Global Carbon Fiber Market Growth, Share, Size, Trends and Forecast (2025 - 2031)

• In February 2024, a breakthrough in low-cost carbon fiber production using alternative precursors enabled expanded use in mass-market automotive applications.

• In August 2024, a major aerospace company adopted lightweight carbon fiber components for next-generation aircraft, improving fuel efficiency and reducing operational costs.

In this report, the Carbon Fiber Market has been segmented by Raw Material, Fiber Type, Product Type, Modulus, Application, End-Use Industry, and Geography.

Carbon Fiber Market, Segmentation by Raw Material

The Carbon Fiber Market has been segmented by Raw Material into Pan-Based Carbon Fiber, Pitch-Based Carbon Fiber, and Rayon-Based Carbon Fiber.

Pan-Based Carbon Fiber

Pan-based carbon fiber is the most widely used type, constituting over 90% of global carbon fiber production. Its popularity stems from its high strength-to-weight ratio, cost-efficiency, and broad application across industries such as automotive, aerospace, and sports equipment. These qualities make it a top choice for mass-market and performance-driven applications.

Pitch-Based Carbon Fiber

Accounting for nearly 8% of the market, pitch-based carbon fiber stands out for its superior stiffness and thermal conductivity. It is typically used in aerospace systems, satellite structures, and electronic thermal management applications where extreme performance and stability are critical.

Rayon-Based Carbon Fiber

Rayon-based carbon fiber contributes under 2% to the global market share but remains important in niche, high-performance sectors. Its excellent thermal resistance and dimensional stability make it suitable for defense-related applications, particularly in missile systems, friction materials, and space-grade insulation.

Carbon Fiber Market, Segmentation by Fiber Type

The Carbon Fiber Market has been segmented by Fiber Type into Virgin Carbon Fiber and Recycled Carbon Fiber.

Virgin Carbon Fiber

Virgin carbon fiber represents about 95% of the global carbon fiber market, making it the dominant fiber type. It is prized for its unmatched strength, durability, and reliability, making it indispensable in high-performance applications such as aerospace structures, wind turbine blades, and premium automotive components. Its consistent quality ensures optimal performance across critical sectors.

Recycled Carbon Fiber

Recycled carbon fiber, while comprising only around 5% of the market, is seeing rapid growth. Valued for its eco-friendly profile and lower cost, it is increasingly utilized in automotive manufacturing, consumer electronics, and construction materials. Its use supports sustainability initiatives while still offering adequate performance for non-critical applications.

Carbon Fiber Market, Segmentation by Product Type

The Carbon Fiber Market has been segmented by Product Type into Continuous Carbon Fiber, Long Carbon Fiber, and Short Carbon Fiber.

Continuous Carbon Fiber

Continuous carbon fiber dominates the global market with over 65% share, thanks to its exceptional tensile strength, fatigue resistance, and structural integrity. It is extensively used in high-performance sectors such as aerospace, automotive chassis systems, and wind turbine blades, where maximum reinforcement and durability are essential.

Long Carbon Fiber

Making up approximately 20% of the market, long carbon fiber offers a balance between mechanical strength and design flexibility. It is commonly applied in automotive interiors, structural composites, and industrial equipment, especially in components requiring moderate load support and lightweight performance.

Short Carbon Fiber

Short carbon fiber holds nearly 15% of the total market share. Known for its affordability and processing efficiency, it is popular in consumer electronics, 3D-printed components, and non-critical structural parts. Its lightweight nature and recyclability also make it appealing for sustainable design solutions.

Carbon Fiber Market, Segmentation by Modulus

The Carbon Fiber Market has been segmented by Modulus into Standard Modulus, Intermediate Modulus, and High Modulus..

Standard Modulus

Standard modulus carbon fiber represents more than 70% of the market share and is the most commonly used type. Valued for its cost-effectiveness, good tensile strength, and flexibility, it is widely applied in automotive manufacturing, civil infrastructure, and consumer sporting goods. Its broad utility makes it the default choice in general-purpose carbon fiber applications.

Intermediate Modulus

Capturing around 20% of the market, intermediate modulus carbon fiber offers a performance upgrade over standard grades. Its greater stiffness-to-weight ratio and enhanced load capacity make it well-suited for demanding uses in aerospace systems, marine structures, and performance composites in industrial settings.

High Modulus

High modulus carbon fiber accounts for roughly 10% of the global market. It delivers maximum rigidity, low creep, and high dimensional stability, making it indispensable in precision-critical fields such as aerospace engineering, satellite design, and elite sports gear. Although more expensive, its performance in stress-sensitive environments justifies the cost.

Carbon Fiber Market, Segmentation by Application

The Carbon Fiber Market has been segmented by Application into Composite, and Non-Composite.

Composite

Composite applications make up over 85% of the global carbon fiber market, reflecting its extensive use in industries demanding lightweight, high-strength materials. These carbon fiber composites offer superior corrosion resistance, durability, and design flexibility, making them ideal for automotive panels, aircraft structures, wind turbine blades, and high-performance sporting goods.

Non-Composite

Non-composite applications, though smaller at around 15%, play a vital role in specialized functional uses. These include thermal shielding, brake pads, and conductive materials for electronics and aerospace thermal insulation. Their role is especially important in sectors where heat resistance, conductivity, or low weight without structural reinforcement is crucial.

Carbon Fiber Market, Segmentation by End-Use Industry

The Carbon Fiber Market has been segmented by End-Use Industry into Aerospace & Defense, Wind Energy, Automotive, Sporting Goods, Pipe & Tank, Civil Engineering, Electrical & Electronics, Marine, and Others.

Aerospace & Defense

The aerospace & defense sector leads the global carbon fiber market, contributing over 35% of total demand. The use of carbon fiber in aircraft structures, missile systems, and military vehicles enhances fuel efficiency, maneuverability, and payload capacity, making it an essential material in modern defense applications.

Wind Energy

Accounting for approximately 20% of the market, carbon fiber is crucial for manufacturing wind turbine blades. Its lightweight strength improves aerodynamic performance and extends blade lifespan, driving its adoption in renewable energy infrastructure.

Automotive

With a share of nearly 15%, the automotive industry increasingly relies on carbon fiber for lightweight body parts, chassis components, and battery enclosures in electric vehicles. Its role is central to achieving better fuel economy and reducing carbon emissions.

Sporting Goods

Around 10% of the market is dedicated to sporting goods, where carbon fiber is favored for its strength, light weight, and performance enhancement. It is a key material in cycling frames, tennis racquets, and professional sports gear.

Pipe & Tank

The pipe and tank segment represents roughly 6% of market usage. Carbon fiber offers resistance to chemicals, lightness, and durability, making it ideal for fluid storage, transport pipelines, and industrial containers.

Civil Engineering

Comprising about 5% of demand, civil engineering benefits from carbon fiber's use in infrastructure rehabilitation, bridge reinforcement, and earthquake-resistant structures. Its long service life and non-corrosive nature are highly valuable.

Electrical & Electronics

This segment makes up approximately 4% of the market. Carbon fiber’s electrical conductivity and thermal performance enable its use in EMI shielding, electronic housings, and cooling solutions.

Marine

Marine applications account for around 3% of usage. Carbon fiber components are used in boat hulls, rudders, and high-performance marine systems, offering corrosion resistance and lightweight agility.

Others

The "Others" category, under 2%, includes niche applications in medical instruments, robotic components, and precision tools, where customizability and material efficiency are crucial.

Carbon Fiber Market, Segmentation by Geography

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

Carbon Fiber Market Share (%), by Geographical Region

North America

North America commands nearly 30% of the global carbon fiber market, led by the U.S. and Canada. The region's demand is fueled by its advanced aerospace industry, growing use in lightweight automotive components, and substantial investments in defense technologies. Ongoing innovations in composite materials continue to sustain market growth.

Europe

Europe contributes approximately 25% to the carbon fiber market, with leading activity in Germany, France, and the UK. The region’s commitment to green energy, strict emission norms, and a strong automotive manufacturing base positions it as a major player in the shift to lightweight, sustainable materials.

Asia Pacific

Asia Pacific is the largest and fastest-growing regional market, commanding over 35% share. Countries like China, Japan, and South Korea are driving carbon fiber adoption in aerospace, construction, automotive, and wind energy industries, supported by rapid industrialization and government incentives.

Middle East and Africa

With a market share of around 5%, the Middle East and Africa are emerging as growth regions. Increasing investments in infrastructure, renewables, and industrial expansion—particularly in UAE, Saudi Arabia, and South Africa—are boosting demand for carbon fiber in structural and energy applications.

Latin America

Latin America represents close to 5% of the market. Countries like Brazil and Mexico are adopting carbon fiber in sectors such as automotive manufacturing, wind turbine installations, and defense equipment, contributing to steady regional growth.

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

Drivers, Restraints and Opportunity Analysis

Drivers

• Lightweighting
• Fuel efficiency
• Emissions reduction

• High-performance materials - High-performance materials represent a class of materials engineered to exhibit exceptional mechanical, thermal, electrical, or chemical properties, surpassing those of conventional materials. These materials play a crucial role in various industries, including aerospace, automotive, electronics, healthcare, and renewable energy. One of the key characteristics of high-performance materials is their ability to withstand extreme conditions, such as high temperatures, corrosive environments, and high-stress loads, without compromising their structural integrity or performance.

  In the aerospace industry, high-performance materials like carbon fiber composites are widely utilized in aircraft manufacturing due to their lightweight yet strong properties. These materials help reduce the overall weight of aircraft, resulting in improved fuel efficiency, increased payload capacity, and enhanced performance. Additionally, high-performance materials are integral to the development of next-generation aircraft designs, enabling innovations in aerodynamics, structural integrity, and thermal management systems.

  The automotive sector also relies heavily on high-performance materials to meet the demands for lightweighting, fuel efficiency, and safety in modern vehicles. Materials such as advanced alloys, carbon fiber composites, and high-strength steels are utilized to manufacture components ranging from body panels and chassis structures to engine parts and interior trim. By incorporating high-performance materials, automakers can achieve significant reductions in vehicle weight, leading to improved fuel economy, lower emissions, and enhanced driving dynamics. Moreover, the use of high-performance materials contributes to the development of electric and autonomous vehicles by addressing key challenges related to energy storage, thermal management, and structural integrity.

Restraints

• High production costs
• Limited recycling infrastructure
• Supply chain disruptions

• Raw material price volatility - Raw material price volatility poses a significant challenge to industries reliant on high-performance materials like carbon fiber. Fluctuations in the prices of raw materials such as polyacrylonitrile (PAN), petroleum-based pitch, and precursor chemicals can impact the overall cost of manufacturing carbon fiber and its derived products. This volatility is influenced by various factors, including changes in supply and demand dynamics, geopolitical tensions, currency fluctuations, and shifts in global economic conditions.

  The price volatility of raw materials can disrupt supply chains and production schedules, leading to uncertainties for manufacturers and suppliers. Sudden increases in raw material prices can squeeze profit margins and force companies to reassess their pricing strategies or seek alternative sourcing options. Conversely, sharp declines in prices may result in excess inventory or underutilized production capacity, affecting financial performance and investment decisions.

  To mitigate the impact of raw material price volatility, companies often employ strategies such as long-term contracts, hedging mechanisms, and inventory management techniques. Additionally, investments in research and development aimed at developing alternative raw materials or improving production efficiency can help reduce dependency on volatile inputs and enhance cost competitiveness.

Opportunities

• EV industry growth
• Renewable energy projects
• Aerospace sector expansion

• Advanced manufacturing tech - Advanced manufacturing technologies encompass a range of innovative processes, techniques, and tools that revolutionize traditional manufacturing practices, leading to increased efficiency, productivity, and flexibility. These technologies leverage automation, robotics, digitalization, and additive manufacturing to transform the production landscape across various industries.

  Additive manufacturing, commonly known as 3D printing, is one of the most prominent advanced manufacturing technologies. It enables the creation of complex geometries and customized parts directly from digital designs, reducing material waste and production lead times. Additive manufacturing is utilized in aerospace, automotive, healthcare, and consumer goods industries to produce prototypes, tooling, and end-use parts with improved design flexibility and cost-effectiveness.

  Robotics and automation play a crucial role in streamlining manufacturing processes and enhancing precision and repeatability. Robotic arms and automated systems are employed in tasks such as assembly, welding, material handling, and quality control, leading to increased production throughput and labor efficiency. Collaborative robots, or cobots, work alongside human operators to perform repetitive or dangerous tasks, improving workplace safety and ergonomics.

Key players in Global Carbon Fiber Market include;

• Toray Industries Inc.
• Teijin Limited
• SGL Group
• Mitsubishi Rayon Co., Ltd.
• Hexcel Corporation
• Formosa Plastics Corporation
• Solvay
• Jiangsu Hengshen Co. Ltd.
• Dowaksa
• Hyosung

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