Carbon Fiber Market

Market Overview:

Carbon fiber is primarily composed of carbon atoms which are bonded together to form a long chain. The fibers are extremely strong, stiff, and light and are used in various processes to create excellent building materials. Carbon fiber is resistant to heat & corrosion and is conducive to electricity. It is extensively used in the reinforcement and strengthening of steel, concrete, masonry, and timber. Rising demand for lightweight products from automotive, aerospace & defense, and wind industries is propelling the global carbon fiber market product demand. Also, surging demand for carbon fiber composite in consumer electronics has made the end-products thinner and lighter, further augmenting the market growth. The global carbon fiber market was valued at USD 3.67 billion in 2022 and is likely to reach USD 6.85 billion by 2030, at a CAGR of 9.3%

Carbon Fiber Market Report Scope

Market Segmentation:

By Raw Material, the global carbon fiber market is bifurcated into PAN-based and Pitch-based. PAN-based is the dominating segment in carbon fiber market with revenue share of 90% in year 2022. Factors attributing market growth of the segment are growing demand for higher strength to weight ratio carbon fiber. Also, PAN precursor is increasingly used for its superior material properties. Moreover, lower cost of PAN in comparison to pitch-based carbon fiber further boosts the product demand. The pitch-based carbon fiber segment is expected to register a healthy CAGR during the review period. Pitch-based carbon fiber primarily consists of extremely thin carbon threads and also exhibit high melting point, strength, and durability, thus finds usage in automotive and aerospace sectors.

Based on type, the global carbon fiber market has been classified into continuous carbon fiber, long carbon fiber, and short carbon fiber. The continuous carbon fiber held the largest market share in 2022 owing to its superior strength and rigidity, which finds usage in energy, aerospace & defense, and automotive industries. The small tow fiber segment is likely to register the fastest CAGR of xx% during the forecast timeline. Small tow fibers are extensively used in the aerospace industry due to high modulus and high tensile strength when employed as a raw material for composites. Although, the price of small fibers is relatively costlier than large carbon fibers.

On the basis of application, the global carbon fiber market has been segmented into automotive, aerospace & defense, wind turbines, sport equipment, molding & compounding, construction, pressure vessels, and others. The aerospace & defense segment witnessed the largest share of more than 25% in 2022. There is a robust demand for PAN-based and pitch-based carbon fibers in commercial aircraft and satellite manufacturing. Due to corrosion and low weight, the commercial aircraft manufacturers possess high demand for PAN-based carbon fibers for next-gen aircraft to make them fuel-efficient. The wind turbine segment held a substantial share in 2022 and is projected to grow at a healthy CAGR by 2030. Growing need for energy efficient and lightweight wind turbines is likely to augment the segment growth.

Market Dynamics and Factors:

Growing automotive demand along with increasing need for lightweight vehicles are likely to boost the global carbon fiber market growth. Also, increasing need for fuel-efficient vehicles as well as strong government regulations pertaining to automotive pollution are further expected to spur the product demand. Moreover, rising demand for commercial aviation due to increased purchasing power and globalization has propelled the carbon fiber market industry growth in the coming years. The surge in demand in leisure and sport applications, in developing countries of Asia Pacific increases the product usage in sport sector. However, the outbreak of COVID-19 has negatively impacted the global carbon fiber market growth due to disruption in supply chain, production, and transportation of goods. Stringent lockdown and social distancing norms have limited production in manufacturing sites along with limit workforce, thus affected the global carbon fiber market industry growth amid the pandemic.

Geographical Analysis:

The European market garnered the highest market share in 2022 owing to presence of strong end-use sectors including aerospace & defense, automotive, and construction. The aerospace & defense industry is dominated by the new innovation and launch of Eurofighter and Airbus A320 family. The low interest rate of income tax and strong growth in the aerospace & defense industry in the region have further increased product penetration. Moreover, the region is an automotive hub and has a large presence of carmakers such as Ford, Volkswagen, BMW, DAF, and Daimler AG. In addition, stringent carbon emission standards further increase the product adoption in passenger cars to ensure fuel efficiency and lightweight. The Asia Pacific segment is estimated to register the highest CAGR of xx% during the assessment period. This is mainly ascribed to growing sales of automobiles, strong construction activities, and rising wind energy capabilities.

Key Market Segmentation

Global Carbon Fiber Market, By Raw Material

o    PAN-based

o    Pitch-based

Global Carbon Fiber Market, By Type

o    Continuous carbon fiber

o    Long carbon fiber

o    Short carbon fiber

Global Carbon Fiber Market, By Application

o    Automotive

o    Aerospace & Defense

o    Wind Turbines

o    Sport Equipment

o    Molding & Compounding

o    Construction

o    Pressure Vessels

o    Others

Global Carbon Fiber Market, By Region

North America

o    US

o    Canada

o    Mexico

Europe

o    Germany

o    UK

o    France

o    Italy

o    Spain

o    Rest of Europe

Asia-Pacific

o    China

o    India

o    Japan

o    South Korea

o    Rest of Asia-Pacific

Middle East and Africa

South America