Carbon Fiber Market size is poised to cross USD 6.8 Billion by the end of 2035, growing at a CAGR of 8.5% during the forecast period, i.e., 2023-2035. In the year 2022, industry size of carbon fiber was over USD 2.3 Billion. The forthcoming advancements in the vehicle, aviation and defense, and wind energy sectors would boost market development. The entire market is expected to be driven by rising automobile demand and an increased desire for compact automobiles. The demand for fuel-efficient vehicles, as well as stringent government laws governing carbon emissions, are boosting the market landscape. As of 2020, the wind energy industry accounted for around 23% of global carbon fiber consumption, making it the largest carbon fiber-using industry. The aircraft sector was the second-largest carbon fiber consumer, accounting for 20% of world consumption. As of 2020, the wind energy industry accounted for around 23% of global carbon fiber usage, making it the largest carbon fiber-using industry. The aircraft sector was the second-largest carbon fiber consumer, accounting for 20% of world consumption.
The market growth is also attributed to the growing need for commercial aviation as a consequence of increased financial resources and globalization has fueled expansion in the aerospace industry over the past decade. This tendency is expected to endure during the predicted period. The growth in demand for recreational and sports applications, particularly in Asia Pacific, is also expected to broaden the product reach.
Growth Drivers
Challenges
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Base Year |
2022 |
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Forecast Year |
2023-2035 |
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CAGR |
~8.5% |
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Base Year Market Size (2022) |
~ USD 2.3 Billion |
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Forecast Year Market Size (2035) |
~ USD 6.8 Billion |
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Regional Scope |
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The global carbon fiber market is segmented and analyzed for demand and supply by source into Polyacrylonitrile, Petroleum Pitch, and Rayon. Out of these, the polyacrylonitrile segment is estimated to gain the largest market share of about ~48% in the year 2035. The major basic material used in the manufacturing of carbon fiber is polyacrylonitrile. Because of its superior properties, polyacrylonitrile is expected to be more extensively accepted in a wide range of applications. Owing to its better material properties, polyacrylonitrile precursor is commonly utilized to meet the expanding demand for carbon fiber market with a greater strength-to-weight ratio. The reduced cost of polyacrylonitrile in comparison with pitch-based carbon fiber is also expected to assist segment expansion. Carbon fibers constructed from polyacrylonitrile are widely used in the production of aircraft parts, as well as missile and space-related uses. Commercial airlines are increasingly using carbon fiber composites to manufacture aircraft structures. For instance, the Boeing 787 Dreamliner and the Airbus A350 XWB resulted in this regard.
The global carbon fiber market is also segmented and analyzed for demand and supply by application into Virgin, and Recycled Fiber. Amongst these segments, the recycled fiber segment is expected to garner a significant share of around ~35% in the year 2035. Recycled carbon fiber has qualities identical to new carbon fiber, which is used to make materials used in the aerospace and defense industries. These carbon fibers provide special benefits to aerospace and defense components, such as durability in extreme environments and at extreme temperatures, resilience to abrasion, and resisting corrosion. Therefore the recycled fiber segment is expected to major growth over the upcoming decades. To enhance fuel economy, carbon fiber has substituted aluminum in aircraft. With regards to compact materials and frameworks, military aircraft can carry greater quantities of fuel and payload than commercial aircraft. Furthermore, the aerospace sector is increasingly preferring carbon fiber to address the huge problem of aviation trash. As a result, the recycled fiber category is expected to increase rapidly over the projection period.
Our in-depth analysis of the global market includes the following segments:
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By Type |
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By Raw Material |
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By End User |
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Europe Market Forecast
The market in Europe is estimated to occupy the largest share over the forecast period on the back of the growing demand for fuel-efficient and lightweight vehicles, and the large base of electric car manufacturers in the region. For instance, more than 22 million units of lightweight vehicles were produced in Europe in 2019, which is calculated to increase to 24 million by the end of the year 2024. Apart from these, increasing investments of automotive manufacturers to develop cost-effective carbon composite materials and rising usage of carbon fibers in the region's aviation industry is also expected to boost the market growth in the coming years.
APAC Market Statistics
Additionally, the carbon fiber market in Asia Pacific is evaluated to witness the highest CAGR during the forecast period owing to the rapidly growing urbanization, escalating government spending on infrastructure projects in India and China, and the presence of key market players in the region. Increased potential in the wind energy industry and renewable energy sector growing acceptance of carbon fiber, and emphasizing the use of carbon fiber as a raw substance for carbon fiber are all likely to present opportunities in the future. China held the greatest market share and is likely to maintain dominance during the projection period.
North American Market Forecast
Carbon fiber market is likely to be dominated by the North American area. Regarding GDP, the United States is the region's biggest economy. The United States and Canada are among the globe's fastest-growing economies. The rapidly expanding aerospace and automobile sectors are propelling the expansion of the North American market under consideration. Strategic advancements, the existence of established vehicle manufacturers, prominent carbon fiber producers, and breakthroughs in technology in carbon fiber products all lead to the region's market growth. The United States leads the region in carbon fiber usage, which is employed by major companies. In response to the increasing requirement for lightweight substances that decrease vehicle weight, the region's deployment of carbon fiber in the automotive and aerospace end-use sectors has expanded.
Author Credits: Smruti Ranjan, Rajrani Baghel
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