 the U.S. hopes to have 5.3 million buses and coaches and 3 million forklifts on the road. Europe has the most hydrogen refueling stations and aims to have 45,000 fuel cell truck and buses and 3.7 million hydrogens powered. Additionally South Korea has created a production schedule for 1.8 million unit of FCEVs by 2030. These factors are expected to increase the penetration and demand of hydrogen tank in the next ten years, this present significant potential for the growth of carbon fibers.
Segment Analysis of the Carbon Fiber Market
The carbon fiber market is segmented by raw material, tow size, application, fiber type, region.
By Raw Material
The PAN -Based segment held the largest market share in 2022:
By raw material is sub segmented into PAN-Based and Pitch-Based. The PAN-Based segment held the largest market share in 2022. PAN is more widely accepted across a range of application industries thanks to its outstanding features. Additionally, PAN precursor is frequently employed because of rising demand of carbon fiber are nevertheless commonly used. The manufacturers of the two precursors differ significantly as a result increased acceptance of PAN based fiber in the creation of polymer matrix composites. PAN precursor has been more well liked and has a greater market share as a result of the rising need for higher strength to weight ratio.
Due to some specific characteristic, Pitch based carbon fiber is mainly used for manufacturing sporting equipment and satellite part, which is expected to drive the market growth during the forecast period.
By Tow Size
The Small Tow segment was the leading segment in 2022:
By tow size, the carbon fiber market is segmented into small tow and large tow. The small tow market segment has largest market share for carbon fiber market. Due to their high tensile strength and high modulus when used to create composites, which are utilized in many applications, small tow fibers are widely used in the aerospace industry.
On the other hand, the large tow market has significant market share in carbo fiber market due to its high strength to weight ratio and benefits over conventional material like metals and their alloys, such as carbon fiber increasingly being used in variety of application industries.
By Application
The Aerospace & Defense segment was the leading segment in 2022:
By application, the carbon fiber market is segmented into automotive, aerospace & defense, wind turbines, sports/leisure, molding & compound, construction, pressure vessel, others. The aerospace & defense segment is accounted for the largest 32% revenue market share. The demand for fuel efficient vehicle has increased as a result of rising gasoline cost. The most efficient way to increase fuel efficiency is to reduce curb weight. Since carbon fiber has a greater strength to weight ratio than steel, it has been used as a steel substitute most frequently in automotive application. Similarly, carbon fiber is replacing metal in aerospace application because it helps to reduce aircraft weight which increases fuel efficiency.
On the other hand, the wind turbine industry has grown significantly due to increasing significance connected with using renewable source for their environmental advantage.
By Form
The composite carbon fiber segment dominated the Carbon Fiber market in 2022:
In terms of revenue share, the composite segment held largest market share of the carbon fiber market in 2022. Carbon fiber reinforcement used in composite product is referred to as composite carbon fiber. To make a composite material with improved mechanical properties, carbon fiber is mixed with a polymer matrix, like epoxy or thermoplastic. The extraordinary strength, stiffness and light weight of carbon fiber are well known. To maximize the mechanical properties of the composite material they are aligned and positioned within the matrix in particular orientation. This factor is anticipated to increase sales of carbon fiber for the composite based carbon fiber segment.
On the other hand, non-composite carbon fiber has gained significance market share as they are more expensive than the composite carbon fiber, such as prepregs and molded parts.
Regional Analysis
Europe occupied the largest market share in 2022:
Europe gained largest market share of global carbon fiber market in 2022. A sizeable number of manufacturers are actually engaged in development operation, particularly in expansion and introduction of new product. There are significant caron fiber producers in this region. Demand for carbon fiber is increasing as a result of expanding automobile sector in Germany, France and United Kingdom, Italy, Spain. Several end use sectors, including aerospace and defense, wind energy, pipe tank and sporting goods, utilize carbon fiber extensively. The industry expected to rise in Europe due to expansion of manufacturing industry.
On the other hand, Asia Pacific accounted for the significant share of the global carbon fiber market in 2022. The growth in that region due to rapid urbanization and growing government spending on infrastructure project. The increasing use of construction composite in building tunnel, bridges, houses in India and China will drive market growth in this region.
Segmentation Analysis of the Carbon Fiber Market
By Raw Material
- PAN-Based
- Pitch-Based
By Tow Size
- Small Tow
- Large Tow
By Application
- Aerospace & Defense
- Wind Turbines
- Automotive
- Sports/ Leisure
- Molding & Compound
- Construction
- Pressure Vessel
- Other
By Form
- Composite
- Non- Composite
By Modulus Type
- Standard Modulus
- Intermediate Modulus
- High Modulus
By Region
- North America
- Europe
- Asia Pacific
- Latin America
- Middle East and Africa
Competition Analysis
Key companies profiled in the carbon fiber market report include Nippon Graphite Fiber Co Ltd, SGL Carbon, Solvay, Teijin Limited, Toray Industries Inc, Zhongfu Shenying Carbon Fiber Co. Ltd, A&P Technology Inc, Anshan Sinocarb Carbon Fibers Co. Ltd, Dow Aksa USA LLC, Formosa Plastic Corporation, Hexcel Corporation, Holding Company Composite, Hyosung Advanced Material, Jiangsu Hengshen Co. Ltd, Mitsubishi Chemical Corporation, Jilin Chemical Fiber Group Co. Ltd, Zoltek and Others. These companies are involving themselves in mergers and acquisitions and investing in the advancement of technology to compete in this expanding market.
Snapshot
| Attributes | Details |
| Market Size in 2022 | 4.93 |
| Market Forecast in 2030 | 60.43 |
| Compound Annual Growth Rate (CAGR) | 11.1% |
| Segmentation | By Raw Material, By Tow Size, By Application, By Form, By Modulus Type & By region |
| Regions Covered | North America; Europe; Asia Pacific; Latin America; MEA |
| Country Scope |
U.S.; Canada; Mexico; UK; Germany; France; Italy; Spain; India; JaPAN; China; Southeast Asia, Brazil; Argentina; GCC Countries, UAE, and South Africa. |
| Key Company Profiled | Key companies profiled in the carbon fiber market report include Nippon Graphite Fiber Co Ltd, SGL Carbon, Solvay, Teijin Limited, Toray Industries Inc, Zhongfu Shenying Carbon Fiber Co. Ltd, A&P Technology Inc, Anshan Sinocarb Carbon Fibers Co. Ltd, Dow Aksa USA LLC, Formosa Plastic Corporation, Hexcel Corporation, Holding Company Composite, Hyosung Advanced Material, Jiangsu Hengshen Co. Ltd, Mitsubishi Chemical Corporation, Jilin Chemical Fiber Group Co. Ltd, Zoltek and Others. |
| Customization scope | Free report customization (equivalent up to 8 analyst’s working days) with purchase. Addition or alteration to country, regional & segment scope |
| Pricing and purchase options | Avail customized purchase options to meet your exact research needs. Explore purchase options |
Impact of the COVID-19 Pandemic on the Carbon Fiber Market:
Prior to the COVID 19 pandemic the aerospace, automotive, building and construction and wind energy industries accounted for the majority of carbon fiber. However, in 2020, a number of sectors had to scale back their operation because the closure of international and national border caused supply chain disruption. The pandemic caused societal limitation and significant economic effect which hampered the production and distribution of carbon fiber. The growth of the carbon fiber market was considerably impacted by slowing expansion of automotive sector. The COVID 19 epidemic had a serious impact on the global auto industry. Due to the pandemic several market players in the carbon fiber industry suffered through financial crises.
After the post pandemic various industries restarted their operation in 2021 as the economy began to recover. As a result, various sector particularly automotive sector, saw an increase in activity.
Recent Developments
In July 2023, according to proposal released by Toray Industries Inc. plan to increased regular tow carbon fiber production capacity at two facilities. The Gumi facility, Korea of Toray advanced material Korea Inc. and the Spartanburg plant of Toray Composite Material America Inc. will both get capital investment. Beginning in 2025, this improvement will raise the Toray Group yearly capacity by more than 20% to 35,000 metric tons.
In March 2023, SGL Carbon unveiled a brand new 50k carbon fiber. The new SIGRAFIL C T50-4.9/235 carbon fiber has high elongation capacity and will meet the high strength requirement for typical pressure vessel design. It also enables further application in market segment that require high strength and elongation.
In September 2022, for industrial, aerospace, automotive and race car application, Solvay introduced LTM 350 a next generation carbon fiber epoxy prepreg tooling material created to deliver considerable time and cost advantage. The carbon fiber epoxy tooling material features the fastest, lowest temperature cure cycle in the industry and it can be also cured at temperature as low as 45 degree C with a longer post cure.
In April 2022, hexcel a world leader in advanced lightweight composite technology and Archer Aviation Inc. announced they had signed a letter of intent outlining a potential partnership for the supply of high-performance carbon fiber material that would be utilized in the construction of Archers production aircraft.
