The global carbon fiber market size is projected to be worth USD 7.27 billion by 2025 driven by decreasing prices and increasing adoption in the automotive sector. Carbon fiber is an advanced composite material that exhibits properties such as high strength to weight ratio and high corrosion resistance among others that makes it an ideal choice for usage across several industries. Growing usage of carbon fiber composites across aerospace, automotive and wind turbines along with decline in price of the material is expected to propel the carbon fiber industry growth in the coming years.

                                            Global Carbon Fiber Market Analysis, by Type, 2017 (%)

Carbon fibers are crystalline filaments of carbon produced from raw materials such as polyacrylonitrile (PAN), acrylic fiber and pitch. Carbon fiber can be woven into sheets or structures depending upon the application. Carbon fiber tows are categorized from 1k to around 48k. Carbon fiber tow types less than 24k are known as regular or small tow and 24k & 48k are considered as large tow. Regular tow carbon fibers have superior properties such as high tensile strength due to which they are extensively used in aerospace, sports equipment and wind energy generation applications. In 2017, regular tow accounted for >65% of the overall volume and the segment is expected to witness significant growth over the forecast period. However, large tow carbon fiber is also witnessing growing demand owing to its suitability for lightweight automobile parts and components.

In line with this trend, industry leaders are making investments in expansion of production capacities of large tow carbon fiber. For instance, in April 2018 ZOLTEK Corporation (which was acquired by Toray Industries, Inc. in March 2014) announced an expansion of its existing PX35 carbon fiber production capacity by 50% to 15 kilo tons annually. The additional capacity is projected to come online by 2020 and will increase the global PX 35 carbon fiber production capacity of ZOLTEK Corporation. PX35 carbon fiber finds application in automotive, offshore drillings and pressure vessels among other industrial applications.

Carbon fiber composites were mainly used in aircraft components and structure manufacturing. Aerospace components such as tie rods, ballistic shields, compression struts, cooling tubes, shuttle actuator mounts and turbine fan blades are some of the examples of carbon fiber composites. These composites provide the much-required fuel efficiency, better durability and reduction in weight. Therefore, a large number of aerospace structures are made from carbon fiber-based composites. Aerospace & defense accounted for >27% in terms of revenue share in global carbon fiber market in 2017.

Carbon fiber is an expensive material owing to its complex and time-consuming manufacturing process. This is one of the key factors due to which carbon fiber witnessed negligible penetration in other sectors except aerospace until the early 2000s. However, numerous technological developments along with economies of scale have resulted in optimizing the pricing delta due to which the price of carbon fiber has been declining over the past decade. With subsequent price reduction, carbon fiber is now accessible to other potential segments such as semiconductors and construction. At present, automotive and wind turbines industries exhibit the highest potential for growth of the carbon fiber market.

                Global Carbon Fiber Market For Automotive Industry (Tons) (USD Million), 2013-2025

Automobile manufacturers are continually imbibing new materials in their vehicles to reduce emissions and maximize fuel efficiency. Stricter vehicle fuel emission norms in the U.S. and Europe have propelled auto makers to bring structural changes to automobile design to reduce weight in order to make vehicles more fuel efficient. Carbon fiber is replacing traditionally used materials like aluminum. Carbon fiber composites can be found in various automobile components like hood, front grille, air vents, wheels, driveshaft, roof panel, chassis tubs and others.

Wind turbines segment is also witnessing substantial growth owing to rising prominence of wind energy as a renewable energy source. In 2016, the global cumulative wind capacity reached 486,749 MW. Carbon fiber plays a major role in wind turbine blade manufacturing as it increases the blade length without increasing structural weight. Increase in wind turbine installations across the globe, especially China and Europe, will propel the demand for carbon fiber industry growth in near future. For instance, in September 2018, Toray industries announced to expand its carbon fiber production capacity by 20% in Mexico and Hungary owing to high demand for offshore wind turbines.

Carbon fiber consumption varies greatly from one region to other. In 2017, Europe dominated the global carbon fiber market owing to its huge demand from the robust aerospace manufacturing sector and ever-evolving automobile industry. Europe accounted for nearly a quarter of the total consumption of carbon fiber volume in 2017. China is projected to register fast growth owing to the increasing wind turbine installations in the country.

In terms of market competitiveness, carbon fiber industry is concentrated with international players that are mainly based in Japan. Japanese manufacturers account for a huge chunk of carbon fiber market share in terms production across the globe.

These manufacturers are focused on strengthening their market presence through expansion and mergers & acquisitions. Toray Industries Inc., Teijin Limited, Mitsubishi Rayon Co. Ltd., SGL Carbon, Formosa Plastics Corp, Hexcel Corporation, DowAksa, and Cytec Industries (Cytec Solvay Group) are some of the key players in the carbon fiber market.

Key segments of the global carbon fiber market

Type Overview, 2013-2025 (Tons) (USD Million)

• Regular Tow
• Large Tow

Application Overview, 2013-2025 (Tons) (USD Million)

• Automotive
• Aerospace & Defence
• Wind Turbines
• Sports Equipment
• Industrial Materials
• Others

Regional Overview, 2013-2025 (Tons) (USD Million)

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • France
  • UK
  • Spain
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • India
  • Japan
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • Rest of MEA

Reasons for the study

• The purpose of the study is to give an exhaustive outlook of the global carbon fiber industry.
• We have been following advanced composites materials industry for quite some time. This sector has been gaining immense prominence, of which, carbon fiber market is an integral fragment. Globally, the carbon fiber market has tremendous growth potential with increasing usage in aerospace & automobile sector.
• Carbon fiber composite is being increasingly adopted by several key industries owing to its key properties. Currently, automobile industry possess the highest potential for expansion of carbon fiber applications
• Declining price of the carbon fiber material is a trend welcomed by the potential industries such as automobile, wind turbines and industrial materials. This trend is expected to open new avenues of growth for carbon fiber industry in future

What does the report include?

• The study on the global carbon fiber market includes qualitative factors such as drivers, restraints, and opportunities
• Additionally, the market has been evaluated using the value chain and PESTEL analysis
• The study covers qualitative and quantitative analysis of the market segmented on the basis of type, application and region. Moreover, the study provides similar information for the key geographies.
• Actual market sizes and forecasts have been provided for all the segments analyzed in the study
• The study includes the profiles of key players in the market with a significant global and/or regional presence

Who should buy this report?

This study is suitable for industry participants and stakeholders in the carbon fiber industry, who want an in-depth insight into the movement of the carbon fiber market. The report will benefit:

• Executives of carbon fiber manufacturing companies that are engaged in the production and distribution of the material
• Managers within financial institutions looking to publish recent and forecasted statistics pertaining to advanced composites industry
• Venture capitalist looking into investing capital
• Government organizations, regulatory authorities, policymakers and financial organizations looking for in-depth analysis of advanced composites industry
• Analysts, researchers, educators, strategy managers, and academic institutions looking for insights into the market to determine future strategies