Carbon Fiber Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

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). The report offers market size and forecasts for carbon fibers in terms of volume (ton) and revenue (USD million) for all the above segments.

Carbon Fiber Market Snapshot

carbon fiber market
Study Period: 2017-2027
Base Year: 2021
Fastest Growing Market: Asia Pacific
Largest Market: Asia Pacific
CAGR: >10 %

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Market Overview

The global carbon fiber market is estimated at around 123,710 tons in 2022 and is expected to register a CAGR of over 10% during the forecast period (2022-2027). 

Due to COVID-19, 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 of the world. Also, 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.

  • In the medium term, the major factors driving the growth of the market studied are recent advancements in the aerospace and defense sector and increasing applications in the wind energy sector.
  • On the flip side, supply chain security for recycled carbon fiber, and the availability of substitutes have been acting as a roadblock to the growth of the market studied.
  • The increasing popularity of recycled carbon fiber and the emphasis on the usage of lignin as raw material for carbon fiber is likely to act as opportunities 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 based on volume (ton) 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

Aerospace and Defense Industry to Dominate the Market

  • In the defense industry, the use of carbon fiber-reinforced plastics (CFRP) is present in missile defense, ground defense, and military marine.
  • In North America, higher consumer spending and the constant aging of commercial aircraft are among the primary factors influencing the overall product penetration of carbon fibers in the aerospace industry.
  • In Asia, the market for carbon fibers in aerospace technology is likely to witness the highest growth rate over the forecast period due to the rising demand for commercial aircraft across the region, especially in emerging economies, including China.
  • COVID-19 has accelerated several pre-existing trends in aviation and aerospace, with market participants identifying sustainable technologies, industry consolidation, and environmental, social, and corporate governance (ESG) as the three biggest themes in the post-COVID-19 space.
  • The global defense spending crossed USD 2 trillion for the first time in 2021. Global spending was 0.7% higher in 2021 compared to 2020. The top five countries with the highest defense spending were the United States, China, India, the United Kingdom, and Russia in 2021. They accounted for 62% of the total spending. This is likely to increase the demand for carbon fiber used in defense applications.
  • Such trends in the aerospace and defense industries are expected to drive the carbon fiber market.
Carbon Fiber Market - Segmentation Trend

Asia-Pacific to Dominate the Market

  • Asia Pacific region is expected to dominate the global market due to the growth of various end-user industries in countries like China and India.
  • Chinese airline companies are planning to purchase about 7,690 new aircraft in the next 20 years, which were valued at approximately USD 1.2 trillion, which is further expected to raise the market demand for carbon fiber.
  • According to the Boeing Commercial Outlook 2021-2040, in China, around 8,700 new deliveries will be made by 2040, with a market service value of USD 1,800 billion. Owing to such new deliveries in the country, the demand for carbon fiber is likely to rise.
  • According to the Stockholm International Peace Research Institute (SIPRI), India’s military spending of USD 76.6 billion ranked third highest in the world. This was up by 0.9% from 2020. In a push to strengthen the indigenous arms industry, 64% of capital outlays in the military budget of 2021 were earmarked for acquisitions of domestically produced arms.
  • India currently has the fourth-highest wind installed capacity in the world with a total installed capacity of 39.25 GW (as of 31st March 2021) and generated around 60.149 billion units during 2020-21. The expansion of the wind industry resulted in a strong ecosystem, project operation capabilities, and manufacturing base of about 10,000 MW per annum.
  • 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 Regional trends

Competitive Landscape

The carbon fiber market is a consolidated market, where the top five players account for more than 67% of the total global production capacity. The major companies in the carbon fiber market include Toray Industries Inc., Hexcel Corporation, Mitsubishi Chemical Corporation, SGL Carbon, and Teijin Limited, among others.

Recent Developments

  • In July 2022, Hexcel signed a long-term agreement with Dassault to supply carbon fiber prepreg for the Falcon 10X program. This is the first Dassault business jet program to incorporate high-performance advanced carbon fiber composites in manufacturing its aircraft wings.
  • In April 2022, Hexcel and Archer Aviation Inc. entered into a letter of intent covering a proposed relationship for supplying high-performance carbon fiber material that would be used to manufacture Archer’s production aircraft.
  • In February 2022, Teijin Limited announced to form a partnership with the Japan-based recycled carbon fibers manufacturer, Fuji Design Co., Ltd., to establish a business for producing, supplying, and commercializing carbon fiber reinforced plastic products derived from recycled carbon fibers using carbon fiber with a low environmental impact process.

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 Aerospace And Defense Sector

      2. 4.1.2 Increasing Applications In Wind Energy Sector

    2. 4.2 Restraints

      1. 4.2.1 Supply Chain Security for Recycled Carbon Fiber

      2. 4.2.2 Availability Of Substitutes

      3. 4.2.3 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(%)**/Ranking 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 Mitsubishi Chemical Corporation

      10. 6.4.10 Nippon Graphite Fiber Co. Ltd

      11. 6.4.11 SGL Carbon

      12. 6.4.12 Solvay

      13. 6.4.13 Teijin Limited

      14. 6.4.14 Toray Industries Inc.

      15. 6.4.15 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 2017 - 2027.

The Carbon Fiber Market is growing at a CAGR of >10% over the next 5 years.

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

Asia Pacific holds highest share in 2021.

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

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