Carbon Fiber Market

The carbon fiber market is estimated at USD 7.1 billion in 2023 and is projected to reach USD 23.2 billion by 2033, at a CAGR of 12.6% from 2023 to 2033. Carbon fibers offer various advantages such as high tensile strength, low weight, high stiffness, high-temperature tolerance, and low thermal expansion. These properties are leading to the high demand for carbon fiber in aerospace, civil engineering, military, and motorsports, along with other competitive sports. However, it is relatively expensive compared with other fibers such as glass or plastic fibers.

Carbon fiber is produced using two main methods, with the use of polyacrylonitrile (PAN) and from pitch. Pitch is produced via the distillation of carbon-based materials such as plants, crude oil, and coal. In terms of cost, carbon fiber is relatively more expensive than plastic fiber and glass fiber. The high cost of carbon fiber is the major factor restraining market growth

Attractive Opportunities in Carbon Fiber Market Trends

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Carbon Fiber Market Dynamics

Driver: Rising demand of regular tow carbon in pressure vessels leading the growth of carbon fiber based composites

The use of carbon fibers in pressure vessel applications has seen significant growth in 2023. SGL Carbon has expanded its material portfolio with a new 50k carbon fiber, SIGRAFIL C T50-4.9/235, designed for high-strength pressure vessels. Carbon fiber is well-suited for winding pressure vessels needed for storing hydrogen in fuel cell vehicles, offering weight advantages in tank design and the ability to withstand high pressures. The carbon fiber made pressure vessels are experiencing growth, with applications including CNG storage tanks, SCBA/SCUBA, hydrogen storage tanks, and others.

Restraint: Lack of standardization in manufacturing technologies

Manufacturing and non-recurring development costs continue to limit the penetration of composites in several applications such as sports goods, marine, and consumer goods. Design consistency, process standardization, and maintenance technology are the major issues of concern. The lack of standardization of various carbon fiber products and methodologies compels manufacturers to consider conservative designs. Lack of standardization also leads to manufacturers choosing conventional products instead of carbon fiber products such as yarn, fabric, and composites. Limited human resources with the required training and experience in composites also restrain the use of carbon fiber products.

Opportunity: Increasing demand for fuel cell electric vehicles (FCEVs)

Carbon fibers are used in manufacturing hydrogen tanks that are used in fuel tanks and mobile pipeline applications. The market for fuel cell electric vehicles (FCEVs) is expected to grow rapidly due to the stringent eco-friendly rules that focus on using clean fuel. Currently, the market for FCEVs is very small. However, it is expected to grow rapidly during the forecast period.

Challenge: Production of low-cost carbon fiber

The high cost of PAN and pitch carbon fibers is one of the major concerns associated with its growth. Carbon fiber still has low usage in large applications due to its high cost. Developing low-cost technologies is a major challenge for researchers and key manufacturers. In the automotive industry, carbon fiber composites are only introduced in high-end and luxury cars due to their high cost. With the production of low-cost carbon fiber, there is expected to be increased use in the automotive industry.

Ecosystem: Carbon Fiber Market

Based on the end-use industry, the pressure vessels segment is estimated to account for the highest CAGR in the Carbon Fiber market share during the forecast period.

Pressure vessels for gas storage is the fastest growing industry for carbon fiber. Storage of liquid propane gas (LPG) compressed natural gas (CNG), renewable natural gas (RNG), and hydrogen gas (H2) are the primary end markets. While LPG tanks can be used in vehicles, there is also a growing market in developing countries for cooking and heating. CNG, RNG, and H2 fuel systems are becoming more common in passenger cars, buses, trucks, and other vehicles, as well as for bulk transportation/distribution — also known as mobile pipeline — to supply refueling stations or industrial sites. These fuel storage tanks in vehicles are an important component in low- or zero-emission powertrains for clean alternatives to gasoline, diesel, and jet fuel. These powertrains also offer a free alternative to battery-powered vehicles, with refueling infrastructure and refill times comparable to those of fossil fuels.

Based on application, composites application is anticipated to register the highest CAGR in the Carbon Fiber market.

carbon fiber composites are created by combining carbon fiber with a resin, such as vinyl ester or epoxy, to produce a composite material with superior performance properties to the individual materials. They are stronger, lighter, and more durable alternatives to wood or metal in many applications. CFRP composites can be up to 10 times stronger and 5 times lighter than steel, with tensile strengths ranging from 400 to 500 ksi and an average density of 1.55 g/cc. CFRP materials are well-known for their high strength-to-weight ratio, corrosion resistance, stiffness, and durability.

Europe to hold the largest market share during the forecast period.

Passenger cars and vans ('light commercial vehicles') account for approximately 12% and 2.5% of total EU carbon dioxide (CO2) emissions, respectively. Since 2020, stricter CO2 emission targets have been in effect. Between 2019 and 2020, the average CO2 emissions from all new passenger cars registered in Europe fell by 12%, and by 12.5% between 2020 and 2021. The main driver of the emissions reduction is an increase in zero-emission passenger car registrations, which will account for 10% of the EU fleet by 2021. The European Parliament and Council adopted Regulation (EU) 2023/851 on April 19, 2023, amending Regulation (EU) 2019/631 to strengthen CO2 emission performance standards for new passenger cars and light commercial vehicles in line with the European Union's increased climate ambition. The amendment, in particular, strengthens the emission targets in effect beginning in 2030 and establishes a 100% reduction target for both cars and vans beginning in 2035. This has led to the extensive use of carbon fiber in lightweight vehicles and electric cars in the region.

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Key Market Players

The Carbon Fiber market is dominated by a few globally established players. Toray Industries Inc., (Japan), Teijin Limited (Japan), Mitsubishi Chemical Group Corporation (Japan), Hexcel Corporation (US), Solvay (Belgium), SGL Carbon (Germany), Hyosung Advanced Materials (South Korea), Zhongfu Shenying Carbon Co., Ltd. (China), Kureha Corporation (Japan), DowAksa (Turkey), Jilin Chemical Fiber Group Co., Ltd. (China), Jiangsu Hengshen Co., Ltd. (China), Anshan Sinoda Carbon Fibers Co., Ltd. (China), and China National Bluestar (Group) Co., Ltd. (China), among others, are the main producers who have won significant contracts recently. Since global requirements are changing, contracts and new product development have received the majority of attention.

These companies are attempting to establish themselves in the Carbon Fiber market by employing a range of inorganic and organic approaches. A thorough competitive analysis of these major Carbon Fiber market participants is included in the research, along with information on their company profiles, most recent advancements, and important market strategies.

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Scope of the Report

The study categorizes the carbon fiber market based on Raw Material Type, Fiber Type, Modulus, Product Type, Application, End-Use Industry, and Region.

By Raw Material Type

• PAN-based Carbon Fiber
• Pitch-based Carbon Fiber

By Fiber Type

• Virgin Carbon Fiber
• Recycled Carbon Fiber

By Modulus

• Standard Modulus
• Intermediate Modulus
• High Modulus

By Product Type

• Continuous carbon Fiber
• Long Carbon Fiber
• Short Carbon Fiber

By Application

• Composites
• Non-Composite

By End-Use Industry

• Aerospace & Defense
• Wind Energy
• Automotive
• Pipes
• Sporting Goods
• Medical & Healthcare
• Construction & Infrastructure
• Pressure Vessels
• Others

By Region:

• North America
• Asia Pacific
• Europe
• Latin America
• Middle East & Africa

Recent Developments

• In June 2023, Solvay and Spirit AeroSystems have cemented their research and technology relationship on the development of composite aerostructures. The collaborators aim to develop advanced manufacturing concepts and secure a step change in composite fabrication, automation and assembly technologies to de-risk and shorten the development cycle. They will also explore further strategic alignment on future innovation.
• In April 2023, Solvay and GKN Aerospace have signed an extension to their 2017 collaboration agreement. Under the agreement, both businesses are developing a joint thermoplastic composites (TPC) roadmap to explore new materials and manufacturing processes for aerospace structures, while jointly targeting future strategic high-rate programs. In addition, Solvay will remain a GKN Aerospace preferred supplier for TPC materials.
• In March 2023, Solvay and Airborne receive funding for a composite alternative to metal battery enclosures. This collaboration with Airborne, a technology leader in advanced composites manufacturing using automation and digitalization, has already received letters of support from Jaguar Land Rover and Vertical Aerospace. They see great potential in the design of more compact and lightweight enclosures for high-energy batteries in future electric cars and aircraft and are interested in the sustainability aspect of this project which aims to reuse composite waste..
• In November 2022, Celanese Corporation completed the acquisition of the majority of the Mobility & Materials (M&M) business of DuPont. Celanese has acquired a broad portfolio of engineered thermoplastics and elastomers, industry-renowned brands and intellectual property, global production assets, and a world-class organization.
• In September 2022, the Mitsubishi Chemical Group Corporation has agreed with the Japan Windsurfing Association to jointly promote recycling activities for carbon fiber used in windsurfing equipment.

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