Carbon Fiber Composites Market to Reach USD 35.3 Billion by 2035, Expanding at 7.1% CAGR

According to the MarketGenics report, the carbon fiber composites market is anticipated to grow from USD 17.8 Billion in 2025 to USD 35.3 Billion in 2035 at a CAGR of 7.1% during the forecast period. The carbon fiber composites market is coming around with a surge of other sectors just waiting to switch to materials that are lightweight, strong, and durable. Carbon fiber composites are made by combining carbon fibers with polymer resin to create material that is five times stronger than steel and considerably lighter than steel. This is why many industries such as aerospace, automotive, wind energy manufacturing, and sports equipment selected carbon fiber composite as their preferred material.

Electric vehicles (EV) manufacturers in the U.S. and other parts of Europe introduced carbon fiber components in 2024 as an effort to increase fuel economy, structural integrity, and/or battery range. The aerospace sector also introduced lightweight carbon fiber composites in aircraft fuselages and interiors to reduce or eliminate aircraft emissions. New production methods have resulted into ultimately a cheaper and more recycled carbon fiber composite which increases the scope for consumer items and infrastructure uses.

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Regional Analysis of Carbon Fiber Composites Market

The demand of carbon fiber composites in Asia-Pacific region is higher than that in other markets across the world. The carbon fiber composites market in the region are driving growth due to rapid industrialization, the growing automotive and aerospace industry, and new wind energy developments with China, Japan, South Korea and India. China has grown to become the biggest carbon fiber composite producer in the planet; the nation has made unprecedented investments in electric vehicle (EV) production, which is enabled by federal programs that promote the use of light-weight materials that will achieve higher fuel efficiency and reduced pollution. Companies (e.g. Toray Industries and Hyosung) have been supported in investing in R&D and next-generation developments in the field of composite technology by Japan and South Korea as well.

However, for the rest of the world appears to be driving demand mainly around aerospace, sports, and high-end automotive, it still lags behind North America and Europe; however, it is important to realize that the high production costs associated with establishing production capabilities in trade-regulated markets is leading many companies to build or expand activity into the APAC region. This does create opportunities for establishing the production capabilities in APAC, though in totality this creates an environment that supports innovation in the region for carbon fiber composites.

Key players operating in the carbon fiber composites market include BASF SE, Carbon Composites GmbH, Cytec Solvay Group, DowAksa, Far Eastern New Century Corporation, Formosa Plastics Corporation, Gurit Holding AG, Hexcel Corporation, Hexion Inc., Huntsman Corporation, Mitsubishi Chemical Holdings Corporation, National Composites, Owens Corning, PPG Industries, RTP Company, SGL Carbon SE, Solvay S.A., Teijin Limited, Toray Industries, Inc. Zhongtai International Holdings Ltd., and Other key Players.

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The Implications of Worldwide Tariff Regulations on the Carbon Fiber Composites Market Industry Growth and Techniques

Tariff schemes are having an even sharper impact on carbon fiber economics. From March 2025 the US increased duties on raw carbon fiber tow to 25% and on prepreg to 17.5%, and the introduction of tariff rates has led to unprecedented inventory front loading and cost pass-through in aerospace, automotive and wind blade programs. Simultaneously, the EU's upcoming Carbon Border Adjustment Mechanism (CBAM) 2026 roll-out will charge importers for embedded CO2 and will hike (by 8-12%) the price of fibers produced from coal-dominated regions.

In context, OEMs are increasingly turning to locally sourced carbon fiber lines, more recovered and lignin precursors, and less autoclave curing or employing 3-D methods that diminish both embodied carbon and duty risks. While tariffs elevate costs in the short run, they have facilitated regional capacity expansion and greener process innovations that support long-run demand growth of lightweight composites across mobility, energy, and infrastructure.

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Recent Development and Strategic Overview:

In June 2025, SGL Carbon SE unveiled its new SigraLite XT-Series, a next-generation carbon fiber composite solution for electric mobility and urban air mobility (UAM) platforms. The XT-Series offers ultra-lightweight and high-strength properties with a newly developed thermal management layer perfect for battery enclosures, drone frames, and lightweight aircraft components. The composites use SGL's smart resin system that has embedded sensors to allow live monitoring of structural health.

In March 2025, Teijin Limited. has launched its Tenax Next series which is their second big step in carbon fiber composites. These new fibers are also based on circular feedstock, so that the CO2 emissions are reduced by some 35 percent, yet they are still highly strong. These sustainable composites comprise high-performance and reduced carbon footprint aimed at aerospace structures, pressure vessels and high-performance transport.

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Key Trend: Increasing Demand for Lightweight, Durable Components Driving Expansion across Transport and Construction Sectors

The carbon fiber composites market is steadily increasing as many sectors want lightweight, strong materials that can enhance function and performance. Carbon fiber composites are now being used in electric vehicles, airplanes, athletic goods, wind turbines, and even buildings because they are substantially lighter weight than metals with the same strength.

One major trend is their increasing use in electric and hybrid vehicles as a weight reduction, which also has a positive impact on battery life and driving range of the vehicles. In aeronautics, carbon composites are replacing metal parts for the reduction of fuel consumption and emissions. In construction, carbon composites are being used to reinforce bridge and building structures, particularly in seismic/earthquake prone areas and corrosion zones.

Therefore, with increasing fabrication/production technologies there is rise in effectiveness, applications and processes that use high-performance materials are becoming less expensive and easier. There is increasing interest in recycling waste from carbon fiber production, and creating more sustainable composites as well. As industries gravitate more toward sustainable practices and seek performance, carbon fiber composites are becoming a solutions-centric material in addressing modern designs and engineering challenges.

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