Carbon fiber is a thin, strong and lightweight material primarily used to reinforce composites due to its high tensile strength and load-bearing capability. It is finding increasing applications in aerospace, automotive, wind energy, sporting goods and other industrial sectors due to advantages like corrosion resistance, high stiffness and strength to weight ratio.
Carbon fiber market is estimated to be valued at USD 5.22 Bn in 2024 and is expected to reach USD 9.34 Bn by 2031, exhibiting a compound annual growth rate (CAGR) of 8.7% from 2024 to 2031.
Key Takeaways
Key players operating in the carbon fiber market are Toray Industries Inc., Teijin Ltd., Mitsubishi Chemical Holdings, SGL Group, Hexcel Corporation.
These players are focusing on capacity expansion and new product development strategies to strengthen their market position.
The rising demand for lightweight and fuel-efficient vehicles along with stringent emission regulations are creating significant growth opportunities in the automotive industry. Carbon Fiber Market Demand helps reduce the weight of vehicles and improves mileage which is driving its adoption in automotive components.
Asia Pacific region is witnessing huge demand for carbon fiber composites owing to expansion of aerospace, wind energy and construction industries in China, Japan and India. Major players are investing in the region to cater to growing requirements and leverage low-cost manufacturing benefits.
Market Drivers
One of the key drivers for carbon fiber market is increasing demand from aerospace industry. Carbon fiber composites help reduce aircraft weight and increase fuel efficiency which is leading to its rising usage in commercial aircraft manufacturing. For instance, Boeing 787 utilizes about 50% of carbon composites by weight.
Market Restraints
High production cost of carbon fiber remains a major challenge restricting its widespread adoption. It is nearly 10 times more expensive to produce than fiberglass. Production of lower-cost precursor materials and improving manufacturing efficiencies are required to address this barrier.
Segment Analysis
The aerospace & defense segment currently dominates the carbon fiber market as carbon fiber provides high tensile strength and stiffness along with corrosion and fatigue resistance. This helps aircraft to be lighter and more fuel-efficient. Within this segment, commercial aircraft sub-segment holds the largest share as most commercial aircraft manufacturers now prefer carbon composite over metals to make aircraft structures. The automotive segment is expected to witness the fastest growth during the forecast period. Carbon fiber is increasingly being used to make vehicles lighter and more fuel-efficient which is driving the growth.
Global Analysis
The Asia Pacific region is projected to be the fastest growing as well as the largest market during the forecast period. This is attributed to the rapid growth of the aerospace, automotive and wind energy industries in major economies such as China and India. Abundant raw material availability and favorable government policies and initiatives to promote domestic manufacturers are contributing to the growth of the carbon fiber market in the region. Europe currently dominates the global market and Germany holds the largest share. However, North America is expected to grow at a significant rate owing to growing demand from various end-use industries in the US such as wind energy and industrial processing.
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About Author:
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc. (https://www.linkedin.com/in/money-singh-590844163)
