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Carbon Fiber Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

The Carbon Fiber Market is segmented by Raw Material (Polyacrtlonitrile and Petroleum Pitch and Rayon), Type (Virgin Fiber and Recycled Fiber), Application (Composite Materials, Textiles, Microelectrodes, and Catalysis), End-user Industry (Aerospace and Defense, Alternative Energy, Automotive, Construction and Infrastructure, Sporting Goods, and Other End-user Industries), and Geography (Asia-Pacific, North America, Europe, South America, and Middle-East and Africa).

Carbon Fiber Market Snapshot

Carbon Fiber Market Overview
Study Period: 2016 - 2026
Base Year: 2020
Fastest Growing Market: Asia Pacific
Largest Market: Asia Pacific
CAGR: 5.9 %
Carbon Fiber Market Major Players

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Market Overview

The carbon fiber market was valued at USD 2589.46 million in 2020, and the market is projected to register a CAGR of 5.9% during the forecast period (2021-2026).

Due to COVID-19, the production in various industries, including automotive, construction, aerospace, etc., decreased. The global automotive supply industry has been heavily impacted by the COVID-19 pandemic. The production and sales of motor vehicles have come to a sudden halt in most parts across the world. The aerospace and defense industry, which is a major end-user of the carbon fiber market, took a major hit in 2020, owing to COVID-19. Some players in the aerospace manufacturing industry, including Boeing and Rolls-Royce, even announced production cuts. Thus, the carbon fiber market is negatively impacted by COVID-19.

  • In the medium term, the major factors driving the growth of the market studied are accelerating usage in the aerospace and defense sector and the increasing application in the wind energy sector.
  • On the flip side, high prices of carbon fiber have been acting as a roadblock to the growth of the market studied.
  • The increasing popularity of recycled carbon fiber is likely to act as an opportunity for the market studied over the forecast period.
  • In terms of volume and value, Asia-Pacific dominated the market across the world, with China accounting for most of the demand.

Scope of the Report

Carbon fiber is composed of carbon atoms bonded together to form a long chain. The fibers are extremely stiff, strong, and light and are used in many processes to create excellent building materials. The carbon fiber market is segmented by raw material, type, application, end-user industry, and geography. By raw material, the market is segmented into polyacrylonitrile and petroleum pitch and rayon. By type, the market is segmented into virgin fiber and recycled fiber. The applications of carbon fiber comprise composite materials, textiles, microelectrodes, and catalysis. By end-user industry, the market is segmented into aerospace and defense, alternative energy, automotive, construction and infrastructure, sporting goods, and other end-user industries. The report also covers the market size and forecasts for the carbon fiber market in 15 countries across major regions. For each segment, the market sizing and forecasts have been done on the basis of volume (kiloton) and value (USD million).

Raw Material
Polyacrtlonitrile (PAN)
Petroleum Pitch and Rayon
Type
Virgin Fiber (VCF)
Recycled Fiber (RCF)
Application
Composite Materials
Textiles
Microelectrodes
Catalysis
End-user Industry
Aerospace and Defense
Alternative Energy
Automotive
Construction and Infrastructure
Sporting Goods
Other End-user Industries
Geography
Asia-Pacific
China
India
Japan
South Korea
Rest of Asia-Pacific
North America
United States
Canada
Mexico
Europe
Germany
United Kingdom
Italy
France
Rest of Europe
South America
Brazil
Argentina
Rest of South America
Middle-East and Africa
Saudi Arabia
South Africa
Rest of Middle-East and Africa

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Key Market Trends

Polyacrylonitrile (PAN) to Dominate the Market

  • Polyacrylonitrile is the most versatile precursor for carbon fiber. Also known as Creslan 61, it is a synthetic semi-crystalline polymer resin. Almost 90% of carbon fiber is produced using PAN.
  • During the production of carbon fibers, initially, the PAN precursor material is spun into a fiber form. It is then stretched and subjected to an oxidizing atmosphere and temperatures of about 200 ‐ 240 °C for approximately 24 hours. The stabilized fibers are then heated in an inert atmosphere up to 1500 °C. Then the fibers are heated to 3000 °C in an inert environment, leading to graphitization.
  • PAN is a thermoplastic resin having an uncharacteristically high melting point. PAN-based carbon fibers have a relatively higher coat than pitch-based fibers and have good mechanical properties (high tensile strength). They are preferred in major applications, owing to high carbon yield, the potential of polymer to undergo cyclization reactions, and the lowest fraction of voids, which result in higher strength and stability, along with the flexibility to tailor the structure of the final product.
  • PAN is used as a precursor for the production of carbon fiber for aerospace and defense applications and the sporting equipment industry. The aerospace and defense, and sporting equipment industries are registering high growth, owing to the increasing adoption of sports and recreational activities and increasing health awareness, which is expected to drive the market for PAN as a raw material in carbon fiber through the forecast period in post-COVID-19 recovery times.
  • Toray CFE, Merck KGaA, Hexcel Corporation, SABIC, and Teijin Limited are some of the major manufacturers of PAN.
  • Owing to the aforementioned factors, the demand for PAN carbon fiber is expected to rise during the forecast period.
Carbon Fiber Market Trends

Asia-Pacific to Dominate the Market

  • China is the largest manufacturer of automobiles in the world. The country’s automotive sector has been shaping up for product evolution, with the country focusing on manufacturing products to ensure fuel economy and minimize emissions, owing to the increasing environmental concerns due to mounting pollution in the country. However, the market witnessed a shrink from 2018 to 2020 due to the trade war between China and the United States is the major reason for the drop in sales, along with the low domestic demand and COVID-19 impact. 
  • According to International Organization of Motor Vehicle Manufacturers (OICA), the automotive production decline by about 2% in 2020. The country produced 25,225,242 units in 2020, which declined from 25,720,665 units in 2019. the decline in the automotive production is expected to impact the demand of carbon fiber in the country.
  • However, the COVID-19 outbreak created huge uncertainty in the market, which is posing a negative trend for both the automotive market and the demand for carbon fiber in automotive applications.
  • Moreover, the country's aircraft parts and assembly manufacturing sector is growing at a rapid pace, with over 200 small aircraft parts manufacturers. Major manufacturers are concentrated in Nanchang, Shanghai, Chengdu, Xi’an, Harbin, Shijiazhuang, and Shenyang. The Chinese aerospace policy represents one of the most comprehensive attempts to enter the top levels of aerospace development and production. China is expected to be the world’s largest single‐country market for civil aircraft sales over the next 20 years. Under the plan, ‘Made in China 2025’, China is expected to supply over 10% of homemade commercial aircraft to the domestic market by 2025.
  • China is the world's largest electronics manufacturing base, and current upstream manufacturers, such as South Korea, Singapore, and Taiwan, face stiff competition. In terms of demand, electronic items have the greatest growth rates in the consumer electronics section of the industry in the country. The demand for electronic items is expected to rise gradually in the future as the middle-class population's disposable incomes rise, pushing the market studied.
  • All the aforementioned factors are expected to show significant impact on the demand for carbon fiber market in the region over the forecast period.
Carbon Fiber Market Growth

Competitive Landscape

The carbon fiber market is a consolidated market, where the top ten players accounting for more than 88% of the total global production capacity. The major companies in the carbon fiber market include Toray Industries Inc., SGL Carbon, Mitsubishi Chemical Corporation, Teijin Limited, and Hexcel Corporation, among others.

Recent Developments

  • In April 2021, Hyosung Advanced Materials signed a contract with Hanhwa Solutions to supply reinforced carbon fiber used in high-pressure containers for the long term.
  • In April 2021, Mitsubishi Chemical Corporation entered into a partnership agreement with Dymon Co. Ltd, the robot and space development venture. Based on this agreement, MCC will provide carbon fiber reinforced plastic (CFRP) components and thermoplastic materials as well as technical support. 
  • In November 2020, SGL Carbon and Koller Kunststofftechnik manufacture composite windshields for BMW Group, for which SGL Carbon will be supplying innovative carbon fiber profiles.
  • In October 2020, Hyosung Group is strengthening its partnership with Saudi Aramco (Arabian American Oil Company), the world's largest comprehensive petrochemical company, for cooperation in the carbon fiber market, including the construction of new plants.
  • In July 2020, Teijin Carbon Europe and the United Kingdom’s National Composites Centre strengthened their innovation partnership in carbon fiber composite materials.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Drivers

      1. 4.1.1 Recent Advancements in the Aerospace and Defense Sector

      2. 4.1.2 Increasing Applications in the Wind Energy Sector

    2. 4.2 Restraints

      1. 4.2.1 Negative Economic Fallout of COVID-19

      2. 4.2.2 Other Restraints

    3. 4.3 Industry Value Chain Analysis

    4. 4.4 Porter's Five Forces Analysis

      1. 4.4.1 Bargaining Power of Suppliers

      2. 4.4.2 Bargaining Power of Consumers

      3. 4.4.3 Threat of New Entrants

      4. 4.4.4 Threat of Substitute Products and Services

      5. 4.4.5 Degree of Competition

    5. 4.5 Price Analysis

    6. 4.6 Technology Landscape - Quick Snapshot

    7. 4.7 Production Analysis

  5. 5. MARKET SEGMENTATION

    1. 5.1 Raw Material

      1. 5.1.1 Polyacrtlonitrile (PAN)

      2. 5.1.2 Petroleum Pitch and Rayon

    2. 5.2 Type

      1. 5.2.1 Virgin Fiber (VCF)

      2. 5.2.2 Recycled Fiber (RCF)

    3. 5.3 Application

      1. 5.3.1 Composite Materials

      2. 5.3.2 Textiles

      3. 5.3.3 Microelectrodes

      4. 5.3.4 Catalysis

    4. 5.4 End-user Industry

      1. 5.4.1 Aerospace and Defense

      2. 5.4.2 Alternative Energy

      3. 5.4.3 Automotive

      4. 5.4.4 Construction and Infrastructure

      5. 5.4.5 Sporting Goods

      6. 5.4.6 Other End-user Industries

    5. 5.5 Geography

      1. 5.5.1 Asia-Pacific

        1. 5.5.1.1 China

        2. 5.5.1.2 India

        3. 5.5.1.3 Japan

        4. 5.5.1.4 South Korea

        5. 5.5.1.5 Rest of Asia-Pacific

      2. 5.5.2 North America

        1. 5.5.2.1 United States

        2. 5.5.2.2 Canada

        3. 5.5.2.3 Mexico

      3. 5.5.3 Europe

        1. 5.5.3.1 Germany

        2. 5.5.3.2 United Kingdom

        3. 5.5.3.3 Italy

        4. 5.5.3.4 France

        5. 5.5.3.5 Rest of Europe

      4. 5.5.4 South America

        1. 5.5.4.1 Brazil

        2. 5.5.4.2 Argentina

        3. 5.5.4.3 Rest of South America

      5. 5.5.5 Middle-East and Africa

        1. 5.5.5.1 Saudi Arabia

        2. 5.5.5.2 South Africa

        3. 5.5.5.3 Rest of Middle-East and Africa

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements

    2. 6.2 Market Share Analysis

    3. 6.3 Strategies Adopted by Leading Players

    4. 6.4 Company Profiles

      1. 6.4.1 A&P Technology Inc.

      2. 6.4.2 Anshan Sinocarb Carbon Fibers Co. Ltd

      3. 6.4.3 DowAksa USA LLC

      4. 6.4.4 Formosa Plastics Corporation

      5. 6.4.5 Hexcel Corporation

      6. 6.4.6 Holding company "Composite"

      7. 6.4.7 Hyosung Advanced Materials

      8. 6.4.8 Jiangsu Hengshen Co. Ltd

      9. 6.4.9 Kangde Xin Composite Material Group

      10. 6.4.10 Mitsubishi Chemical Corporation

      11. 6.4.11 Nippon Graphite Fiber Co. Ltd

      12. 6.4.12 SGL Carbon

      13. 6.4.13 Solvay

      14. 6.4.14 Teijin Limited

      15. 6.4.15 Toray Industries Inc.

      16. 6.4.16 Zhongfu Shenying Carbon Fiber Co. Ltd

    5. *List Not Exhaustive
  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

    1. 7.1 Increasing Popularity of Recycled Carbon Fiber

    2. 7.2 Emphasis on Usage of Lignin as Raw Material for Carbon Fiber

**Subject to Availability

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Frequently Asked Questions

The Carbon Fiber Market market is studied from 2016 - 2026.

The Carbon Fiber Market is growing at a CAGR of 5.9% over the next 5 years.

The Carbon Fiber Market is valued at 2589 Million USD in 2016.

Asia Pacific is growing at the highest CAGR over 2021- 2026.

Asia Pacific holds highest share in 2020.

Mitsubishi Chemical Corporation, TEIJIN LIMITED, Hexcel Corporation, SGL Carbon, TORAY INDUSTRIES INC. are the major companies operating in Carbon Fiber Market.

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