Carbon Fiber Market Size & Share Analysis - Growth Trends and Forecast (2026 - 2031)

Global Carbon Fiber Market Trends and Insights

Rising Production of Hydrogen and CNG Pressure Vessels for Commercial Mobility

Type IV cylinders that wrap polymer liners with carbon fiber now define the 700-bar storage standard for fuel-cell trucks, buses, and trains. Voith’s Carbon4Tank cleared UNECE Regulation 134 burst-pressure tests above 1,050 bar, opening series supply to European heavy-duty fleets^{[1]Voith, “Carbon4Tank Certification Update,” voith.com}. The U.S. Department of Energy calculated a cost of USD 12.7 per kilowatt-hour in 2024, down from USD 18 in 2020, as filament-winding automation and precursor price stability improved economics^{[2]U.S. Department of Energy, “Hydrogen Storage Cost Targets,” energy.gov}. Luxfer and Hexagon Purus enlarged North American and European manufacturing footprints, each tank incorporating 25-30 kg of fiber and delivering 8-12% higher payload versus steel cylinders. ISO 11119 and DOT FMVSS 304 fatigue requirements over 15,000 cycles reinforce the reliability edge against aluminum-lined alternatives. Fleet operators see lower lifetime cost from lighter tanks, which accelerates commercial adoption in long-haul corridors.

Rapid Deployment of Offshore Wind Turbines Requiring High-Strength Blades

Next-generation turbines in the 11-22 MW class employ 100-143 m blades that need spar-cap tensile strength exceeding 4,800 MPa. Siemens Gamesa’s B108 integrates carbon-fiber spars to shave 20% blade mass, lowering tower-top loads and installation cost. Mingyang Smart Energy’s 143 m blade for an 18 MW platform consumes 15-18 tons of fiber, translating to roughly 50,000 tons of annual demand for offshore blades alone. Europe added 4.2 GW of offshore capacity in 2024, and blade carbon-fiber content climbed to 25-30% of mass, up from 15% in 2020. Taiwan and Japan deploy floating platforms in typhoon-prone waters, where carbon composites withstand cyclic fatigue 30-40% better than glass fiber. These factors secure a multiyear pull for structural composites across Asian and European coastlines.

Adoption of Battery-Pack Enclosures and Lightweighting in EV Platforms

Automakers replace steel enclosures with carbon-fiber-reinforced structures that deliver 40-60% weight savings and extend range 8-12% per 100 kg shed. SGL Carbon and Continental Structural Plastics co-developed a thermoplastic tray meeting UL 2596 fire standards, now in production for a European premium EV launched in 2025. Magna International supplies carbon-fiber body panels that cut body-in-white mass 18% and lower the center-of-gravity for battery SUVs. United States Inflation Reduction Act incentives catalyze domestic sourcing, and Toray’s South Carolina expansion targets 5,000 tons of automotive fiber by 2027. Crash-test validation under FMVSS 208/214 confirms 25-30% higher energy absorption than high-strength steel, dispelling safety concerns.

3D Automated Fiber-Placement Lines Slashing Composite Cycle Times

Laser-assisted AFP heads now lay 32 tows at 1,000 mm per minute, halving cycle times for fuselage and wing panels. Boeing’s 777X wing-spar line using Electroimpact machines cuts labor cost 30-50% versus manual layup. Fives Group integrated AFP with filament winding, processing hydrogen tank liners in 12 minutes instead of 45 minutes. Thermoplastic towpreg enables in-situ consolidation that eliminates autoclave curing and lowers energy use by 60-70%. Aerospace suppliers report panels that meet ASTM D5528 fracture-toughness criteria while reducing scrap from 15-20% to below 5%. These gains bring carbon composites into mid-volume automotive and industrial programs.

Energy-Intensive Oxidation and Carbonization

Producing one kilogram of fiber consumes 50-100 kWh and emits 20-30 kg of CO₂, up to five times more than aluminum extrusion. European electricity costs of EUR 0.15-0.25 per kWh in 2024-2025 raised manufacturing costs by USD 5-8 per kg, widening the gap with Asian suppliers powered by low-cost coal. Toray targets a 30% absolute emissions cut by 2030 via renewable electricity and waste-heat recovery at its Hungary site, yet carbonization furnaces still lock in high intensity. Mitsubishi Chemical pilots lower-temperature PAN that trims energy 15-20%, but commercial rollout is two to three years away. Customers now request Environmental Product Declarations under ISO 14025, so fiber makers must invest an estimated USD 500 million to reach the 2030 target of below 15 kg CO₂ per kg of fiber.

Supply-Chain Risks for Recycled Carbon Fiber Feedstock

Recycled fiber depends on end-of-life aerospace and wind composites, yet only 15-20% of retired blades and aircraft scrap enter recovery streams. ELG Carbon Fibre’s 2,000 ton UK plant processes pyrolyzed offcuts but faces inconsistent fiber length and tensile strength that vary 20-30% lot to lot. Intellectual-property concerns keep airframers from releasing scrap schedules, limiting guaranteed feedstock volumes. Gen 2 Carbon’s U.S. thermoplastic process preserves fibers above 50 mm, but it cannot treat the thermoset epoxies dominant in aerospace. Feedstock pricing swings between USD 5-15 per kg, complicating long-term contracts, and certification gaps keep recycled material largely out of primary structures despite ASTM D7078 test methods.

Segment Analysis

By Raw Material: PAN Precursor Dominance Anchors Supply Economics

Polyacrylonitrile captured 95.18% of the 2025 volume and is anticipated to grow with a CAGR of 18.91% during the forecast period. Its strong carbon yield keeps average cost near USD 12-14 per kg even after energy surcharges, helping the carbon fiber market defend against thermoplastic substitution. Tight supply in 2024-2025 lifted spot PAN to USD 8-10 per kg, forcing some converters to invoke force-majeure clauses on automotive contracts. China’s Jilin Chemical and Bluestar control up to 70% of global precursor capacity, giving Asia-Pacific leverage over global pricing. 

Pilot programs for microwave-assisted oxidation show 25-30% faster cycle time and 15-20% lower energy use, pointing to a structural cost decline after 2028. Pitch and rayon remain niche but vital for ultra-high-modulus spacecraft structures and thermal barriers that demand modulus above 800 GPa. Hyosung’s 4,000-ton expansion and bio-based acrylonitrile initiatives promise a 30-40% lifecycle-emission cut, aligning with OEM net-zero targets. The carbon fiber market size for PAN-based grades is projected to move in lockstep with acrylonitrile availability; any prolonged outage in Shandong or Jiangsu could ripple through the value chain within nine months.

By Fiber Type: Recycled Fiber Gains as Circularity Mandates Intensify

Virgin grades kept 62.95% share in 2025, mainly serving aerospace and defense programs that require lot-traceability and tight mechanical tolerances. Recycled volumes are anticipated to grow with a CAGR of 19.87 through 2031 on the back of automotive and wind energy pull, yet certification for primary structures remains outside the 2026 planning horizon. 

ELG Carbon Fibre recovers 90-95% of virgin strength from aerospace scrap, enabling seat frames and overhead bins at 30-50% lower cost. Karborek’s solvolysis route retains fibers above 80 mm but must manage solvent waste streams that raise operating costs. Gen 2 Carbon closes the loop on thermoplastic parts, a key differentiator as EV battery-tray volumes rise. The carbon fiber market share for recycled grades is poised to widen further once wind-blade decommissioning accelerates after 2027, providing a stable feedstock base.

Note: Segment shares of all individual segments available upon report purchase

By Application: Composite Materials Anchor Demand Across End-Use Sectors

Composite materials controlled 87.77% of the 2025 volume, reflecting the broad reliance on epoxy and thermoplastic matrices in aerospace fuselages, wind blades, and hydrogen tanks. Automated layup and AFP adoption carved 20-30% out of part cost in 2024-2025, reinforcing carbon fiber’s economic edge over aluminum. 

Textile use in protective apparel remains a niche due to the fiber’s brittleness, while micro-electrodes will expand at 25.55% CAGR through 2031 on the back of neural-interface trials that show 30-40% higher signal-to-noise versus noble metal electrodes. Catalysis applications use woven fiber for gas-diffusion layers in fuel cells, supporting stack lifetimes of 8,000-10,000 hours. Overall, the composite segment will retain more than 80% of the carbon fiber market size as no competing material matches the stiffness-to-weight and fatigue profile required by high-energy infrastructure.

By End-User Industry: Alternative Energy Leads as Automotive Accelerates

Alternative energy absorbed 27.21% of 2025 demand, with offshore blades and hydrogen tanks jointly accounting for most incremental volume. The carbon fiber market size attached to clean-energy applications will keep expanding in tandem with 22 MW offshore turbines and 700-bar fuel-cell trucks. 

Aerospace programs use the highest-value fibers but face cyclical build rates; wide-body output could remain below 2019 levels until 2027. Automotive adoption grows as EV battery prices drop below USD 80 per kWh, freeing budget for lightweight body-in-white designs. Construction retrofits in seismic zones and high-spec sporting goods complete the demand mosaic. Other end-user industries, including marine propellers and robotic arms, will post the fastest CAGR of 25.98% through 2031, assisted by corrosion-resistant requirements in harsh environments.

Note: Segment shares of all individual segments available upon report purchase

Geography Analysis

Asia-Pacific led the carbon fiber market with 44.89% share in 2025 and is set to grow at a 20.75% CAGR through 2031. China’s vertically integrated precursor-to-fiber chains, Japan’s aerospace-grade specialties, and India’s offset policies guarantee strong local pull. Taiwan’s 4.5 GW offshore wind fleet and South Korea’s automotive suppliers add further upside. Low electricity prices and captive acrylonitrile supply cement the region’s cost advantage.

North America ranks second by volume, boosted by Boeing, Lockheed Martin, and battery-electric vehicle initiatives tied to the Inflation Reduction Act incentives. Toray’s 5,000 ton South Carolina line will cover automotive grades, while Hexcel’s Salt Lake City expansion supports 787 and A350 wing spars. Recycled-fiber networks in Washington and Maine supply Tier 1 automotive interiors, expanding domestic circularity.

Europe combines offshore wind, strict vehicle emissions rules, and Airbus aerostructures to maintain high utilization despite energy-price volatility. Siemens Gamesa blades integrate carbon-fiber spar caps that reduce mass by 20%. Germany’s automakers rely on thermoplastic composites from SGL Carbon’s Meitingen plant to meet the 95 g/km CO₂ target. The EU Critical Raw Materials Act encourages domestic capacity, and Toray’s Hungary site now sources renewable electricity to cut lifecycle emissions 30%.