Carbon Fibre Composites Market

Carbon Fibre Composites Market Size

The global carbon fibre composites market was estimated at USD 21.7 billion in 2024, and it is expected to grow at a CAGR of 5.4% from 2025 to 2034 owing to the rising adoption of carbon fibre composite materials in aerospace & automotive sectors owing to their several advantages including lightness and high strength is supporting market growth. Carbon fibre composites offer high corrosion resistance, low thermal expansion, and durability; hence, they are majorly utilized to produce aerospace parts. The increasing aircraft production will further escalate product demand during the forecast period.

The development of advanced carbon fibre composites including carbon fibre reinforced thermoplastic (CFRTP) and their rising usage in high-volume vehicles will proliferate industry growth. Advanced CFRTP, with mass production technology has a molding time of approximately one minute, is around 40% lighter with 10 times higher impact resistance as compared to steel. Automotive manufacturers are actively investing in R&D to develop advanced carbon fibre composite materials that can be used in high-volume production vehicles. The box design is jointly developed by GM and Teijin Limited with a molding time of approximately one minute that increases the production rates.

The increasing research projects to develop new carbon fibres and carbon footprint reduction from composite material production will boost market penetration. Researchers are actively investing in carbon fibre production from forestry by-products including lignin that reduce the usage of raw petroleum materials. Some projects aim to reduce product cost by around 30% and significant reductions in carbon footprint by around 50% during carbon fibre production.

Industry participants are forging mergers & acquisitions and expanding their production capacities to increase their market share. For instance, MRC acquired SGL Carbon and established a new company, Mitsubishi Rayon Carbon Fibre and Composites (MRCFAC). This strategy expanded the company’s presence in North America. Industry players are increasing their production capacities for special materials including tow-carbon owing to the rising demand from the turbine sector.

Carbon Fibre Composites Market Trends

• R3FIBER Recycling Technology: The R3FIBER technology is developed by the TRC company to recycle composites and wind turbine blades for obtaining superior quality fibres, fuel, and energy at the end of its serviceable life. The objective is to reduce fibre-reinforced materials by recycling the composites owing to the increasing use of such materials at a significant rate of 9%-12% per year.
  
• Carbon fibre nanotechnology: Nanotechnology includes the study and engineering of materials at a very small length in the scale of 1nm to 100nm. The materials at nano scale possess different material properties than that at bulk scale owing to the varying physics theory nature.
  
• Nanotechnology in carbon fibres includes imaging, synthesis, and the manipulating & modelling of materials at a very small length scale of nanometer. The size of the carbon fibre plays an important role in impacting the final characteristics & properties of carbon-fibre-reinforced polymer composites. The different ways of utilizing nanotechnology in carbon fibres have been evolved to enhance composite properties.
  
• Strong presence of aircraft manufacturers: Proliferating disposable incomes and surging economic growth are providing potential opportunities for air travel. Increasing air passenger travel is significantly inducing the demand for new generation & fuel-efficient air carriers.
  
• The growing prominence for incorporating lightweight aircraft components is majorly contributing to reducing emission levels. Modern aircraft equipped with advanced carbon fibre composites are prominently contributing to reducing the overall weight and fuel emissions.
  
• Increasing vehicle production: Recent environmental issues pertaining to greenhouse emissions are significantly inducing the demand for lightweight and fuel-efficient vehicles. The stringent government norms & regulations for curbing emission levels and increasing the fuel efficiency standards will positively influence the carbon fibre composites industry share over the study timeframe. Rising consumer awareness about reducing carbon footprints and emission levels is further supporting product penetration.
  

Carbon Fibre Composites Market Analysis

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Based on matrix material, the carbon fibre composites industry is divided into polymer, carbon ceramics, metal, and hybrid. Polymer segment generated a revenue of USD 11.7 billion in 2021 and USD 14.7 billion in 2024 at a CAGR of 5.5% due to owing to the development of several polymers and wide material use in aerospace & automotive industries.

• Thermosetting materials provide higher strength and lightweight advantages to component manufacturers; hence, they are widely used in industry. However, thermoplastics provide high impact resistance and greater flexibility as compared to thermosetting materials, increasing their usage significantly.
  
• Industry participants are developing several materials and testing them with aircraft manufacturers to qualify such materials as their certified products. For instance, in January 2019, Teijin Limited’s TENAX carbon fibre thermoplastic was qualified by Boeing and registered in its qualified product list.
  
• Ceramic materials showcase the fastest growth rate in the carbon fibre composite market owing to their extensive applications in the automotive braking sector. Ceramic brakes, such as carbon-fibre-reinforced silicon carbide (C/SiC), offer around 50% weight reduction as compared to conventional grey cast iron brake disks. They also offer higher fading stability, prevention of brake dust, and superior corrosion & wear resistance. Ceramic matrix composites can withstand different temperatures, causing efficient operations of aircraft engine components.
  

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Based on end use, the carbon fibre composites market is divided into aerospace, automotive, wind turbines, sport & leisure, civil engineering, marine, and others. In 2024, electronics segment held major market share, accounted for 62.9% share owing to the prominent usage of these materials in aerospace components including airframe structures, floor panels, and landing gears.

• Carbon fibres including carbon-fibre reinforced plastic (CFRP) offer aircraft manufacturers the opportunity to enhance fatigue and corrosion resistance characteristics of aircraft parts. According to Airbus, CFRP components provide cost-effective maintenance benefits to airline operators. An A350 XWB requires 50% lower structure maintenance with the threshold for airframe checks of around 12 years as compared to eight years for A380. Industry participants are developing new material technologies that enhance chemical and mechanical properties of materials.
  
• Automotive will showcase significant growth in the carbon fibre composite market owing to rising concerns to reduce carbon footprint from the transportation sector. Several manufacturers are investing in carbon fibre materials, reducing the overall weight of vehicles and enhancing fuel efficiency.
  
• Automobile manufacturers including BMW, Lamborghini, and Mercedes-Benz are increasing the adoption of CFRP components in vehicles. Daimler has set targets to reduce body-in-white weight up to 10% and is working with Toray to develop the required technologies. The development of advanced materials and collaborations with auto part manufacturers enable industry players to develop composite prototypes.
  

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U.S. carbon fibre composites market generated a revenue of USD 7.4 billion in 2024. U.S. carbon fibre composites industry is projected to grow at a CAGR 5.6% reaching USD 12.9 billion by 2034. This rapid growth will be driven by high concentration of aircraft manufacturers and rising incorporation of composites in aircraft.

• The rising aircraft demand across the globe owing to the increasing air passenger traffic and the expansion of new air travel routes is boosting the regional share. Aircraft manufacturers and industry players are investing in R&D to develop advanced materials to enhance aircraft operational capabilities. Industry participants are strengthening their distribution channels in the region with the addition of new distributors.
  

The carbon fibre composites industry in China is expected to experience promising growth from 2025 to 2034 due to growth of increasing demand within the country.

• China will showcase significant growth in the carbon fibre composite market owing to rising vehicle production & sales. The growing disposable incomes and several discounts offered by vehicle manufacturers are encouraging people to purchase new vehicles. The growing wind turbine demand across the region and rising foreign direct investment (FDI) in new projects will further escalate product demand.
  

Carbon Fibre Composites Market Share

Top 5 companies in the carbon fibre composites industry are Advanced Composites, Formosa Plastics, Teijin, Solvay, and ZOLTEK Corporation. The global market share is highly fragmented. Players opt for new product launches, geographical expansion, R&D investments, and mergers & acquisitions to capture higher market shares. This helps them explore the untapped market potential and enables them to strengthen their market stronghold position over the forecast timeframe.

Some of the key reasons for the competition in the carbon fibre composites market include competitive pricing, responsive consumer product innovation, and advancement and shifts within the market. The price competitiveness of companies remains a key factor in the market, especially in the mass production setting. However, in high-tech application areas like OLED displays and solar panels, competition has shifted to material and product quality. Companies are open to investing in R&D for the development of new advanced carbon fibre composites that address the issues of thickness, strength, and sustainability. Additionally, major companies are also pursuing partnerships through strategic alliances, joint ventures (JVs), and mergers and acquisitions to increase their market share and technological capabilities.

Solvay manufactures and supplies aerospace-engineered materials including carbon fibre composites. It significantly focuses on signing strategic contracts with major players from the aerospace industry. The key steps include mergers & acquisitions for augmenting the company’s growth profile and enhancing customized solution offerings. The group implements its objectives by focusing on key milestones that include portfolio upgrading, excellence & synergies, and the management model. The company also provides products with advanced solutions for added value to customers.

Teijin produces and distributes high-performance carbon fibres & composites around the globe. The company is involved in product development of new grade fibres, thereby providing high-tenacity and high-tensile modulus properties for the automotive and aerospace applications. It also focuses on supplying woven fabric prepregs embedded with thermoplastics that include high-rigidity, high tenacity, and fire-retardant properties. The company supplies products & solutions for the aviation and general industry applications.

Carbon Fibre Composites Market Companies

Some of the eminent market participants operating in the carbon fibre composites industry include:

• Advanced Composites
• Formosa Plastics
• Hengshen
• Hexcel Corporation
• HS Hyosung Advanced Materials
• Huayuan Advanced Materials
• Mitsubishi Chemical Group
• Nippon Graphite Fiber
• Rock West Composites
• SGL Carbon
• Solvay
• Strongwell Corporation
• Teijin
• Toray Industries
• ZOLTEK Corporation
  

Carbon Fibre Composites Industry News

• In September 2024, Formosa Plastics Corporation and TTRI announced collaboration on material solution of recycled carbon fibre/polycarbonate composites, which is a nonwoven made of recycled carbon fibre blended with polycarbonate fibre.
  
• In November 2021, Toray Industries announced that in 2023 Zoltek’s Guadalajara, Mexico facility will expand its production of large-tow carbon fiber (fibers with more than 40,000 filaments).
  
• In May 2019, SGL Carbon and UK National Composites Centre announced to jointly develop composite technologies with applications in the aerospace, transportation, and oil & gas segments. The partnership will enable the company to gain a competitive advantage for the development of carbon fibre products.
  
• In January 2019, Hexcel Corporation completed the acquisition of ARC Technologies, which supplies custom RF/EMI and microwave-absorbing composite materials for the military, aerospace, and industrial applications. This acquisition enabled the company to emerge as a leading composite material supplier for the defense & aerospace industry.
  

The carbon fibre composites market research report includes in-depth coverage of the industry, with estimates & forecast in terms of revenue (USD Billion) & volume (Tons) from 2021 to 2034, for the following segments:

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Market, By Matrix Material

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

Market, By End Use                      

• Aerospace
• Automotive
• Wind turbines
• Sport & leisure
• Civil engineering
• Marine
• Others

The above information is provided for the following regions and countries:

• North America 
  • U.S.
  • Canada 
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Russia
  • Rest of Europe 
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • Australia
  • Rest of Asia Pacific 
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America 
• Middle East and Africa
  • UAE
  • Saudi Arabia
  • South Africa
  • Rest of MEA