Carbon Fiber Market to Reach USD 4.5 Billion by 2031, Growing at a 6.8% CAGR | TMR

The global carbon fiber market was valued at USD 2.5 billion in 2021 and is projected to grow at a compound annual growth rate (CAGR) of 6.8% from 2022 to 2031. This steady growth is expected to drive the market to a value of approximately USD 4.5 billion by the end of 2031, fueled by increasing demand across industries such as aerospace, automotive, and construction due to carbon fiber's lightweight and high-strength properties.

Carbon fiber is an extremely versatile material. This sleek composite is used in diverse high-performance applications, and recognized for its excellent strength and stiffness as compared to its weight. Carbon fiber is preferred everywhere, from high-end automobiles and sporting goods such as snow boards to aerospace and medical solutions. Aerospace engineers are focusing on carbon fiber material to build aircraft bodies, owing to its unique properties such as lightweight, high stiffness, high temperature tolerance, high chemical resistance, etc.

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The automotive industry has been constantly pushing toward enhancement of automobile features in order to cater to increasing mileage and emission requirements. Advanced carbon fiber materials are essential to boost the fuel economy of modern automobiles, while maintaining safety and performance. Replacing cast iron and traditional steel components with lightweight carbon fiber materials can directly reduce the weight of a vehicle's body and chassis by up to 50% and consequently, reduce a vehicle's fuel consumption.

Market Segmentation

Product
PAN-based
Pitch-based
Others
Technology

Prepreg Layup
Pultrusion
Winding
Press & Injection Molding
Others

Application

Automotive & Transportation
Interior
Exterior
Others
Construction
Aerospace & Defense
Sports & Leisure
Marine and Oil & Gas
Wind Energy
Others

By Region: The global carbon fiber market shows regional variations in demand and growth:

Asia Pacific: Dominated the market in 2021 with a 33.1% share and is expected to grow at a CAGR of 7.5% during the forecast period. This growth is driven by high demand from the automotive and wind energy sectors, particularly in China, Japan, and South Korea.

North America: Held a 32.04% market share in 2021, with a projected marginal increase to 33.03% by 2031. The aerospace industry is a major driver in this region. The North American recycled carbon fiber market is also significant, expected to grow at a CAGR of 12.1%.

Europe: A significant consumer of carbon fiber, particularly in the automotive and aerospace industries.

Latin America and Middle East & Africa: Their combined market share is expected to see a slight decline during the forecast period.

Regional Analysis

Asia Pacific is anticipated to register the highest growth rate during the forecast period, fueled by rapid industrialization and increasing disposable income driving vehicle sales. North America's growth is primarily attributed to the expanding aerospace and construction sectors. Europe maintains a strong position due to its advanced automotive and aerospace industries.

Market Drivers and Challenges

Market Drivers:

Rising Demand for Lightweight Materials: Industries like automotive and aerospace are increasingly adopting carbon fiber to reduce weight, leading to improved fuel efficiency and performance. The growing electric vehicle market, where weight reduction extends battery range, is a significant driver.

Increasing Demand in Wind Energy: The expansion of wind farms and the trend towards larger turbine blades necessitate lightweight and strong materials like carbon fiber.

Stringent Government Regulations: Carbon neutrality targets and the need for energy-efficient vehicles are pushing the adoption of lightweight materials.

Growing Investments in Infrastructure Projects: Especially in developing economies, the construction sector is finding new applications for carbon fiber.
Advancements in Manufacturing Processes: Innovations leading to more cost-effective production of carbon fiber are expanding its applications.

Increasing Use in Sports and Fitness Industry: The demand for high-performance sports equipment made with carbon fiber is rising.

Growing Demand in 3D Printing: Carbon fiber-based filaments are gaining traction in additive manufacturing.

Market Challenges:

High Cost: The production of virgin carbon fiber can be energy-intensive and costly, limiting its use in more price-sensitive applications. However, the development of lower-cost carbon fiber technologies is underway.

Recycling Complexity: Recycling carbon fiber composites is more challenging compared to traditional materials, requiring complex and energy-intensive processes.

Availability of Substitutes: In some applications, alternative lightweight materials might pose competition.

Market Trends

Increasing Focus on Sustainability: Growing environmental concerns are driving the development of sustainable carbon fiber production methods, including the use of bio-based precursors and improved recycling techniques.

Adoption in Electric Vehicles: Carbon fiber is playing a crucial role in the development of next-generation electric vehicles by reducing weight and enhancing performance.

Development of Large Tow Carbon Fiber: These are becoming increasingly important for industrial applications, offering a balance of cost and performance.

Advancements in Prepreg Technology: Pre-impregnated carbon fibers (prepregs) are gaining popularity due to their ease of processing and consistent quality.
Growing Use in Pressure Vessels for Hydrogen Storage: The increasing focus on hydrogen as a clean energy source is driving the demand for carbon fiber in high-pressure storage tanks.

Future Outlook

The future of the carbon fiber market looks promising, with sustained growth expected across key end-use industries. Technological advancements in manufacturing and recycling, coupled with the increasing demand for lightweight and high-performance materials, will continue to drive market expansion. The automotive and aerospace sectors will remain major consumers, with the wind energy and sports equipment industries also contributing significantly to the demand. The growing focus on sustainability is expected to spur innovation in bio-based carbon fibers and efficient recycling processes.

Key Market Study Points

Analysis of market drivers, restraints, opportunities, and trends.

Detailed segmentation of the market by service type, sourcing type, application, industry vertical, and region.

Comprehensive regional analysis, including market size and growth forecasts for key regions.

Competitive landscape analysis, including market share of major players and their strategies.

Recent developments in the carbon fiber market, such as new product launches, partnerships, and expansions.

Future outlook and potential growth areas in the market.

Competitive Landscape

The global carbon fiber market is moderately consolidated, with several key players holding significant market share. Some of the prominent companies include:

Toray Industries Inc.
Hexcel Corporation
Formosa Plastics Corp
Teijin Carbon
Mitsubishi
SGL
Others
These companies are actively involved in developing new carbon fiber products, expanding their production capacities, and forming strategic partnerships to strengthen their market positions.

Recent Developments

March 2025: SGL Carbon presented advanced carbon fiber materials and forged carbon fiber composite solutions for automotive series production and industrial applications.

February 2025: Hexcel Corporation showcased its forged carbon fiber optimized for thermoplastic processing.

January 2025: TORAY INDUSTRIES, INC., announced significant investments in expanding its carbon fiber materials production capacity by 2025.

December 2022: Solvay partnered with Trillium to develop bio-based acrylonitrile for carbon fiber production.

September 2022: Solvay introduced LTM 350, an advanced epoxy prepreg carbon fiber tooling material.

2022: Hexcel secured a contract with Dassault Aviation to supply carbon fiber prepreg for the Falcon 10X program.

July 2021: Toray Industries Inc. completed the acquisition of TenCate Advanced Composites Holding BV.

February 2021: Teijin Limited launched its Tenax BM and Tenax PW series of carbon fiber intermediate materials for sports applications.

October 2022: China Petrochemical Corporation's large tow carbon fiber production line commenced operations.

February 2021: Montefibre Carbon announced an investment in its first precursor for an innovative 80K tow.

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These developments highlight the ongoing innovation and strategic initiatives within the carbon fiber market, aimed at enhancing performance, reducing costs, and promoting sustainability.

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