Carbon Fiber Composites Market Size, Assessment, Volume, Value, Share, Growth, Trends, Competition, Capacity, Industry Analysis, Actionable Insights Report; By Raw Material, By Matrix Material, By End User, By Region and By Country; Outlook and Forecast, 2023 – 2030

Report Summary

The Global Carbon Fiber Composites Market is projected to reach a valuation of around USD 35 Billion by 2030, representing a notable increase from the USD 20 Billion recorded in 2022. This growth reflects a Compound Annual Growth Rate (CAGR) of about 7% throughout the forecast period spanning from 2023 to 2030.

The growth of the carbon fiber composites (CFCs) market is driven by the continuous evolution of products initiated by numerous industry players, characterized by technological advancements and innovative materials. Carbon fiber composites are finding expanding applications across diverse sectors, including automotive, aerospace, energy, sports goods, construction, marine, and more. Notably, the market is also influenced by the rapid pace of technological progress, ongoing product innovation, and diversification initiatives in various countries.

The expansion of the carbon fiber composites industry is further fueled by breakthroughs in advanced carbon fiber composites, particularly Carbon Fiber Reinforced Thermoplastic (CFRTP), alongside their escalated adoption in high-volume vehicle manufacturing. Carbon fiber composites' exceptional attributes such as remarkable strength, lightness, corrosion resistance, balanced chemical reactivity, X-ray transparency, efficient thermal conductivity, and low coefficient of thermal expansion have cemented their significance in demanding applications, driving industry growth.

What is Carbon Fiber Composite?

Carbon fiber composites (CFCs) are formed by combining carbon fiber with a diverse range of material matrices, predominantly polymer, carbon, ceramic, and others. This combination yields a composite material with significantly improved performance characteristics compared to individual carbon fiber filaments. Carbon fiber composites are produced utilizing a variety of manufacturing techniques, including pultrusion and winding, wet lamination and infusion, prepreg layup, press and injection processes, among others.

Carbon fiber, also referred to as graphite fiber, originates from the bonding of carbon atoms, resulting in lengthy chains. These carbon fiber filaments are woven to create a fabric and subsequently adopt a permanent structure as carbon fiber composites when integrated with a matrix. Remarkably, carbon fibers can extend several centimeters and typically possess a diameter ranging from 5 to 10 micrometers. By adjusting carbon fiber qualities, matrix attributes, and manufacturing processes, carbon fiber composites can be tailored to possess specific properties.

Carbon fiber composites or carbon reinforced matrix composites emerged as robust alternatives to wood or metal across a multitude of applications, embodying heightened strength, reduced weight, lower thermal expansion, and increased durability. With a typical tensile strength ranging from 400 to 500 ksi, alongside an average density of 1.55 g/cc, carbon fiber composites boast strengths up to 10 times that of steel, while constituting just a fifth of its mass.

Highly esteemed for their remarkable strength-to-weight ratio, corrosion resistance, stiffness, and durability, carbon fiber composites are held in high regard across various industries. Leveraging the substantial tensile strength and low density of these composites facilitates their lightweight nature, rendering them an enticing alternative to heavy metals such as steel. Moreover, these composites demonstrate immunity to rust, chemicals, and corrosion, resulting in extended product lifecycles compared to conventional metal materials. Furthermore, carbon fiber composites exhibit exceptional thermal and electrical conductivity.  

These versatile materials find wide-ranging applications in diverse consumer goods, including items such as archery bow limbs and sail battens. Additionally, carbon fiber composites feature prominently in automotive body panels, wind turbine blades, and orthopedic external fixators. Industries spanning transportation, consumer goods, healthcare, energy, infrastructure, and construction all capitalize on the advantages offered by carbon fiber composite materials.

What are the Major Growth Drivers, Restraints, and Opportunities in the Carbon Fiber Composites Market?

Rising Demand from Aerospace & Defense Sectors Fuels Carbon Fiber Composite Market

The aerospace and defense sectors are witnessing a growing demand for carbon fiber composites owing to their lightweight, robustness, and endurance. These composites find widespread application in crafting aircraft structures such as wings, fuselages, empennages, and control surfaces. Notably, the Boeing 787 Dreamliner extensively integrates carbon fiber composites into its airframe, resulting in enhanced aircraft lightness and fuel efficiency.

Furthermore, carbon fiber composites play a vital role in the production of rocket components, encompassing payload fairings, nose cones, and fuel tanks. The SpaceX Falcon 9 rocket is a notable example of the utilization of carbon fiber composite overwrapped pressure vessels (COPVs) in its propellant tanks, highlighting their exceptional strength and weight-reduction capabilities.

Throughout a significant part of 2020 and well into 2021, the demand for carbon fiber composites experienced a substantial decline, mainly due to the severe impact of COVID-19 on the aviation industry. As the pandemic gradually subsided and commercial air travel began its recovery in 2022, there has been a notable resurgence in orders for new aircraft. This renewed interest has resulted in a surge in demand for carbon fiber composites, especially in the field of aerostructures. For example, prominent airlines such as Air India and IndiGo from India have recently placed substantial orders for over 1,300 aircraft from leading manufacturers such as Boeing and Airbus.

Ongoing Advances and Research Initiatives Driving Market Expansion

The relentless innovation in advanced carbon fiber composites, including Carbon Fiber Reinforced Thermoplastic (CFRTP), and their increasingly prevalent use in high-volume vehicle manufacturing holds the potential to accelerate industry growth. Advanced CFRTP, backed by mass production technology, boasts a remarkable molding time of just one minute, is 40.1% lighter than steel, and exhibits tenfold the impact resistance.

Automotive manufacturers are actively investing in extensive research and development activities to create cutting-edge materials tailored for high-volume vehicle production. Collaboratively designed with GM and Teijin Limited, the innovative box design based on CFRTP, featuring a rapid one-minute molding time, significantly enhances production efficiency.

Significant research initiatives are underway to pioneer innovative carbon fiber production methods and reduce the environmental footprint associated with composite material manufacturing. Researchers are directing their efforts toward producing carbon fiber from forestry byproducts, such as lignin, reducing reliance on petroleum-based raw materials. These initiatives are targeted at achieving a reduction in product costs of over 31% while concurrently lowering the carbon footprint by approximately 50% throughout the carbon fiber production process.

Emerging and Novel Applications Create Growth Opportunities for the Carbon Fiber Composites Market

Carbon fiber composites are finding innovative applications across various industries. Some notable emerging applications include longer wind energy blades, battery enclosures, fuel cell components, hydrogen storage vessels and tanks, advanced air mobility, automation and robotics, marine applications, utility poles and cables, telecom towers, infrastructure projects, and 3D printing, among others.

• Wind Energy: In 2021, the average wind turbine rotor diameter reached approximately 128 meters and continues to rise. Longer blades, reinforced with carbon fiber composites for their lightweight and strength, are driving demand. As wind turbines expand, especially offshore, the demand for carbon fiber composites is expected to increase. These composites are primarily used in spar caps to enhance blade stiffness and reduce weight, helping prevent tower strikes during sudden wind gusts in larger turbines.
• Electric Vehicles: The expanding electric vehicle (EV) market presents new prospects for carbon fiber composites in battery enclosures and fuel cell components. These composites play a crucial role in extending the driving range of battery electric vehicles (BEVs) by reducing battery weight and enhancing safety through lightweight enclosures. Additionally, carbon fiber composites find applications in several components of fuel cells, including end plates, gas diffusion layers (GDL), and bipolar plates. By 2030, the automotive fuel cell market is projected to reach 724,000 units, further underscoring the growing significance of carbon fiber composites in this sector.
• High-Pressure Gas Storage Vessels: High-pressure gas storage vessels, especially those using filament-wound carbon fiber composites, represent one of the largest and rapidly growing markets in advanced composites. These vessels primarily store compressed natural gas (CNG), renewable natural gas (RNG), liquid propane gas (LPG), and hydrogen gas (H2).
• Hydrogen: The evolving hydrogen (H2) economy is propelling the advancement of tanks, catering to aircraft, ships, and gas transportation needs. Type V pressure vessels play a pivotal role, accommodating gases and cryogenic liquids across spacecraft, aviation, ground transportation, and industrial gas applications. Currently, Type III and Type IV tanks utilize carbon fiber composites for bearing all structural loads. Ongoing research is dedicated to the creation of Type V tanks optimized for hydrogen storage, including the challenging task of storing cryogenic liquid hydrogen (LH2). As per the projections, the hydrogen storage market could reach more than 0.5 million carbon fiber composite tanks by 2025, highlighting substantial growth prospects in this sector.
• Marine: The utilization of carbon fiber-reinforced polymers (CFRP) in the marine industry is experiencing gradual growth. This growth is propelled by the demands of boat owners and operators who seek enhanced speed and performance while concurrently striving to decrease fuel consumption and mitigate environmental impact.
• Utility and Infrastructure: Beyond utility poles, carbon fiber composites are gaining traction in the electrical and utility cable sector. Pultruded carbon fiber composites serve as the conductive core, facilitating electricity transmission within the cable. These composites enhance electric line capacity, reduce energy losses, and prevent wire sag due to overheating. Additionally, carbon fiber-reinforced polymer (CFRP) rebar is actively explored as an alternative in infrastructure and construction projects.
• Communications Infrastructure: In the communications infrastructure sector, some companies are customizing lattice-shaped towers made from carbon fiber-reinforced polymer (CFRP). These innovative towers serve the purpose of supporting and safeguarding antennas and various essential equipment, tailored to meet specific industry needs.
• Advanced Air Mobility (AAM): Advanced air mobility (AAM), also known as urban air mobility (UAM) or eVTOL (electric vertical take-off and landing), represents a burgeoning aerospace sector driving the worldwide shift towards sustainable, on-demand cargo, passenger, and delivery drone air transportation. Carbon fiber composites play a pivotal role in this transformation, with applications in blade construction, interior design, structural components, as well as drone structural elements, propellers, electric motors, batteries, electronic components, and others. As per industry leaders, more than 90% of the composites used in eVTOLs will be carbon fiber-based.
• High-Performance Cycling: Furthermore, carbon fiber-reinforced polymer (CFRP) bicycle frames maintain their dominance in the realm of high-performance cycling.

Industries such as automotive and aerospace are placing a growing emphasis on enhancing fuel efficiency. Furthermore, the imposition of stricter environmental regulations and emissions standards is compelling manufacturers to seek out lightweight materials that can simultaneously address both these demands. Carbon fiber composites present a sustainable solution by effectively reducing overall weight and fuel consumption. However, the relatively high manufacturing costs associated with carbon fiber composites have hindered their widespread adoption.

What are the Carbon Fiber Composites Market Segmentations and Bifurcations?

Carbon Fiber Composites Market Segmentation based on Raw Material

• PAN based Carbon Fiber
• Pitch based Carbon Fiber
• Rayon based Carbon Fiber

The carbon fiber composites market is bifurcated based on raw material types, including PAN-based carbon fiber, pitch-based carbon fiber, and rayon-based carbon fiber. In 2022, the PAN-based carbon fiber segment dominated the market, both in terms of value and volume. It was followed by the pitch-based and rayon-based carbon fiber segments.

PAN-based carbon fiber is manufactured through the carbonization of PAN (Polyacrylonitrile) precursor material. It boasts exceptional characteristics such as a remarkable strength-to-weight ratio, impressive tensile strength, high stiffness, excellent energy absorption capacity (toughness), and traditional cost-effectiveness. These attributes render it suitable for a wide array of industries, spanning from aerospace to general industrial components and sporting equipment. PAN-based carbon fiber composites are employed in various forms, including prepregs, fabrics, pultrusion, and windings. While their applications are well-established in aircraft and automobile manufacturing, their usage is projected to expand significantly in industries such as pipes & tanks and wind energy due to the rising prevalence of hydrogen tanks in Fuel Cell Electric Vehicles (FCEVs) and the increasing global installations of wind capacity.

Pitch-based carbon fibers, on the other hand, are derived from the carbonization of oil/coal pitch precursor materials. They exhibit a wide range of properties, from low elastic modulus to ultra-high elastic modulus. Fibers with ultra-high elastic modulus are extensively utilized in components requiring exceptional stiffness and are valued for their high thermal and electrical conductivity. Although they are stronger than PAN-based carbon fibers, they are also comparatively more expensive.

Carbon Fiber Composites Market Segmentation based on Matrix Material

• Hybrid
• Carbon
• Metal
• Ceramics
• Polymer
  • Thermosetting
  • Thermoplastics

In terms of matrix material, the polymer segment dominated the carbon fiber composites market, holding a leading share of around 60% in 2022. Within the polymer segment, thermosetting polymers are poised for substantial growth by 2030, primarily driven by their extensive use in major aerospace applications and their versatile applications within the military sector. Furthermore, the enhancement of adhesion and surface finishing will contribute to an increased segment share. Looking ahead, polymer-based carbon fiber composites are projected to amass around USD 20 billion by 2030, underscoring their significant role in the market.

Additionally, the forecast period holds opportunities for the expansion of metal matrix carbon fiber composites. This growth can be attributed to their numerous advantages, including fire and radiation resistance, as well as enhanced transverse stiffness and durability. The robust mechanical properties of a metal matrix set it apart from conventional metals, rendering it a viable substitute, particularly in the aerospace and automotive industries.

Carbon Fiber Composites Market Segmentation based on End-User Industry

• Wind Energy
• Aerospace & Defense
• Automotive
• Sports & Leisure
• Marine
• Civil Engineering & Infrastructure
• Buildings and Construction
• Others

In 2022, the aerospace & defense segment dominated the global carbon fiber composites market, accounting for about 60% market share. This sector heavily relies on carbon fiber composites for various aerospace components, including airframe structures, landing gears, and floor panels. The adoption of carbon fiber composites in aerospace manufacturing plays a pivotal role in enhancing the fatigue and corrosion resistance of aircraft parts.

• As per data from the Stockholm International Peace Research Institute (SIPRI), an independent global organization, the overall worldwide military spending surged by 3.7% in constant-dollar terms during 2022, reaching an impressive USD 2.24 Trillion. Europe registered the highest growth rate of 13% in 2022. The heightened military spending by Russia and Ukraine vastly contributed to this growth. The top three spenders in 2022 were the USA, China, and Russia, collectively accounting for 56% of the total global expenditure.
• In recent years, spurred by climate neutrality objectives and the rise of advanced air mobility (AAM), the aerospace industry has experienced a surge in battery, hydrogen fuel cell, and electric propulsion technologies. As the demand for more efficient "fuel" sources grows, the aviation industry seeks lighter and more efficient designs, making composite propellers a prominent choice to achieve these goals. While CFRP propeller blades are not novel, their rising adoption in advancing aerospace electrification is a noteworthy trend.

Following closely, the wind energy sector is estimated to secure a substantial market share. Carbon fiber composites find extensive application in the construction of wind turbine blades due to their exceptional strength-to-weight ratio. These composites facilitate the production of longer and more efficient blades, which capture a greater amount of wind energy, thereby enhancing turbine performance. Their lightweight nature reduces the burden on the turbine, ultimately boosting overall energy production. By incorporating Carbon fiber composites in wind turbine blades, it becomes possible to create larger rotor diameters, leading to increased wind energy capture, higher power generation, and improved cost-effectiveness of wind energy systems.

• Over the years, the need for corrosion resistance has driven the use of carbon fiber composites and other composite materials as substitutes for conventional metals in various oil and gas drilling applications. These applications include components for wellhead protection, frag plugs utilized in onshore hydraulic fracturing (fracking), and others.

Simultaneously, the automotive industry segment anticipates substantial growth rates. This growth is primarily attributed to the unique capacity of carbon fiber composites to reduce vehicle weight by substituting conventional heavy metals. Amid the rising global demand for electric vehicles, the adoption of automotive carbon fiber is poised to extend the range of these eco-friendly vehicles. At present, carbon fiber composite automotive components are predominant in high-end sports cars and supercars, with select carbon fiber composite parts available in the aftermarket. As the costs associated with carbon fiber composites decrease, their adoption within the automotive industry, particularly in high-volume vehicles, is expected to escalate. Additionally, stringent emission regulations also play a significant role in propelling growth within this segment.

What are the Regional and Country Trends in the Carbon Fiber Composites Market?

Carbon Fiber Composites Market: Regional Trends and Outlook

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

North America carbon fiber composites market emerged as the leading region in 2022, capturing over 30% of the market share. This was primarily due to the high concentration of aerospace and defense manufacturers in this region, who are substantial consumers of carbon fiber composites. The robust aerospace and defense industry in North America relies on these composites for their exceptional strength-to-weight ratio, critical for aircraft components and structures. Leading aircraft manufacturers in the region fuel the demand for carbon fiber composites. Additionally, the automotive sector in North America increasingly embraces these materials for lightweighting and performance enhancements, contributing to weight reduction, improved fuel efficiency, and enhanced safety in vehicle structures. Carbon fiber composites have found their way into high-end sports cars, electric vehicles (EVs), and luxury vehicles.

Aircraft manufacturers, in collaboration with industry players, channel substantial investments into research and development to engineer advanced materials that enhance aircraft operational capabilities. Furthermore, industry participants are fortifying their distribution networks in the region by onboarding new distributors. In the United States, key players are directing their efforts towards the launch of new carbon fiber composite materials, poised to propel market growth.

Europe, driven by high demand from aerospace & defense and wind energy sectors, also holds a significant share in the global carbon fiber composites market. The region is a hub for crucial aerospace composite manufacturers, and the steady increase in Airbus aircraft deliveries is driving substantial demand for composite materials. Moreover, Europe takes the lead in offshore wind energy projects and hosts over half of global commercial aircraft production. Stringent emission regulations and fuel economy standards are driving the adoption of carbon fiber composites in automobile manufacturing, particularly in countries such as Germany, the UK, and France.

The Asia Pacific carbon fiber composites market is poised to register the highest CAGR during the forecast period. This is primarily driven by the extensive utilization of carbon fiber composites in burgeoning industries such as renewable energy, automotive, aerospace, defense, and marine within the Asia-Pacific region. Major markets for carbon fiber composites in Asia Pacific include Japan, China, South Korea, and several others.

How is the Competition Scenario in the Carbon Fiber Composites Market?

Carbon Fiber Composites Market: Competition Scenario and Outlook

In the carbon fiber composites market, companies are actively engaged in research and development to create innovative product portfolios. Companies are expanding production capacities to meet current and anticipated high demand while implementing cost-reduction strategies to increase the penetration rate of carbon fiber composites. Moreover, these firms are prioritizing vertical integration across the value chain and actively seeking sustainable and recyclable raw materials for their carbon fiber composites. Some of the key players operating in the global carbon fiber composites market include DowAksa, Formosa, Hengshen, Hexcel, IDI Composites, Mitsubishi, Rock West Composites, SGL Carbon, Solvay, Teijin, Toray, Zhongfu-Shenying Carbon Fiber, and others.

Carbon Fiber Composites Industry Developments

• In July 2023, Huntsman and V-Carbon announced a collaborative effort to develop a comprehensive recycling solution for carbon-fiber composites, encompassing both the fiber and resin components along with their chemical constituents. V-Carbon's technology relies on a patented chemolysis process, offering the promise of achieving a fully circular economy with zero waste.
• In June 2023, the CRIMSON tidal energy project, valued at Euros 3.9 million, entered its next phase and ÉireComposites company manufactured a new turbine foil for ORPC. The CRIMSON project is a collaborative effort involving ÉireComposites, NUI Galway, Mitsubishi Chemical Advanced Materials (MCAM), Consiglio Nazionale delle Ricerche (CNR), and ORPC. The CRIMSON project strives to revolutionize the marine energy sector by introducing ORPC's river and tidal turbine equipped with foils crafted entirely from recycled carbon fiber composites. This initiative not only contributes to sustainability but also targets a reduction in capital expenditure by 33% and operating expenditure by 66%.
• In June 2023, Carbon Revolution announced that it will supply its carbon fiber composite wheels for 2024 Range Rover Sport SV.
• In April 2023, Solvay and GKN Aerospace announced the extension of their collaboration agreement from 2017. This strategic partnership is dedicated to shaping an inventive roadmap for thermoplastic composites (TPC) in aerospace structures. Its primary objectives include the exploration of cutting-edge advanced materials and manufacturing methods. Solvay will continue as the preferred supplier of TPC materials for GKN Aerospace, as both companies jointly pursue future high-rate programs in the aerospace industry.
• In October 2022, IsoTruss deployed its carbon fiber composite-based cell tower solution to support the remote critical communications infrastructure of the Wyoming Bureau of Land Management (BLM) atop Elk Mountain in Wyoming, U.S.
• In July 2022, Hexcel entered a long-term agreement with Dassault, securing the supply of carbon fiber prepreg for the Falcon 10X program. Notably, this marks the inaugural Dassault business jet program to integrate high-performance advanced carbon fiber composites in the production of its aircraft wings.
• In July 2022, Overair and Toray announced a strategic collaboration on the utilization of Toray's advanced T1100/3960 prepreg system in Overair's Butterfly eVTOL aircraft program.
• In May 2022, Boston Materials and Arkema jointly introduced ZRT bipolar plates designed for use in hydrogen fuel cells. These innovative bipolar plates are crafted from thermoformed ZRT composite films, which are exclusively composed of 100% reclaimed carbon fiber. This approach enables the production of more efficient and lightweight bipolar plates while significantly reducing the carbon footprint associated with their manufacturing. According to the company, bipolar plates represent a substantial portion, accounting for up to 80%, of the total weight of the fuel cell stack. Notably, plates manufactured using Boston Materials' ZRT technology are claimed to be over 50% lighter than conventional stainless steel plates, resulting in a remarkable 30% increase in the fuel cell's capacity.
• In May 2022, ESE Carbon introduced its E2 one-piece carbon fiber composite wheels to the aftermarket segment. These E2 wheels weigh only 17 pounds on average, making them approximately 45% lighter than OEM wheels typically made from aluminum and steel. The company asserts that these lightweight properties lead to enhanced performance, improved handling, increased efficiency, and even noise reduction. For electric vehicles, the reduced rotational inertia translates to lower watt-hours per mile and extended vehicle range. Currently, these wheels are available in a 19x8.5" size, with plans to introduce additional sizes and designs in later stage.
• In March 2022, Solvay unveiled the names of the upcoming independent publicly traded companies resulting from its planned separation. These names, Solvay and Syensqo, will become official upon the completion of Solvay's planned separation, expected to be finalized in December 2023, pending the satisfaction of customary conditions. Syensqo will house the company's carbon fiber composites business.
• In February 2022, Teijin unveiled a strategic business alliance with Fuji Design Co., Ltd., a prominent Japanese recycled carbon fiber manufacturer. This partnership aims to establish a robust business framework for the production, distribution, and market penetration of carbon fiber-reinforced plastic (CFRP) products crafted from recycled carbon fibers through an environmentally sustainable process.
• In January 2022, Trillium Renewable Chemicals and Solvay formalized a letter of intent to collaboratively establish a bio-based acrylonitrile (bio-ACN) supply chain. Trillium will be the supplier of bio-ACN to Solvay, which will evaluate its suitability for carbon fiber manufacturing. The ultimate goal is to produce carbon fiber composites from bio-based or recycled origins for a wide array of applications, encompassing aerospace, automotive, energy, and consumer goods. Acrylonitrile, a pivotal chemical intermediate in carbon fiber production typically derived from petroleum-based feedstocks such as propylene, will now be produced through Trillium's Bio-ACNTM process, utilizing plant-based feedstocks such as glycerol and thereby reducing the carbon footprint of this critical material.
• In July 2020, Teijin and the UK's National Composites Centre bolstered their collaborative efforts to drive innovation in carbon fiber composite materials. This strategic partnership is poised to catalyze extensive research and development initiatives within the realm of carbon fiber composites.