Carbon fiber is a very strong, lightweight material made by exposing fibers of carbon to high temperatures. It is used to manufacture various items like bicycles, fishing rods, tennis rackets, aircraft components, etc. due to its high tensile strength and stiffness properties. Carbon fibers find application in the automotive industry for manufacturing lightweight vehicles to improve fuel efficiency. With concerns related to carbon emissions growing exponentially, automakers are focusing on electric vehicles more than ever before. Carbon fiber plays a major role in manufacturing electric vehicles as it reduces the overall weight of the vehicle and increases its range on a single charge.
Carbon fiber market is estimated to be valued at USD 5.22 Bn in 2024 and is expected to reach USD 9.34 Bn by 2031, exhibiting a compound annual growth rate (CAGR) of 8.7% from 2024 to 2031.
Key Takeaways
Key players: Key players operating in the carbon fiber market are Toray Industries, Teijin, Hexcel Corporation, Mitsubishi Rayon, SGL Group.
Key opportunities: Advancements in 3D printing technology has opened up opportunities for mass production of carbon fiber parts at reduced costs. Growing demand for lightweight materials from aerospace and automotive industries will drive market growth.
Technological advancements: Developments in recycled carbon fiber production technologies will make carbon fiber more affordable and sustainable. Adoption of resin transfer molding technique allows complex 3D carbon fiber structures to be manufactured.
Market drivers: Stringent fuel efficiency and emission norms by regulatory bodies are pushing automakers to use light weight materials like carbon fiber. Growing demand for electric vehicles and increasing air passenger traffic is propelling the aerospace industry to boost the carbon fiber market.
Current challenges
Carbon Fiber Market size due to high production costs and difficulties in the manufacturing process of carbon fiber. Carbon fiber is expensive to produce because it involves several production steps like purification of precursor material, conversion into fiber, and stabilization through oxidation. Additional processing like sizing and finishing of fiber further adds to the costs. Developing cost-effective manufacturing technologies without compromising on properties remains a critical challenge. Carbon fibers are also brittle in nature making them difficult to work with. Finding innovative ways to enhance the durability and toughness of carbon fiber is an ongoing challenge. Increasing production volumes and developing affordable mass production technologies can help lower costs in the long run to drive widespread adoption.
SWOT Analysis
Strength: Lightweight and high strength properties make carbon fiber popular in various industries. Carbon fiber composites have up to five times more tensile strength than steel. Weakness: High material and production costs restrict volumes. Brittle nature of carbon fiber poses challenges. Opportunity: Growing demand from automotive and wind energy sectors offer major opportunities. Emerging technologies will likely bring down costs over time. Threats: Stiff competition from substitute materials threatens market share. Volatility in crude oil prices impacts precursor prices.
In terms of value, North America is currently the largest regional market for carbon fiber accounting for over 30% of global demand led by the US. Robust aerospace and defense industries support growth in the region. However, Europe is catching up fast driven by strict emission norms boosting adoption in automotive sector. Asia Pacific region is poised to become the fastest growing regional market for carbon fiber in coming years led by China which has been ramping up investments to localize carbon fiber production and drive down costs. Countries like Japan, India are also expanding production capacities to cash in on the rising demand from local industries.
While North America and Europe currently dominate in terms of value, Asia Pacific region particularly China is expected to spearhead volume growth in carbon fiber market over coming years. Low cost manufacturing hubs being developed through Chinese investments are expected to disrupt global supply chain dynamics making Asia Pacific region the engine of growth for carbon fiber market.
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About Author:
Alice Mutum is a seasoned senior content editor at Coherent Market Insights, leveraging extensive expertise gained from her previous role as a content writer. With seven years in content development, Alice masterfully employs SEO best practices and cutting-edge digital marketing strategies to craft high-ranking, impactful content. As an editor, she meticulously ensures flawless grammar and punctuation, precise data accuracy, and perfect alignment with audience needs in every research report. Alice's dedication to excellence and her strategic approach to content make her an invaluable asset in the world of market insights.
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