Global Carbon Fiber Market Soars to $6.70 Billion by 2028, Driven by Aerospace and Automotive Industries' Demand for Lightweight Solutions

Dublin, Nov. 06, 2023 (GLOBE NEWSWIRE) -- The "Global Carbon Fiber Market: Analysis By Volume, By Raw Material, By Tow Size, By Application, By Industry Vertical, By Region, Size & Forecast with Impact Analysis of COVID-19 and Forecast up to 2028" report has been added to's offering.

The global carbon fiber market in 2022 was valued at US$3.95 billion and is expected to reach US$6.70 billion by 2028, growing at a CAGR of 9.17%, during the forecast period of 2023-2028.

The market's expansion is driven by its extensive use in various industries, including aerospace, automotive, wind energy, sports and leisure, construction, and marine, owing to its exceptional strength-to-weight ratio and corrosion resistance properties.

Carbon Fiber: Lightweight and High-Strength Material

Carbon fiber is a lightweight and exceptionally strong material composed of thin fibers primarily made of carbon atoms. It is produced through a multi-step process that converts precursor materials like polyacrylonitrile (PAN) or pitch into carbon fibers through high-temperature heating and stretching. The resulting material is known for its remarkable strength-to-weight ratio, high stiffness, and resistance to corrosion, making it a preferred choice for high-performance applications across various sectors.

Market Segmentation Analysis

  • By Raw Material: The global carbon fiber market is categorized into two segments based on raw materials: Polyacrylonitrile-based (PAN-based) and Pitch-based. PAN-based carbon fiber dominates the market due to its widespread use in the aerospace industry, where it offers high strength, low heat expansion, moisture resistance, lightweight properties, and excellent thermal conductivity.
  • By Tow Size: The market is divided into two segments based on tow size: Small Tow and Large Tow. Small tow fibers, characterized by rovings containing 24,000 filaments or less, are prominently used in the aerospace and defense sector due to their impressive modulus and tensile strength.
  • By Application: The global carbon fiber market is divided into two application segments: Composites and Non-Composites. Composite materials find applications in industries such as aerospace, automotive, and wind energy, driven by the need for lightweight materials to enhance fuel efficiency and reduce emissions.
  • By Industry Vertical: The market is segmented into eight industry verticals, including Aerospace and Defense, Automotive, Wind Energy, Sporting Goods, Building and Construction, Marine, Textiles, and Others. Aerospace and Defense dominated the market in 2022, primarily due to the quest for lightweight materials to improve aircraft fuel efficiency.
  • By Region: The global carbon fiber market is analyzed across four major regions: Asia Pacific, Europe, North America, and the Rest of the World. Europe led the market in 2022, driven by the expansion of the aerospace and defense sector. The Asia Pacific region is projected to experience rapid growth, fueled by infrastructure projects, construction composites, and the presence of prominent construction firms.

Global Carbon Fiber Market Dynamics

  • Growth Drivers: The global carbon fiber market is experiencing growth due to increasing demand from the aerospace and aviation industry, where lightweight materials are crucial to improving fuel efficiency. Carbon fiber's strength-to-weight ratio makes it ideal for manufacturing aircraft components, contributing to reduced fuel consumption and emissions. The automotive sector also employs carbon fiber to create lightweight components, aligning with global efforts for fuel efficiency and reduced emissions. Additionally, the wind energy sector relies on carbon fiber for lightweight yet sturdy wind turbine blades, contributing to the growth of renewable energy sources.
  • Challenges: Challenges facing the market include the high production cost of carbon fiber and the presence of substitute materials. The manufacturing process of carbon fiber is expensive, resulting in higher product prices. This cost factor restricts the adoption of carbon composites in various sectors, particularly for smaller manufacturers. Additionally, the market faces competition from alternative materials.
  • Trends: A notable trend in the carbon fiber market is the growing use of green carbon fiber. This trend is driven by concerns about climate change and a focus on sustainable materials. Companies are introducing innovative green carbon fiber products, such as those produced from bio-based feedstocks, to meet the demand for environmentally-conscious solutions. Other trends include increasing demand for carbon fibers in wind energy, 3D printing, suspension bridges, and hydrogen fuel storage.

Impact Analysis of COVID-19 and Way Forward:

The COVID-19 pandemic significantly impacted the carbon fiber market, causing disruptions in the supply chain, fluctuating demand, production slowdowns, and shifts in consumer behavior. Lockdowns, travel restrictions, and labor shortages disrupted supply chains, leading to delays, increased costs, and challenges for manufacturers. Reduced demand in sectors like aerospace, automotive, and construction, due to economic downturns and travel restrictions, also lowered carbon fiber product demand, resulting in decreased production and revenue.

As economies adapted to the new normal, the carbon fiber market demonstrated resilience. Investments in research and development continued, leading to innovative carbon fiber products and expanding its potential applications. In essence, the pandemic initially disrupted the carbon fiber market but ultimately accelerated its adoption in industries emphasizing sustainability and high performance. This shift in priorities is expected to create opportunities for carbon fiber applications in various sectors.

Competitive Landscape and Recent Developments:

The global carbon fiber market exhibits a consolidated structure characterized by fierce competition among industry leaders vying to expand their market presence. Prominent players in this market encompass renowned entities such as Toray Industries Inc., SGL Carbon, Mitsubishi Chemical Corporation, Hexcel Corporation, and Teijin Limited, alongside several other notable companies.

Key players of the carbon fiber market are:

  • SGL Carbon SE
  • DowAksa Advanced Composite Material Industries Ltd Co
  • Formosa Plastics Corp
  • Hexcel Corp
  • Hyosung Advanced Materials Corp
  • Kureha Corp
  • Mitsui Chemical Group Corp
  • Solvay SA
  • Teijin Ltd
  • Toray Industries Inc
  • Nippon Carbon Co., Ltd

Prominent players are adopting strategies such as expansion, mergers & acquisitions, and partnerships to strengthen their market presence in various regions. Companies in the industry continuously invest in research and development to improve their production processes, enhance product quality, and develop new applications. In February 2022, Teijin Limited disclosed the plans to collaborate with Fuji Design Co. Ltd, a Japanese company specializing in recycled carbon fibers. Their joint initiative aims to establish a venture focused on manufacturing, distributing, and marketing carbon fiber reinforced plastic products.

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