Introduction
The Global Carbon Fiber Market is set to surge from USD 3.33 Bn in 2023 to a projected USD 5.28 Bn by 2028, growing at a CAGR of 9.66%.
Carbon fiber stands out as a lightweight, high-strength marvel, crafted from thin fibers predominantly composed of carbon atoms. Its outstanding strength-to-weight ratio positions it as the go-to choice for applications prioritizing weight reduction without compromising strength.
The global carbon fiber market is on the brink of significant expansion, fueled by a surging demand from the aerospace industry. Most countries experienced surpassing pre-pandemic levels in domestic commercial aviation revenue passenger kilometers within the aerospace sector. This upswing in air travel generated a heightened demand for new aircraft and aftermarket products and services. For instance, Air India placed the largest aircraft purchase order of 470 narrow bodies and widebodies. It’s lightweight attributes contribute to fuel efficiency and elevate overall performance.
Additionally, as the automotive sector is investing intensively in electric vehicles (EVs), lightweight materials are in high demand to extend the battery range. With its formidable strength and minimal weight, carbon fiber emerges as a compelling solution for EV manufacturers. The International Energy Agency (IEA) reported a sales figure of over 2.3 million electric cars in the first quarter of 2023, marking a 25% increase compared to the prior year.
Furthermore, the renewable energy sector emerges as a promising frontier for growth. Specifically, the wind energy industry reaps the benefits of carbon fiber’s durability and resistance to corrosion. The global shift towards sustainable energy sources is anticipated to propel market growth as the demand for lightweight and durable materials in wind turbine blades is expected to soar.
However, the high cost of carbon fiber manufacturing is hindering the market growth. The production is inherently resource-intensive, demanding innovation from manufacturers to streamline production and reduce costs, enhancing the material’s competitiveness. Given the energy-intensive processes in traditional carbon fiber production, environmental concerns also challenge the market.
Collaboration across industries, especially in research and development, becomes pivotal in addressing these challenges. This collaborative approach fosters innovations that drive down costs and open new application possibilities. Government initiatives and policies supporting the use of carbon fiber in critical sectors can provide a significant boost. Advocating for incentives and subsidies for industries adopting carbon fiber becomes instrumental, stimulating market growth and encouraging broader adoption of this advanced material.
Segment Analysis of Global Carbon Fiber Market
The Global Carbon Fiber Market is segmented based on Raw Materials, Fiber Type, Product, Modulus, Applications, and End-User.
By Raw Materials, the market is segmented into PAN-based Carbon Fibers, Pitch-Based Carbon Fiber, and Rayon-Based Carbon Fiber. The polyacrylonitrile (PAN) segment currently dominates the market. PAN’s superior properties contribute to its widespread acceptance across various application industries. Additionally, the increasing demand for carbon fiber with a higher strength-to-weight ratio drives the extensive use of PAN-based Fibers. Additionally, PAN-based carbon fibers offer more strength-to-weight ratio than Pitch-based and Rayon-based fibers. They enhance stiffness and mechanical properties, making them ideal for demanding applications. Moreover, PAN fibers also exhibit better temperature resistance and dimensional stability, ensuring reliability in diverse environments. Industries requiring high-performance materials prefer PAN-based fibers due to their advantages. Despite being more expensive than alternatives, these fibers see extensive use.
By End-User, the market is segmented into Aerospace & Defense, Automotive, Wind Turbines, Sports & Leisure, Construction, and Others. During the forecast period, the Aerospace & Defense segment is expected to dominate the market, with carbon fiber, renowned for its superior strength-to-weight ratio, gaining prominence as it replaces metals in aerospace. This substitution of metals aims to decrease aircraft weight, consequently improving fuel efficiency. The aerospace sector demands lightweight and rigid materials for aircraft, rockets, satellites, and missiles, playing a crucial role in determining performance. Major aircraft manufacturers like Boeing and Airbus drive the demand for the market in the aerospace & defense industry in the U.S. and Europe. Additionally, in Asia, particularly in emerging economies like China and India, the market in aerospace technology is anticipated to experience the highest growth rate, fueled by the increasing demand for commercial aircraft.
Furthermore, in the defense industry, carbon fiber-reinforced plastics (CFRP) find applications in missile defense, ground defense, and military marine. Global defense expenditure is growing year on year. In 2023, total global defense spending increased by 9% to reach a new high of USD 2.2 Trillion, due to the heightened geopolitical tensions caused by Russia’s invasion of Ukraine. The top three countries with the highest defense expenditure were the United States, China, and Russia. Such trends in the aerospace and defense industries are expected to drive the market.
Regional Analysis of the Global Carbon Fiber Market
Key end-user industries in countries like China and India are expected to drive the fastest growth in the Asia-Pacific carbon fiber market, with a high CAGR anticipated. China is experiencing rapid industrialization and technological advancements, creating a demand for lightweight and durable materials. Additionally, the increasing automotive and aerospace sectors in the region have escalated the market demand. In the 2024 Spring Festival travel rush, Air China aims to increase its passenger flights to over 67,000, marking a 32% rise from the 2019 period and a more than 40% increase from last year’s level.
Meanwhile, with its expanding renewable energy sector and increased focus on sustainability, India is witnessing a rise in the adoption of carbon fiber across various applications. The active growth of these industries in the Asia Pacific region positions it as a significant player in the global market.
List of Companies
The report provides profiles of the key companies, outlining their history, business segments, product overview, and company financials. Some companies from competitive analysis are DowAksa, Zoltek, Sigmatex Ltd., Toho Tenax Europe GmbH, etc.
Key Developments
The Mitsubishi Chemical Group acquired CPC, the Italian manufacturer of carbon fiber composite components, for the automotive industry. – Oct 2023
Frequently Asked Questions
How Much Is The Global Carbon Fiber Market Size?
The Global Carbon Fiber Market is set to surge from USD 3.33 Bn in 2023 to a projected USD 5.28 Bn by 2028, growing at a CAGR of 9.66%.
What Are The Major Global Carbon Fiber Market Driver?
- Increasing Demand in Automotive and Aerospace Industries
- Increase in Use in Wind Energy
- Government Initiatives Associated with Eco-Friendly Material Adoption
- Rise in Demand for Regular Tow Carbon in Pressure Vessels
What are the Major Market Opportunities?
- Rise in the Use in 3D Printing
- Increasing Lightweight Material is in Demand
Who Are The Carbon Fiber Market Players?
DowAksa, Zoltek, Sigmatex Ltd., Toho Tenax Europe GmbH, etc.
