Carbon fiber is a very strong, yet lightweight material made by exposing fibers of carbon to high temperatures. It has applications across aerospace, sports equipment, wind turbines and automotive owing to its high tensile strength and low weight. In automotive, carbon fiber is increasingly adopted for manufacturing components like chassis, wings, spoilers etc to reduce vehicle weight and enhance performance. The light weighting property helps in improving fuel efficiency and reducing emission.
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, SGL Carbon, Hexcel Corporation, Mitsubishi Rayon Co. Ltd and DowAksa.
- The growing demand from automotive and aerospace industries driven by need to reduce weight of vehicles and aircrafts is fueling the carbon fiber market growth.
- Advancements in production technology like precursor production, oxidation, carbonization and graphitization are helping lower carbon fiber production cost.
Market Trends
- Increasing adoption of Carbon Fiber Market Demand in electric vehicles to enhance driving range. Major automakers are using carbon fiber to manufacture EV parts and reduce overall vehicle weight.
- Growing demand for carbon fiber composites from wind energy industry driven by installation of larger wind turbines requiring lightweight rotor blades and drive shafts.
Market Opportunities
- Potential opportunities exist in usage of recycled carbon fiber to further lower costs and promote circular economy.
- Development of low-cost carbon fiber production techniques like pyrolysis will make carbon fiber more affordable and drive its adoption in new applications.
Impact of COVID-19 on Carbon Fiber Market Growth
The COVID-19 pandemic has significantly impacted the growth of the carbon fiber market. During the initial months of the pandemic, manufacturing facilities and production units were ceased across major countries which led to disruption in supply chains. This affected the availability of raw materials for carbon fiber production. With restrictions on travel and logistics, export and import of carbon fiber compounds were also hampered.
The demand from end-use industries like aerospace, automotive, wind energy saw a steep decline as these sectors faced operational challenges. With the suspension of aircraft production and decline in automobile sales, carbon fiber orders reduced substantially. However, the pandemic also promoted growth in other sectors like medical devices and equipment as demand for personal protective gear, ventilators increased.
As economies are restarting gradually, the carbon fiber market is also recovering. Manufacturers are ramping up operations while following safety protocols. Investments are being made in automation and advanced technologies to improve production efficiency. Going forward, sectors like renewable energy and infrastructure are expected to boost demand. Lightweighting remains a key trend in automotive and this will support carbon fiber consumption.
Geographical Regions With Highest Carbon Fiber Market Value
North America has been the major revenue generator for the global carbon fiber market in terms of value. This is attributed to strong presence of aerospace and defense industry in the US which has been the largest end-user. States like Washington, California, Texas, Ohio are hubs for aircraft component manufacturing facilities of Boeing and Airbus which drives significant demand.
Asia Pacific region is fast emerging as there are rapid developments taking place in composites sector, particularly in China, Japan, and South Korea. Countries are investing heavily in R&D to produce carbon fiber at competitive prices. Growing wind turbine installations along coastlines and focus on electric vehicles promotion is augmenting market growth.
Fastest Growing Region for Carbon Fiber Market
The Asia Pacific region, excluding Japan, is poised to showcase highest growth rate during the forecast period. This growth will be fuelled by consistent infrastructural developments and initiatives towards clean energy generation in China and India. Rising disposable incomes are prompting automobile manufacturers to introduce light-weight vehicles with carbon fiber components.
Countries are targeting self-sufficiency in composite materials rather than relying on imports. Emerging end-use industries coupled with government incentives for local carbon fiber production will strengthen the market potential in Asia Pacific region over the coming years.
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About Author:
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc. (https://www.linkedin.com/in/money-singh-590844163)