Carbon Fiber Market- Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Raw Material (Pan-Based, Pitch-Based, Rayon-Based), By Product Type (Continuous, Long, Short), By Fiber Type (Virgin, Recycled), By Modulus (Standard, Intermediate, High), By Application (Composite, Non-Composite), By End Use Industry (Automotive, Aerospace & Defense, Wind Energy, Marine, Others), By Region and Competition, 2020-2030F

Market Overview

The Global Carbon Fiber Market, valued at USD 7.78 Billion in 2024, is projected to experience a CAGR of 7.47% to reach USD 11.99 Billion by 2030. Carbon fiber is a material composed of thin, strong crystalline filaments of carbon, renowned for its exceptional strength-to-weight ratio, high stiffness, and chemical resistance. Market expansion is primarily propelled by the increasing demand for lightweight, high-performance materials within the aerospace and automotive sectors, aimed at enhancing fuel efficiency and reducing emissions. Additionally, substantial investments in renewable energy infrastructure, particularly for advanced wind turbine blades, significantly contribute to market growth. According to Composites United e. V. , global demand for carbon fibers reached approximately 117,500 tons in 2023, reflecting a year-on-year growth of 9.3%.

A significant challenge impeding broader market adoption is the high production cost, largely attributed to complex manufacturing processes and expensive precursor materials, which restricts its use in more price-sensitive applications. Furthermore, the industry faces persistent difficulties regarding effective recycling methods and sustainable end-of-life disposal, posing a considerable obstacle to long-term market sustainability.

Key Market Drivers

The sustained growth in aerospace and defense sector applications represents a primary catalyst for the global carbon fiber market. The imperative for enhanced performance, including reduced structural weight and increased payload capacity in aircraft and defense platforms, drives the substantial integration of advanced composite materials. Carbon fiber's exceptional strength-to-weight ratio and fatigue resistance make it indispensable for next-generation aerospace programs. This consistent demand is reflected in the financial performance of key industry players. According to a press release from Toray Industries, in November 2023, their carbon fiber composite materials business segment reported a 45.3% year-on-year increase in consolidated operating income for the second quarter of fiscal year 2023. This robust growth underscores the critical role carbon fiber plays in meeting evolving material requirements.

Similarly, the rising adoption within the automotive industry, particularly for improving fuel efficiency in conventional vehicles and extending range in electric vehicles, significantly propels carbon fiber demand. Automakers are leveraging carbon fiber reinforced plastics to achieve aggressive lightweighting targets, supporting compliance with stringent global emission reduction targets without compromising safety. The expansion of electric vehicle manufacturing creates a substantial new avenue for carbon fiber composites, especially for battery enclosures and body panels, where weight reduction directly improves energy efficiency and range. According to a press release by SGL Carbon, in March 2024, they secured a new contract for the supply of carbon fiber composite battery enclosures to a major European automotive manufacturer, exemplifying this trend. Overall, the global carbon fiber market continues to expand its industrial footprint, with total production capacity reaching approximately 190,000 tons per year in 2023, according to the Japan Carbon Fiber Manufacturers Association (JCFMA).

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Key Market Challenges

The high production cost of carbon fiber presents a significant impediment to its wider market adoption. This cost is largely due to complex manufacturing processes and the expensive precursor materials, which consequently restricts the material's use in more price-sensitive applications. While carbon fiber offers exceptional performance benefits, its premium pricing limits broader market penetration, particularly in industries where material costs are a critical factor in product development and consumer pricing.

Many potential applications in sectors such as mainstream automotive or general industrial manufacturing remain largely untapped because the current cost structure prevents widespread integration, thereby hindering more rapid and expansive market growth. According to Composites United e. V. , the global average carbon fiber demand volume was approximately 126,500 tonnes in 2024. This volume, while representing continued expansion, indicates that the overall market size is significantly constrained by these economic barriers.

Key Market Trends

The global carbon fiber market is significantly influenced by evolving industry practices and technological advancements. According to Composites United e. V. , the global carbon fiber demand registered a year-on-year growth of +7.66% since 2023, underscoring continued market expansion.

A key trend is the increased adoption of sustainable and recycled carbon fibers, driven by environmental mandates and the pursuit of circular economy models. This shift involves repurposing manufacturing waste and end-of-life materials to reduce ecological impact and production costs. For instance, Teijin Carbon introduced Tenax Next™ R2S 513 6mm, a short carbon fiber product made from post-production waste, at JEC World 2025 in March 2025, emphasizing circularity and a reduced CO2 footprint in material science. This trend aims to make carbon fiber more resource-efficient and accessible for a wider range of applications.

Another significant development is digitalization and AI in carbon fiber design and production processes. This involves leveraging advanced computing to optimize manufacturing parameters, predict material behavior, and streamline operations, leading to enhanced efficiency and material performance. SGL Carbon, in collaboration with aioneers, moved to integrate AI-powered supply chain technology in July 2024 for optimizing its demand planning process, aiming to enhance forecast accuracy and drive value across its carbon-based materials portfolio. Such digital integration supports more precise control and faster iteration in material development and manufacturing.

Segmental Insights

The composite segment is recognized as the fastest-growing application within the Global Carbon Fiber Market, driven by its unparalleled material properties and expanding industrial adoption. This rapid expansion is primarily attributed to the superior strength-to-weight ratio, exceptional durability, and corrosion resistance offered by carbon fiber composites, making them ideal for high-performance applications. Significant demand stems from the aerospace industry, where these materials are crucial for enhancing fuel efficiency and reducing emissions, a priority supported by bodies like the International Civil Aviation Organization (ICAO). Furthermore, the automotive sector, especially with the proliferation of electric vehicles, extensively utilizes composites for lightweighting, improved battery performance, and enhanced structural integrity, influenced by stringent emission regulations and the data from institutions such as the International Energy Agency (IEA). The wind energy sector also drives demand for larger, more efficient turbine blades capable of withstanding harsh environmental conditions.

Regional Insights

Europe stands as a leading region in the global carbon fiber market, driven by its well-established and innovation-focused industrial sectors. This dominance is primarily attributed to the robust aerospace industry, with prominent manufacturers like Airbus heavily integrating carbon fiber for its superior strength-to-weight ratio, crucial for enhanced fuel efficiency and operational performance in aircraft components. Concurrently, the region's advanced automotive sector is increasingly adopting carbon fiber to produce lighter vehicles, meeting escalating demands for improved fuel economy and reduced emissions. Furthermore, Europe’s substantial investment in renewable energy, particularly wind power, fuels significant demand for carbon fiber in manufacturing high-performance, lightweight wind turbine blades. These factors collectively underscore Europe's leadership in the carbon fiber market.

Recent Developments

• In July 2025, SGL Carbon introduced a new line of high-performance carbon fiber prepregs to serve the European aerospace and motorsports sectors. These prepregs, which are pre-impregnated carbon fibers with a resin system, are crucial for manufacturing lightweight and robust composite materials. This product launch expanded SGL Carbon's portfolio, catering to the demand for advanced materials that offer superior strength-to-weight ratios and enhanced performance. The initiative supported critical industries by providing specialized carbon fiber solutions for demanding applications within the global market.

• In March 2025, Hexcel and FIDAMC, a prominent research and technology center for composite manufacturing, announced a strategic partnership. This collaboration was focused on advancing innovation and the future development of advanced composite materials. The objective was to explore new applications that would improve the performance and sustainability of these materials across various industries, including aerospace and automotive. By combining FIDAMC's expertise in advanced manufacturing technologies with Hexcel's industry leadership, the partnership aimed to accelerate the transition of research into practical applications within the global carbon fiber market.

• In December 2024, Graphene Innovations Manchester initiated the world's first commercial production of graphene-enriched carbon fiber through a partnership in Saudi Arabia. This development marked a significant advancement in materials science, offering a new class of carbon fiber for industrial applications. The graphene-enriched material was intended for use in the construction sector, specifically for elements such as roofs, facades, and street light poles. This commercialization effort demonstrated a breakthrough in scaling up innovative carbon fiber variants, expanding the market's capabilities and addressing demand for high-performance construction materials.

• In April 2024, UBE Corporation introduced new composite products that incorporate recycled carbon fiber. This initiative, utilizing technology from Shinryo Corporation for extracting high-quality carbon fiber from used parts, aimed to reduce greenhouse gas emissions and environmental impact. These innovative composite materials were designed for various applications, including automotive and sports equipment, contributing to lightweighting and enhanced functionality of components. The launch represented a significant step towards sustainable practices within the global carbon fiber market by establishing effective utilization methods for carbon fiber waste.

Key Market Players

• Hexcel Corporation
• Nippon Graphite Fiber Co., Ltd.
• Toray Composite Materials America, Inc.
• SGL Carbon SE
• 3M Co.
• Mitsubishi Chemical Corporation
• Teijin Carbon Europe GmbH
• Arrow Technical Textiles Private Limited
• DowAksa Advanced Composites Holdings BV
• Kureha Corporation

Report Scope:

In this report, the Global Carbon Fiber Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Carbon Fiber Market, By Raw Material:

o   Pan-Based

o   Pitch-Based

o   Rayon-Based

• Carbon Fiber Market, By Product Type:

o   Continuous

o   Long

o   Short

• Carbon Fiber Market, By Fiber Type:

o   Virgin

o   Recycled

• Carbon Fiber Market, By Modulus:

o   Standard

o   Intermediate

o   High

• Carbon Fiber Market, By Application:

o   Composite

o   Non-Composite

• Carbon Fiber Market, By End Use Industry:

o   Automotive

o   Aerospace & Defense

o   Wind Energy

o   Marine

o   Others

• Carbon Fiber Market, By Region:

o   North America

§  United States

§  Canada

§  Mexico

o   Europe

§  France

§  United Kingdom

§  Italy

§  Germany

§  Spain

o   Asia Pacific

§  China

§  India

§  Japan

§  Australia

§  South Korea

o   South America

§  Brazil

§  Argentina

§  Colombia

o   Middle East & Africa

§  South Africa

§  Saudi Arabia

§  UAE

Competitive Landscape

Company Profiles: Detailed analysis of the major companies presents in the Global Carbon Fiber Market.

Available Customizations:

Global Carbon Fiber Market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

• Detailed analysis and profiling of additional market players (up to five).

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