Carbon Fiber Reinforced Plastic Market Size, Share and Trends 2024 to 2034

Carbon Fiber Reinforced Plastic Market Size and Forecast 2024 to 2034

The global carbon fiber reinforced plastic market size is worth around USD 27.63 billion in 2024 and is anticipated to reach around USD 56.94 billion by 2034, growing at a solid CAGR of 7.50%. The rapid infrastructure development and extensive utilization of CFRP in the production of various building and construction materials are likely to promote the carbon fiber reinforced plastic market’s growth in the upcoming years.

Carbon Fiber Reinforced Plastic Market Key Takeaways

• Europe held the largest share of the carbon fiber reinforced plastic market in 2023.
• North America is anticipated to grow at the fastest rate in the market during the forecast period.
• By product, the thermosetting CFRP segment held a dominant presence in the market in 2023.
• By product, the thermoplastic CFRP segment will witness considerable growth in the market over the forecast period.
• By material, the PAN-based segment registered its dominance over the global market in 2023.
• By material, the pitch-based segment is projected to expand rapidly in the market in the coming years.
• By application, the aerospace segment held the largest share of the market in 2023.
• By application, the automotive segment is expected to grow at the fastest rate in the market during the forecast period.

Europe Carbon Fiber Reinforced Plastic Market Size and Growth 2024 to 2034

The Europe carbon fiber reinforced plastic market size was exhibited at USD 10.88 billion in 2023 and is projected to be worth around USD 24.15 billion by 2034, poised to grow at a CAGR of 7.52% from 2024 to 2034.

Europe held the largest share of the carbon fiber reinforced plastic market in 2023. The region has a strong presence of prominent aircraft and automotive manufacturers. Europe is a homeland for numerous major aircraft composite producers. European businesses and citizens want affordable, reliable, and clean energy. Wind is a strategic industry for Europe. Every new turbine added reduces Europe’s energy imports and exposure to volatile fossil fuel prices and also assists in reducing power bills. Europe's wind energy sector significantly benefits from CFRP's application in manufacturing wind turbine blades. 

The European market has a strong focus on improving vehicle fuel efficiency and reducing carbon emissions. Other factors include extensive R&D activities, rising demand for high-performance products in the defense sector, rising utilization of CFRP in the building and construction industry, rising production of wind turbines, rapid industrialization and accessories, and supportive government framework. Moreover, there is a rise in demand from aerospace, marine, military, automotive, sporting goods, wind energy, industrial equipment, and other end-users.

• According to the European Wind Energy Competitiveness Report 2024, the European wind industry has an annual turnover of € 93 billion. In 2023, European wind energy sustained 370,000 jobs and contributed € 57.2 billion to Europe’s GDP. The European wind industry generated € 3.4 billion of value added to the European economy in 2023 for each GW of onshore wind installed and € 2.8 billion for each new GW of offshore wind. Wind energy will add € 113 billion to GDP by 2030 under the REPowerEU plan. That is almost double the sector’s contribution in 2023.
• Wind now meets 20% of Europe’s electricity demand and much more in many countries: Denmark 56%; Ireland 36%; Germany 31%; UK 29%; Netherlands 27%; Spain 27%. 
• The EU Commission sees wind as half of Europe’s electricity by 2050, with wind energy capacity rising from 220 GW today to up to 1,300 GW. That entails a 15x increase in offshore wind in the EU. However, most of the GW capacity increase will come from onshore wind.

North America is anticipated to grow at the fastest rate in the carbon fiber reinforced plastic market during the forecast period. The region has a strong demand for CFRP, with the United States, Canada, and Mexico as significant contributors. The growth of the region is attributed to the rapid expansion of wind energy, increasing CFRP utilization in various medical applications, rising investment in research and development, presence of well-established automotive manufacturers, increasing use of CFRP in the aerospace industry, increasing production of defense weapons, and increasing demand for carbon-fiber-reinforced plastic solutions for automotive weight reduction.

Additionally, the robust focus on infrastructure development coupled with the increasing use of CFRP in construction also drives the product demand. Furthermore, technological innovation along with the government regulations on energy-efficient and environmentally friendly products are expected to significantly increase the CFRP demand in North America.

• The United States spent USD 820 billion on national defense during fiscal year 2023, according to the Office of Management and Budget, which amounted to 13% of federal spending.
• The United States defense spending increased by USD 55 billion from 2022 to 2023, in part due to additional military aid sent to support Ukraine in its ongoing conflict. The United States spends more on defense than the next nine countries combined.
• The United States defense spending increased by USD 55 billion from 2022 to 2023, in part due to additional military aid sent to support Ukraine in its ongoing conflict. The United States spends more on defense than the next nine countries combined.
• The Inflation Reduction Act (IRA), signed into law in August 2022, grants USD 40 billion in direct investment to expedite the development of the U.S. offshore wind supply chain.  This allotment includes the construction of U.S.-flagged ship builds, further supporting domestic production throughout the entire industry.
• According to the U.S. Energy Information Administration, the total annual U.S. electricity generation from wind energy increased from about 6 billion kWh in 2000 to about 434 billion kWh in 2022. In 2022, wind turbines were the source of about 10.3% of total U.S. utility-scale electricity generation. 

Market Overview

Carbon fiber reinforced plastic (CFRP) is a composite material that consists of carbon fibers and a polymer matrix. Carbon fiber reinforced plastic (CFRP) has gained immense popularity in various industries for its lightweight and high-strength characteristics. The unique characteristics of the carbon fiber reinforced plastic market products have led to increasing its usage in a variety of applications such as aerospace, wind energy, automotive, recreational equipment, robotics, sporting goods, medical technology, measurement technology, automation technology, and many more. In the field of advanced engineering materials, CFRP stands out as a remarkable innovation. It has constantly opened up new areas of application over the years. Its attractive combination of low weight, high durability, and high strength has made it a game-changer in several industries.

Carbon Fiber Reinforced Plastic Market Growth Factors

• The rapid progress of industrialization and urbanization is expected to propel the market’s expansion during the forecast period.
• The rising expenses of the defense and aerospace industry are anticipated to boost the growth of the market.
• The rising utilization of carbon fiber-reinforced plastic in surgical implants and other medical applications is projected to drive market growth during the forecast period.
• The rising production of sporting goods is expected to fuel the growth of the carbon fiber reinforced plastic market.
• There is a rising trend in aerospace applications to replace aluminum with carbon fiber-reinforced polymers due to their superior strength and lightweight properties, driving the growth of the market during the forecast period.

Market Scope

Market Dynamics

Driver

Rapid expansion of the wind energy industry

The expansion of the wind energy industry is expected to boost the growth of the carbon fiber reinforced plastic market during the forecast period. The demand for wind energy has been increasing over the years due to extensive R&D, supportive policies, increasing fuel prices, and rising adoption of clean energy. Wind is being widely used to produce electricity by converting the kinetic energy of air in motion into electricity. Carbon fiber reinforced plastics are highly used for longer wind turbine blades with diameters exceeding 100 meters that can capture more energy efficiently. CFRP offers lighter weight and greater rigidity. It is lighter than conventional glass fiber composite materials. 

• According to the GWEC, a total of 23,833 wind turbines were installed worldwide in 2023, manufactured by 30 different companies – of which 19 are from Asia Pacific, 8 from Europe, 2 from America, and 1 from the Middle East. Growth was mainly driven by orders from manufacturers’ home markets, namely China, the U.S., and Europe. 

According to the GWEC’s Global Wind Report 2023

• Globally, 77.6 GW of new wind power capacity was connected to power grids in 2022, bringing total installed wind capacity to 906 GW1, a growth of 9% compared with 2021. 
• China dominates global onshore wind turbine nacelle assembly with 82 GW of identified annual capacity. With 21.6 GW of annual assembly capacity per annum, Europe is the world’s second-largest onshore turbine nacelle production base, followed by the U.S. (13.6 GW), India (11.5 GW) and Latin America (6.2 GW). 

Restraint

High cost

The high cost is anticipated to hamper the growth of the carbon fiber reinforced plastic market. Carbon fiber reinforcement plastic is an expensive material and its high cost restricts its usage in many industries. In addition, the easy availability of cheap-rated materials that act as a substitute for CFRP limits the adoption of carbon fiber reinforced materials.

Opportunity

Increasing demand for fuel-efficient and light-weight vehicles

The rising demand for fuel-efficient and lightweight vehicles is projected to offer a lucrative opportunity for the growth of the carbon fiber reinforced plastic market during the forecast period.  The rise in fuel prices and stringent government regulations have driven the need for fuel-efficient vehicles, which spurs the demand for carbon fiber-reinforced plastic in automotive production. 

Several Governments around the world are promoting the use of fuel-efficient automobiles, which produce fewer emissions. Automotive manufacturers around the world are increasingly focusing on cutting down automotive curb weight to reduce pollution. The automotive industry has increasingly adopted the carbon fiber reinforced plastic market products to substitute conventional materials such as iron and aluminum for reducing weight and enhancing the overall performance of automobiles. 

• According to a research brief of the International Council on Clean Transportation (ICCT), in 2023, China remained the world’s largest EV market. It sold over 7 million EVs, grabbing a 33% share in the worldwide sales of new light-duty electric vehicles (LDVs). This was a nine-percentage point increase from the 24% EV sales share in 2022.
• In 2023, around 88% of EVs sold globally were in the four largest LDV markets, with the United States, Europe, China, and India together accounting for around 63% of sales worldwide.

Product Insights

The thermosetting CFRP segment held a dominant presence in the carbon fiber reinforced plastic market in 2023. Thermosetting resins including polyester, epoxy, and vinyl resins are extensively used during the formulation of carbon fiber reinforced plastic. Thermoset resins have several benefits such as resistance to heat and high temperature, excellent resistance to solvents and corrosives, excellent finishing qualities for polishing and painting, excellent adhesion, high fatigue strength, and others. They are widely used across various sectors, including sports equipment, civil engineering, automotive, and aerospace.

The thermoplastic CFRP segment will witness considerable growth in the carbon fiber reinforced plastic market over the forecast period. Thermoplastics are used in structural composite parts, including Acrylonitrile Butadiene Styrene (ABS), Polyaryletherketones (PAEK), and Polyetheretherketone (PEEK). Extensive research and development activities enable companies to develop manufacturing techniques to produce thermoplastic CFRP with superior properties. Thermoplastic composites offer two major benefits for some manufacturing applications: increased impact resistance and the ability to be rendered malleable. Such factors are boosting the segment’s expansion.

Material Insights

The PAN-based segment registered its dominance over the global carbon fiber reinforced plastic market in 2023. Polyacrylonitrile (PAN) is the widely used raw material for CFRP production. PAN is the most used precursor for carbon fiber owing to its superior strength, stability, and higher carbon yield. The properties of carbon fiber-reinforced plastic, including high tensile strength, majorly depend on the precursor used in its production. Additionally, nearly 90% of the carbon fiber produced is made from polyacrylonitrile. Hence, such factors are likely to support the growth of the segment.

The pitch-based segment is projected to expand rapidly in the carbon fiber reinforced plastic market in the coming years. Pitch-based CFRP has excellent mechanical properties and thermal properties. The rising demand for various applications in aerospace, sports & leisure, and thermal management is expected to boost the segment’s growth in the coming years.

Application Insights

The aerospace segment held the largest share of the carbon fiber reinforced plastic market in 2023. The segment’s growth is majorly driven by the rising demand demand for fuel-efficient and lightweight aircraft. Carbon fiber reinforced plastic materials are most widely used in helicopters, planes, and space shuttles. CFRP has excellent specific tensile strength, modulus, and fatigue strength and has been most commonly used in airframe structural applications, especially for aircraft structures. CFRP continues to replace conventional metals in aircraft structures due to their higher strength-to-weight ratio. CFRP are critical materials for space development as their excellent specific strength, elasticity modulus, and high dimensional stability are maintained even in environments with extremely large temperature changes, which have enabled high-precision observations in space. In addition, rapid technological developments and rising R&D activities are expected to reduce flight weight, improve fuel consumption, and enhance overall performance in military aircraft and helicopters.  

• According to the Boeing Commercial Market Outlook 2021-2040, North America will require 9,160 new airplane deliveries by the end of 2040, and airline fleet growth in North America is expected to be 1.7 percent between 2019 and 2040.
• The Department of the Air Force (DAF) fiscal year (FY) 2025 budget request is nearly USD 217.5 billion, a USD 2.4 billion or 1.1% increase over the FY 2024 budget request.
• In March 2024, Hexcel Corporation launched a new HexTow continuous carbon fiber, IM9 24K, providing the market with a lightweight, strong, and durable composite material option with enhanced value for the world’s most advanced aerospace composite applications.

The automotive segment is expected to grow at the fastest rate in the carbon fiber reinforced plastic market during the forecast period. The rising concern for automotive fuel efficiency along with stringent environmental regulations is anticipated to propel the growth of the segment. Over the years, the automotive industry increasingly adopted carbon fiber reinforced plastic owing to its potential to improve fuel efficiency, high strength-to-weight ratio, and lightweight characteristics. 

• According to the China Association of Automobile Manufacturers (CAAM), in October 2023, vehicle production and sales volumes totaled 2.891 million units and 2.853 million units, up 11.2% and 13.8% y/y, respectively. 
• According to the India Brand Equity Foundation (IBEF), In the first quarter of 2023-24, the total production of passenger vehicles, commercial vehicles, three-wheelers, two-wheelers, and quadricycles was 6.01 million units.

Carbon Fiber Reinforced Plastic Market Companies

• DowAksa
• Cytec Solvay Group
• Toray Industries, Inc.
• SGL Group
• Hexcel Corporation
• Hyosung Corporation
• Gurit Holding AG
• Solvay
• Hexcel Corporation
• Formosa M Co. Ltd
• Mitsubishi Chemical Corporation
• Nippon Graphite Fiber Co. Ltd
• SABIC
• TEIJIN LIMITED
• ALLRed & Associates Inc.
• Röchling
• Nikkiso Co. Ltd

Recent Developments

• In September 2022, Solvay launched LTM 350, a next-generation carbon fiber epoxy prepreg tooling material designed to deliver significant time and cost savings for the industrial, aerospace, automotive, and race car markets.
• In June 2024, Nexa3D announced the launch of its newest innovation, Xyon—an advanced carbon-fiber-filled plastic 3D printing filament set to transform the industry. Designed for both desktop and industrial applications, fulfilling Nexa3D’s commitment to offering high-quality, cost-effective, and customer-centric solutions.
• In August 2024, Formosa Plastics Corporation (FPC) partnered with CATACK-H, a South-Korea based start-up recycler of carbon fiber composite to offer clients the total solution from virgin CF, waste recycling to recycled CF. The collaboration is a part of FPC’s sustainable strategy and will further advance the realization of a recycling-based society.
• In June 2024, Farsoon Technologies introduced a new high-performance carbon-fiber reinforced PA6 material FS6130CF-F for its industrial ‘Flight’ 3D printing systems.
• In October 2023, The Mitsubishi Chemical Group announced that it had attained full ownership of CPC SRL (CPC), a renowned Italian company specializing in the manufacturing and distribution of automobile components crafted from carbon fiber reinforced plastic.

Segments Covered in the Report

By Material 

• PAN-based
• Pitch-based

By Product

• Thermosetting CFRP
• Thermoplastic CFRP

By Application 

• Automotive
• Aerospace
• Wind Turbines
• Sport Equipment
• Molding & Compounding
• Construction
• Pressure Vessels
• Others

By Geography

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