Carbon Fiber Market expected to rise at 402.93 Kilotons by 2030 with CAGR of 18.10%, Strong Demand for Aerospace & Automotive Sectors | Says Mordor Intelligence

Carbon Fiber Market Overview:

Carbon Fiber Market is experiencing a rapid upswing in demand, driven by an increasing push toward lightweight, high-strength materials across multiple industries. According to Mordor Intelligence, the market is projected to reach 402.93 kilotons by 2030, up from 207.64 kilotons in 2025, reflecting a compound annual growth rate (CAGR) of 18.10% for the period 2025–2030.

Growth is powered by sectors such as aerospace, renewable energy, and electric vehicles, which are increasingly replacing heavy metals with carbon fiber composites to improve efficiency, reduce emissions, and achieve structural performance goals. The Asia-Pacific region leads in both volume and growth pace, with mounting investments in wind energy, aviation, and automotive manufacturing fueling substantial uptake.

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Emerging Patterns in the Carbon Fiber Market

Rising Role in Renewable Energy and Wind Turbines

Wind turbine blades are getting longer and more slender, placing higher structural demands on materials. Carbon fiber’s high stiffness-to-weight ratio helps deliver the needed strength without excessive mass. As blade spans exceed 100 meters, spar caps made of carbon fiber are increasingly adopted to maintain rigidity and durability. 

Expansion of Lightweighting in EVs and Transportation

Automakers are pushing to trim vehicle weight both to improve range and to meet regulatory emissions targets. Carbon fiber-reinforced structures (CFRP) can significantly reduce weight relative to metal alternatives. In battery enclosures and body-in-white (BIW) parts, carbon fiber offers promising gains in performance. 

Growth of Recycled Carbon Fiber Use

While virgin carbon fiber remains dominant, recycled carbon fiber is gaining traction due to cost benefits, sustainability imperatives, and improved recovery technologies. Recycled grades are expected to grow at around 19.5% CAGR through 2030, gradually narrowing the gap with virgin options. 

Technological Advances in Manufacturing

One of the key constraints in scaling carbon fiber is the energy-intensive carbonization process, which typically demands high temperatures and long cycle times. Innovations such as microwave-assisted oxidation or carbonization offer paths to lower energy consumption and reduced manufacturing costs, helping to relieve one major bottleneck.

Regional Momentum in Asia-Pacific

Asia-Pacific remains the biggest market and is projected to log a 20.6% CAGR through 2030. Big domestic industrial and aerospace programs, large wind energy build-outs, and aggressive expansion of carbon fiber capacity in countries like China and Japan all contribute to the region’s leadership.

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Carbon Fiber Market Segmentation:

Carbon Fiber Market can be broken down into several meaningful segments, each reflecting distinct demand dynamics:

By Raw Material Precursor:

• Polyacrylonitrile (PAN): The dominant precursor, accounting for about 95% of volume share. Its mature supply chain, consistent performance, and established use in critical applications support its continued leadership. 
• Petroleum Pitch / Rayon: These alternatives, though niche, find use in specialty stiffness applications or in efforts to reduce costs in lower-demand applications

By Fiber Types:

• Virgin Carbon Fiber (VCF): Still the mainstay for high-end, certification-critical applications (aerospace, defense).
• Recycled Carbon Fiber (RCF): Growing rapidly, particularly in automotive, consumer, and industrial uses as recycled fiber’s strength retention becomes more acceptable.

By Applications:

• Composites: This is by far the largest application category, representing roughly 87% of demand. Used in structural parts, blades, frames, and housings.
• Micro-electrodes / Sensors: Though smaller in absolute size, this segment is forecast to grow fast (≈ 25% CAGR) as carbon fiber finds roles in advanced electronics, sensing, and embedded energy systems.
• Textiles / Catalysis / Others: These peripheral uses add diversity to the demand base, though they remain relatively modest in volume.

By End-User Industry

• Alternative Energy (Wind, Storage): Leading in revenue share (~27%), buoyed by large-scale wind projects and composite pressure vessels. 
• Aerospace & Defense: A stable and high-value segment relying on high-quality certifications, driving premium fiber demand.
• Automotive: Growing steadily, particularly via EV lightweighting and structural component integration.
• Construction, Sports & Others: Emerging uses such as CFRP rebars in seismic zones or performance goods also contribute incremental growth.

Browse Competitive Landscapes on Carbon Fiber Market: https://www.mordorintelligence.com/industry-reports/carbon-fiber-market/companies?utm_source=industrytoday

Carbon Fiber Market Industry Leaders:

• Toray Industries, Inc. - a top global supplier with deep involvement in aerospace, automotive, and industrial composites. 
• Hexcel Corporation - prominent in aerospace composites and seeking further penetration into wind and EV sectors. 
• SGL Carbon - known for specialty fiber grades and partnerships targeting lower-carbon manufacturing. 
• Mitsubishi Chemical Group - leveraging its wider materials portfolio to integrate carbon fiber downstream and upstream. 
• Teijin Limited - active in promoting carbon fiber use in automotive and industrial segments.

These firms are investing in capacity expansion, precursor R&D, recycling, and regional presence to secure their positions. Their strategies often tie fiber supply closely with composite manufacturing and customer integration.

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Conclusion and Forward Outlook

Challenges remain. Energy-intensive production processes, precursor cost volatility, and limited recycling infrastructure could constrain some expansion. But improvements in process efficiency (e.g. microwave-assisted carbonization) and scaling of recycled fiber recovery can help smooth those bottlenecks. In the coming years, success in this space will depend not just on raw fiber output, but on the ability to align with end-use OEMs, integrate composite design, and build a resilient, cost-effective supply chain. The market’s future will likely be shaped not only by absolute growth, but by the balance among virgin vs recycled fiber, regional leadership shifts, and how well key players manage innovation and sustainability pressures.