Global Recycled Carbon Fiber Market - 2022-2029

Global Recycled Carbon Fiber Market - 2022-2029

Market Overview

Recycled carbon fiber market reached US$ YY million in 2021 and is estimated to record significant growth by reaching up to US$ YY million by 2029, growing at a CAGR of 11.7% during the forecast period (2022-2029).

Recycled carbon fibers are created by reusing scrap carbon fiber. The thermoset carbon fiber-reinforced composites technique produces recycled carbon fiber from diverse prepreg trash and dry fiber sources. During carbon fiber-based end goods fabrication, roughly 30% of the carbon fiber produced is wasted. Moreover, recycled carbon fibers contain features like virgin carbon fiber, including minimal thermal expansion, lightweight, high tensile strength and chemical resistance.

Regarding volume and value, the chopped recycled carbon fiber has dominated the recycled carbon fiber market for 2019. Furthermore, for the research period, chopped recycled carbon fiber is expected to create a large market share and recycled carbon fiber market growth.

Thus, recycling carbon-fiber composites has two key advantages: it minimizes the quantity of material in landfills and saves manufacturers 30% on new carbon fiber. Although recycled carbon fibers from aerospace applications cannot be utilized in airplanes, they retain 90 to 95% of their original characteristics. They are considered higher quality than industrial-grade fibers used in the automobile industry.

Market Dynamics

Growing demand for eco-friendly and lightweight materials in different industries boosts the market share for recycled carbon fibers.

Growing demand for lightweight materials in defense, automotive and aerospace industries is boosting the market share for the recycled carbon fibers

The increased demand for lightweight materials in the defense, automotive and aerospace industries drives the global recycled carbon fiber market. Additionally, recycled carbon fiber provides environmental sustainability, cost-effectiveness, energy efficiency and lightweight benefits, which are likely to drive global market expansion. Thus, recycled carbon fibers are tremendously used in battery boxes, lift gate systems and pressure vessels.

Furthermore, the demand for environmentally friendly, easily recyclable fiber and fiber-reinforced composite products is growing due to strict government rules and regulations. Regulatory legislation implemented by the EU and other nations such as U.S., India and Japan is projected to boost the usage of recycled carbon fiber, particularly in the automotive and transportation end-use industries. The EU legislation set the required emission reduction targets for new cars to increase fuel economy and CO2 emissions.

Furthermore, regulatory authorities such as U.S. Environmental Protection Agency (EPA) and the European Union (EU) have set stringent environmental rules to reduce carbon emissions and improve demand for environmentally friendly and lightweight materials, which is more likely to increase the market for recycled carbon fiber. In addition, the need for lightweight car materials is rising as China and India's pollution standards rise.

The European Union has specified that 85% of automobile materials are recyclable. As the trash generated from carbon fibers may be recovered and turned into new goods, recycled carbon fiber is an attractive material for many industries. The utilization of recycled carbon fiber in vehicle parts makes them cost-effective.

Lack of availability of composite waste and technical knowledge hurdles the growth of recycled carbon fiber

Carbon fiber waste from CFRP composites is used to make recycled carbon fiber. The aerospace, defense, automotive and transportation end-use industries are key suppliers of composite scrap. Composites have the potential to decrease corrosion and extend the life of products. As a result, end-of-life composite components are hard to come by on the recycling market. Thus, obtaining bigger volumes for recycling takes a short period. Thus making it one of the key issues for recycled carbon fiber manufacturers.

Furthermore, the market expansion is being hampered by a lack of technical expertise in producing recycled carbon fiber. Manufacturing procedures for recycled carbon fiber are required to maintain virgin carbon fiber's mechanical qualities even after processing. The processing properties and mechanical qualities of recycled carbon fiber are understood poorly.

The quality of recycled carbon fiber is comparable to virgin carbon fiber, requiring appropriate processing techniques. Many recyclers lack minimum technical expertise when it comes to processing uniformity. The major problems in the fabrication of recycled carbon fiber are design consistency, process optimization and maintenance, which hamper the growth of the product at a significant rate.

COVID-19 Impact Analysis

Due to the outbreak of novel coronavirus, the recycled carbon fiber industry is predicted to increase slowly in 2021. The deadly virus has wreaked havoc around the globe, particularly in regions like North America and Europe. Companies have shut down manufacturing activities and industrial facilities across countries to prevent the virus from spreading further. As a result of the shutdown, there is a tremendous decline in recycled carbon fiber production capacity. Automotive, aerospace and other end-use industries have all ceased production.

Furthermore, due to the pandemic's influence on the global economy, several automotive manufacturers, notably Volkswagen, BMW and Ford, have declined their market shares. The virus outbreak has impacted key aerospace countries such as France, U.S. and China, resulting in a significant drop in recycled carbon fiber in the aerospace and defense industry.

Segment Analysis

The global recycled carbon fiber market is segmented based on the type, source, end-user and region.

Chopped recycled carbon fiber offers various advantages such as non-corrosive and has a low density, low thermal expansion, good electrical conductivity and great free-flowing behavior boosting the segmental growth of the product

The global recycled carbon fiber market is segmented based on type into chopped recycled carbon fiber and milled recycled carbon fiber. Chopped recycled carbon fiber is useful for injection molding and other industrial mixing and compounding procedures. It is non-corrosive and has a low density, low thermal expansion, good electrical conductivity and great free-flowing behavior. It's suitable for low- and high-temperature applications and the production of electrically conductive materials.

In terms of value and volume, the chopped recycled carbon fiber segment dominated the global recycled carbon fiber market in 2020. The high demand from the industrial, automotive & transportation, maritime, aerospace & military and other end-use industries is responsible for the segmental growth of the product.

Furthermore, automotive OEMs are developing lightweight and fuel-efficient automobiles due to environmental concerns related to global climate change and greenhouse gas emissions. Governments globally are promoting the usage of recycled materials. The growing government support has resulted in a demand for chopped recycled carbon fiber in the automotive and transportation industries.

Geographical Analysis

Europe's fast-growing automotive and transportation industries boost the regional recycled carbon fiber market.

The growing automotive and transportation industries drive Europe's recycled carbon fiber market. Strategic developments, leading recycled carbon fiber manufacturers, established vehicle manufacturers and technological improvements linked to recycled carbon fiber products all contribute to the regional growth of the product. Germany leads the region in recycled carbon fiber use, mostly used for upholstery applications by prominent German businesses like BMW.

Using recycled carbon fiber-based composites in the automotive and transportation end-use industries has expanded as the demand for lightweight materials to decrease vehicle weight has increased.

Furthermore, The Asia-Pacific region is expected to grow its recycled carbon fiber market share to USD xx million by 2020. In growth-oriented countries like Malaysia, India and South Korea, the main reason for rising growth is improving economic conditions and rapid industrialization. Furthermore, it is expected to earn a bigger recycled carbon fiber market share for the forecast period.

Competitive Landscape

The global recycled carbon fiber market is highly competitive with local and global companies. Some prime companies contributing to the market's growth are Toray Industries Inc, ELG Carbon Fiber Ltd, Carbon Conversions Inc., Carbon Fiber Recycling, Inc, Shocker Composites LLC, Procotex Corporation SA, FAIRMAT, SGL Carbon, Karborek Recycling Carbon Fibers, Alpha Recyclage Composites, Carbon Fiber Remanufacturing and Vartega Inc among others.

The major companies are adopting several growth strategies such as acquisitions, product launches and collaborations, contributing to the global growth of the Recycled Carbon Fiber market.

In 2021, Procotex Corporation acquired ELG Carbon Fiber. The acquisition aims to enable the company to produce larger carbon fiber and feedstock capacities.

In December 2019, The Institute for Railway Research at University of Huddersfield and ELG Carbon Fiber Ltd. (UK) collaborated to produce the world's first CAFIBO (carbon fiber bogie).

FAIRMAT

Overview: The Paris-based company entered the market in 2020 and developed a novel, environmentally friendly, revolutionary recycling method for carbon fiber composites. The company creates recycled material while lowering its carbon footprint due to its patented technique. It's a lightweight, high-tech material with design, mobility, electronics, construction, transportation and logistics applications.

Product Portfolio: Recycling: The company offers a recycling service to transform production scrap and End of Life waste into a new recycled composite material. The alternative to traditional recycling offers advanced technologies like Robotics, Finite Element Analysis, Artificial Intelligence, Machine Vision, etc., delivering the best-in-class ecological solution

Key Development

In December 2021, FAIRMAT was a startup dedicated to developing cutting-edge carbon fiber recycling technologies. A total of USD 9.7 million has been raised so far to commercialize a proprietary technology that saves 4,000 tonnes of recyclable material per year and repurposes it into value-added goods. The inaugural round of funding was led by Singular and included technology entrepreneurs and industry professionals who would aid FAIRMAT during this key stage of its development. According to FAIRMAT, the carbon fiber market will manufacture 160,000 Tons in 2020. Furthermore, carbon fiber waste is expected to reach 62,000 tonnes per year globally.

Why Purchase the Report?
• Visualize the global recycled carbon fiber market segmentation by type, source, end-user and region, highlighting key commercial assets and players.
• Identify commercial opportunities in the recycled carbon fiber market by analyzing trends and co-development deals.
• Excel data sheet with thousands of global recycled carbon fiber market-level 4/5 segmentation points.
• PDF report with the most relevant analysis cogently put together after exhaustive qualitative interviews and in-depth market study.
• Product mapping in excel for the key product of all major market players

The global recycled carbon fiber market report would provide approximately 61 market data tables, 55 figures and 211 pages.

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