Carbon Fiber Market Poised to Expand Substantially through 2029 Owing to High Demand in Aerospace Industry
10 Feb, 2025
Carbon fiber is a long, thin strand of material about 0.00025 inches in diameter and composed mostly of carbon atoms. The fiber has outstanding tensile strength and is very lightweight, and it is commonly used to make lightweight and strong, carbon-fiber-reinforced polymer composites. These composites are used in many industries due to their high strength-to-weight ratio and anticorrosion properties.
Carbon fiber market is estimated to be valued at USD 5.69 Bn in 2025 and is expected to reach USD 10.33 Bn by 2032, exhibiting a compound annual growth rate (CAGR) of 8.9% from 2025 to 2032.
Carbon fiber composites experience up to 95% lower weight reduction compared to traditional materials like aluminum, steel, and titanium. This translates to lower fuel consumption and reduced emissions. Other key advantages include superior mechanical properties, corrosion resistance, and durability. Carbon fiber is also gaining widespread acceptance in wind energy, automotive, marine, construction industries owing to its high strength and lightweight advantages.
Key Takeaways
Key players operating in the carbon fiber market are Toray Industries Inc., SGL Carbon SE, Hyosung, Mitsubishi Rayon Co. Ltd., Cytec Solvay Group, DowAksa, Formosa Plastics Corporation, Taekwang Industrial Co. Ltd., Hexcel Corporation, Teijin Limited.
Carbon Fiber Market size due to high production costs and difficulties in the manufacturing process of carbon fiber. Similarly, wind turbine blades made from carbon fiber composites are more durable and enable turbines to operate more efficiently.
Globally, Asian markets are expected to witness fastest growth led by China, Japan and India on account of expanding aerospace and automotive industries. European nations like Germany are hub for carbon fiber production technology. The US continues to lead in aerospace and defense application of carbon fiber. Developing regions offer immense potential for carbon fiber demand with growing industrialization.
Market Drivers
Stringent emission regulations across industries has created a substantial demand for lightweight materials like carbon fiber. Its high strength to weight ratio allows vehicles and aircraft to use less fuel for transportation. This helps reduce vehicle emissions significantly.
Market Restrains
High manufacturing costs associated with carbon fiber production is a major challenge. Production processes involve several energy intensive steps that make carbon fiber almost 10 times more expensive than fiberglass. This limits its widespread adoption especially in developing economies.
Segment Analysis
The carbon fiber market can be segmented into structural and non-structural composites. Structural composites account for the largest share as carbon fiber improves mechanical properties like strength and stiffness as a reinforcement material. Carbon fiber is extensively used in primary and secondary structures of aircraft to reduce weight and increase fuel efficiency. Within structural composites, aerospace captured over half the market share due to growing air passenger traffic and replacement of aging aircraft fleet. Non-aerospace structural composites find application in automotive, wind energy and other industrial sectors.
Global Analysis
North America holds the largest share in the carbon fiber market owing to presence of major aircraft OEMs and tier players. Asia Pacific emerges as the fastest growing region on account of rapid industrialization and growing automotive production in China and India. China has emerged as the largest carbon fiber producer globally and continues to witness highest growth. Development of inexpensive precursors and recycling processes provides opportunities for cost reduction. Initiatives to replace steel and aluminum with carbon fiber composites in automotive and construction industries will further drive the market. Regional giants like Boeing and Airbus are investing in development of more electric aircraft that use composite primary structures for weight savings.
Alice Mutum is a seasoned senior content editor at Coherent Market Insights, leveraging extensive expertise gained from her previous role as a content writer. With seven years in content development, Alice masterfully employs SEO best practices and cutting-edge digital marketing strategies to craft high-ranking, impactful content. As an editor, she meticulously ensures flawless grammar and punctuation, precise data accuracy, and perfect alignment with audience needs in every research report. Alice's dedication to excellence and her strategic approach to content make her an invaluable asset in the world of market insights.
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