Carbon Fiber Market by raw material (PAN-Based, Pitch-Based), by product type (Continuous carbon fiber, Longcarbon fiber, Short carbon fiber), Application (composite, Non- Composite), by Region (North America, Europe, Asia Pacific, Middle East and Africa, and South America) and COVID-19 Analysis: Global Forecast 2022 to 2032.

Market Analysis and Insights:

At a projected CAGR of 12.7%, the Global Carbon Fiber Market is anticipated to grow from an estimated size of USD 6.3 billion in 2022 to USD 21.5 billion by 2032.

The market for carbon fiber is anticipated to grow as a result of the anticipated increase in demand for lightweight vehicles. The desire for fuel-efficient cars and strict regulatory requirements are important factors affecting the market outlook.

Carbon Fiber Market scope :

Market Definition:

The strong, lightweight material known as carbon fiber is created from tiny strands of carbon atoms. It is perfect for a range of purposes, including automotive, aerospace, sporting goods, and wind energy because it is two times lighter and five times stronger than steel. Carbon fiber is made from carbon atoms with a diameter of between five and ten micrometers. It is also known as graphite fiber. These fibers are more resistant to chemicals, have a greater strength-to-weight ratio, experience less thermal expansion, have higher tensile properties, and are stronger overall. These characteristics of the carbon-based fibers make them the material of choice for applications in the fields of aerospace, automotive, defense, building, wind turbines, and sports

Key Market Segmentation:

Insights based on Type:

The PAN-based carbon fiber segment is predicted to control the bulk of the worldwide With over 96% of the global market share in 2022, PAN-based carbon fiber is the market’s dominant sector. The remaining market share belongs to carbon fiber made of pitch. To remove non-carbon atoms, polyacrylonitrile (PAN) fibers are heated in a controlled atmosphere to create PAN-based carbon fiber. Because of its great strength, rigidity, and lightweight, carbon fiber made from PAN is well-known. It is the most economical type of carbon fiber since it is also reasonably simple to create. Petroleum pitch, a waste product of oil refining, is used to make pitch-based carbon fiber.

Although PAN-based carbon fiber is frequently less expensive, pitch-based carbon fiber has some special qualities that make it suitable for particular applications. For instance, carbon fiber made from pitch is more resilient to high temperatures and chemicals than carbon fiber made from PAN.

Insights based on Product Type:

The continuous carbon fiber category is expected to contribute to the majority of the market share.

Due to its numerous uses, continuous carbon fiber makes up the majority of the global market for carbon fiber. However, as these products are widely used in new applications, including automotive and industrial items, it is anticipated that the long and short carbon fiber sectors will expand at a quicker rate in the upcoming years. The market for Carbon Fiber worldwide is anticipated to be dominated by the most prevalent type of carbon fiber is continuous, which is composed of long, thin filaments that can be coiled to create yarn or tow. Numerous industries, including aerospace, automotive, wind energy, and sporting goods, use continuous carbon fiber.

Although it is split into smaller lengths, long carbon fiber is identical to continuous carbon fiber. Long carbon fiber is frequently employed in applications where a balance between strength and stiffness is crucial, like in sports equipment and automobile parts. Carbon fiber that is cut into short pieces is known as short carbon fiber. Short carbon fiber is frequently utilized in applications that require an elevated degree of toughness,

Insights based on Application :

In 2023, the composite category is predicted to be the largest application segment in the worldwide Carbon Fiber market The composite segment held the biggest market share in 2022 and is anticipated to maintain this position of strength during the projected period. This is because carbon fiber composites are being used more frequently in a variety of sectors, including aerospace, automotive, wind energy, and construction. Because they are strong, lightweight, and long-lasting, carbon fiber composites are perfect for situations where performance and weight reduction are crucial. During the projection period, the non-composite category is anticipated to rise at a quicker CAGR. The reason for this is that carbon fiber is being used more frequently in non-composite applications such as friction materials, filtration, and batteries. New materials like carbon fiber-reinforced concrete and carbon fiber-reinforced plastics are being created using carbon fiber as well.

Insights on Regional Analysis:

Asia Pacific followed by European Region to Provide Numerous Financing Opportunities.

The carbon fiber market is expanding the quickest in Asia Pacific, with a CAGR of over 12% anticipated between 2023 and 2030. Demand for carbon fiber is being driven by the expanding wind energy and automobile sectors in the area. China, followed by Japan and South Korea, has the largest market for carbon fiber in the Asia Pacific area. With almost 36% of the global market share in 2022, Europe is the carbon fiber industry’s largest market.

The region’s robust aerospace and defense sector is a key factor in the need for carbon fiber. Some of the top producers of carbon fiber, including Toray Industries, Teijin Limited, and Solvay, are based in Europe. With nearly 30% of the global market for carbon fiber, North America is the second- largest market. The greatest carbon fiber market in North America is found there. Although the carbon fiber markets in the Middle East, Africa, and South America are now relatively small, they are anticipated to grow quickly over the next few years. Demand for carbon fiber is increasing due to the Middle East and Africa’s expanding oil and gas industries as well as South America’s expanding automobile and wind energy sectors.

Company Profiles:

The market for Carbon Fiber is active and cutthroat. The leading companies are always inventing and releasing new products. New competitors are also joining the market from emerging economies.

Major players in global Carbon Fiber are Toray Industries, Teijin, Mitsubishi Rayon, Zoltek, SGL Carbon, Cytec Industries, Hexcel, Huntsman, BASF, DowDuPont, and 3M. To enhance their market share, these corporations are actively investing in developing novel products, and promotional activities, and extending their distribution networks. Carbon fiber is being employed in a greater variety of applications as it becomes more accessible and inexpensive. As a result, there is a growth in the demand for carbon fiber and increasing investment in new production facilities and technology.

COVID-19 Impact and Market Status:

The COVID-19 pandemic had a negative influence on the global Carbon Fiber business.

The global carbon fiber market was significantly impacted by the COVID-19 pandemic in 2020, which resulted in a drop in demand. This was caused by several things, such as Global supply lines being disrupted by the epidemic, which made it challenging for producers of carbon fiber to get raw materials and transport their goods to clients. The pandemic caused the economies of many nations to slow down, which lowered demand for carbon fiber from end-use industries like aircraft, automotive, and construction. Businesses found it challenging to work together and do business, which had an effect on the market for carbon fiber. Globally speaking, the COVID-19 epidemic had a short-term negative effect on the carbon fiber business. The market, however, is anticipated to rebound in the upcoming years due to factors including the government’s support for the development of carbon fiber and the rising need for lightweight and high-strength materials.

Latest Trends and Innovation:

• The largest producer of carbon fiber in the world, Toray Industries, is expanding its production capabilities to keep up with demand. Toray announced intentions to develop a new carbon fiber plant in Japan in January 2023. The facility is slated to debut in 2025. High-performance carbon fibers for automotive and aerospace applications are only one of the new carbon fiber products that Toray is currently developing.

• A major producer of sophisticated composite materials, Hexcel Corporation, is also increasing its capacity to produce carbon fiber. Hexcel announced plans to spend $150 million in its Alabama carbon fiber factory in July 2022. Hexcel will be able to produce 25% more carbon fiber as a result of this investment. Additionally, Hexcel is creating novel carbon fiber products, including reusable carbon fibers and prepregs made of carbon fiber.

• To lessen the cost and negative effects of producing carbon fiber on the
environment, Solvay, a chemical firm based in Belgium, is investing in innovative carbon fiber technologies. A partnership between Solvay and the University of Manchester to create new carbon fiber precursors from sustainable materials was announced in March 2023. Additionally, Solvay is developing innovative, energy- efficient manufacturing techniques for carbon fiber.

• A Japanese chemical business called Mitsubishi Chemical Corporation is creating new carbon fiber materials for a range of uses. Mitsubishi Chemical announced the creation of a new kind of strong and lightweight carbon fiber in January 2023. The aerospace and automobile industries are the intended applications for this new carbon fiber.

Significant Growth Factors:

The following are important growth factors for the Carbon Fiber Market

Carbon fiber is frequently used in due to its exceptional strength-to-weight ratio, stiffness, and durability in, the defense and aerospace sectors. These characteristics make it perfect for usage in the wing, fuselage, and tail assemblies of airplanes. Vehicles that are lighter and more fuel-efficient are in greater demand, and the automotive industry is using carbon fiber more and more to meet this need. Automakers are using carbon fiber to lighten their automobiles without sacrificing  performance or safety as governments across the world impose higher fuel pollution rules.

Carbon fiber manufacturing technology is constantly improving, which lowers production costs and boosts performance. This is lowering the barrier to entry for carbon fiber, enabling it to be used in more sectors and applications. Governments from numerous nations are supporting the research and use of carbon fiber financially and in other ways. This is assisting in accelerating the market’s growth for carbon fiber.

Restraining Factors:

The market for Carbon Fiber is expanding quickly, but there are several impediments to its expansion.

Given its high cost, carbon fiber may not be widely used in a variety of applications. The expensive nature of the raw materials needed to make carbon fiber, along with the labor- and energy-intensive production process, are what determine its price.

The production of carbon fiber is a labor-intensive process that calls for specific tools and knowledge. This may make it harder for new competitors to enter the market and may reduce the ability of current producers to produce as much. The absence of industry standards in the carbon fiber sector might make it challenging to compare goods made by various suppliers. Additionally, this may make it challenging for engineers and designers to specify carbon fiber parts for their creations. In addition to these restraints, unanticipated occurrences like economic slumps or technological advances could also have an impact on the carbon fiber market.

Despite these challenges, it is expected that the worldwide carbon fiber market will expand greatly over the next few years. The aerospace, automotive, and renewable energy industries’ rising need for lightweight and high-strength materials is anticipated to fuel market expansion. Additionally, producers are attempting to lower the price of carbon fiber and create more effective