Carbon Fiber Composites Market Size, Share and Trends 2024 to 2034

Carbon Fiber Composites Market Size and Forecast 2024 to 2034

The global carbon fiber composites market size is projected to be worth around USD 39.39 billion by 2034 from USD 21.95 billion in 2024, at a CAGR of 6.02% from 2024 to 2034. The North America carbon fiber composites market size reached USD 8.90 billion in 2023. The increasing demand is expected to grow due to the increasing manufacturing of aircraft, automobiles, and construction, as well as rising carbon fiber production capacity, promotes the growth of the carbon fiber composites market.

Carbon Fiber Composites Market Key Takeaways

• North America led the carbon fiber composites market with the largest market share of 43% in 2023.
• Asia Pacific is anticipated to grow at a notable rate in the market during the forecast period.
• By matrix material, the polymer segment dominated the market in 2023.
• By matrix material, the carbon segment is estimated to grow significantly in the market during the forecast period.
• By end-use, the aerospace segment accounted for the biggest share of the market in 2023.
• By end-use, the automotive segment is expected to witness significant growth in the market during the forecast period.

U.S. Carbon Fiber Composites Market Size and Growth 2024 to 2034

The U.S. carbon fiber composites market size was exhibited at USD 6.23 billion in 2023 and is projected to be worth around USD 12.08 billion by 2034, poised to grow at a CAGR of 6.20% from 2024 to 2034.

North America led the carbon fiber composites market in 2023. The high quantity demand can be attributed to the aerospace and automotive application sectors of carbon fiber composites due to the superior strength-to-weight ratio. It has high technological applications and is also active in research, which has a positive effect on the levels of performance and costs. Further, growing consciousness for the environment, in addition to having regulatory support for improved fuel efficiency and fewer emissions, is contributing to the use of carbon fiber composites. The manufacturing plants are expanding and additional investments are made into the manufacturing capabilities.

• As per the Aerospace Industries Association, the aerospace and defense had total sales of over USD 952 billion in 2022, and its sales were almost 6% up in the year, 7% compared to 2021.

Asia Pacific is anticipated to grow at a notable rate in the carbon fiber composites market during the forecast period. The automotive industry, particularly the car and commercial vehicle manufacturing sector, is under tremendous pressure owing to the rising industrialization and urbanization trends in the Asia Pacific countries such as China, Japan, and India. This growth has also been fuelled by great investments in infrastructure and an increase in manufacturing technologies in the region. In addition, concerns about energy intensity and reducing carbon footprints are also similar to the benefits of the carbon fiber composites market.

• In July 2024, a high-speed carbon fiber train will be an eco-friendly train made in China. The main idea of rail transport technology is to transport light and energy vehicles without compromising on performance. Such an approach should be preserved to achieve a cleaner, low-carbon economy.
• In June 2022, Jilin Chemical Fibre put into operation for building an emerging carbon fiber hub to create a new 400,000-metric-ton carbon fiber industry chain project that covers raw silk, carbon fiber, and composite materials.
• In May 2024, India will begin producing the ‘T100’ type of carbon fiber in India during the next 2- years. Five years so that it can avoid the import licensing restrictions that prevent it from being used in strategic sectors: NITI Aayog.

Market Overview

Carbon fiber reinforced polymers (CFRP), or carbon fiber composites, consist of carbon fiber that is woven with a resin to come up with a single material; properties are way better than the constituent components. They are stronger, lighter, and more durable alternatives for many applications traditionally made with wood or metal. Certain examples of the use of carbon fiber composites that are increasing the demand for carbon fiber composites market include consumer goods area such as archery bow limbs, sail battens, etc. They are also used in automotive body panels, wind turbine blades, and orthopedic external fixators. This is because the advancement of carbon fiber composite material provides benefits to transportation, consumer products, healthcare, energy, construction, and infrastructure industries.

How is AI Changing the Carbon Fiber Composites Market?

Carbon fiber production can be made more cost-effective and efficient with the help of artificial intelligence (AI) monitoring the manufacturing processes. This eliminates the need for expensive manual inspection of the carbon fiber, ultimately leading to reduced production costs. The availability of larger production capacities and technological advancements is expected to expand market access and meet the growing demand for carbon fiber in various industries such as automotive and aviation. A camera system, when combined with artificial intelligence, can automatically detect defects in the production of carbon fiber.

Carbon Fiber Composites Market Growth Factors

• Increased use of lightweight and high-performance material soaring the aerospace industry.
• Supportive initiatives and funding programs to support the development and use of carbon composite fiber.
• An increasing vehicle production drives demand for advanced materials.
• Rising presence of manufacturers in the carbon fiber composites market.

Market Scope

Market Dynamics

Driver

Electric vehicle advancement

Governments around the world are encouraging manufacturers to go for electric and hybrid cars, and this is an opportunity for lightweight materials that drive the carbon fiber composites market. Lighter vehicles result in enhanced total energy consumption and an improved driving range of electric or hybrid cars, boosting the demand for carbon fiber-reinforced parts. Carbon fiber compounds have low density, high strength, high modulus, better vibration and fatigue properties, and corrosion resistance, which cut down the vehicle weight by up to 60%.

Regarding electric vehicles, the use of carbon fiber composites market services is an effective way to deal with the elevated weight of cars burdened with battery packs and energy inefficiency. Composites help improve energy efficiency in the following areas by reducing the weight of vehicles, improving battery power, brake and acceleration systems, aerodynamics, thermal control of batteries, and enabling longer drive cycles.

• According to IEA (International Energy Agency), the stock of EVs across all modes except for two/three-wheelers (2/3Ws), EV sales (excluding 2/3Ws) reach almost 45 million in 2030 and close to 65 million in 2035, up from around 14 million in 2023.
• The sales share of EVs grows from around 15% in 2023 to almost 40% in 2030 and over 50% in 2035 in the STEPS. In the APS, the sales shares are higher, approaching 45% in 2030 and two-thirds in 2035.
• In 2022, the China MEE EV Policy planned a phase-out aim of a 50% share of EV sales for all vehicles by 2030 in ‘key polluting regions,’ representing China's direction to decreasing vehicle emissions in areas most affected by air pollution.

Restraint

High cost and complexity of carbon fiber production

The carbon fiber composites market products are recognized for their strength yet being rather light in weight. Over the years, it has spread its wings in the aerospace and automobile industries as well as in the athletic apparel and accessories industries, not forgetting the prestigious luxury industries. However, these superior properties of composites have their price; carbon fiber is amongst the most expensive materials available.

Furthermore, carbon fiber manufacturing also requires such processes as the carbonization process, which is energy-consuming. Specialized equipment and controlled conditions throughout the process of production are other costs that make up the total. While using carbon fiber composites as market products, manufacturers must face one of the main disadvantages, which is higher production costs in comparison with materials such as steel or aluminum. Since carbon fiber components require special knowledge, tools, and materials for maintenance, car owners may end up paying more for their automobiles and even taking more time on repairs.

Opportunity

Expansion and innovation in carbon fibre

The manufacturing base of carbon fiber is on the rise, as is the level of research being dedicated to the industry. The increase in production capacity and the introduction of new carbon fiber materials are some of the drivers of the carbon fiber composites market. This has also been supported by the industry’s efforts to minimize the carbon emission of composite material manufacturing. Improving the production line and inventing more efficient ways to produce carbon fiber are part of the strategies that companies use to drive costs down, hence making it more affordable.

• In November 2023, Carbon Revolution, a leading carbon fiber company in Australia, expanded its manufacturing facility in Mexico. Through this expansion, the company expanded its carbon-fibre wheel services across the country.
• In March 2024, The Mitsubishi Chemical Group (MCG Group) unveiled the BiOpreg 400 series of carbon fiber-prepared materials formulated with plant-based resin. The fiber is targeted in the mobility applications sector, which includes the interior and exterior automotive and industrial segments.
• In December 2023, Teijin Limited then revealed its intentions to start with the production and sales of carbon fiber under the Tenax brand derived from eco-friendly materials. It is also appreciated as it aids in the reduction of greenhouse gas emissions during the life of the product.

Matrix Material Insights

The polymer segment dominated the carbon fiber composites market in 2023. Carbon fiber-reinforced polymers are perhaps known as carbon fiber composites, which are produced by a combination of carbon fiber with a resin-like vinyl ester or epoxy. Then, a polymer composite material that is stronger than the components is shaped. Since that is the case, it can be said that polymer materials are improved versions intended for many structures that were initially developed using wood or metals. The carbon fiber-reinforced polymer matrix composite (PMC) has thereby come to the fore as a leading material in aerospace, automobile, sporting articles, and other such uses wherever high strength and high modulus are needed. In addition, it should be noted that its price has progressively reduced over time due to innovations in technology regarding carbon fiber.

The carbon segment is estimated to grow significantly in the carbon fiber composites market during the forecast period. The strong accumulation is due to rising usage in different higher-quality sectors such as automobiles, aircraft, and sports equipment. Further, technology is also enhancing and making carbon fiber lighter, cheaper, and more versatile, thus making it even more attractive. Its utilization in fundamentally exploitative uses as applied to the principle of sustainability in an attempt to make the material more efficient, lighter, and so on are some of the elements that make people consider using the material.

End-use Insights

The aerospace segment accounted for the biggest share of the carbon fiber composites market in 2023. Its characteristics, such as high corrosion resistance, low coefficient of thermal expansion, high strength, and durability, are widely used in the manufacturing of aerospace components. On the primary structure, including the wings, carbon fiber is used, which helps to enhance the aerodynamic features of having a swept wing structure. It is noteworthy that, when applied for both the primary and secondary structures, the use of carbon fiber decreases the weight, thus enhancing the aerodynamics of an aircraft. Aerodynamics also.

• In March 2022, Solvay and Wichita State University's National Institute for Aviation Research (NIAR) announced a partnership on research and materials development at NIAR's facilities in Wichita, Kansas. The corporation is directed at developing future solutions to strengthen the aviation industry and generate opportunities for companies of all sizes to revolutionize the future of flight.
• Boeing projected the global aircraft fleet to almost double over the next 20 years, from about 26,750 jets in 2023 to 50,170 by 2043.
• In July 2022, Hexcel signed a long-term agreement with Dassault to supply carbon fiber prepared for the Falcon 10X program. This is the first Dassault business jet program to incorporate high-performance advanced carbon fiber composites in manufacturing its aircraft wings.

The automotive segment is expected to witness significant growth in the carbon fiber composites market during the forecast period. The increasing use of carbon fiber in automotive applications is also a result of current research and developments. Carbon fiber became available through research and studies in manufacturing, making the material useful for higher volume applications at an effective cost and time. Carbon fiber is used in a variety of auto parts, including body panels, wheels, and parts. This helps to reduce the weight of the vehicle and improves fuel efficiency and performance. For these reasons, carbon fiber is becoming increasingly popular in automotive applications, racing cars, and series production models.

• In November 2024, Sinonus declared the development of carbon fiber used as electric power, replacing AAA batteries. The products expand their applications in IoT devices, drones, computers, large vehicles, and aircraft.
• In June 2023, Dash-CAE disclosed a carbon fiber monocoque chassis, the TR01, a compact and lightweight composite chassis for on-road vehicles.
• In October 2023, Mitsubishi Chemical Group and Honda Motor Co established polymethyl methacrylate, an acrylic resin material for body parts. These are used in car doors, hoods, fenders, and other body parts.

Carbon Fiber Composites Market Companies

• Toray+Zoltek
• SGL Carbon
• Toho
• MRC
• Hexcel
• Rock West Composites
• Hengshen
• Mitsubishi Chemical Fibre Corporation
• Solvay

Recent Developments

• In April 2024, Hyundai Motor Group cooperated with Toray Industries to promote material development for the new-generation mobility. This cooperation is prepared to work on lightweight, high-strong materials for Eco-friendly, high-performance vehicles incorporating CFRP parts.
• In October of 2023, Toray Industries Inc. released TORAYCA T1200 carbon fibre, the highest strength at 1,160Ksi. This advancement helps the company lighten its carbon fiber-reinforced plastic material, hence reversing the effects of pollution on the environment.
• In September 2022, Solvay unveiled LTM 350, the new generation epoxy-prepared carbon fiber tooling material that accurately reconstructed the aerospace, industrial, automotive & race car markets’ cost and timeline.

Segments Covered in the Report

By End-use

• Aerospace
• Automotive
• Wind Turbines
• Sport & Leisure
• Civil Engineering
• Marine
• Others

By Matrix Material

• Polymer
  • Thermosetting
  • Thermoplastics
• Carbon
• Ceramics
• Metal
• Hybrid

By Geography

• North America
• Asia Pacific
• Europe
• Latin America
• Middle East & Africa