Carbon Felt and Graphite Felt Market

Carbon Felt and Graphite Felt Market Outlook 2025 to 2035

The global carbon felt and graphite felt market is expected to reach USD 1,452 million by 2035, up from USD 569.9 million in 2025. During the forecast period 2025 to 2035, the industry is projected to expand at a CAGR of 9.8%.
Carbon felt and graphite felt market is expanding across high-temperature insulation, battery electrodes, and fuel cell technologies due to demand growth in metallurgy, energy storage, and electronics. Their low density, thermal stability, and suitability for green technologies support advanced sustainable materials development.

Quick Stats for Carbon Felt and Graphite Felt Market

• Industry Value(2025):USD 569.9 Million
• Projected Value (2035):USD 1,452 Million
• Forecast CAGR(2025 to 2035):9.8%
• Leading Segment(2025):Carbon Felt (55.7% Market Share)
• Fastest Growing Country (2025-35):China (10.9% CAGR)
• Top Key Players:SGL Carbon, Toray Industries, Kureha Corporation, Nippon Carbon Co., Mersen, Beijing Great Wall Co., Ltd., Morgan Advanced Materials Plc, Chemshine Carbon Co., Ltd. , CM Carbon Co., Ltd, CeraMaterials, CGT Carbon GmbH and Fiber Materials Inc.

What are the drivers of the carbon felt and graphite felt market?

The carbon felt and graphite felt market is undergoing a period of expansion as industries place greater emphasis on enhanced thermal insulation, energy storage performance, and reduced emissions in the areas of high-performance applications.

As their applications in battery electrodes, fuel cells, and vacuum furnaces increase, these felts are valued for their heat resistance, lightweight properties and electrical conductivity under extreme temperature. The movement toward decarbonization under regulatory frameworks, and incentive to build clean energy infrastructure, is accelerating the transition toward felts in redox flow batteries and molten salt reactors.

Simultaneously, aerospace, semiconductor, and solar industries are adopting graphite-based solutions to meet the precision-engineering and sustainability requirements. Advancements in fiber pre-treatment, surface area optimization, and binder-free felts production are improving product characteristics and expanding applications.

In addition, collaborations among felt manufacturers, energy integrators, and R&D institutes are promoting innovations-driven commercialization. Overall, this confluence of regulatory, technology and application specific factors are strengthening the position of carbon and graphite felts in the next generation thermal and energy applications.

What are the regional trends of the carbon felt and graphite felt market?

The local development of carbon felt and graphite felt industry indicates various trends of changes in accordance with energy policies, industrial development and technological penetration.

North America is expanding the use of graphite felts in flow batteries and in fuel cells, the U.S. is progressing in grid storage and high-temperature insulation foams for aerospace and semiconductor products. This transition is being catalyzed by the effective institutional R&D support and the use of clean energy incentives.

Stringent energy efficiency standards and decarbonization targets in Europe are creating impetus in adopting the technology in thermal management and metallurgical applications, with Germany and France being leading players in integrating renewable storage energy using felts.

Another strategic region that is becoming a demand center is Asia-Pacific due to the intense industrialization particularly in China, Japan and South Korea. The region is also making targeted investments in graphite felt to support electric vehicle battery and solar power system.

Latin America and the Middle East & Africa are tentatively moving into Latin America and the Middle East and Africa are tentatively moving into this segment, through infrastructure development and technology transfer programs, aimed at strengthening industrial processing and thermal containment capabilities.

What are the challenges and restraining factors of the carbon felt and graphite felt market?

The variability of the products in terms of performance with the differences in raw material purity, fiber structure, and processing techniques, remains one of the key challenges in the carbon felt and graphite felt market.

Irregular thermal conductivity, porosity, and strength may impact the reliability of sensitive applications such as fuel cell and battery electrodes. This failure to conform to set benchmarks among various suppliers can easily lead to performance differences, limiting commercial adoption in precision-focused industries.

The other structural limitation is the high cost of production, particularly that of activated or specialty-treated felts to be used in the advanced energy systems. The scale of manufacturing and quality check processes that require capital also repels small-scale manufacturers and reduces their scalability.

In addition, the carbon emissions and carbon footprint environmental safety policies create additional compliance requirements, particularly in Europe and North America. Penetration in secondary applications such as metallurgical processing and solar systems remains limited, in part due to insufficient technical expertise and awareness in developing regions. Lastly, a fragmented supply base and fluctuating global supply chains hinder price stability and long-term sourcing reliability.

Country-Wise Insights

China supports redox projects through domestic graphite production

China has a well-established supply chain for graphite production, and an increasing use in solar energy and redox proportional batteries, positioning the country as a key player in the market. Support for renewable energy projects by the government is increasing the domestic demand of high-performance felts.

The producers are improving conductivity of materials, corrosion resistance, and insulation performance at high-temperature applications such as batteries of electric vehicles and industrial ovens. Research and pilot-scale development of next-generation felt products are being undertaken in the leading provinces such as Hebei and Jiangsu.

With large-scale output and consistent quality, Chinese companies are emerging as primary exporter of goods to Asia-Pacific, Europe, and other developing energy storage sectors worldwide.

United States advances aerospace uses with durable felt materials

The aerospace, defense, and clean energy sectors in the U.S. market show significant demand for graphite felts, with applications in flow batteries and hydrogen fuel cells.

Graphite felt technologies are being driven by development of national and regional grid modernization strategies within the Department of Energy programs. Firms are introducing low weight and high temperature felts targeted at semiconductors and vacuum furnaces.

The California and Ohio industrial clusters are witnessing collaborations among material engineers, national laboratories, and battery companies. Technical competence and adherence to stringent standards are enabling U.S. suppliers to meet demanding application requirements in power storage, thermal management for electronics, and high-efficiency manufacturing environments.

Germany develops graphite felts for hydrogen energy storage

The use of carbon and graphite felts in Germany aligns with EU energy transition objectives and national industrial efficiency requirements. With applications in hydrogen production, metallurgy and solar thermal systems, demand for felts is increasing as they enhance thermal control and operational stability.

Firms are refining felts with improved purity and structure to meet specific engineering criteria. Baden-Wurttemberg and North Rhine-Westphalia are the research hubs supporting industrial pilots that assess the fuel cell performance and recover the waste heat.

Stringent environmental compliance and the availability of skilled engineering workforce is making Germany a hub of further growth in sustainable felt-based insulation technology.

Category-Wise Analysis

PAN-based felt dominates insulation due to structural consistency

The PAN derived felt segment is gaining momentum because of structural strength, controlled porosity, and ability to work with high-purity conversion process. It has high thermal stress stability and form-retention which makes it suitable in downstream graphitization in crucial applications.

The consistency of feedstock allows scalability and uniformity of performance on insulation, especially in vacuum and inert conditions. The fibrous nature of PAN makes it customizable with regard to surface area and conductivity, aligning with battery-grade standards.

Its stable characteristics are supported by low production variability and consistent carbon yield. As manufacturers seek materials that balance performance with cost-efficiency, PAN-based felt continues to serve a key role in designing advanced thermal and electrochemical systems.

Graphite felt supports high-temperature stability and energy efficiency

Graphite felt is also experiencing increased usage in precision-oriented thermal and electrochemical systems where high purity and conductivity are critical. Its post-carbonization process makes the product have better oxidation resistance and dimensional stability thus making it long lasting in both energy storage and high temperature applications.

The graphite felt has a custom porosity that is highly beneficial in redox flow batteries, molten salt systems and industrial furnaces. The ability to be processed into rigid panels or flexible sheets aids a wide range of industrial requirements.

As industries place greater emphasis on decarbonization and efficient power cycling, demand for graphite felt continues to grow based on performance requirements. Its heat tolerance and structural stability make it a suitable component in emerging clean technology solutions.

Battery systems demand graphite felts for charge performance

The batteries market segment is evolving rapidly in response to increased demand for energy storage technology in the grid, mobility and backup systems. The carbon and graphite felts play a central role in redox flow and lithium-ion battery systems because of the electrochemical stability and electrical conductivity.

It helps to prolong life cycles and decrease thermal stress due to the porous architecture that facilitates the movement of ions and charge efficiency. Optimized felt grades match the specifications of low internal resistance and increased electrolyte intake.

Felts are increasingly designed to have a greater charge density and manage heat effectively through thermal dispersion as interest in battery performance and sustainability grows globally. This segment is positioned for accelerated growth.

Competitive Analysis

Key players in the carbon felt and graphite felt market include SGL Carbon, Toray Industries, Kureha Corporation, Nippon Carbon Co., Mersen, Beijing Great Wall Co., Ltd., Morgan Advanced Materials Plc, Chemshine Carbon Co., Ltd. , CM Carbon Co., Ltd, CeraMaterials, CGT Carbon GmbH and Fiber Materials Inc.

The increase in demand in advanced thermal insulation, energy efficiency, and electrochemical performance in key industries is witnessing the market growth. Manufacturers are focusing on precision material engineering in the case of high-temperature applications and energy storage where about protecting the stability, conductivity and durability of the substances becomes the primary concern. The felt innovation and adoption is being shaped by industrial decarbonization targets and environmental regulations.

The industries are investing in conversion of high purity graphite, surface modification technologies and integration of composites. The trend toward sustainable materials are also evident, with attention given to recyclability, low emissions, and energy-conscious processes. The global competition is increasing in the battery and hydrogen systems through strategic alliances, local manufacturing decisions and customization problems.

Recent Development

• In July 2024, Mersen has enhanced its graphite processing portfolio through acquisitions of U.S. companies, expanding capacity for specialty extruded graphite and insulating felts. This purchase will extend machining capacity for isostatic, extruded graphite and insulation materials in the US and reinforce the Group’s leading position on markets such as aerospace, process industries and energy.
• In August 2022, SGL Carbon invested in a new carbonization plant in its plant in Meitingen, Germany to increase production capacity of soft felts. The aim of this expansion is to service demand of carbon and graphite felts of renewable energy systems, e.g. redox flow batteries and high-temperature insulation systems; this expansion also serves to drive the speed of new products with new properties.

Fact.MR has provided detailed information about the price points of key manufacturers of Carbon Felt and Graphite Felt market positioned across regions, sales growth, production capacity, and speculative technological expansion, in the recently published report.

Methodology and Industry Tracking Approach

This report by the Fact.MR covered 10,200 stakeholders in 30 countries with a population sample of at least 300 respondents per region at the global carbon felt and graphite felt market in 2025. Respondents were end users (energy storage companies, furnace manufacturers and fuel cell developers) and material scientists, procurement managers, and engineering consultants.

To provide statistics on the years July 2024-June 2025 to compare the overall trend in demand, new technologies and products, investment facilitators, and regulatory issues. Results were skewed on a scale of industry size and regional consumption trends. More than 250 sources such as technical papers, patents, trade databases were researched with the help of multivariate analysis, regression modeling, which guaranteed data integrity.

With Fact.MR monitoring consumer behavior, product efficacy, industry trends, and market opportunities since 2018, this report is becoming an authoritative source of information that stakeholders can rely on.

Segmentation of Carbon Felt and Graphite Felt market

• By Raw Material :

  • PAN
  • Pitch
  • Rayon

• By Type :

  • Carbon Felt
  • Graphite Felt

• By Application :

  • Furnaces
  • Batteries
  • Filters
  • Other Applications

• By Region :

  • North America
  • Latin America
  • Western Europe
  • Eastern Europe
  • East Asia
  • South Asia & Pacific
  • Middle East & Africa