Carbon Fiber Market Size
The Carbon Fiber market size is projected to grow from USD 4.6 Billion in 2022 to USD 19.2 Billion by 2032, at a CAGR of 15.5% during the forecast period. The strong growth in Carbon Fiber demand can be attributed to its excellent mechanical and chemical properties. These properties have made Carbon Fiber a popular choice of material in many industries such as aerospace, automotive, civil engineering, military & defence, and other competition sports.
Carbon fiber, also known as graphite fiber, has several advantages like high stiffness, high temperature tolerance, high chemical resistance, high tensile strength, low weight and low thermal expansion. These properties of Carbon Fiber are highly useful in civil engineering, aerospace, military and motorsports industries. They are usually impregnated with plastic resin or graphite to form composites which have high heat tolerance and strength-to-weight ratio.
Global Carbon Fiber Demand Supply Analysis, 2016-2032 (Kilo Tons)
Source: Secondary & Primary Research and Prismane Consulting estimates
Carbon Fiber Supply Analysis
The Carbon Fiber production capacity is primarily concentrated in Asia Pacific, North America, and Europe, with Asia Pacific contributing to over 50% of the supply. North America stands as the second-largest producer, accounting for more than 27% of the global Carbon Fiber Capacity. Over the past five years, global Carbon Fiber capacity has increased of around 40 kilo tons. According to the Prismane Consulting Capacity Database, an average annual addition of 25 kilo tons of capacity is anticipated during the forecast period, particularly in Asia Pacific and Europe. The global Carbon Fiber operating rate averaged around 75% between 2016 and 2021, and it is estimated to be remain in range of 72-75% globally during the forecast period due to announced capacity additions in China, Europe, and the Americas.
Global Carbon Fiber Demand, By Application, 2016-2032 (Kilo Tons)
Source: Secondary & Primary Research and Prismane Consulting estimates
In 2022, global Carbon Fiber demand was estimated to be around 136 kilo tons, with Europe, North America, and Asia Pacific collectively representing over 90% of the global demand. The global Carbon fiber market is categorized into Transportation (Automotive, Aerospace & Defense, and Marine), Industrial (Pressure Vessel, Wind Turbine, Oil & Gas, and Others), Sports & Leisure, Construction, and Others. The Transportation application dominates the global Carbon fiber market and is poised to register a CAGR of 12% during 2023-2032 due to the increasing demand for lightweight materials. In the Aerospace sector, Carbon fiber finds applications in fuselages, wings, and engine cowlings, contributing to weight reduction in aircraft, thereby enhancing performance and fuel efficiency.
Global Carbon Fiber Demand, By Region 2022 (Kilo Tons)
Source: Secondary & Primary Research and Prismane Consulting estimates
Carbon Fiber Market, By Region
Asia Pacific, on the back of China is the largest Carbon Fiber market accounting for more than 45% global market. The rising installed capacity of wind power will further boost the Carbon Fiber demand in the region. In 2022, China added more than 5.05 GW of new offshore wind power capacity accounting for more than 49% of the global capacity which will positively impact the Carbon Fiber market. In the country’s 14th Five-Year plan, China aims to supply more than 30% of national power consumption by 2025 and plans to increase their renewable energy generation to 3,300 TWh by 2030.
Japan and Unites States are the major Carbon Fiber exporter with shipment volume of over 15 kilo tons each in 2022. Japan exports over 60% of the Carbon Fiber produced in the county. China, Germany and Taiwan the major Carbon Fiber importer from Japan.
Carbon Fiber Key Manufacturers
Toray (Including Zoltek), Cytec, Hexcel, SGL Carbon, Teijin Ltd, Mitsubishi Rayon Corporation, Dow-Aksa, Zhongfu-Shenying Carbon Fiber Co. Ltd., Formosa Plastic, Hyosung Advanced Materials Corp and Hengshen Fibre Material are some of the key global carbon fiber manufacturers.
Carbon Fiber Market Dynamics
Drivers: Rising demand from the automotive industry
The growth opportunities for carbon fiber and other engineering plastics in the automotive industry are primarily linked with the industry's drive for lower emission and increased fuel efficiency. Carbon fiber also provides the option of replacement of metals with plastics to reduce the weight of the vehicle, achieving fuel efficiency. Carbon fiber parts have the tendency to absorb high impact energy which helps in increasing the vehicle safety.
Carbon fiber is widely used in interior elements, such as dashboards, seat frames, and trim components as the material's sleek and modern aesthetic adds luxury to the vehicle while ensuring durability. Carbon fiber composites are also used in the production of performance parts like aerodynamic elements, spoilers, and diffusers owing to its ability to withstand high temperatures and intense forces which makes it essential for enhancing the aerodynamics and overall performance of sports and high-performance vehicles.
Dash-CAE, an advanced engineering company in the UK has launched a new Carbon Fiber monocoque chassis, the TR01 for supercars and motorsport developments in the growing automotive and motorsport industries.
In March 2023, Lamborghini announced that the company’s HPEV (High Performance Electrified Vehicle) hybrid sports car, LB744, is based on a new aeronautics-inspired chassis, which is made of multi-technology Carbon Fiber.
In 2023, Hyundai announced that the company will start offering Carbon Fiber wheel option for their N models as an initiative to save around 40%-50% of weight as compared to alloy wheels.
Rising demand from the Aerospace industry
In Aerospace, Carbon Fiber is extensively used in the construction of structural components such as wings, fuselage sections, and tail assemblies. The material's high tensile strength and rigidity contributes to the structural integrity of these components while keeping weight to a minimum. Carbon fiber composites are also employed in aircraft interiors, providing durability, weight savings, and a modern aesthetic.
The aerospace industry benefits from Carbon Fiber's resistance to corrosion and fatigue, making it particularly well-suited for withstanding the demanding conditions of flight. As technology continues to advance, Carbon Fiber's role in aerospace is expected to expand further, driving innovation and efficiency in the development of next-generation aircraft and spacecraft.
There have been several material developments in the aerospace industry and the introduction of Carbon Fiber has extended the application of SMC (sheet molding compound) from exterior and design parts to semi-structural parts.
Restraint: High Costs of Production
The production of Carbon Fiber involves the use of high-temperature furnaces for prolonged periods. The energy-intensive nature of these processes contributes to higher production costs, as energy expenses are a significant part of the overall manufacturing cost. The manufacturing process is expensive which will hinder the Carbon Fiber market in the forecast period.
Recent Developments in Carbon Fiber Market
In November 2023, Hyosung Advanced Materials Corp. invested around $540 million for the construction of Carbon Fiber capacity in Vietnam. In the initial phase, the facility will be designed to operate with an annual Carbon Fiber capacity of 4.8 kilo tons, slated to commence operations in February 2025. Subsequently, additional capacities of 7,200 tons and 9,600 tons will be incorporated in the second and third phases, commencing by the end of 2028 and 2031, respectively.
In October 2023, Toray Carbon Fibers Europe S.A.’s (Lacq) announced to expand the Carbon Fiber capacity of regular tow and high modulus Carbon Fibers at Abidos, France.Toray will expand its existing capacity from 5 kilo tons to 6 kilo tons and it is scheduled to be completed by 2025.
Zoltek Companies Inc., a renowned player in the industrial-grade Carbon Fiber industry, has announced to enhance its carbon-fiber manufacturing capabilities at its Guadalajara, Mexico facility. The new expansion, with a production capacity of 6 kilo tons is scheduled to commence operations in early 2023. This addition comes in addition to another 6 kilo tons expansion that was successfully concluded in 2021. Upon completion, Zoltek will raise its North American carbon-fiber capacity to around 20 kilo tons. This will contribute to Zoltek's global carbon-fiber production capacity reaching 35 kilo tons making it world's leading carbon-fiber supplier.
In June 2023, Toray Industries announced its plans to increase capacity of regular tow Carbon Fiber at South Carolina, USA and the Gumi, Gyeongsangbuk, South Korea. These investments will increase the company’s Carbon fiber annual capacity by more than 20% to 35 kilo tons by early 2025.
Zhongfu Shenying Carbon Fiber plans on building a new high-performance Carbon Fibers plant in Lianyungang, Jiangsu province with an installed capacity of 30 kilo tons. The plant is expected to start production by 2026.
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