Global Carbon Felt & Graphite Felt Market Growth, Share, Size, Trends and Forecast (2025 - 2031)

• In September 2021, SGL Carbon expanded and upgraded the production of soft felts. The company has invested some million euros into the additional carbonization facility located at its Meitingen site near Augsburg in Germany. This facility is now in regular operation.

• In August 2019, Toray Industries, Inc. announced a new line of fabric products and carbonized felt targeted at various energy storage applications. Zoltek’s new fabric materials and carbonized felt has been evaluated and qualified as product of the choice for the battery electrode for redox flow and other new battery storage technologies.

In this report, the Carbon Felt & Graphite Felt Market has been segmented by Raw Material Type, Type, Product Type, Application, and Geography.

Carbon Felt & Graphite Felt Market, Segmentation by Raw Material Type

The Carbon Felt & Graphite Felt Market has been segmented by Raw Material Type into Pan-Based Carbon Felt & Graphite Felt, and Rayon-Based Carbon Felt & Graphite Felt & Pitch-Based Carbon Felt and Graphite Felt.

PAN-Based Carbon Felt & Graphite Felt

PAN-based carbon felt and graphite felt dominate the market with a share of approximately 70%. Derived from polyacrylonitrile (PAN) fibers, this type is known for its excellent chemical resistance, high purity, and mechanical strength. It is widely used in high-temperature insulation, batteries, and fuel cells due to its thermal stability and oxidation resistance.

Rayon-Based Carbon Felt & Graphite Felt

Rayon-based felts account for around 20% of the market. Known for their fine fiber structure and low ash content, these felts offer superior thermal insulation and are often used in vacuum furnaces and semiconductor manufacturing. Their ability to withstand extreme temperatures while maintaining structural integrity makes them valuable in specialized industrial applications.

Pitch-Based Carbon Felt & Graphite Felt

Pitch-based carbon and graphite felts contribute about 10% of the global market. These felts offer high thermal conductivity and are commonly used in energy storage systems such as redox flow batteries. Their graphitic structure enhances electrical conductivity and makes them ideal for electrochemical applications where both performance and durability are required.

Carbon Felt & Graphite Felt Market, Segmentation by Type

The Carbon Felt & Graphite Felt Market has been segmented by Type into Carbon Felt, and Graphite Felt.

Carbon Felt

Carbon felt holds the majority share in the market, accounting for approximately 60%. It is widely used in thermal insulation, furnace linings, and energy storage systems due to its low thermal conductivity, lightweight nature, and chemical resistance. Its ability to perform well in inert or reducing atmospheres makes it a preferred material in vacuum furnaces and high-temperature applications.

Graphite Felt

Graphite felt accounts for around 40% of the market and is primarily chosen for applications requiring superior electrical and thermal conductivity. It is typically used in redox flow batteries, fuel cells, and high-performance furnaces. Graphite felt’s stability at ultra-high temperatures and oxidation resistance make it ideal for demanding electrochemical and industrial processes.

Carbon Felt & Graphite Felt Market, Segmentation by Product Type

The Carbon Felt & Graphite Felt Market has been segmented by Product Type into Soft Felt, and Rigid Felt.

Soft Felt

Soft felt dominates the carbon felt & graphite felt market with an estimated 65% share. It is widely used in thermal insulation for vacuum furnaces, graphite heaters, and energy storage systems. Its flexibility, lightweight structure, and ease of installation make it highly suitable for complex shapes and configurations, particularly in high-temperature environments.

Rigid Felt

Rigid felt accounts for approximately 35% of the market and is used where dimensional stability and structural strength are critical. It is commonly applied as insulation panels and structural liners in industrial furnaces and reactors. Rigid felt offers superior durability and thermal resistance, making it ideal for heavy-duty and long-duration thermal applications.

Carbon Felt & Graphite Felt Market, Segmentation by Application

The Carbon Felt & Graphite Felt Market has been segmented by Application into Furnace, Batteries, Filters, and Others.

Furnace

The furnace segment holds the largest share, accounting for approximately 50% of the carbon felt & graphite felt market. These felts are extensively used as thermal insulators in high-temperature vacuum furnaces and inert atmosphere furnaces. Their low thermal conductivity, lightweight design, and ability to withstand extreme temperatures make them ideal for industrial heating systems.

Batteries

Batteries represent around 30% of the market, driven by rising demand for energy storage solutions such as vanadium redox flow batteries (VRFBs) and lithium-ion batteries. Carbon and graphite felts act as electrode materials due to their excellent conductivity, corrosion resistance, and electrochemical stability.

Filters

Filters account for about 12% of the market. In this segment, felts are used in gas purification, air filtration, and liquid filtration systems due to their porous structure, chemical resistance, and durability. Their performance in high-temperature filtration environments makes them suitable for industrial and chemical processing.

Others

The ‘Others’ segment, comprising approximately 8%, includes applications in semiconductor processing, electronics cooling, and solar energy systems. These niche uses leverage the felts' thermal conductivity and dimensional stability in critical high-tech environments.

Carbon Felt & Graphite Felt Market, Segmentation by Geography

In this report, the Carbon Felt & Graphite Felt Market has been segmented by Geography into five regions; North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.

Carbon Felt & Graphite Felt Market Share (%), by Geographical Region

North America

North America holds approximately 20% of the global carbon felt & graphite felt market. Key contributors include the United States and Canada, driven by demand in thermal insulation systems, energy storage technologies, and fuel cells. The region also benefits from a strong focus on advanced materials and industrial furnace manufacturing.

Europe

Europe accounts for around 23% of the market, with major demand coming from Germany, France, United Kingdom, Italy, and Spain. The region has a mature base of automotive and aerospace industries and a growing interest in renewable energy storage solutions like redox flow batteries.

Asia Pacific

Asia Pacific dominates the market with over 40% share. Countries such as China, Japan, India, South Korea, and Australia are major players due to rapid industrialization, increasing investments in renewable energy infrastructure, and the expansion of electronics and battery manufacturing. China, in particular, is a leading producer and consumer.

Middle East and Africa

Middle East and Africa contribute about 7% to the market. Countries like UAE, Saudi Arabia, and South Africa are seeing growth in energy efficiency technologies, metallurgical industries, and clean energy projects, which supports the adoption of carbon and graphite felts.

Latin America

Latin America holds a market share of approximately 10%. Brazil, Mexico, and Argentina are the key markets, driven by increasing use of felts in industrial furnaces, chemical processing, and the growing battery materials sector.

This report provides an in depth analysis of various factors that impact the dynamics of Global Carbon Felt & Graphite Felt Market. These factors include; Market Drivers, Restraints and Opportunities Analysis.

Drivers, Restraints and Opportunity Analysis

Drivers

• Energy Storage
• Industrial Applications
• Aerospace Demand

• Environmental Compliance - Environmental compliance in the Global Carbon Felt & Graphite Felt Market is a critical factor shaping industry practices and driving innovation. With increasing environmental regulations worldwide, manufacturers are compelled to adopt sustainable practices and produce eco-friendly materials. Carbon felt and graphite felt, being versatile materials with applications across various industries, face stringent requirements to minimize environmental impact throughout their lifecycle, from raw material sourcing to end-of-life disposal.

  To meet environmental compliance standards, manufacturers are investing in cleaner production processes, such as reducing energy consumption, minimizing waste generation, and optimizing resource utilization. This includes adopting eco-friendly raw materials and employing green manufacturing technologies to mitigate carbon emissions and pollutants. Additionally, efforts are underway to enhance product recyclability and develop closed-loop systems to ensure minimal environmental footprint.

  Environmental compliance presents opportunities for market growth and differentiation. Companies that proactively address environmental concerns by offering sustainable products and implementing green practices gain a competitive edge and enhance their brand reputation. As consumer awareness of environmental issues continues to rise, demand for eco-friendly materials like carbon felt and graphite felt is expected to increase. Embracing environmental compliance not only ensures regulatory compliance but also fosters innovation and drives the transition towards a more sustainable future for the Global Carbon Felt & Graphite Felt Market.

Restraints

• Raw Material Costs
• Manufacturing Complexity
• Limited Scalability

• Competition from Alternatives - Competition from alternatives poses a significant challenge to the Global Carbon Felt & Graphite Felt Market, driving manufacturers to innovate and differentiate their products. With the emergence of new materials and technologies, industries traditionally reliant on carbon and graphite felts are exploring alternative solutions that offer comparable or enhanced performance at competitive prices. This competitive landscape compels manufacturers to continuously improve the quality, efficiency, and cost-effectiveness of carbon and graphite felts to retain market share and relevance.

  One key alternative is the development of advanced polymers and composites with similar properties to carbon and graphite felts. These materials, such as fiberglass, aramid fibers, and ceramic fibers, offer alternatives for insulation, reinforcement, and structural applications. Additionally, advancements in nanomaterials, including carbon nanotubes and graphene, present alternatives with superior mechanical, thermal, and electrical properties, challenging the dominance of traditional carbon and graphite felts in certain applications.

  The adoption of digital technologies and additive manufacturing processes enables the customization and optimization of alternative materials for specific applications, further intensifying competition. Manufacturers of carbon and graphite felts must innovate in areas such as material composition, manufacturing processes, and product performance to address evolving market demands and maintain a competitive edge in the face of increasing competition from alternatives.

  Despite the challenges posed by alternatives, carbon and graphite felts retain unique advantages, such as high thermal conductivity, chemical stability, and mechanical strength, making them indispensable in certain niche applications. By leveraging their inherent strengths and continuously innovating to address market demands, manufacturers can navigate the competitive landscape and sustain their position in the Global Carbon Felt & Graphite Felt Market.

Opportunities

• Energy Transition
• Sustainable Development
• Emerging Technologies

• Green Mobility - Green mobility represents a significant opportunity for the Global Carbon Felt & Graphite Felt Market, driven by the increasing emphasis on sustainability and the transition towards low-carbon transportation solutions. As the automotive industry shifts towards electric vehicles (EVs) and hybrid vehicles to reduce greenhouse gas emissions and combat climate change, carbon and graphite felts play a crucial role in enabling green mobility technologies.

  Carbon and graphite felts are essential components in the manufacturing of lithium-ion batteries, which power EVs and hybrid vehicles. These felts are used as electrode materials, current collectors, and separators in battery packs, contributing to the performance, efficiency, and safety of electric propulsion systems. With the growing demand for EVs worldwide and government incentives promoting their adoption, the demand for carbon and graphite felts in the automotive sector is poised to escalate significantly.

  Carbon and graphite felts find applications in other aspects of green mobility, such as fuel cell technology. In hydrogen fuel cell vehicles, carbon and graphite felts serve as components in the fuel cell stack, facilitating the electrochemical reactions that generate electricity to power the vehicle. As fuel cell technology advances and gains traction as a zero-emission alternative to traditional internal combustion engines, the demand for carbon and graphite felts in fuel cell applications is expected to rise.

Key players in Global Carbon Felt & Graphite Felt Market include;

• SGL Group
• Toray Industries, Inc.
• Kureha Corporation
• Nippon Carbon Co., Ltd.
• Beijing Great Wall Co., Ltd.
• Chemshine Carbon Co. Ltd
• CM Carbon Co., Ltd.
• Gansu Haoshi Carbon Fiber Co., Ltd.
• CFC Carbon Co.
• Ceramaterials

In this report, the profile of each market player provides following information:

• Company Overview and Product Portfolio
• Key Developments
• Financial Overview
• Strategies
• Company SWOT Analysis