Carbon Fiber Market to Reach Valuation of USD 14.2 Billion by 2030 – Increasing Research and Development Activities to Develop Innovative Products Drive the Market

In terms of revenue, the Global Carbon Fiber Market is expected to reach by 2030, growing at a CAGR (Compound Annual Growth Rate) of 11.8% from 2023 to 2030.

Carbon Fiber is a material that is anticipated to have a big impact on many industries, notably aerospace and automotive. Its unique properties have the potential to redefine standards in these sectors. Three primary attributes of Carbon Fiber are driving this transformation. Firstly, its lightweight property enables vehicles to reach unprecedented speeds. This is particularly important in racing and travel applications where speed is crucial. The car's decreased weight achieves better performance due to the use of Carbon Fiber. Secondly, Carbon Fiber has enhanced material strength. This strength allows for using less material while maintaining the same level of structural integrity. This is especially vital in the aerospace industry, where reducing weight is highly desired for efficiency and safety.

Lastly, Carbon Fiber plays a pivotal role in fuel efficiency. Boeing's 787 Dreamliner is a great illustration of this. The plane's lightweight design reduces energy requirements for take-off and flight, resulting in lower fuel consumption and operational costs. This principle of efficiency extends to both the automotive and aerospace industries, as lighter-weight vehicles inherently offer better fuel efficiency—these benefits both the users and the environment, reducing fuel consumption and emissions.

Although Carbon Fiber has numerous advantages, its widespread use is currently hindered by cost concerns. The high cost of raw materials and the restricted amount of products that can get produced in each cycle constitute the manufacturing process expensive. Despite this, professionals in the industry remain optimistic about the future of Carbon Fiber. They anticipate advancements in manufacturing techniques and using cheaper materials, eventually leading to more affordable Carbon Fibers. This positive outlook showcases the industry's determination to overcome obstacles and fully exploit the transformative capabilities of Carbon Fiber. 

Key Highlights from the Report

• Based on the segmentation of Raw Material Type, the Carbon Fiber market is dominated by the Pan-based Carbon Fiber segment because there is a growing need for Carbon Fiber with a greater strength-to-weight ratio.
• Furthermore, based on the Fiber Type segmentation, due to improvements in production technology and an emphasis on sustainability, the Virgin Carbon Fiber segment was responsible for the market's significant increase in 2022.
• In addition, based on the segmentation of Modulus Type, the High Modulus segment is anticipated to have the most considerable growth in the market in 2022 owing to the rising demand from sectors including the automobile and aerospace.
• Moreover, based on the Product Type segmentation, Continuous Carbon Fiber is likely to be the maximum growth of the market in 2022 owing to the large requirement for lightweight materials in several industries.
• Additionally, based on the segmentation of Application Type, the Composite segment is expected to have significant market growth in 2022, owing to the benefits offered by Carbon Fiber composites over traditional materials.
• Based on End-Use Industry, the aerospace & defense segment is mentioned to dominate the market in 2022 owing to the need for lightweight, high-performance materials that can improve fuel efficiency, enhance operational capabilities, and meet stringent regulatory standards.
• Finally, based on the Region, Europe holds the significant market share within the Carbon Fiber market in 2022 owing to its advancements in manufacturing technologies and expertise in Carbon Fiber production. 

Market Dynamics

The emergence of carbon nanotubes, a strong and lightweight revolutionary material with excellent electrical conductivity, has the potential to transform the Carbon Fiber market completely. By creating fibers using carbon nanotubes, we can potentially surpass the performance of current Carbon Fibers, making them highly desirable for the aerospace, military, and mobility industries. Nevertheless, promoting carbon nanotubes has been found to be challenging owing to the expensive costs required. To address this issue, researchers have developed a ground-breaking technology that increases the modulus while maintaining high strength. They combined carbon nanotubes and polyimide in a continuous wet spinning process, followed by high-temperature heat treatment. This resulted in the creation of fibers with a remarkable modulus of 528 GPa and high strength of 6.2 GPa, making them 1.6 times stronger than fibers that were sold commercially. Microstructure analysis confirmed improved physical properties, such as reduced voids within the fibers and enhanced orientation of the carbon nanotubes, resulting in extremely strong and durable fibers. Notably, the research team substituted inexpensive polyimide for up to 50% of carbon nanotubes, potentially reducing overall costs and increasing the economic viability of this innovative material.

Asia Pacific is expected to dominate the global Carbon Fiber market during the forecast period. In the Carbon Fiber business, the Asian market—China and India in particular—is becoming a major player. Chinese airline companies plan to acquire around 7,690 new aircraft worth about USD 1.2 trillion in the next two decades. This will drive the demand for Carbon Fiber in the region. According to the Boeing Commercial Outlook 2022-2041, China expects to receive approximately 8,485 new aircraft by 2041, with a market value of USD 545 billion. This increase in aircraft deliveries will significantly increase the need for Carbon Fiber. India, the world's third-largest emitter of CO2 after China and the US, is also taking steps to reduce its carbon emissions. With annual emissions estimated at 2.6 giga tonnes, India aims to reduce CO2 emissions by 50% by 2050 and achieve net zero by 2070. The country is committed to transitioning to clean energy and increasing renewable power but faces challenges in reducing emissions from industries that contribute significantly to overall emissions. In order to solve this problem and decarbonize the power production industry as well as other sectors in line with its evolving energy landscape, India is investigating technologies like Carbon Capture Utilization and Storage (CCUS). 

The Global Carbon Fiber Market is Segmented as follows

• Raw Material Type
  • Pan-based Carbon Fiber
  • Pitch-based Carbon Fiber
• Fiber Type
  • Virgin Carbon Fiber
  • Recycled Carbon Fiber
• Modulus Type
  • Standard Modulus
  • Intermediate Modulus
  • High Modulus
• Product Type
  • Continuous Carbon Fiber
  • Short Carbon Fiber
  • Long Carbon Fiber
• Application Type
  • Composite
  • Non-Composite
• End-Use Industry
  • Aerospace & Defense
  • Automotive
  • Wind Energy
  • Pipes & Tanks
  • Sporting Goods
  • Others
• Region
  • North America
  • Europe
  • Asia Pacific
  • Latin America
  • Middle East & Africa

List of the Key Players of the Global Carbon Fiber Market is

A&P Technology Inc. (U.S.), Anshan Sinocarb Carbon Fibers Co. Ltd. (China), DowAksa USA LLC (U.S.), Formosa Plastics Corporation (U.S.), Hexcel Corporation (U.S.), Holding Company Composite (Russia), Hyosung Advanced Materials (South Korea), Jiangsu Hengshen Co. Ltd. (China), Mitsubishi Chemical Corporation (Japan), Nippon Graphite Fiber Co. Ltd. (Japan), SGL Carbon Solvay (Belgium), Teijin Limited (Japan), Toray Industries Inc. (Japan), Zhongfu Shenying Carbon Fiber Co. Ltd. (China) 

The Global Carbon Fiber Market Scope can be Tabulated as below