Carbon Fiber Composites Market

Carbon Fiber Composites Market Size

The global carbon fiber composites market was valued at USD 20.5 billion in 2024. The market is expected to grow from USD 22.7 billion in 2025 to USD 53.6 billion in 2034, at a CAGR of 10%, according to latest report published by Global Market Insights Inc.

• Carbon fiber composites are an advanced material containing carbon fibers set in a polymer matrix. These composites offers high strength-to-weight ratio, durable and corrosion resistant properties, therefore they have application in various high-performance industries. The global market for carbon fiber composites is significantly driven by the demand for lightweight materials, especially in the aerospace and automotive sectors.
  
• The U.S. Department of Energy states that a 10% reduction in vehicle weight can lead to an approximated 6-8% improve in fuel economy, indicating that lightweighting is critical in the energy efficiency and emissions reduction context. As per International Energy Agency, the development of infrastructure for renewable energy, especially in wind turbines and solar energy systems, will depend heavily on durable and lightweight carbon fiber composite materials. For example, the forecast for the global wind energy market growth is an annual increase along the lines of 8-10%, with carbon fibers thus gaining greater use in the wind turbine blade applications on account of performance and longevity.
  
• At the same time, the advanced manufacturing systems, such as automation and improved resin systems, have helped to lower production costs for large-scale availability of carbon fiber composites. A secondary avenue for sustainable development occurs in the evolution of recycled carbon fiber markets that promise cost and environmental burden reduction. The growing integration of 3D printing or additive manufacturing techniques provides even more design latitude while minimizing wastage, thus expanding the footprint of carbon fiber composites into novel applications.
  

Carbon Fiber Composites Market Trends

• Developments like automated fiber placement, resin transfer moulding, and robotic manufacturing are turning revolution. Such improvements enhance precision, reduce waste and increase lower production costs, resulting in easy fulfilment of increased demands for carbon composites.
  
• Research on hybrid composites, bio-based resins, and fiber reinforcements with nanomaterials serves as a fuel for the progress of carbon fibers; thus, new generations of carbon fiber composites which embodied innovations to enhance their mechanical properties, fire resistance, and environmental stability would thus broaden their application.
  
• Safety, environmental impact, and recycling of composite materials are emerging to become pivotal pillars in international regulation. Sustainability standards for good manufacturing practices are being established basically by government and industry bodies.
  
• Technologies are capable of improving the efficiency of design, testing, and manufacturing processes-in other words, time-to-market would be reduced with the help of simulation software, digital twins, and quality monitoring. The greater complexity and optimality of such products create greater demand for lightweight composites with optimum strength, and further industry engagement towards digital transformation is expected to accelerate innovation in the market. 
  

Carbon Fiber Composites Market Analysis

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Based on precursor type, market is segmented PAN-based carbon fiber composites and pitch-based carbon fiber composites. PAN-based carbon fiber composites generated USD 18.9 billion in 2024.

• The market is dominated by PAN-based carbon fiber composites, which have proven to be advanced and reliable by polyacrylonitrile precursor technology. Quality consistency is a key contributor to competitive advantage in PAN-based systems. Severe levels of quality control and standardized testing procedures enable them to develop credible performance in a variety of applications.
  
• Pitch-based carbon fiber composites serve specialized applications that require ultra-high modulus properties and thermal conductivity. This segment is primarily used for niche applications in the aerospace, electronics, and industrial sectors. Pitch based fibers are better conductors of heat and have the potential to achieve higher modulus compared to their PAN counterparts, making these fibers useful in both conventional satellite components and electronic heat sinks and specialized applications in aerospace.
  

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Based on fiber form, the carbon fiber composites market is segmented into continuous fiber composites and discontinuous fiber composites. Continuous fiber composites accounted 73% market in 2024.

• Continuous fiber composites find application where high strength and stiffness are desired, such as in aerospace, automotive, and renewable energy applications. Processes of aerospace composites manufacturing are nowadays evolving into advanced technologies such as automated fiber place (AFP) systems for cost-effective placement of fiber accuracy and consistency. Subsequently, complex geometries and interactions result in optimum fiber orientations, which ultimately enhance performance and reduce material consumption.
  
• Discontinuous fiber composites, serving applications where a complex geometry and cost-effectiveness come before maximum structural performance. This segment includes chopped fiber systems, short fiber-reinforced plastics, and moulding compounds that only allow high-volume manufacturing processes ideally suited for automotive and industrial applications. The automotive industry's acceptance of this segment is stimulating its growth with injection moulding and compression moulding processes for cost-effective production of components of complex geometries.
  

Based on fiber type, the carbon fiber composites market is segmented into standard modulus (SM), intermediate modulus (IM), high modulus (HM) and ultra-high modulus (UHM).

• The dependence of high modulus (HM) and ultra-high modulus (UHM) fibers on aerospace and high-performance sporting goods is because they are exceptional due to their strength-to-weight ratio. Enhanced performance and performance efficiencies are also caused as a consequence of this property.
  
• Standard modulus (SM) fibers for mass production are accessible in automotive and industrial sections, as they comprise a good combination of quality and cost for mass production.
  
• IM fibers use in wind energy increasingly for moderate stiffness and durability in structural components and blades without increasing costs substantially.
  
• The need for high modulus fibers lies in lightweight, durable aerospace materials to enable innovations towards aircraft design and military applications.
  
• However, ultra-high modulus fibers play an important role in the most advanced aerospace and defense technologies, where spacecraft operations or defense activities require extreme stiffness and very low weight.
  

Based on end use industry, the carbon fiber composites market is segmented into aerospace & defense, automotive, renewable energy, marine, construction & infrastructure, sports & recreation, healthcare & medical and others.

• Defense and aerospace efficiency eventually became the demanding segment due to the heavy demand for lightweight, high-strength materials and their increasing application in fueling innovations in materials, improving fuel efficiency, and enhancing overall performance in aircraft and military applications.
  
• Automotive applications are the fastest-growing market with a major impetus being for the production of ever-frequent vehicles with lighter weight demanding fuel-saving standards and euphoria rules innovations in manufacturing methods accompanied with new developments among carbon fiber composites will integrate such advances-and encourage their usage in both structural and interior components of the automobiles.
  
• Renewable energy, especially wind energy with turbines blades, is a dynamic and progressive growing field, which seeks to support an economic transformation advocating the targeted use of materials for producing lightweight yet power-efficient energy-capturing systems.
  
• Marine applications has the advantages of corrosion resistance and lightness offered by carbon fiber, especially in high-performance vessels and recreational boats, therefore, making significant inroads into the maritime sector.
  
• Composites are adopted in the construction and infrastructure industry for retrofitting, strengthening structures, and doing architectural forms because of the demand for durable, lightweight, and high-strength materials.
  
• Healthcare and medicine use composites in prostheses, medical devices, and imaging equipment, where the biocompatible and lightweight properties can broaden the scope of applications.
  
• Other includes niche markets like musical instruments and consumer electronics, were unique properties of carbon fiber drive niche development and innovation.
  

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The carbon fiber composites market in North America will grow at a CAGR from approximately 10% between 2025 and 2034.

• Increasing acceptance of lightweight, high-strength materials in the automotive, aerospace, and infrastructure sectors, driven by the same factors of fuel efficiency and durability. Increased production of electric vehicles and emerging technologies in the aerospace sector are the significant factors driving growth.
  
• The new process developments, in automated fiber placement and resin transfer molding, go toward effective production and material performance, which are increasingly contributing to North America market growth.
  
• High-performance composites are the strongest driving force pushing the industry forward, especially for structural applications and high-end electronics, along with offering superior strength-to-weight ratios, thermal stability, and corrosion resistance.
  

The carbon fiber composites markets in Europe, especially in a few countries like Germany, are expected to grow with a rapid pace in the coming years, especially from 2025 to 2034, with CAGR of 9.9%

• With progress in technologies for recycling and reuse of carbon fibers due to sustainability initiatives and green manufacturing practices, the environment will minimize adverse consequences from carbon fibers and promote circular economy practices.
  
• Higher investments in eco-friendly and economical manufacturing methods have fostered innovation in the use of high-performance composite materials in automotive, aerospace, and construction industries.
  
• The growing demand for energy-efficient durability and lightweight materials emanates from stringent environmental regulations and requirements, combined with rising pressure for more sustainable transportation and infrastructure.
  

The carbon fiber composites market in China and India is expected to have lucrative growth between 2025 and 2034, with CAGR 10.2%.

• Rapid urbanization and construction of new infrastructures have driven the requirement of increased high-strength lightweight materials in electronics, construction, and energy. Adoption of carbon fiber composites to lighter products and manufacturing of more efficient systems will be boosted by the increasing automotive industry and by renewable energy projects such as wind turbine blades.
  
• Investments in R&D on more environmentally friendly, scalable manufacturing processes boast innovation in sustainable carbon fiber production methods to meet increasing domestic and international market demands for high-performance composites that are environmentally friendly.
  

Between 2025 and 2034, the market for carbon fiber composites in the UAE and the Middle East is projected to grow significantly during this period.

• Infrastructure projects, smart city initiatives, and diversification involves aerospace and defense sectors, hence increasing the demand for lightweight and durable composite materials.
  
• Increased awareness about the benefits of high-performance composites in energy, electronics, and transportation with incentives by the government for clean energy and sustainable manufacturing driving market growth.
  
• Advanced manufacturing techniques and an emphasis on carbon footprint reduction in the region will thus support the widespread adoption of carbon fiber composites for diverse industrial applications.
  

Between 2025 and 2034, a promising expansion of the carbon fiber composites sector is foreseen in Brazil and Argentina.

• Infrastructure improvements, smart city programs, and industrial diversification are also spurring the adoption of high-strength, low-weight composites in the construction, electronics, and energy sectors.
  
• Innovations in green manufacturing processes and recycling techniques are significantly influenced by sustainability and low environmental impact; these developments, in turn, stimulate the growth of the carbon fiber composites industry in these countries.
  

Carbon Fiber Composites Market Share

• Carbon fiber composites industry is moderately consolidated with players like Hexcel Corporation, Mitsubishi Chemical Corporation, Solvay S.A., Teijin Limited and Toray Industries accounts for 44.1% market share in 2024.
  
• The carbon fiber composites market consists of such leading companies, operating mostly in their regional areas. Their long years of experience with carbon fiber composites allow these companies to maintain a strong market position worldwide. Their product offerings are diverse and majorly supported by production capacities and distribution networks, which can serve the increasing demand for carbon fiber composites in various regions.
  

Carbon Fiber Composites Market Companies

Major players operating in the market includes:

• Formosa Plastics Corporation
• Hengshen
• Hexcel Corporation
• Mitsubishi Chemical Corporation
• Nippon Graphite Fiber
• SGL Carbon
• Solvay S.A.
• Teijin Limited
• Toray Industries
• Zoltek Companies, Inc.
  

Toray Industries has a complete vertical integration that makes them the supplier from developing precursors to composite manufacturing. Toray Sink's proprietary PAN precursor technology, a proprietary advanced manufacturing process, and the global production capacity for varied end-use applications that the company invests in. The fight plan of Toray is towards the long term, focusing on long-term customers (major ones in aerospace manufacturing) while venturing into high-growth automotive and renewable energy markets.

Hexcel Corporation's presence in the market is diversified from their reduced applications of aerospace and defense into which it is specialized to differentiate themselves from the intense competition within the market. Hexcel's manufacturing has advanced automated placement fiber systems, specialized processing techniques optimized in terms of aerospace performance. Besides, the aerospace qualification of the quality assurance systems is strict though enabling keeping consistent properties of material needed in safety-critical application models.

Mitsubishi Chemical Corporation combines the specialization of the chemical and advanced materials industries into applications of carbon fiber material. The integration concerning precursor development, fiber production, and composite manufacturing in the company places the above industry, focusing on performance and cost effectiveness in several parts of the market.

Teijin Limited has diversified businesses aimed at serving aerospace, automotive, and industrial applications through specialized tailored product offerings according to the needs of specific applications. The vertical integration of the company includes the production of aramid fiber to complement its carbon fiber capabilities to provide hybrid composite solutions for specialized applications.

Solvay S. A. offers high performance as well as chemical processing solutions for the carbon fiber composite market wherein the strength is eminent in resin systems and composite formulations for high performance. Their product range incorporates advanced thermosetting and thermoplastic resin systems optimized for carbon fiber reinforcement that deliver superior mechanical properties and processing features.

Carbon Fiber Composites Industry News

• July 2025, Toray Carbon Fibers Europe was awarded a Silver 'AVIO Industrial Partners 2025' award during AVIO's Supply Chain Partner Days, in recognition of their excellence in supplying carbon fiber composites in a high-quality and timely manner, creating an innovative collaboration in the space and defense sector.
  
• April 2024, new composite products launched by UBE, produced through recycling carbon fibers, emit low GHGs and lesser environmental impact. These second-generation lightweight functional composites are advocated in sustainability for automobiles and the sports segment toward the world global carbon neutrality program.
  
• March 2024, Hexcel unveiled the launch of HexTow IM9 24K carbon fiber that has tensile strength superior to that of the competition in aerospace composite applications. This lightweight, high-performance fiber is offering an efficient manufacturing solution, one which is economically viable for advanced aircraft structural applications.
  
• October 2023, Mitsubishi Chemical Group finalized the purchase of CPC, which was a prominent Italian manufacturer of carbon fiber composite auto components-the acquisition, therefore, further enhanced its prospects in the automotive CFRP market and further consolidated its integrated supply chain in lightweight vehicle solutions.
  
• July 2023, Toray has increased the carbon fiber capacity of its Spartanburg, South Carolina facility by 3,000 metric tons per annum effective from 2025 in full swing to meet the increasing need of carbon fiber composites in applications in clean energy, aerospace, automotive, and vessel pressure.
  
• In April 2023, GKN Aerospace and Solvay renewed their cooperation agreement, which is aimed at the development of thermoplastic-based advanced composites for aerospace structures. The light weighting of materials and manufacturing processes for sustainable aviation and novel carbon fiber applications were prioritized through this partnership.
  

The carbon fiber composites market research report includes an in-depth coverage of the industry with estimates and forecast in terms of revenue in USD Billion and volume in terms of Kilo Tons from 2021–2034 for the following segments:

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Market, By Precursor Type

• PAN-based carbon fiber composites
• Pitch-based carbon fiber composites

Market, By Fiber Form

• Continuous fiber composites
• Discontinuous fiber composites

Market, By Fiber Type

• Standard modulus (SM)
• Intermediate modulus (IM)
• High modulus (HM) 
• Ultra-high modulus (UHM)

Market, By End Use Industry

• Aerospace & defense 
  • Commercial aviation
  • Military & defense
  • Space & satellite
  • Unmanned aerial vehicles
• Automotive 
  • Electric vehicle
  • Luxury & performance vehicle
  • Motorsports 
  • Commercial vehicle
• Renewable energy
  • Wind energy
  • Solar energy
  • Hydroelectric 
• Marine 
  • Recreational marine
  • Commercial marine
  • Naval & defense marine
• Construction & infrastructure
  • Building & construction
  • Bridge & infrastructure
  • Seismic retrofitting
• Sports & recreation
• Healthcare & medical
  • Prosthetics & orthotics
  • Medical device
  • Rehabilitation equipment
• Others
  • Electronics & technology
  • Manufacturing & industrial equipment
  • Energy storage & power generation 

The above information is provided for the following regions and countries:

• North America 
  • U.S.
  • Canada
• Europe 
  • Germany
  • UK
  • France
  • Spain
  • Italy
  • Rest of Europe
• Asia Pacific 
  • China
  • India
  • Japan
  • Australia
  • South Korea
  • Rest of Asia Pacific
• Latin America 
  • Brazil
  • Mexico
  • Argentina
  • Rest of Latin America
• Middle East and Africa 
  • Saudi Arabia
  • South Africa
  • UAE
  • Rest of Middle East & Africa