Carbon Fiber Market Size to Reach $14.19 billion by 2035 | From $5.23 billion in 2025

Market Outlook and Forecast

The carbon fiber market is experiencing robust demand across a variety of sectors. For context, the market size is estimated at US $5.23 billion in 2025, with a projected rise to US $14.19 billion by 2035, driven by a compound annual growth rate of around 10.5% between 2026 and 2035.

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Regional Performance Highlights

• North America: The region continues to benefit from strong aerospace, automotive (especially electric vehicles) and wind-energy targets, which fuel demand for lightweight composites.

• Europe: By 2035, Europe is expected to command approximately a 32.9% share of the global carbon fiber market. The region's push for decarbonisation, circular economy regulation and large wind-turbine blade programmes support this outlook.

• Asia Pacific: Rapid industrialisation, expanding infrastructure, growth in EV manufacturing and increasing use of composites in consumer electronics provide Asia Pacific with significant upside potential.

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Segment Demand & Use-Case Analysis

• Material type - Polyacrylonitrile (PAN): By 2035, PAN-based carbon fiber is projected to hold roughly 48% share of the market. The dominance of PAN stems from its superior strength-to-weight ratio and broad applicability across aerospace, automotive, sports and industrial segments.

• Recycled fiber: From 2026 to 2035, recycled carbon fiber is expected to capture around 35% share of the market segments influenced by circular economy demands. Recycled fiber is increasingly used in automotive, wind-energy, electronics and industrial applications where cost, sustainability and performance meet.

• End-use dynamics: Aerospace remains a core driver given the imperative to lighten aircraft, reduce fuel burn and support newer platforms (eVTOL, UAM). Automotive demand is accelerating, especially among EV makers seeking high-performance composites. Renewable energy - especially large-scale wind turbine blades - also drives demand for high-modulus and lightweight carbon fiber solutions.

Taken together, the carbon fiber market outlook suggests a strong growth path, driven by cross-sector application expansion, increased sustainability pressures and global regional diversification of supply and demand.

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Top Market Trends

The carbon fiber market is being transformed by a set of major developments. Here are four of the most significant trends.
Innovation in High-Performance Carbon Fibers

Material science continues to push boundaries in terms of modulus, strength and processing ease. For example, Toray Industries, Inc. announced the development of its "TORAYCATM T1200" ultra-high strength carbon fiber, opening new performance frontiers for strength-driven applications. Similarly, the company's "M46X" fiber achieves improved compressive strength while maintaining high modulus - enabling design engineers to reduce part weight and expand use cases.These innovations support growth of carbon fiber in critical applications such as defence, aerospace and next-gen mobility platforms.

Sustainability & Circular Economy Pressure

Sustainability is no longer a side topic but embedded in material strategy. The push for recycled carbon fiber, bio-based resin systems and supply-chain transparency is reshaping the market. According to recent reports, recycled carbon fiber is increasingly used in automotive, sports equipment and wind-energy segments. Companies are establishing recovery plants and recycling partnerships to reduce embodied carbon in composites. This shift creates opportunities for suppliers of recycled feedstock while challenging traditional virgin carbon-fiber makers to adapt.

Digitalisation and Automation in Composite Manufacturing

The composite manufacturing value-chain is being transformed by digitalisation: automated fibre placement (AFP), out-of-autoclave processes, in-line quality monitoring and advanced simulation. For instance, Hexcel Corporation announced a collaboration with HyPerComp to unveil a Type IV carbon-overwrapped pressure vessel at CAMX 2025 using its high-performance carbon fiber. At the same time, Hexcel is showcasing innovations for automotive and aerospace at JEC World 2025, with materials suitable for automated production of structural carbon-fiber parts. These advancements help reduce cost, improve throughput and enable wider adoption of carbon fiber beyond niche segments.

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Recent Company Developments

Below is a curated selection of major and emerging players driving the carbon fiber market, along with key developments over the past 12-24 months.

1. Toray Industries, Inc. - Developed the TORAYCA T1200 ultra-high strength carbon fiber, enabling new performance segments. Also, at the 2025 Paris Air Show the company reaffirmed its commitment to aerospace/defence composites.

2. Hexcel Corporation - Unveiled a Type IV composite pressure vessel in collaboration with HyPerComp at CAMX 2025, leveraging its high-performance carbon fiber. Additionally, Hexcel showcased its sustainable composite innovations at Paris Air Show and JEC World 2025.

3. Mitsubishi Chemical Group Corporation - Developed a carbon fiber-based ceramic-matrix composite capable of 1,500 °C heat resistance for space applications.Also acquired full ownership of CPC SRL, an Italian CFRP automotive-parts manufacturer, signalling deeper vertical integration.

4. SGL Carbon SE - While specific recent headlines were less numerous, SGL remains a leading European manufacturer of carbon fibers and composites with global sites.

5. Teijin Limited - Recognised as a top carbon fiber player globally, with operations in high-performance fibers and composites across automotive and aerospace.

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These examples illustrate key activity across innovation, sustainability, consolidation and supply-chain extension - all converging to reshape the carbon fiber market dynamics.

These corporate moves reflect several broader themes: hardware innovation, IP-system upgrades, cloud service evolution, regulatory and geopolitical pressures, and cross-sector convergence. For market intelligence practitioners, tracking these company developments is essential to anticipate how product road-maps, go-to-market strategies and competitive positioning will evolve across the global video surveillance market.

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This release was published on openPR.