Global Carbon Fiber Market Size, Forecast, and Trend Highlights Over 2025-2037
Carbon Fiber Market size is poised to expand from USD 6.4 billion to USD 24.56 billion, exhibiting a CAGR of more than 10.9% throughout the forecast period, from 2025 to 2037. In the year 2025, the industry size of carbon fiber is estimated at USD 6.96 billion.
The demand for fuel-efficient vehicles and stringent government laws governing carbon emissions are expected to boost global market growth during the forecast period. According to the European Automobile Manufacturer’s Association in March 2023, global car manufacturing reached nearly 76 million units. Carbon fiber is extensively used in making vehicles as it enhances the performance of vehicles, safety, and fuel efficiency.
Additionally, carbon fibers are used in making aircraft because of their high strength and heat resistance. Carbon fiber in aircraft significantly reduces fuel usage and maintenance costs. It has been estimated that the number of passenger planes will reach 40,000 by 2030. Market players are opting for carbon fiber to withstand harsh conditions and give longevity to the structure. Aerospace-grade carbon fiber is particularly designed to meet the strict standards to ensure impeccable performance.
Carbon Fiber Sector: Growth Drivers and Challenges
Growth Drivers
- Rising usage of carbon fiber in 3-D printing: 3D printed parts made up of carbon fiber are ideal for making complex geometries such as fixtures and jigs. In 2021, Solid Print published data stating there were 871,000 3D printing devices in use globally. Some of the use cases for carbon fiber 3D printing in manufacturing are tool optimization, functional prototyping, and making end-use parts. Continuous carbon fibers are more resilient as well as more durable than other metallic components. Carbon fiber 3D printing allows for the precise fabrication of raw materials for a wide range of applications, including aerospace, automobiles, and dental.
- Rising product demand in the defense industry: The utilization of carbon fiber in military applications renders numerous advantages such as a high strength-to-weight ratio, lightweight, corrosion resistance, stiffness, and design flexibility. Carbon fiber components are deployed in the manufacturing of weapon systems such as gun barrels, launch tubes, and missile bodies. According to the Stockholm International Peace Research Institute the global military expenditure reached USD 2443 billion in 2023.
Challenges
- High cost of the product to restrain the market growth: The manufacturing process of carbon fiber is exorbitant, leading to increased overall price of the product. Also, the manufacturing process of carbon fiber is complex and includes numerous intricate procedures. The supply chain security for recycled carbon fiber can act as a barrier to the growth of the market.
- Environmental concerns: The production process of carbon fiber is energy-intensive. The humongous energy intensiveness has led to vast emissions of greenhouse gases. Also, carbon fiber is difficult to recycle and non-biodegradable, posing serious environmental concerns.
Carbon Fiber Market: Key Insights
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Base Year |
2024 |
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Forecast Year |
2025-2037 |
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CAGR |
10.9% |
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Base Year Market Size (2024) |
USD 6.4 billion |
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Forecast Year Market Size (2037) |
USD 24.56 billion |
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Regional Scope |
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Carbon Fiber Segmentation
Raw Material (Polyacrylonitrile, Petroleum Pitch, Rayon)
The polyacrylonitrile segment is estimated to gain the largest carbon fiber market share of about 48% by 2037. The major basic material used in the manufacturing of carbon fiber is polyacrylonitrile. Due to superior properties, polyacrylonitrile is expected to be more extensively accepted in a wide range of applications. Polyacrylonitrile precursor is commonly utilized to meet the expanding demand for carbon fiber with a greater strength-to-weight ratio due to its better material properties. The lesser cost of polyacrylonitrile in comparison with pitch-based carbon fiber is also projected to fuel segment expansion.
Type (Virgin, Recycled Fiber)
The recycled fiber segment is expected to garner a significant share of around 35% between 2025 and 2037. Recycled carbon fiber has qualities identical to new carbon fiber which is used to make materials used in the aerospace and defense industries. The recycled carbon fibers render an enhanced CO2 footprint compared to the generation of virgin fibers. The aerospace sector prefers carbon fiber to address the huge problem of aviation trash.
Our in-depth analysis of the global carbon fiber market includes the following segments:
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Type |
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Raw Material |
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End user |
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Customize this ReportCarbon Fiber Industry - Regional Synopsis
Europe Market Forecast
The carbon fiber market in Europe is estimated to occupy the largest share during the assessed time. The growth can be ascribed to the growing demand for fuel-efficient and lightweight vehicles and the large base of electric car manufacturers in the region. According to the European Environment Agency in 2023, 2.4 million new electric cars were registered 2023 across Europe. Apart from these, increasing investments by automotive manufacturers to develop cost-effective carbon composite materials propelling market growth in the region. The rising popularity of recycled carbon fiber and its emphasis on using lignin as a raw material in the wind energy sector are acting as lucrative opportunities for the market.
Asia Pacific Market Forecast
The market in Asia Pacific is evaluated to witness a remarkable CAGR due to escalating government spending on infrastructure projects in India and China, and the presence of key market players in the region. Also, the accelerating usage of carbon fiber in the defense and aerospace sectors is propelling market growth. Aerospace companies opt for carbon fibers as they provide endurance, strength, and stability as required.
In India, the expanding automotive sector, rising renewable energy initiatives, and rising adoption of carbon fibers across several sectors are expected to drive the market in the country. Moreover, advancements in domestic production and rising investments in innovating products are predict market growth going ahead.
Companies Dominating the Global Carbon Fiber Landscape
- Toray Industries Inc.
- Company Overview
- Business Strategy
- Key Product Offerings
- Financial Performance
- Key Performance Indicators
- Risk Analysis
- Recent Development
- Regional Presence
- SWOT Analysis
- Hexcel Corporation
- Mitsubishi Chemical Corporation
- TEIJIN LIMITED
- SGL Carbon
- Solvay SA
- Formosa M Co., Ltd.
- ZOLTEK Corporation
- Advanced Composites, Inc.
- HYOSUNG ADVANCED MATERIALS
The competitive landscape of the market is rapidly evolving as established key players, automotive giants, and new entrants are investing in novel technologies. Key players in the market are focused on developing new technologies and products catering to the stringent regulatory norms and consumer demand. These key players are adopting several strategies such as mergers and acquisitions, joint ventures, partnerships, and novel product launches to enhance their product base and strengthen their market position. Here are some key players operating in the global market:
In the News
- In February 2024, the National Energy Laboratory developed recyclable carbon fiber composites. These recycling advancements reduced the costs and greenhouse gas emissions of material’s second life by 90% to 95%.
- In June 2023, Solvay and Spirit declared a strategic collaboration to accelerate the adoption of composites on future aircraft. Both companies are willing to further engage in composite development opportunities to meet the cost and performance requirements.
Author Credits: Rajrani Baghel
- Report ID: 3429
- Published Date: Feb 21, 2025
- Report Format: PDF, PPT
