Carbon Fiber Market Analysis

Raw Material Segment Analysis

The PAN-based segment in the raw material category is anticipated to hold the largest share of 95.2% in the carbon fiber market by the end of 2035. The segment’s upliftment is highly propelled by its capability to deliver superior tensile strength, stiffness, and thermal stability compared to alternatives such as pitch or rayon. The production process involves stabilization, carbonization, and surface treatment, which yield fibers with exceptional mechanical properties suitable for aerospace, automotive, and wind energy applications. PAN-based fibers are the backbone of high-performance composites used in aircraft fuselages, EV chassis, and turbine blades. The reliance on PAN, however, creates cost challenges, as acrylonitrile—the precursor—is derived from petrochemicals and subject to price volatility.

Fiber Type Segment Analysis

Based on the fiber type, the virgin carbon fiber segment is expected to garner the second-largest share in the carbon fiber market during the forecast period. The segment’s growth is highly driven by the aspect of its importance in high-performance applications, such as medical, F1, and aerospace. This is essential because it provides unmatched strength, lightness, and stiffness for enabling fuel-efficient and lighter vehicles, along with advanced sports gear and faster aircraft. According to an article published by the Composites Part B: Engineering in February 2023, there has been a 37% decline in carbon fiber consumption in the aerospace field, yet the international demand for carbon fiber and carbon fiber reinforced polymer matrix composites (CFRPs) has been nearly 181 kt, which is more than double that of 2024, thereby proliferating the segment’s exposure.

Form Segment Analysis

By the end of the stipulated timeline, the continuous fiber sub-segment in the form segment is projected to cater to the third-largest share in the carbon fiber market. The sub-segment’s development is highly driven by the capability to produce long strands, offering superior load-bearing capacity and structural integrity compared to chopped or short fibers. This makes them indispensable in aerospace, automotive, and wind energy applications where high-performance composites are required. Continuous fibers are typically woven into fabrics, prepregs, or used in filament winding processes to create large structural components such as aircraft wings, EV chassis, and turbine blades. Their ability to deliver consistent mechanical properties across large-scale structures ensures reliability and safety, which is critical in regulated industries such as aerospace and defense.

Our in-depth analysis of the carbon fiber market includes the following segments: