Carbon Fiber Thread Market Size & Share, by Product Type (Continuous, Chopped, Woven, Hybrid, Texturized); Application; End use Industry - Global Supply & Demand Analysis, Growth Forecasts, and Statistical Trends Report 2026-2035

Carbon Fiber Thread Market - Regional Analysis

North America Market Insights

The North America carbon fiber thread market is projected to grow at the highest share of 38.5% and reach USD 1.2 billion by 2035 at a CAGR of 10.5% between 2026 to 2035 due to a strong demand in its aerospace, defence, and automotive industries. Consumption in the region is rising because of the increasing use of lightweight composites in structures of electric vehicles and airplanes. For instance, the total consumption of carbon fiber thread in North America is projected to rise significantly from approximately 61.0 kilotons in 2025 to 134.1 kilotons by 2030, reflecting a robust compound annual growth rate (CAGR) of around 16.8%. Clean energy and advanced materials investments are increasing the capacities of composite manufacturing due to federal funding. The benefits experienced by the players in the industry include regulatory clarity and good supply chain integration. The environmental safety programs and the working quality have also established efficiencies in the local production. Permanent development of high-strength fibers favours a long-term increase.

The U.S. carbon fiber thread market is estimated to dominate the North American region with a compound annual growth rate of 11% from 2026 to 2035. Higher domestic production growth is being scaled up by federal programs, like the Department of Energy, Advanced Manufacturing Office. For example, the U.S. Department of Energy’s Advanced Manufacturing Office is sponsoring critical domestic scale-up of carbon fiber thread production through support of the Carbon Fiber Technology Facility (CFTF) at Oak Ridge National Laboratory. This semi-production demonstration facility enables manufacturers to validate low-cost precursor conversion and scale carbon fiber supply up to 25 tons/year, bridging lab innovation with industrial deployment. Additionally, according to the U.S. Department of Energy, the federal government awarded USD 78 million in 2023 to decarbonize chemical manufacturing and support clean composite infrastructure. Implementation of continuous PAN-based thread in fuel cells and tanks of hydrogen storage and light mobility is expected to widen the reach of the market.

Canada’s carbon fiber thread market is likely to rise at a steady pace at a CAGR rate of 9.1% to reach an estimated value of around USD 179.9 million by 2035. Low-emission materials, supply chains in electric cars, and any clean technology are promoted by government incentives that make the market conditions favourable. For example, through the fiscal year 2034-2035, Canada’s renewable Economy Investment Tax Credits (ITCs) would provide over C$93 billion in federal incentives to support manufacturing and renewable energy.  Among these is a tax credit that can be refunded up to 30% of capital expenditures for qualified investments in vital mineral processing and clean technology. The persistent needs in Ontario and Quebec are found in the aerospace and automotive industries. Early-stage pilot programs of fiber recycling have been made possible through domestic R&D grants and frameworks of partnerships. Long-term expansion of infrastructures and sustained trading connections with the U.S. facilitate unmanned supply chains and longevity.

Asia Pacific Market Insights

The carbon fiber thread market in the Asia Pacific is estimated to hold 34.7% of the revenue share with a projection of a value of USD1.04 billion in 2035, with a CAGR of 11.7% between 2026 and 2035, owing to the increasing demand for wind energy, electric vehicles, and industrial machinery. Malaysia and South Korea are stepping up their green chemistry initiatives, while China, India, and Japan are at the forefront of innovation. Government-backed carbon neutrality guidelines and composite programs are encouraging more people to invest. For example, South Korea, backed by synchronized regional frameworks under the APEC Carbon-Free Alliance, is growing offshore wind capacity on Jeju Island from 1 GW to 7 GW, increasing wind power's share from 20% to over 70%, to attain 100% renewable energy and hydrogen integration by 2035. Furthermore, high-level infrastructure and fast industrialization are speeding up uptake, and carbon recycling is also opening up the market through regional cooperation.

By 2035, China’s carbon fiber thread market is anticipated to dominate the region with an estimated revenue of over USD 399.6 million. Increase in expenditure on sustainable chemical technologies is over 25% over the period 2019-2024. Furthermore, significant innovations in chemicals have also fuelled the market growth in the country. For instance, Under the guidance of MIIT’s 14th Five-Year Plan (2021-2025), China has achieved multiple sci-tech advancements, including the direct conversion of CO₂ and water into formic acid, synthesis of starch from CO₂, hydrogenation of acetylene to ethylene under mild conditions, and producing chemicals from exhaust gas streams, all with reduced energy use and carbon emissions. Further, ChemChina and Sinopec are building up their capacity to make carbon fiber thread in the country. For instance, Sinopec Shanghai Petrochemical (a ChemChina subsidiary) is investing around RMB 3.2 billion (~USD 450 million) to expand its carbon fiber capacity. The project targets 60,000 t/year of large‑tow precursor production in Shanghai and 30,000 t/year of carbon fiber output in Inner Mongolia. The long-term adoption of the composites gains support in China as the country has carbon trading, encompassing 40 percent of the emissions.

The carbon fiber thread market in India is set to grow at the highest CAGR of 15% throughout the 2026-2035 period, with an estimated value of USD 179.9 million by 2035. In 2023, the Technology Development Board invested INR 94 crore by the government to stimulate eco-friendly chemical development. More than 2 million companies have resorted to green chemical practices. The National Technical Textiles Mission intends to have carbon fiber production in India by 2026. For instance, India is expected to begin domestic carbon fiber production by 2025-26, under the scope of the National Technical Textiles Mission (NTTM). This initiative aims to reduce reliance on imports and position India in aerospace, defense, and civil engineering applications by approving 156 research projects. Moreover, the market for carbon fiber thread is expanding as a result of India's growing total energy generation, which provides a steady and affordable power source for its extremely energy-intensive production processes. Higher capacity utilization, fewer production disruptions, and lower manufacturing costs are all made possible by dependable power from growing thermal and renewable sources. Increased output capacity and efficiency improve domestic supply, increase export potential, and draw in fresh capital for India's advanced materials industry.

(Source: Renewable Energy Statistics 2023-2024)

Europe Market Insights

The European market is likely to grow to USD 521 million by 2035, with a CAGR of 8.3% between 2026 and 2035, due to aerospace, automotive, wind energy, and industrial application demand. Germany is a major contributor that invests heavily in green chemical technology. In 2024, the expenditure of Germany on the production of sustainable chemicals was Euro 3.5 billion. carbon fiber thread In 2022, the UK government announced a £95 million allocation (in November 2022) to support research in advanced materials, including sustainable manufacturing, quantum technologies, and recycling innovations, via the Henry Royce Institute. Furthermore, in 2023-24, the European Union allocated approximately €13.5 billion to Horizon Europe’s research and innovation agenda, with major funding directed toward industrial decarbonization and circular economy efforts, including chemical and advanced materials innovation. Safety and cleaner chemical manufacturing are being promoted under the REACH regulations implemented by ECHA.