Global Carbon Fiber Market Size & Growth Trends Analysis Report

One of the main drivers for the global carbon fiber market is the growing demand from the defense and aerospace sectors. Owing to its remarkable strength-to-weight ratio and corrosion resistance, carbon fiber is a perfect material for military equipment, drones, and airplanes where weight reduction and fuel efficiency are crucial. Carbon fiber is being used in next-generation airplanes by companies like Boeing and Airbus, which is increasing market demand. Similarly, a major factor is the increasing adoption in the automotive industry. Carbon fiber composites are being utilized heavily in high-performance and electric automobiles as the automotive industry moves toward lightweight materials to satisfy fuel efficiency regulations and lower carbon emissions. Companies that were early adopters and established industry standards include Tesla and BMW.

The industry has also grown as a result of increased use in renewable energy applications, especially wind turbine blades. The material's lightweight and durability increase wind energy systems' efficiency and support international renewable energy targets. Furthermore, the demand is being driven by the growth in infrastructure and development projects. Due to its great tensile strength and long-term durability, carbon fiber is increasingly being used to enhance buildings, bridges, and seismic retrofits.

Regulatory agencies are essential in forming the market. Safety and environmental compliance for carbon fiber usage in aircraft and other industries are guaranteed by agencies such as the European Chemicals Agency (ECHA) and the Federal Aviation Administration (FAA). In a similar vein, international sustainability programs are promoting the creation of recyclable carbon fiber.

The market is subject to significant constraints despite the market motivators. The usage is still restricted to sectors with large budgets, such as aerospace and luxury automobiles, due to high production costs. The scalability is further impacted by the logistical and environmental difficulties associated with the production and recycling of carbon fiber. Additionally, the market is further hampered by the scarcity of raw ingredients like polyacrylonitrile (PAN).

However, as manufacturers look for lightweight materials to increase electric vehicle (EV) performance and range, the growing interest in EVs opens up a profitable growth path. Similarly, it is anticipated that improvements in production methods, including the 3D printing of carbon fiber and the creation of affordable precursors, will lower costs and increase accessibility. Asia-Pacific's emerging economies, especially China and India, have unrealized potential, and the region's demand is being driven by the expanding infrastructure and automotive industries.

The carbon fiber sector is seeing notable advancements from several businesses. While Carbon Nexus concentrates on environmentally friendly production techniques, companies like Arevo are pioneering the creation of 3D-printed carbon fiber. By creating affordable methods for reusing carbon fiber composites, startups like Vartega are tackling recycling issues. The market for carbon fiber is expanding owing to these creative strategies that are assisting in removing long-standing obstacles.

Impact of COVID19

The market for carbon fiber was affected by the COVID-19 pandemic in a variety of ways. The market was severely disrupted in the early phase by supply chain disruptions, production halts, and lockdowns. Additionally, important sectors that use carbon fiber extensively, such as construction, automotive, and aerospace, experienced significant slowdowns. For example, the aerospace sector experienced a steep drop in demand for new aircraft as airline earnings were impacted by travel restrictions and lower passenger volumes, which in turn hurt orders for carbon fiber. The projects that depended on lightweight materials like carbon fiber were also delayed as a result of the closure or reduced capacity of auto production facilities.

But as industries adjusted to the new normal, the market started to rebound. As governments prioritized green energy initiatives to promote economic recovery, the renewable energy sector, especially wind energy, showed resilience and even growth during the pandemic. The need for carbon fiber in wind turbine blades increased as a result. Furthermore, as global automakers pushed their transition to sustainable mobility, interest in carbon fiber for electric vehicles (EVs) increased as the pandemic brought attention to the necessity for lightweight and efficient materials in the transportation industry.

To overcome the budgetary restrictions brought on by the pandemic, businesses are investigating sustainable and affordable carbon fiber production methods as a result of the crisis. Overall, despite the short-term interruptions caused by COVID-19, the market for carbon fiber has a bright future owing to the resurgence of important industries and the rising need for sustainable, lightweight, and long-lasting products.

Segmentation

Based on, raw material type, product type, and application, the global carbon fiber market is segmented accordingly. By raw material, the market is further segmented into polyacrylonitrile (PAN)-based, pitch-based, and rayon-based. Due to its high tensile strength and extensive use in the automotive and aerospace industries, polyacrylonitrile-based carbon fiber leads the market by raw material type. Teijin Limited and Toray Industries are the market leaders in this segment. Pitch-based carbon fiber, which Mitsubishi Chemical Holdings excels at, is utilized in specialized applications such as aerospace constructions due to its high modulus and thermal conductivity. Although it is a less common market, rayon-based carbon fiber has specific uses in the industrial and defense industries.

Based on product type, the market is segmented into short carbon fiber, long carbon fiber, and continuous carbon fiber. Hexcel Corporation and Cytec Solvay Group are major players in the continuous carbon fiber market, which is segmented by product type and mostly utilized in aerospace and automotive structural applications. Firms such as SGL Carbon and Zoltek (a Toray company) lead the market for short carbon fiber, which is frequently used in injection molding and 3D printing. Long carbon fiber, on the other hand, serves applications requiring intermediate strength, such as sporting goods and vehicle parts.

By application, the market is further bifurcated into aerospace & defense, automotive, wind turbine, construction, sports goods, pressure vessels, molding & compound, and others. With Boeing, Airbus, and Toray Industries in the forefront, the aerospace and defense industry is the largest segment in terms of application, driven by the requirement for lightweight, high-strength materials. The desire for lightweight and fuel-efficient vehicles is driving the automotive industry's rapid growth, and businesses like BMW Group (in partnership with SGL Carbon) and Hexcel Corporation are leading the way. Carbon fiber, which is essential for strong and effective turbine blades in the wind energy industry, is dominated by LM Wind Power and Mitsubishi Chemical Holdings. Additionally, carbon fiber is used in the infrastructure and construction industry for seismic retrofitting and structural strengthening, with Teijin Limited and Sika AG leading the way. Carbon fiber is used in sporting items as well, such as bicycles and tennis rackets, owing to its durability and lightweight. Zoltek and Toray Industries are at the forefront of this market.

Regional Analysis

The strong aerospace and defense sector in the U.S. is the major factor due to which North America dominates the global carbon fiber market. Moreover, high-performance automobile manufacturing, wind energy initiatives, and the widespread use of innovative materials in aviation have surged the market of carbon fiber in the region. Prominent businesses that serve important customers such as Boeing and General Motors, Toray Industries, Hexcel Corporation, and SGL Carbon, are well-represented here. The need for lightweight and energy-efficient materials is further fueled by government incentives and sustainability objectives in industries like electric vehicles and renewable energy.

The car industry's transition to lightweight materials and renewable energy projects has made Europe the second-largest market for carbon fibers. The use of carbon fiber in wind energy, electric vehicles, and aerospace applications is leading the way in nations such as the UK, France, and Germany. Teijin Limited and Mitsubishi Chemical Holdings are two businesses that have had a significant impact in the region by supplying well-known automakers i.e. BMW and Airbus. The use of carbon fiber in energy-efficient solutions and infrastructure projects is also encouraged by stringent environmental rules and sustainability standards.

The carbon fiber market is expanding at the quickest rate in Asia Pacific due to the region's fast industrialization, expanding infrastructure, and rising use in the automotive and renewable energy industries. Owing to the large expenditures on electric vehicles, wind energy, and building projects, China currently controls the majority of the region. With developments in carbon fiber production technology and applications in aerospace and defense, South Korea and Japan also make significant contributions. To fulfill the increasing demand, major companies including Toray Industries, Zoltek, and Hyosung Advanced Materials are growing their operations in the region.

Emerging markets with increasing potential are those in Latin America, and the Middle East & Africa. Brazil has made heavy investments in wind energy and the automobile industry and is the market leader in Latin America. Similarly, carbon fiber is gradually being used in energy and building projects throughout the Middle East and Africa region, especially in nations like South Africa and the United Arab Emirates. The growing knowledge of the advantages of lightweight materials and the arrival of international players looking for new opportunities are advantageous to both regions.

Overall, the market is dominated by North America and Europe due to their highly developed infrastructure and widespread use of technology, while Asia-Pacific propels growth through innovation and industrial expansion. Market participants have fresh opportunities in developing regions including Latin America and the Middle East & Africa, which guarantees a dynamic and changing environment.

Competitive Analysis

The key players in the global carbon fiber market are A&P Technology Inc., DowAksa USA LLC, Formosa Plastics Corporation, Anshan Sinocarb Carbon Fiber Co. Ltd, Hexcel Corporation, Jiangsu Hengshen Co. Ltd, SGL Carbon, Toray Industries Inc., Solvay, Mitsubishi Chemical Corporation, Holding company composite, Hyosung Advanced Materials, Nippon Graphite Fiber Co. Ltd, Teijin Limited, and Zhongfu Shenying Carbon Fiber Co. Ltd, among others.

Solvay and Trillium teamed together in December 2022 to produce bio-based acrylonitrile, so as to create carbon fiber for use in the consumer products, automotive, aerospace, and energy industries. In the same year, the next-generation epoxy prepreg carbon fiber tooling material, LTM 350, was introduced by Solvay. It offers substantial time and cost reductions for a variety of industries, including the race car, automotive, aerospace, and industrial sectors.

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The global carbon fiber market is segmented as follows:

By Raw Material (Revenue: USD Billion, 2019 – 2031)
●    Polyacrylonitrile (PAN)-Based
●    Pitch-Based
●    Rayon-Based

By Product Type (Revenue: USD Billion, 2019 – 2031)
●    Short Carbon Fiber
●    Long Carbon Fiber
●    Continuous Carbon Fiber

By Application (Revenue: USD Billion, 2019 – 2031)
●    Aerospace & Defense
●    Automotive
●    Wind Turbine
●    Construction
●    Sports Goods
●    Pressure Vessels
●    Molding & Compound
●    Others

By Region (Revenue: USD Billion, 2019 – 2031)

● North America
o U.S.
o Canada
o Mexico

● Europe
o U.K.
o France
o Germany
o Italy
o Spain
o Rest of Europe

● Asia Pacific
o China
o Japan
o India
o South Korea
o South East Asia
o Rest of Asia Pacific

● Latin America
o Brazil
o Argentina
o Rest of Latin America

● Middle East & Africa
o GCC Countries
o South Africa
o Rest of Middle East & Africa