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

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).

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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.

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