• December 2023: Teijin Limited announced plans to start producing and selling Tenax carbon fiber made from environmentally friendly materials. This material helps in the reduction of greenhouse gas emissions throughout the product's life cycle.

• December 2023: Foton Motor introduced a super low-carbon truck, the Toano V next-generation light bus, and a full range of hybrid vehicles.

In this report, the Carbon Fiber In Automotive Market has been segmented by Type, Component, Application and Geography.

Carbon Fiber In Automotive Market, Segmentation by Type

The Carbon Fiber In Automotive Market has been segmented by Type into Sheet Molding Compound (SMC), Short Fiber Thermoplastic (SFT), Long Fiber Thermoplastic (LFT) and Others.

Sheet Molding Compound (SMC)

Sheet Molding Compound (SMC) accounts for around 40% of the carbon fiber market in automotive applications. Known for its high strength and lightweight properties, SMC is widely used in structural automotive components, contributing to improved fuel efficiency and vehicle performance.

Short Fiber Thermoplastic (SFT)

Short Fiber Thermoplastic (SFT) represents approximately 25% of the market share. It offers cost-effective manufacturing benefits and good mechanical properties, making it popular for interior and semi-structural automotive parts that require moderate strength and durability.

Long Fiber Thermoplastic (LFT)

Long Fiber Thermoplastic (LFT) holds about 30% of the market and is favored for its superior mechanical strength and impact resistance. LFT is commonly utilized in load-bearing parts and exterior automotive components, where enhanced durability is essential.

Others

Other types of carbon fiber composites make up the remaining 5% of the market. This category includes specialty and hybrid materials tailored for niche automotive applications, offering customized performance characteristics to meet specific manufacturer requirements.

Carbon Fiber In Automotive Market, Segmentation by Component

The Carbon Fiber In Automotive Market has been segmented by Component into Interior Components, Exterior Components, Chassis Systems, Powertrain Systems, and Others.

Interior Components

Interior components represent about 35% of the carbon fiber automotive market. These parts benefit from carbon fiber’s lightweight and aesthetic properties, enhancing vehicle comfort and design. This contributes significantly to overall weight reduction, which improves fuel economy and driving efficiency.

Exterior Components

Exterior components account for approximately 25% of the market share. Carbon fiber’s high strength-to-weight ratio makes it ideal for manufacturing durable and impact-resistant parts such as body panels, bumpers, and spoilers. These components also help enhance vehicle aerodynamics.

Chassis Systems

Chassis systems make up around 20% of the market. Using carbon fiber in chassis construction improves structural rigidity and crash safety. Additionally, the material's lightweight nature reduces overall vehicle weight, resulting in better handling and fuel efficiency.

Powertrain Systems

Powertrain systems hold about 15% of the carbon fiber market. Carbon fiber composites are increasingly used to improve the performance of engine and transmission components by lowering weight and enhancing thermal stability and wear resistance.

Others

Other components make up the remaining 5% of the market. This segment includes specialty parts and custom applications where carbon fiber’s unique properties are utilized for specific functional or design requirements.

Carbon Fiber In Automotive Market, Segmentation by Application

The Carbon Fiber In Automotive Market has been segmented by Application into Exterior, Power Train System, Under Body System, Chassis System, Interior and Others.

Exterior

Making up around 30% of the market, the exterior application of carbon fiber in automotive manufacturing plays a crucial role. Its combination of lightweight strength and durability makes it perfect for parts like body panels, bumpers, and hoods. These components benefit from improved aerodynamics and contribute to enhanced fuel efficiency without sacrificing structural integrity.

Power Train System

Accounting for about 20% of the market share, carbon fiber is increasingly used in power train systems to reduce the weight of engine and transmission parts. This material enhances performance and thermal stability, resulting in better fuel economy and durability under demanding operational conditions.

Under Body System

Representing roughly 15% of the market, carbon fiber’s use in under body systems is driven by its excellent corrosion resistance and lightweight properties. Components such as floor panels and undercarriage parts gain improved vehicle structural strength and overall weight reduction, supporting safer and more efficient vehicles.

Chassis System

Chassis applications make up approximately 20% of the carbon fiber market. By integrating carbon fiber, manufacturers achieve higher rigidity and crash safety while lowering the overall vehicle weight. This improves handling dynamics and contributes to fuel savings.

Interior

The interior segment, which holds nearly 10% of the market, utilizes carbon fiber primarily for dashboards, trims, and seating components. These applications enhance vehicle interiors with their blend of lightweight design, attractive finishes, and long-lasting durability, elevating passenger comfort and style.

Others

Covering the remaining 5%, other carbon fiber uses include specialized and emerging automotive components. These niche applications leverage carbon fiber’s unique strength-to-weight ratio and adaptability to meet specific performance and design needs.

Carbon Fiber In Automotive Market, Segmentation by Geography

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

Carbon Fiber In Automotive Market Share (%), by Geographical Region

North America

North America represents a substantial portion of the carbon fiber automotive market, contributing about 30%. This region benefits from cutting-edge automotive manufacturing processes and a growing demand for lightweight materials to enhance fuel economy and reduce emissions. Leading automotive companies in the U.S. and Canada are actively advancing the use of carbon fiber composites across various vehicle models.

Europe

Europe holds close to 25% of the market share, driven by strict environmental policies and a strong push toward electric and hybrid vehicles. Key automotive hubs like Germany, France, and the UK are integrating carbon fiber materials extensively, especially within luxury and performance vehicle segments, to achieve better efficiency and performance.

Asia Pacific

Asia Pacific commands the largest market share at around 35%, fueled by rapid industrial growth, increasing automotive production, and a rising consumer preference for fuel-efficient vehicles. Nations such as China, Japan, and South Korea are at the forefront of adopting carbon fiber technology, supported by governmental incentives and significant investments in lightweight automotive components.

Middle East and Africa

Although smaller in market size with roughly 5%, the Middle East and Africa are gradually embracing carbon fiber for automotive applications. Growth in this region is propelled by infrastructure developments and increasing vehicle manufacturing activities, particularly in countries like the UAE and South Africa, along with a growing demand for high-performance automobiles.

Latin America

Latin America accounts for nearly 5% of the market and is emerging as a growth region for carbon fiber in automotive manufacturing. Expansion in countries like Brazil and Mexico, coupled with increasing environmental awareness and decreasing costs of carbon fiber production, is contributing to steady market growth.

This report provides an in depth analysis of various factors that impact the dynamics of Carbon Fiber In Automotive Market. These factors include; Market Drivers, Restraints and Opportunities Analysis.

Drivers, Restraints and Opportunity Analysis

Drivers

• Rising demand for lightweight vehicle materials
• Improved fuel efficiency and emission reduction focus
• Expansion of electric and hybrid vehicle production

• Increasing adoption in performance car segments - The carbon fiber in automotive market is gaining momentum due to the increasing use of carbon fiber in performance car segments. This material's superior strength-to-weight ratio enhances acceleration, handling, and fuel efficiency, making it a preferred choice for sports and luxury vehicle manufacturers. By reducing overall vehicle mass without compromising safety or aesthetics, carbon fiber helps deliver the high performance that consumers in this segment expect.

  Major automakers are leveraging carbon fiber components such as hoods, panels, and structural frames to improve both design and function. This not only elevates the driving experience but also reinforces brand prestige and exclusivity. As demand for visually distinct and performance-oriented vehicles grows, the incorporation of carbon fiber serves as both a technical and branding advantage.

  The expanding market for electric performance vehicles further supports this trend. To offset the added weight of battery systems, automakers are turning to carbon fiber to enhance efficiency and maintain structural integrity. This adoption is likely to accelerate as more premium EVs enter production, solidifying carbon fiber’s role in the future of performance vehicle engineering.

  With continued innovation and demand for high-performance capabilities, carbon fiber’s presence in automotive design is set to increase, particularly among manufacturers looking to push the limits of speed, agility, and energy efficiency in elite segments.

Restraints

• High cost compared to traditional materials
• Complex manufacturing and processing requirements
• Limited recycling and reuse infrastructure

• Slow integration in mass-market vehicle models - Despite its benefits, the broader adoption of carbon fiber in the automotive industry is constrained by high production costs and integration challenges in mass-market vehicles. The manufacturing process for carbon fiber is complex and energy-intensive, making it significantly more expensive than traditional materials like steel or aluminum. This cost barrier limits its use to premium or low-volume models where price sensitivity is less of a concern.

  Mass-production environments also face logistical difficulties when incorporating carbon fiber. The need for specialized equipment, slower production times, and complex assembly processes make it impractical for high-speed automotive manufacturing lines. These limitations hinder scalability and delay the material’s widespread implementation in mainstream vehicle segments.

  Carbon fiber parts are generally harder to repair and recycle than conventional materials. While metals can often be reshaped or melted down for reuse, damaged carbon fiber components usually require full replacement, which adds to long-term maintenance costs. This lack of cost-effective end-of-life solutions also raises environmental concerns.

  Addressing these issues will require continued investment in automated manufacturing, alternative carbon fiber formulations, and recycling technologies. Until then, the material's application will remain largely confined to niche performance and luxury markets.

Opportunities

• Advances in low-cost carbon fiber technologies
• Growing interest in sustainable mobility solutions
• Expansion in developing automotive manufacturing hubs

• Innovation in composite automotive body structures - Emerging innovation in composite vehicle body structures is creating new opportunities for carbon fiber in the automotive sector. Engineers are increasingly designing integrated body systems that capitalize on carbon fiber's lightweight strength, helping manufacturers reduce vehicle weight, enhance crash resistance, and improve fuel efficiency. This is particularly advantageous for hybrid and electric vehicles where weight reduction translates directly into extended driving range.

  These advanced composites allow for part consolidation, replacing multiple components with a single molded piece. This not only improves aerodynamics and structural rigidity but also streamlines the manufacturing process and minimizes material waste. The result is a more efficient and sustainable production cycle that appeals to eco-conscious manufacturers and consumers alike.

  Automotive OEMs are collaborating with research institutes and tech companies to develop new cost-effective carbon fiber solutions such as thermoplastic composites, resin transfer molding, and 3D-printed carbon parts. These innovations aim to make carbon fiber viable for a wider range of vehicles beyond luxury and performance lines, potentially opening up mainstream adoption in the future.

  With regulatory pressure to reduce emissions and a market shift toward electric mobility, automakers are increasingly turning to lightweight composite designs to meet evolving performance and sustainability goals. As these innovations mature, carbon fiber's role in reshaping automotive body architecture will expand significantly.

Key players in Carbon Fiber In Automotive Market include;

• Hexcel Corporation
• Mitsubishi Chemical Carbon Fiber and Composites Inc.
• SGL Carbon S
• Cytec Solvay Group
• Teijin Limited
• DOWAKSA
• Formosa Plastic Corp.
• ZOLTEK
• Toray Industries Inc.
• Sigmatex Ltd.

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

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