Carbon Fiber Market Size, Share, Growth Analysis, By Raw material, By Product Type, By Application, By Application, By End Use Industry, By Region - Industry Forecast 2024-2031

Carbon Fiber Market size was valued at USD 4.12 Billion in 2022 and is poised to grow from USD 4.51 Billion in 2023 to USD 9.25 Billion by 2031, growing at a CAGR of 9.4% in the forecast period (2024-2031).

Carbon fiber consists of carbon atoms linked in long chains, forming a highly durable and lightweight material. The market for carbon fiber is expanding rapidly due to its diverse applications across industries such as aerospace, automotive, and renewable energy. In aerospace, its lightweight and strength characteristics are essential for enhancing fuel efficiency and performance. According to an analysis by SkyQuest, the demand for carbon fiber is projected to reach 180,400 metric tons by 2026, driven largely by China's significant market presence. The rise in electric vehicles (EVs) also supports this demand, as manufacturers work to optimize battery system loads. Additionally, growing needs in the automotive, aerospace, defense, and wind energy sectors are fueling the global carbon fiber market. Despite this growth, the market faces challenges, including high production costs and complex manufacturing processes. Recycling and lifecycle concerns also pose difficulties. However, technological advancements and expanding applications are expected to drive significant growth in the coming years. The increasing adoption of wind farms, government support for advanced materials, and a strong defense sector seeking durable composites further bolster the market. Moreover, the rise of electric vehicles and the presence of leading carbon fiber producers contribute to the rapid expansion of the carbon fiber market.

Top-down and bottom-up approaches were used to estimate and validate the size of the Global Carbon Fiber market and to estimate the size of various other dependent submarkets. The research methodology used to estimate the market size includes the following details: The key players in the market were identified through secondary research, and their market shares in the respective regions were determined through primary and secondary research. This entire procedure includes the study of the annual and financial reports of the top market players and extensive interviews for key insights from industry leaders such as CEOs, VPs, directors, and marketing executives. All percentage shares split, and breakdowns were determined using secondary sources and verified through Primary sources. All possible parameters that affect the markets covered in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analyzed to get the final quantitative and qualitative data.

Global Carbon Fiber Market Segmental Analysis

The carbon fiber market is segmented based on raw material, fiber type, modulus, product type, application, end use industry, and region. Based on the Raw Material, the market is segmented into Pan-based Carbon Fiber and Pitch-based Carbon Fiber (Petroleum-based Pitch Carbon Fiber, Coal-based Pitch Carbon Fiber). Based on the Fiber Type, the market is segmented into Virgin Carbon Fiber and Recycled Carbon Fiber. Based on Modulus, the market is segmented into Standard Modulus, Intermediate Modulus, and High Modulus. Based on Product Type, the market is segmented into continuous carbon fiber, long carbon fiber, and short carbon fiber. Based on the Application, the market is segmented into Composites (Prepregs, Molding Compounds, Woven Fabrics), and Non-Composites. Based on End Use Industry, the market is segmented into Aerospace & Defense (Rockets, Space Vehicles, Habitation Equipment, UMA (Urban Air Mobility) And Small Aircraft Equipment), Automotive (Interior Components, Exterior Components, Small Mobility Application), Pipes, Wind Energy, Sports Good, Medical & Healthcare (Diagnostics Imaging, Body Implant, Surgical Instruments, And Others), Construction & Infrastructure (Building Infrastructure, Civil Infrastructure), and Others (Marine, Electric & Electronics). Based on the Region, the market is segmented into North America, Europe, Asia-Pacific, South America, and Middle East and Africa.

Drivers of the Global Carbon Fiber Market

The integration of carbon fiber in 3D printing technology arises from the need for stronger and more rigid materials in printed components. Carbon Fiber Reinforced Polymer (CFRP) filaments and resins are utilized to produce lightweight yet durable parts for industries such as aerospace, automotive, and household appliances. This trend is driven by advancements in additive manufacturing, which enable the creation of complex geometries that traditional methods cannot achieve. These advancements also allow for the optimization of designs to enhance their mechanical properties, further supporting the growing use of carbon fiber in 3D printing.

Restraints in the Global Carbon Fiber Market

Carbon composites are extensively used across industries such as aerospace, automotive, construction, oil and gas, and wind energy due to their high performance and lightweight properties. However, the high cost of these composites remains a significant barrier to their broader adoption. The expense of carbon fiber is primarily influenced by the yield and cost of the precursor materials used in its production. Currently, non-aerospace quality PAN-based carbon fibers cost approximately USD 21.5 per kilogram, with a conversion efficiency of only 50%. This high cost is a major factor limiting the widespread use of carbon composites in various sectors.

Market Trends of the Global Carbon Fiber Market

Researchers and industry experts are actively working on developing carbon fibers (CF) and composites from coal tar, a byproduct of coke production in the steel industry. This innovation aims to enhance the value of coal tar pitch (CTP) by creating low-weight, high-stiffness composites. A notable partnership between the University of Kentucky Center for Applied Energy Research (CAER) and the U.S. Department of Energy's Oak Ridge National Laboratory (ORNL) has been established to address critical issues in coal feedstock types, coal processing, and carbon fiber production. CAER's focus will be on generating carbon fibers from various coal feedstocks, advancing the potential applications and performance of these materials.