Carbon Fiber Market Size, Share, Industry, Forecast and Outlook (2024-2031)

Carbon Fiber Market is Segmented By Material (Petroleum Pitch, Polyacrylonitrile, Rayon, Bio-Based and Others), By Modulus (Standard, Intermediate and High), By Tow Size (Small Tow and Large Tow), By Application (Automotive Drive Shafts, Bike Frames, Aircraft Wings, Tubing, Containers, Propeller Blades, Car Components and Others), By End-User (Wind Energy, Automotive, Construction, Aerospace & Defense, Sports, Marine, Electrical & Electronics and Others), and By Region (North America, Latin America, Europe, Asia Pacific, Middle East, and Africa): Share, Size, Outlook, and Opportunity Analysis, 2024-2031

Carbon Fiber Market Overview

Carbon Fiber Market reached USD million in 2021 and is expected to record significant growth by reaching up to USD million by 2031, growing at a CAGR of 8.5% during the forecast period (2024-2031). 

Thomas Edison first created carbon fiber in 1879 by baking bamboo or cotton threads at high temperatures, which turned them into an all-carbon fiber filament. Just west of Cleveland, Ohio, high-performance carbon fibers were created in 1958. These fibers had low strength and stiffness qualities, roughly 20% carbon content, and were inefficient. Carbon fiber's strength potential was first realized in 1963, when a new manufacturing method was created at a British research facility. Graphite fiber and carbon fiber are both types of polymers. It is made of a lightweight material that is incredibly robust. Carbon fiber is twice as rigid and five times stronger than steel. Although lighter than steel and stronger & stiffer than steel, carbon fiber is the perfect manufacturing material for many items. Carbon fiber is a substance used to strengthen materials because it is formed of tiny, powerful, crystalline strands of carbon. A strand of human hair can be thinner than carbon fiber, which gains strength when twisted together like yarn. After that, it can be combined to create cloth, and if a permanent shape is required, carbon fiber can be put over a mold and coated in resin or plastic. Carbon fiber is widely used in various sectors, including aerospace, automotive, military, and recreational.

As per DataM Intelligence, the Carbon Fiber Market study analysis offers an in-depth outlook on the market, containing quantitative and qualitative data. It gives an outlook and forecast of the global market based on market segmentation. It also provides global carbon fiber market size and growth, along with the latest trends, opportunities, and forecasts till 2029 for the global market with regard to major countries such as the United States, Canada, Brazil, Germany, Italy, Spain, the United Kingdom, Russia, European countries, the United Arab Emirates, Saudi Arabia, South Africa, Japan, China, India, South Korea, Australia, and the rest of the countries over the globe.

Among all regions, the North American region is expected to hold the largest share of the global market over the forecast period. The carbon fiber market in the United States and Canada produces the utmost share. Whereas the European Carbon Fiber Market is projected to continue its presence globally during the period of 2024–2031.

Carbon Fiber Market Scope

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Carbon Fiber Market Dynamics

The carbon fiber market is propelled by the application of carbon fiber as an economical substitute for steel & aluminum and advancements in manufacturing technologies for carbon fibers. However, the high production costs of carbon fiber will negatively impact the market.

Carbon fiber is an economical substitute for steel & aluminum

Carbon fibers are long strands of carbon atoms linked to a plastic polymer resin via heat bonds. Carbon fibers are stiff, robust, and light and are utilized in various procedures to make high-quality building materials. The respective product finds applications in numerous sectors due to its outstanding properties, such as high stiffness, high tensile strength, low weight, good chemical resistance, high-temperature tolerance, and low thermal expansion.

In modernity, carbon fibers have replaced steel and aluminum as the primary building materials due to their low weight and high load-bearing capabilities, making them ideal for retrofit projects. Carbon fibers, on average, have a longitudinal tensile strength of 2000 MPa, an elastic modulus of 150–200 GP, and are 2.5 times stiffer than metal.

Further, carbon fibers are available as tubes, fabrics, and textiles that can be molded in various densities, shapes, and sizes and could be custom-made into various composite parts and components. As a result, carbon fibers are gaining popularity as an alternative to aluminum and steel in the aviation and vehicle industries. Carbon fibers might be the best material for lightweight cars that require the highest performance and efficiency.

Advancements in manufacturing technologies will augment market growth

Traditionally, carbon fibers are manufactured by chemical and mechanical processes. The precursors are drawn into long strands and heated to extremely high temperatures in an anaerobic (oxygen-free) atmosphere. The tremendous heat causes the carbon fiber atoms to vibrate so rapidly that essentially any non-carbon atoms are ejected rather than burning. When the carbonization process is complete, the residual fibers are segmented into long, strongly interwoven carbon atom chains with few or no non-carbon atoms.

High costs of production

Compared to other materials like steel & aluminum, carbon fiber has a reputation for being pricey. Carbon fiber parts can be pricey for various reasons, such as manufacturing methods, specialized labor requirements and other raw materials that make carbon fiber products. Carbon fiber production is much more intensive than metals such as steel and aluminum derived from raw ore and converted to end products or bulk materials using time-tested, standardized processes. 

To manufacture carbon fibers, mechanical and chemical methods are employed to modify the atomic constitution of organic polymers in long, thin strands. Further, thousands of these are inserted in a resin matrix to manufacture composite items. Though composite manufacturers have created a wide range of composite laminates using proprietary formulas, techniques and material combinations to suit individual products' strength and mechanical requirements, the respective processes still take time compared to steel and aluminum manufacture.

COVID-19 Impact Analysis

The global carbon fiber market was hit hard in 2020, owing to COVID-19's impact. The governments of several major economies have imposed lockdowns to prevent the spread of COVID-19. Further, manufacturing activity has been severely hampered due to the lockdown. Before the COVID-19 pandemic, the carbon fiber sector grew steadily between 2009 and the end of 2019. According to the Joint Managing Director of CarbConsult, Germany, average carbon fiber demand and supply increased 11% per year. The sector more than doubled during this period, from generating 40 kt of carbon fiber per year in 2010 to more than 100 kt per year in 2019. 

The COVID-19 pandemic came towards the end of 2019 and into early 2020. The consequences were severe globally and the carbon fiber sector was no exception. The products' markets, such as the automotive and aviation sectors, were severely impacted. For instance, the global air traffic was less than 10% of what it would have been in commercial aviation in mid-to-late 2020 and it is unlikely to return to pre-COVID levels until at least 2024. As a result, the production of commercial airplanes has slowed.

Carbon Fiber Market Segment Analysis

By material, the carbon fiber market is segmented into petroleum pitch, polyacrylonitrile, rayon, bio-based and others.

Cost-effective petroleum pitch to drive the segment’s growth

Pitch made from petroleum products is a low-cost alternative to pitching made from coal tar, with similar physical qualities. Because pitch is more graphitisable than polyacrylonitrile (PAN), it has a larger elastic modulus. Pitch-derived from petroleum is a thick black bituminous ingredient formed during crude oil fractionation and distillation. Coal pitches have a higher aromatic content than petroleum pitches, owing to the solid carbon particles' capacity to speed up coke deposition through extrusion and thermal processing. Despite being less fragrant, Petroleum pitches are appealing as carbon fiber precursors. 

Pitch is a byproduct of coal tar and petroleum distillation. Pitch is a complicated concoction of thousands of aromatic hydrocarbons. The mentioned qualities ensure that automotive-grade carbon fiber can be manufactured using cost-effective techniques from FCC-DO-generated petroleum mesophase pitches. Thus the growing call for lower-weight carbon fiber composites in automotive applications is propelling the petroleum-based carbon fiber towards the development of high-quality, inexpensive carbon fiber leading to creating segmental growth opportunities for the product

Carbon Fiber Market Geographical Share

The large industrial base in Asia-Pacific

Asia-Pacific holds the major portion of the global market for carbon fiber. Carbon fiber composites, once primarily used in aerospace and space applications, are now widely used in many new industrial applications where performance, high strength and reduced weight considerations take precedence over cost. Most of the demand for composite fibers comes from the expanding construction automotive and wind energy sectors. Moreover, the booming manufacturing of electric vehicles has enhanced market growth. Total EV sales in China were 1.3 million, an increase of 8% compared to 2019 and 41% of total EVs sold globally.

At the same time, China seeks to reduce its reliance on imports, primarily from U.S. and Japan, as it works to fulfill the rising demand for carbon fiber, which is used in wind turbines, aerospace, military and civil engineering applications. As a result, businesses are growing their product offerings to meet the needs of various industries. For instance, Zhongfu Shenying Carbon Fiber Co. Ltd. declared in 2021 that its 10,000 MT carbon fiber production facility in Xining was operational. The production line aims to maintain a high-end, controllable set of technologies and intellectual property rights while producing 10,000 metric tonnes of high-performance carbon fiber annually.

Carbon Fiber Market Companies and Competitive Landscape 

The global carbon fiber market is moderately competitive with several international and local markets. Carbon fiber is a highly specialized process for which companies need high-tech machinery to manufacture carbon fiber with advanced features. The machines may cost thousands of dollars, driving up the end product's price. However, fiber producers are finding new ways to automate production and simplify the processes.

Major global carbon fiber market companies include Solvay, Toray Industries, Inc., TEIJIN LIMITED, SGL Carbon, ZHONGFU SHENYING CARBON FIBER CO., LTD., Mitsubishi Chemical Holdings Corporation, BASF SE, Hexcel Corporation, Formosa Plastics and DowAksa Advanced Composites Holdings BV.

Solvay

Overview: Solvay is a global leader in the provision of Materials, Chemicals and Solutions. The company addresses key industrial, social and environmental concerns by exploiting breakthroughs in planes, vehicles, batteries, smart and medical devices, water and air purification and other disciplines. Agriculture and feed, automotive, aerospace, food, electronics, consumer goods, healthcare, coatings, construction and other industries benefit from the company's products. The corporation has 110 manufacturing sites and 20 main research and development facilities globally. Solvay has a presence in over 64 countries across Europe, North America, Latin America, Asia-Pacific and the rest of the world. 

Product Portfolio: The company provides PAN-based and pitch-based carbon fibers. Its pan-based carbon fiber product portfolio includes products with tow sizes of 3k, 6k and 12k filaments. Solvay’s pitch-based carbon fiber product includes products in tow sizes, 2k and 4k.

Key Development: Solvay and OEM 9T Labs AG, a Swiss manufacturing solution provider, joined forces to mass-produce carbon fiber-reinforced plastics (CFRP). Solvay developed CF-reinforced bio-based high-performance polyamides, carbon fiber-reinforced polyetheretherketone (CF/PEEK) and CF-reinforced polyphenylene sulfide (CF/PPS) composite materials under the partnership. The products helped OEM 9T Labs AG expand its neat and carbon fiber-reinforced materials portfolio.