Carbon Fiber Market
Carbon Fiber Market By Precursor Material Type (PAN-based, Pitch-based, Rayon-based), By Tow Size (Small Tow, Large Tow), By End Use & Region - Global Forecast 2022 to 2032
Carbon Fiber Market Outlook (2022-2032)
The global carbon fiber market was valued at US$ 4.49 billion in 2021 and is projected to reach US$ 11.44 billion by 2032, registering a CAGR of 9.1% from 2022 to 2032.
Carbon Fiber Market Size (2022)
US$ 4.8 Billion
Projected Year Value (2032)
US$ 11.44 Billion
Global Market Growth Rate (2022-2032)
APAC Market Share (2022)
Key Companies Profiled
Consumption of carbon fiber in the aerospace & defense industry is projected to increase rapidly at a CAGR of 10.3%. Government organizations are investing huge amounts in the aerospace & defense industry, which is further fueling the demand for carbon fiber across regions.
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Sales Analysis of Carbon Fiber (2017-2021) Vs Market Outlook (2022-2032)
As per Fact.MR, a market research and competitive intelligence provider, from 2017 to 2021, the global carbon fiber market experienced a CAGR of around 7.4%.
Carbon fiber significantly helps in curtailing the time required for construction activities, thereby reducing overall expenses. Carbon fiber-reinforced plastic finds application in the automotive and aerospace industries, particularly for curbing the weight of the components used.
Carbon fiber-reinforced polymers are generally utilized to strengthen and reinforce concrete, steel, timber, and masonry structures. Furthermore, rising demand for carbon fiber composites in consumer electronics has resulted in lighter, thinner, and more textured items, which is expected to fuel carbon fiber composites market expansion.
Carbon fiber demand has surged significantly, attributed to low moisture absorption, exceptional mechanical characteristics, high-temperature resistance, and relatively lower cost. Numerous construction projects are employing carbon fiber-reinforced concrete for repairing old buildings and bridges.
Worldwide consumption of carbon fiber is projected to rise at a high-value CAGR of 9.1% from 2022 to 2032.
Which Market Trends are Leading to High Carbon Fiber Demand Growth?
“Stringent Eco-friendly Regulations & Rising Popularity of 3D Printing”
Large-scale implementation of stringent eco-friendly regulations in developed and developing countries has prompted the increased adoption of more sustainable construction materials.
Weight reduction and increased fuel efficiency are what carbon fibers and their related composites have to offer. Hence, the activated carbon fiber market is experiencing heightened demand from the luxury and sports cars market.
Carbon fiber is being extensively deployed in the automotive industry for the creation of 3D-printed car parts. Carbon fiber is extremely strong and causes the filament to increase in strength and stiffness.
This also means that the 3D printed parts will be much lighter and more dimensionally stable, as fiber will help prevent the shrinking of the part as it cools. These latest trends in carbon fiber are driving market growth.
What Challenges Do Carbon Fiber Manufacturers Encounter?
“Presence of Substitutes & High Cost of Carbon Fiber”
The high cost of carbon fiber is a fundamental concern associated with carbon fiber market growth. Carbon fiber composites, including carbon fiber tapes, are only employed in luxury vehicles in the automobile industry. Furthermore, alternative carbon fiber composites represent a severe threat to carbon fiber industry growth.
Which Regional Market is Projected to Offer the Largest Opportunity for Carbon Fiber Suppliers?
“Surging Recycled Carbon Fiber Sales Driving North America Market Growth”
North America accounts for 32.8% share of the global carbon fiber market. The prominent presence of a large number of electric car manufacturers, as well as the rising demand for lightweight and fuel-efficient vehicles, are driving the market growth in the region. Increasing investments by automakers in R&D to produce cost-effective carbon composite materials are boosting the carbon composites market expansion.
Rapid deployment of lightweight composite materials in the aviation industry and the growing popularity of recycled carbon fiber are the factors expected to propel the market expansion in North America. Rising demand for renewable energy has increased with the installation and demand for wind farms in the region.
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Why is Demand for Carbon Fiber High in the U.S.?
“Ongoing R&D Activities for Development of Carbon Fiber”
The U.S carbon fiber market is projected to expand at a CAGR of 9.5% from 2022 to 2032. The U.S. will witness major growth as research and development in the country has made way for significant uptakes in infrastructure, costs, and product innovation.
The country is one of the most important manufacturing hubs for the aircraft industry, with material and component suppliers, device manufacturers, entire system integrators, and engine producers all based there.
Will China Be a Rewarding Market for Carbon Fiber Manufacturers?
“Rise in Construction Projects to Fuel Demand for Carbon Fiber in China”
The market in China is expected to rise at a CAGR of 11.7% over the forecast period. Construction composites are increasingly being used in tunnels, bridges, and residences in China due to increased urbanisation and rising government investment in infrastructure projects.
Presence of key companies in China has generated significant opportunities in the construction industry. Increase in construction projects driving PAN-based carbon fiber demand in China.
China is the world's largest producer of electronics. Electronic products have the highest growth rates in the consumer electronics sector of the country in terms of demand. These factors are driving the global carbon fiber coatings market growth in China.
Which Precursor Material Type is Most Popularly Used?
“PAN-based Carbon Fiber Rapidly Gaining Traction Owing to Cost-effectiveness & Better Quality of Fiber Produced”
Carbon fibers are divided in terms of precursor material type into pitch-based carbon fiber, PAN-based carbon fiber, and rayon-based carbon fiber. Exceptional features of PAN-based carbon fiber are projected to result in wider acceptance in a variety of applications.
PAN-based carbon fiber is extensively used for structural material composites in aerospace & defense, industrial and sporting goods sectors. PAN precursor is commonly used due to its excellent material qualities. PAN's lesser cost as compared to pitch-based carbon fiber is projected to help the segment flourish.
Why is the Aerospace & Defense Industry a Frontrunner of Carbon Fiber Demand?
“Growing Requirement for Lightweight Materials Driving Demand for Carbon Fiber in Aerospace & Defense Industry”
The aerospace & defense industry accounts for 32.1% share of the carbon fiber market. In terms of end use, carbon fibers are used in aerospace & defense, wind energy, sporting goods, civil engineering, automotive, electrical & electronics, and other end uses. The aerospace & defense industry is expected to remain the primary user of carbon fiber filaments over the forecast period.
Carbon fiber is increasingly employed in the aerospace industry on the back of its good strength to weight ratio and is utilized on a large scale for manufacturing aircraft components such as vertical stabilizers, engine nacelles wings, floor beams, and elevators.
This rapid growth of the aviation industry has led to demand for lightweight and robust materials for the fabrication of aircraft components, thereby boding well for the carbon fiber resins market.
COVID-19 Impact on Consumption of Carbon Fiber
The COVID-19 pandemic wreaked havoc on many enterprises, markets, and supply chains. As a result of the pandemic, production in many industries, including aerospace, automotive, and wind energy, had drastically decreased. Due to supply chain and logistics problems, some aircraft and automobile manufacturers declared output cuts. Thus COVID-19 had a negative influence on the production of carbon fiber.
However, as businesses progressively recover from the effects of the pandemic with persistent investments in sustainable technology, the future of the carbon fiber industry seems promising, with high potential in the aerospace, automotive, and wind energy sectors.
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The global carbon fiber market is highly competitive in nature. Leading market players are focusing their efforts on developing innovative products to strengthen their position in the global market and are adopting strategies such as acquisitions and mergers.
For instance :
- In April 2021, Impossible Objects and Ricoh 3D entered into a new partnership to make carbon fiber composite materials for printing on the Composite Based Additive Manufacturing (CBAM) process. The new material options remove barriers to printing parts for drones, aircraft, automobiles, athletic gear, and more.
Key Segments Covered in Carbon Fiber Industry Research
Carbon Fiber Market by Precursor Material Type :
- PAN-based Carbon Fiber
- Pitch-based Carbon Fiber
- Rayon-based Carbon Fiber
Carbon Fiber Market by Tow Size :
- Small Tow Carbon Fiber
- Large Tow Carbon Fiber
Carbon Fiber Market by End Use :
- Aerospace & Defense
- Sporting Goods
- Electrical & Electronics
- Wind Energy
- Civil Engineering
- Other End Uses
Carbon Fiber Market by Region :
- North America
- Asia Pacific
- Latin America
- Middle East & Africa
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