Carbon Fiber Market Size, Share & Trends Analysis Report By Raw Material (PAN-Based, Pitch-Based), By Tow Size, By Application (Automotive, Aerospace & Defense), By Region, And Segment Forecasts, 2023 - 2030

Carbon Fiber Market Size, Share & Trends Analysis Report By Raw Material (PAN-Based, Pitch-Based), By Tow Size, By Application (Automotive, Aerospace & Defense), By Region, And Segment Forecasts, 2023 - 2030

Carbon Fiber Market Growth & Trends

The global carbon fiber market is expected to reach USD 10.68 billion by 2030, registering a CAGR of 5.4% from 2023 to 2030 according to a new report by Grand View Research, Inc., This growth is attributed to the increasing adoption of carbon fiber in the automotive and aerospace industry.

The increasing demand for commercial aviation due to rising disposable income and globalization has catered to the growth of the aerospace industry over the last few years. This trend is likely to continue over the coming years as well. Moreover, the rise in demand for sports and leisure applications due to the increasing population, particularly in the Asia Pacific region, is also likely to propel the demand for carbon fiber in the market.

The carbon fiber market has witnessed forward integration by various raw material manufacturers. In-house production and utilization of carbon fiber help manufacturers cut down on logistics costs and directly cater to end-use product manufacturers, thereby increasing profitability. Carbon fiber applications depend on the grade used and, ultimately, on the quality of the precursor.

End-use components mainly include automotive, aerospace, wind turbines, and sports & leisure products. Different manufacturers serving different application segments manufacture these products. In addition, end-users have collaborated with various product manufacturers to develop special-grade carbon fiber for specific applications.

Energy crises have forced various end-users to use carbon fiber to increase the energy efficiency of products. As a result, a surge in product demand across aerospace and wind turbine applications is expected to boost the global market growth over the forecast period. Moreover, rising governmental support for installing wind turbines is projected to positively influence the demand for carbon fiber. In addition, the development of the commercial aviation segment is also expected to propel the demand for carbon fiber in aerospace applications over the forecast period.

The growing concerns regarding fuel consumption and CO2 emission levels have urged manufacturers to use carbon fiber composite materials as substitutes for metal components.The aerospace sector demands lightweight and rigid materials for usage in aircraft, rockets, satellites, and missiles as it determines performance.

The U.S. and Europe are the key regions in the aerospace & defense industry. The carbon fiber demand is attributed to the presence of significant aircraft manufacturers such as Boeing and Airbus. The aerospace industry is led by commercial aviation and the production of large passenger and cargo jets. The primary objective of using composite materials, including carbon fiber, is to modify airplanes with less weight and make them more fuel efficient.

Carbon Fiber Market Report Highlights

• On the basis of raw materials, the polyacrylonitrile (PAN) segment led the market with a revenue share of 96.2% in 2022. The segment is forecasted to grow at the fastest CAGR of 11.9% by 2030.
• The large tow segment is forecasted to grow at a rate of 10.3% from 2023 to 2030. This growth is due to the growing adaption of carbon fiber across several application industries due to its higher strength-to-weight ratio and its advantages over conventional materials, including metals and alloys.
• The aerospace & defense segment accounted for the largest revenue share of 32.0% in 2022, and the segment is forecasted to grow at a CAGR of 11.3%. The Aerospace & defense sector requires lightweight and robust materials for usage in aircraft, rockets, satellites, and missiles as it assists in improving the performance by reducing the weight of the overall structure.
• The Europe region is forecasted to grow at the fastest growth rate of 11.4% from 2023 to 2030. The presence of aerospace giants such as Airbus and Boeing in Europe and North America has propelled the regional demand for carbon fiber.
• The growing concerns regarding the consumption rates of non-renewable energy sources have driven the demand for fuel-efficient vehicles. This is forecasted to propel the demand for carbon fiber in the automotive application segment over the coming years.

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