Global Recycled Carbon Market Trends, Forecast Report 2025-2037
Recycled Carbon Market size is projected to increase from USD 186.37 million to USD 674.49 million, demonstrating a CAGR of over 10.4% during the forecast period, from 2025 to 2037. In the year 2025, the industry size of recycled carbon is assessed at USD 201.88 million.
The growing government policies and regulations to encourage the use of carbon-recycled materials will impel the market growth. The Ministry of Mines and the Ministry of Steel have released recycling frameworks as part of the Sustainable Development Goals (SDG) 2030 program, which aims to grow the recycling sector using cutting-edge technologies to achieve resource efficiency and carbon neutrality.
In addition, the market growth can be further accredited to the expansion of the automotive sector. For instance, around 68.21% of all motor vehicle sales worldwide were passenger automobiles, accounting for the greatest sales percentage. In 2021, the largest markets for this sector were China and the United States.
Recycled Carbon Market: Growth Drivers and Challenges
Growth Drivers
- Increasing Demand for Sustainable Products - Customers are actively looking for sustainable products as they become more conscious of their carbon footprints. Additionally, as carbon recycling enables companies to make sustainable goods and lower their carbon emissions, there is a growing demand for carbon-recovery materials. As per a report, in the past five years, there have been more than 70% more global online searches for sustainable products.
- Growing Demand for Electronic Devices –The demand for recycled carbon is increasing due to the increased need for electronic equipment. Additionally, using recycled carbon in electricity has the potential to reduce the carbon footprint of the sector, which is anticipated to fuel recycled carbon market expansion.
- Increasing Use in Aerospace Sector – Since carbon fibers are widely utilized in high-performance applications, such as the aerospace industry, the market is likely to expand at a rapid rate. In terms of sales value, the U.S. market contributed over 89 billion dollars to aerospace exports in 2021, making it the largest exporter. Additionally, the nation is home to some of the top aircraft producers in the world, including Boeing and Raytheon.
Challenges
- Usage of Virgin Carbon Fibers – One of the key elements projected to hinder market growth is the rising desire for virgin carbon fibers. For instance, because recycled carbon fibers are weaker than virgin carbon fiber in the automotive and aerospace industries, manufacturers prefer to use virgin carbon fiber.
- Scarcity of Qualified Professionals to Recycle Carbon
- High-Cost Associated with the Product
Recycled Carbon Market: Key Insights
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Base Year |
2024 |
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Forecast Year |
2025-2037 |
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CAGR |
10.4% |
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Base Year Market Size (2024) |
USD 186.37 million |
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Forecast Year Market Size (2037) |
USD 674.49 million |
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Regional Scope |
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Recycled Carbon Segmentation
Type (Milled, Chopped)
The chopped segment is predicted to hold largest recycled carbon market share of 53% during the forecast period. The rise in automotive manufacturing is expanding the market. Numerous potential uses for chopped recycled carbon exist in the automotive industry. For instance, by mixing chopped recycled carbon fiber with polymer matrices, the mechanical properties of composite materials, such as strength, stiffness, and fatigue resistance, can be improved; these composites are utilized in automotive parts. According to a report, over 80 million cars were produced worldwide in 2021, an increase of 3% from the previous year.
End-User (Automotive & Transportation, Consumer Goods, Sporting Goods, Industrial, Marine, Aerospace & Defence)
The automotive & transportation segment is set to account for 36% share of the global recycled carbon market by 2037. The market is growing as a result of the automobile industry's increasing usage of lightweight materials. Since it can reduce the amount of fresh carbon fiber required to create vehicle parts, recycled carbon is utilized in automotive sector. For instance, in India supplies from domestic original equipment manufacturers made up around 56% of the market. About 25% of the industry turnover was provided by exports, and 20% came from the domestic aftermarket.
Our in-depth analysis of the global recycled carbon market includes the following segments:
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Type |
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End-User |
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Customize this ReportGlobal Recycled Carbon Market Regional Synopsis
APAC Market Forecast
The recycled carbon market in Asia Pacific is expected to dominate largest share of 38% during the forecast period. The region's growing aerospace industry might be linked with the market expansion. For instance, recycled carbon fiber can generate opportunities for the development of new products and technology in the aerospace industry since it can be used to make lightweight spacecraft and aircraft components.
North American Market Statistics
The recycled carbon market in North America is expected to hold a share of 32% by 2037. The market growth can be attributed to the increasing need for recycled carbon in the automotive sector. Recycled carbon is more in demand in the automotive industry as a result of the region's demand for lightweight automotive materials. According to a report, 75% of Americans had access to a personal vehicle as of March 2023, and another 20% had a work or family vehicle.
Companies Dominating the Recycled Carbon Market
- Vartega Inc
- Company Overview
- Business Strategy
- Key Product Offerings
- Financial Performance
- Key Performance Indicators
- Risk Analysis
- Recent Development
- Regional Presence
- SWOT Analysis
- Gen 2 Carbon Limited
- Unilever plc
- Novelis Inc
- Carbon Conversions Inc.
In the News
- August 2022 - Vartega Inc introduced a new facility for recycling composites, which is expected to allow for 10 times as much processing and recycling of composite materials.
- September 2022 - Unilever, a major producer of cleaning and laundry goods, said that it will replace all of the carbon produced from fossil fuels in the formulations of its cleaning and laundry products with carbon that is renewable or recycled.
Author Credits: Rajrani Baghel
- Report ID: 3443
- Published Date: Jan 28, 2025
- Report Format: PDF, PPT
