Carbon Fiber Market

The global carbon fiber market reached a value of USD 6.5 billion in 2023 and is projected to reach USD 21.7 billion by 2030, with a CAGR of 12.9% from 2023 to 2030. The market's growth is driven by the high tensile strength, superior chemical resistance, temperature tolerance, low weight, and thermal expansion properties of carbon fibers. These properties are expected to increase the demand for carbon fibers, leading to market growth. Additionally, the imposition of strict eco-friendly regulations in developed and developing countries provides ample growth opportunities for the market. However, the high cost of carbon fiber remains a significant concern hindering market growth.

Carbon fiber composites, including carbon fiber tapes, are currently limited to luxury vehicles in the automotive industry. Moreover, alternative carbon fiber composites pose a significant threat to the growth of the carbon fiber industry. In 2023, the Aerospace & Defense industry accounted for a 44.2% share in the carbon fiber market, projected to reach USD 8.5 billion by 2030 with a CAGR of 11.6%. The Pipe & Tank industry is expected to witness the highest CAGR of 22.4%, growing from USD 0.65 billion in 2023 to USD 4.9 billion by 2030.

Carbon Fiber Market Dynamics
Driver: Stringent Eco-friendly Regulations & Rising Popularity of 3D Printing
The implementation of eco-friendly regulations in many countries has led to increased adoption of sustainable construction materials. Carbon fibers and their composites offer weight reduction and increased fuel efficiency, making them desirable in the luxury and sports car markets. Carbon fiber is extensively used in the automotive industry for 3D-printed car parts, as it enhances strength, stiffness, and dimensional stability. These trends contribute to the growth of the carbon fiber market.

Restraint: High Cost of PAN-based Carbon Fiber
The high cost of PAN-based carbon fiber limits its use in the automotive industry to racing cars and high-end sports cars. To increase its application in automobiles, the cost of carbon fiber needs to decrease significantly. Efforts are underway to develop low-cost carbon fiber technologies, but currently, the aerospace-grade carbon fiber is priced between USD 80 and USD 120 per pound. This high cost hinders the commercial feasibility of carbon fiber-based composites in various applications.

Opportunity: Increasing Demand from FCEVs
Carbon fiber and composites are used in the manufacturing of hydrogen tanks for fuel cell electric vehicles (FCEVs). The market for FCEVs is expected to grow rapidly due to eco-friendly regulations promoting clean fuel usage. The penetration and demand for hydrogen tanks are projected to increase significantly, creating opportunities for carbon fiber growth. Countries like the US, Europe, and South Korea have ambitious targets for FCEV adoption, driving the demand for hydrogen tanks.

Challenge: Presence of Substitutes & High Cost of Carbon Fiber
The high cost of carbon fiber remains a challenge for market growth, as it limits its usage to luxury vehicles in the automotive industry. Additionally, alternative carbon fiber composites pose a significant challenge to the carbon fiber industry.

Wind Energy industry accounts for the second largest share in terms of value
Wind Energy industry holds the second largest share of 14.7% in terms of value. Wind turbine blades are crucial components in wind power generation systems, and PAN-based carbon fibers are widely used in their construction. Carbon fiber and carbon fiber composites are utilized in manufacturing wind blades to reduce weight, increase blade length, and enhance energy generation. Carbon fibers offer a favorable combination of stiffness, strength, and weight, enabling the production of larger blades and higher energy output. Additionally, carbon fibers' corrosion resistance allows wind turbines to operate in challenging environments.

The use of carbon fiber in wind turbine blades reduces overall weight, optimizes stiffness-to-weight ratio, and increases blade stiffness to prevent tower strikes during sudden wind gusts. Europe's wind energy industry is expanding due to stricter environmental regulations, with the region being a major consumer of carbon fiber for spar caps in offshore wind farms.

PAN-based carbon fiber accounted for the largest market share, in terms of value and volume.
 PAN-based carbon fiber dominates the market in terms of value and volume. PAN fibers are combined with resins to enhance strength and withstand high temperatures and corrosive environments, making them suitable for various industries, including aerospace, general industrial parts, and sports equipment. The application of PAN-based carbon fiber composites is prevalent in aircraft and automobile manufacturing and is expected to grow significantly in pipes & tanks and wind energy industries.

Europe held the largest market share in the carbon fiber market
Europe currently holds the largest market share in the carbon fiber market, fueled by active development activities, expansions, and new product launches by major manufacturers in the region. The European market is segmented into Germany, France, the UK, Italy, Spain, and the rest of Europe. The growing automotive industry in Europe drives the demand for carbon fiber, and the aerospace sector accounts for a significant share due to the presence of a robust aerospace industry in countries like France and the UK. The region's expanding manufacturing facilities indicate substantial growth potential in the coming years.

Key players in the global carbon fiber market include Toray Industries Inc., DowAksa, Mitsubishi Chemical Corporation, Solvay, Teijin Limited, SGL Carbon, Hexcel Corporation, Hyosung Advanced Materials, Zhongfu Shenying Carbon Co., Ltd., Formosa Plastics Corporation, Jiangsu Hengshen Co., Ltd., and Jilin Chemical Fiber Group Co., Ltd. These companies employ various strategies, both organic and inorganic, to strengthen their presence in the carbon fiber market. The competitive analysis of these key players, including company profiles, recent developments, and market strategies, is conducted in-depth as part of the study.
This research report categorizes the carbon fiber market based on By Raw Material Type, Fiber Type, Modulus, Product Type, Application, End-use Industry, and Region.

By Raw Material Type:
o Pan-based carbon fiber
o Pitch-based carbon fiber

By Fiber Type:
o Virgin carbon fiber
o Recycled carbon fiber

By Modulus Type:
o Standard modulus
o Intermediate modulus
o High modulus

By Product Type:
o Continuous carbon fiber
o Short carbon fiber
o Long carbon fiber

By Application Type:
o Composite
o Non-Composite

By End-use Industry Type:
o Aerospace & Defense,
o Automotive
o Wind Energy
o Pipes & Tanks
o Sporting Goods
o Others

By Region:
o North America
o Europe
o Asia Pacific
o Latin America

Recent developments in the carbon fiber market include:
• In July 2022, Hexcel announced a long-term agreement with Dassault to supply carbon fiber prepreg for the Falcon 10X program. This collaboration marks the first utilization of high-performance advanced carbon fiber composites in the manufacturing of aircraft wings for a Dassault business jet program.
• In April 2021, Hyosung Advanced Materials signed a contract with Hanhwa Solutions to supply reinforced carbon fiber for strengthening fuel tanks in hydrogen vehicles. The contract, spanning six years starting from 2021, is valued at approximately 160 billion won. This agreement is expected to significantly increase carbon fiber sales.
• In April 2021, Mitsubishi Chemical Corporation consolidated its subsidiaries in the US, the UK, and Germany at the national level. By integrating expertise and resources, this consolidation aims to enhance cooperation and strengthen overall business capabilities in each country. The company also seeks to improve customer responsiveness and provide tailored solutions in these regions. On April 1, 2021, nine subsidiaries in the US, five subsidiaries in the UK, and five subsidiaries in Germany were integrated.