The carbon fiber market has gained significant traction in recent years due to the growing demand for lightweight and high strength materials across various industries. Carbon fiber is composed of carbon atoms bonded together in crystals that are fused into yarns. It is around five times stronger than steel and significantly lighter. It possesses high tensile strength, lightweight, high stiffness and is highly resistant to corrosion. Carbon fiber is finding increasing use in aircraft manufacturing, wind turbines, sports equipment, automotive and electronics sectors. The automotive sector uses carbon fiber materials in engine covers, transmission cases and chassis to reduce overall vehicle weight and improve fuel efficiency.
Carbon fiber market is estimated to be valued at USD 5.22 Bn in 2024 and is expected to reach USD 9.34 Bn by 2031, exhibiting a compound annual growth rate (CAGR) of 8.7% from 2024 to 2031.
Key Takeaways
Key players operating in the Carbon Fiber Market are Toray Industries Inc., Teijin Ltd., Hexcel Corporation, SGL Carbon SE, Mitsubishi Rayon Co. Ltd.. Carbon fiber materials have witnessed heightened demand from the aerospace industry, due to their light weight and high tensile strength properties essential for aircraft components. The automotive sector is increasingly adopting carbon fibers to produce lightweight vehicles with improved performance and fuel efficiency, especially in electric vehicles and hybrid cars. Geographically, the Asia Pacific region currently dominates the market and is expected to grow at a high CAGR over the forecast period, due to the presence of carbon fiber manufacturing companies and growing end-use industries in the region.
Market key trends
The increasing use of carbon fiber in electric vehicles is a major trend in the carbon fiber market size. The stringent emission regulations and push towards electrification of vehicles are fueling Carbon Fiber Market demand in electric vehicles. Electric vehicles require lighter components to increase driving ranges, and carbon fiber helps reduce overall vehicle weight while providing high strength. Tesla and BMW are some automakers actively using carbon fiber composites in electric vehicles. Carbon fiber also offers an opportunity to design unique and aerodynamic components compared to conventional materials. With rising EV sales, the consumption of carbon fiber in electric vehicles is expected to surge significantly over the coming years.
Porter's Analysis
Threat of new entrants: High capital requirements and economies of scale pose entry barriers.
Bargaining power of buyers: Buyers have moderate bargaining power due to availability of substitutes and fragmented market.
Bargaining power of suppliers: Suppliers have moderate bargaining power due to differentiated products and availability of substitutes.
Threat of new substitutes: Substitutes like glass fiber, kevlar and graphene pose moderate threat due to performance advantages of carbon fiber.
Competitive rivalry: Intense competition due to technological advancements and presence of global players.
Geographical Regions
North America accounts for the largest share in the carbon fiber market in terms of value, followed by Europe. Presence of leading aerospace and defense OEMs, technological advancements, and large R&D investments drive the market growth.
Asia Pacific exhibits the fastest growth over the forecast period. Increasing demand from wind energy, construction, and automotive industries in China, Japan, and India supports the market expansion. Government initiatives to increase renewable energy generation using wind turbines boost the fiber consumption.
About Author:
Alice Mutum is a seasoned senior content editor at Coherent Market Insights, leveraging extensive expertise gained from her previous role as a content writer. With seven years in content development, Alice masterfully employs SEO best practices and cutting-edge digital marketing strategies to craft high-ranking, impactful content. As an editor, she meticulously ensures flawless grammar and punctuation, precise data accuracy, and perfect alignment with audience needs in every research report. Alice's dedication to excellence and her strategic approach to content make her an invaluable asset in the world of market insights.
(LinkedIn: www.linkedin.com/in/alice-mutum-3b247b137 )
