Carbon Fiber Market Expected to Reach $16 Billion by 2032—Allied Market Research

According to a new report published by Allied Market Research, titled, “Carbon Fiber Market," The carbon fiber market was valued at $5.5 billion in 2022, and is estimated to reach $16 billion by 2032, growing at a CAGR of 11.4% from 2023 to 2032.

Carbon fiber is a strong and lightweight material composed of thin, strong crystalline filaments of carbon atoms. It is known for its exceptional strength-to-weight ratio, making it ideal for applications where high strength and low weight are essential.

Increase in investments in building infrastructure in countries such as the U.S., China, Japan, Mexico, and India, have led the building & construction sector to witness significant growth where carbon fibers are used for acoustic insulation purposes. In addition, sustainable economic growth coupled with an increase in demand for consumer goods has propelled the growth of the automotive & electronics sector, which, in turn, has boosted the demand for carbon fiber market. In addition, it is used in auto racing bodies, train car and ship panels, and ground transportation structures. These factors contribute to the growth of the carbon fiber market during the forecast period.

However, the production of carbon fiber composites involves intricate and specialized manufacturing processes. These processes require a high level of expertise, precise control of parameters such as temperature and pressure, and quality control measures. The complexity of manufacturing is anticipated to lead to longer production times and increased costs.  Carbon fiber composites have the potential to contribute to the construction industry, especially in applications that require high strength, durability, and corrosion resistance. Reinforcing structures with carbon fiber composites is anticipated to help enhance the strength and longevity of buildings, bridges, and other infrastructure projects.

These factors together are projected to create remunerative opportunities for the expansion of the carbon fiber market during the forecast period. The carbon fiber market is segmented on the basis of type, raw material, form, end use industry, and region. On the basis of raw material, the market is bifurcated into PAN-based carbon fiber, and pitch-based & rayon-based carbon fiber. The PAN-based carbon fiber segment dominated the global market in terms of revenue in 2022, with 92% of the total share.

Technological advancements in PAN-based carbon fiber manufacturing processes, such as improvements in precursor materials, processing techniques, and automation, have contributed to increased production efficiency and reduced costs. Furthermore, the automotive industry actively seeks lightweight materials to improve fuel efficiency and reduce emissions. PAN-based carbon fiber offers a viable solution by replacing traditional materials such as steel and aluminum in automotive components. The trend toward electric vehicles further boosts the demand for lightweight, creating growth opportunities for this type of carbon fiber in the automotive sector.

On the basis of type, the market is segregated into continuous carbon fiber, long carbon fiber, and short carbon fiber. The continuous carbon fiber segment dominated the global market in terms of revenue in 2022, with 88% of the total share. Continuous carbon fiber production has benefited from advancements in manufacturing technologies, such as automated fiber placement (AFP) and automated tape laying (ATL). These technologies allow for precise and efficient placement of carbon fibers, enabling cost-effective production and reducing material waste. Continuous carbon fiber composites are expected to contribute to environmental sustainability. Their lightweight nature improve fuel efficiency and reduces carbon emissions in transportation. In addition, carbon fibers is anticipated to be recycled and reused, reducing waste and environmental impact.

These factors are anticipated to drive the overall market performance; thus, offering the most lucrative opportunities during the forecast period.  On the basis of form, the market is segregated into composite and non-composite. The composite-carbon fiber segment dominated the global market in terms of revenue in 2022, with 96% of the total share.  composites carbon fiber  offer improved performance characteristics, such as enhanced strength, stiffness, and durability, making them ideal for applications where lightweight and high-performance materials are desired. There is growth in emphasis on sustainability and recyclability in material choices.

Carbon fiber composites are expected to be recycled and reused, which aligns with the circular economy principles. This aspect has gained importance in various industries and are anticipated to drive the adoption of composite carbon fiber materials. The above-mentioned factors are projected to drive the overall market performance; thus, offering the most lucrative opportunities during the forecast period.

On the basis of end-use industry, the global carbon fiber market is segmented into aerospace & defense, sports/leisure, wind turbines, molding & compounds, automotive, pressure vessels, civil engineering, marine, pultrusion misc., misc. consumer, sailing/yacht building, and others. The aerospace and defense end use industry dominated the global market in terms of revenue in 2022, with 10.6% of the total share.

The aerospace manufacturing industry has continuously evolved due to digital invitation, rise in international trade, and surge in consumer preferences for air tourism. This has enhanced the demand for carbon fiber, which is used in making aircraft structures. All these factors are anticipated to offer remunerative opportunities for market expansion in the coming years. On the basis of region, the carbon fiber market is analyzed across North America, Europe, Asia-Pacific, and LAMEA. The Europe carbon fiber market is projected to grow at the highest CAGR during the forecast period.

Key players operating in the global carbon fiber market includes DowAksa Advanced Composites Holding B.V, Formosa Europe, Solvay, TORAY INDUSTRIES, INC., Nippon Steel Corporation, Mitsubishi Chemical Group Corporation, SGL Carbon, Hyosung Co Public, Teijin Limited, and ZOLTEK.

Key Findings:

• On the basis of type, the continuous carbon fiber segment is expected to grow at a CAGR of 11.4%, in terms of revenue, during the forecast period.
• On the basis of raw material, the PAN-based carbon fiber segment is expected to grow at a highest CAGR in terms of revenue, during the forecast period.
• On the basis of form, the composite carbon fiber segment is expected to grow exponentially in terms of revenue, during the forecast period.
• On the basis of end-use industry, the aerospace and defense segment is expected to grow at a CAGR of 10.6%, in terms of revenue, during the forecast period.
• On the basis of region, Europe garnered a share of 36% in 2022 in terms of revenue.
• North America garnered around 30% share in 2022 in terms of revenue.