The Carbon Fiber Market is to Touch $15.3 billion by 2030; Growing Demand in Aerospace and Defense, Automotive Industry Shift Towards Lightweight Materials, Rising Interest in Renewable Energy.

The Carbon Fiber Market size is estimated to reach $15.3 billion by 2030, growing at a CAGR of 11% during the forecast period 2024-2030, according to a recent report published by IndustryARC, titled, “Carbon Fiber Market – By Raw Material [Polyacrylonitrile Based (PAN), Pitch Based (Mesophase Pitch Based, and Petroleum Pitch Based), and Others (Ultra High Elastic Modulus (UHM), High Elastic Modulus (HM), and Low Elastic Modulus (LM))], By Tow Type (Continuous, and Chopped), By Application (Composite, Non-Composite, Molding Compound, Woven Fabric, and Others), By End-Use Industry [Aerospace & Defense (Fighter Jets, Armored Vehicles, Commercial Jets, Rotorcraft, Satellites, and Others), Automotive (Interior, Exterior, and Others), Sporting Goods (Tennis Rackets, Golf Club, Hockey Sticks, Archery, Others), Energy and Power (Wind, Solar, and Others), Building & Construction (Residential, Commercial, and Others), Marine, Healthcare, Electric & Electronic, and Others], By Geography - Global Opportunity Analysis & Industry Forecast, 2024-2030”. The Carbon Fiber Market is witnessing robust growth, primarily driven by demand from aerospace, automotive, renewable energy, and sporting goods sectors. Carbon fiber’s exceptional strength-to-weight ratio makes it invaluable for manufacturing lightweight, durable components, especially in aerospace and automotive industries aiming to improve fuel efficiency and reduce emissions. Renewable energy applications, particularly wind turbines, are also fueling market expansion, as larger blades require materials with high strength and reduced weight. Additionally, advances in production technology are driving down costs, enabling broader adoption across sectors, including consumer electronics and high-performance sporting goods. North America and Europe lead the market due to strong aerospace and automotive industries, while Asia-Pacific is emerging as a key region with increasing investments in renewable energy and automotive production. The carbon fiber market is positioned for steady growth as manufacturers innovate to meet the evolving needs of performance-driven industries.

In the geographical segmentation of the Carbon Fiber market, Europe holds the majority market share. The region’s aerospace industry, particularly in countries like Germany, the U.K., and France, has been a long-time adopter of carbon fiber, driven by a strong focus on reducing aircraft weight to improve fuel efficiency and comply with stringent emissions regulations. Major aerospace companies in Europe, such as Airbus, are extensively using carbon fiber in manufacturing aircraft components, contributing significantly to regional market growth. The European automotive sector is also embracing carbon fiber, especially within high-performance and luxury vehicle segments. With a growing emphasis on electric vehicles (EVs) and lightweight materials to meet sustainability targets, European automakers are increasingly integrating carbon fiber to enhance vehicle efficiency and range. Furthermore, Europe’s commitment to renewable energy, particularly wind power, is spurring demand for carbon fiber in wind turbine blades, where strength and lightness are crucial. Backed by supportive regulations and technological advancements, Europe is expected to retain its leadership in the carbon fiber market, with steady growth across diverse industries.

The aerospace and defense industries are significant drivers of the Carbon Fiber Market due to the material's exceptional strength-to-weight ratio, which is essential for manufacturing lightweight, high-performance components. Carbon fiber helps reduce the overall weight of aircraft, leading to lower fuel consumption and increased range—critical factors for both commercial and military applications. Major aerospace manufacturers, such as Boeing and Airbus, incorporate carbon fiber in the production of various aircraft parts, including fuselage sections, wings, and tail assemblies. This trend is particularly prominent as the industry strives to meet stricter emissions standards and fuel efficiency targets. In defense, carbon fiber’s high tensile strength, durability, and resistance to environmental factors make it ideal for military vehicles, protective equipment, and missile components. With governments increasing defense spending and aerospace companies investing in next-generation materials, the demand for carbon fiber is projected to grow steadily. As the aerospace and defense sectors prioritize performance and sustainability, carbon fiber’s role as a key material is expected to become even more critical in the coming years.

The renewable energy sector, especially wind power, is a major driver of the Carbon Fiber Market, spurred by the need for efficient, sustainable energy solutions. Wind turbines, specifically the blades, are one of the primary applications for carbon fiber, as they require a material that is both lightweight and extremely strong to withstand harsh weather conditions and continuous operation. As wind turbines grow larger to capture more energy, the demand for durable, high-strength materials like carbon fiber has risen sharply. Europe, the U.S., and China lead in wind energy capacity, with new wind farms requiring advanced materials to optimize energy generation. Carbon fiber blades not only reduce the overall weight of the turbine, allowing for better energy output, but also improve longevity, reducing maintenance costs. As global demand for renewable energy grows and governments support cleaner energy infrastructure, carbon fiber is increasingly preferred for its role in enhancing wind turbine performance and sustainability. This shift toward greener energy sources positions the carbon fiber market for long-term growth in the renewable sector.

• In May 2024, Intel formed a strategic partnership with 14 Japanese organizations, including Omron, Yamaha Motor, Resonac, and Shin-Etsu Polymer, to advance automated backend processes in carbon fiber manufacturing. This collaboration aims to enhance production efficiency and innovation, positioning Intel and partners at the forefront of sustainable material solutions.

Key companies profiled in the Carbon Fiber Market are Hexcel Corp, Formosa Plastics Corp, TEIJIN Aramid B.V., Hyosung Advanced Materials, ESE Carbon Co, Mitsubishi Chemical Corp, Stratasys Ltd, SGL Carbon SE, Zoltek Corporation and others.