Carbon Fiber Market Size, Share, Growth Analysis, By Raw material(Pan-based Carbon Fiber, and Pitch-based Carbon Fiber (Petroleum-based Pitch Carbon Fiber, and Coal-based Pitch Carbon Fiber)), By Fiber Type(Virgin Carbon Fiber, and Recycled Carbon Fiber), By Modulus(Standard Modulus, Intermediate Modulus, and High Modulus), By Product Type(Continuous Carbon Fiber, Long Carbon Fiber, and Short Carbon Fiber), By Application(Composites (Prepregs, Molding Compounds, Woven Fabrics), and Non-Composites), By End Use Industry(Aerospace & Defense (Rockets, Space Vehicles, Habitation Equipment, UMA (Urban Air Mobility) And Small Aircraft Equipment)), By Region - Industry Forecast 2024-2031

Global Carbon Fiber Market size was valued at USD 4.12 Billion in 2022 and is poised to grow from USD 4.51 Billion in 2023 to USD 9.25 Billion by 2031, growing at a CAGR of 9.4% in the forecast period (2024-2031).

The market is fragmented in nature. The prominent players such as key players such as Toray Industries, Mitsubishi Chemical Holdings Corporation, Teijin Limited, SGL Carbon, and Hexcel Corporation operating in the market are constantly adopting various growth strategies in order to stay afloat in the market. Product launches, innovations, mergers, and acquisitions, collaborations and partnerships, and intensive R&D are some of the growth strategies that are adopted by these key players to thrive in the competitive market. The key market players are also constantly focused on R&D to supply industries with the most efficient and cost-effective solutions. 'Toray Industries, Inc. (Japan) ', 'Mitsubishi Chemical Holdings Corporation (Japan) ', 'SGL Carbon SE (Germany) ', 'Hexcel Corporation (US) ', 'Teijin Limited (Japan) ', 'Hyosung Corporation (South Korea) ', 'Formosa Plastics Corporation (Taiwan) ', 'Cytec Solvay Group (France) ', 'Zoltek Companies, Inc. (US) ', 'DowAksa (US & Turkey) ', 'Koninklijke Ten Cate B.V. (Netherlands) ', 'Nippon Graphite Fiber Corporation (Japan) ', 'Toho Tenax Co., Ltd. (Japan) ', 'Advanced Composites Inc. (US) ', 'Plasan Carbon Composites (Israel) ', 'Cristex Composite Materials (UK) ', 'Gurit Holding AG (Switzerland) ', 'Park Electrochemical Corp (US) ', 'Solvay SA (Belgium) ', 'China Carbon Fiber Ltd. (China)'

Carbon fiber market growth is expected to be fueled by rising automotive production and a growing need for lightweight vehicles. Manufacturers' increased demand for vehicle body parts such as hoods, deck lids, bumper beams, and fenders may encourage product demand. The use of carbon fibers boosts vehicle durability, resulting in longer life auto parts. The market is being driven by the usage of composites in motorsports and premium vehicles. 

Researchers Focus on Converting Coal into Carbon Fiber (CF): Work on the development of CF and composites from coal tar, a waste product from the coke-making process for the steel industry, is currently being done by industry players and academics. Applicable to low weight high stiffness composites, this new CF product can add that much, or even more value to CTP than what it has already got. The University of Kentucky Center for Applied Energy Research (CAER) and the U.S. Department of Energy's (DOE) Oak Ridge National Laboratory (ORNL) signed into a strategic cooperation. The research will outline significant issues regarding different types of coal feedstock, coal processing, and CF manufacture. CAERs will concentrate on producing CF from various coal feedstocks.

Europe region is projected to hold the dominant share with around 32% in 2023 for the carbon fiber market. A diverse range of electric vehicle producers and rising demand for lightweight and fuel-efficient vehicles are driving regional growth. Rapid growth in the aerospace and military industries is expected to boost regional market growth. Automakers are investing in R&D to develop low-cost carbon composite materials, which are boosting the region's automotive industry. Due to the presence of a well-developed aviation sector, Germany's market may experience beneficial expansion. The Eurofighter and Airbus A320 families are both manufactured in Germany. The country is one of the top aircraft manufacturing bases, and it is primarily home to various businesses such as material and component suppliers, equipment manufacturers, entire system integrators, and engine manufacturers.