Carbon Composites Market by Type, End-user, and Geography - Forecast and Analysis - 2023-2027

Carbon Composites Market Size 2023-2027

The Global Carbon Composites Market size is forecast to increase by 177.9 million tons, at a CAGR of 11.49% between 2022 and 2027. The market experiences growth driven by several pivotal factors shaping various industries. With a rising demand for fuel-efficient vehicles, carbon composites witness increased adoption in automotive manufacturing. Moreover, the aerospace and defense sector's increasing utilization of carbon composites further propels market growth, driven by their lightweight and durable properties. Additionally, stringent regulations in the automotive industry regarding emissions and safety standards drive the demand for advanced materials like carbon composites, emphasizing their role in sustainable and high-performance applications. This dynamic market landscape underscores the significant contribution of carbon composites to innovation and efficiency across multiple sectors worldwide. This market research and growth report also includes an in-depth analysis of drivers, market growth and trends, and challenges. Furthermore, the market growth analysis report includes historic market data from 2017 to 2021.

What will be the size of the Market During the Forecast Period?

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Market Segmentation

By Type

The market share growth of the virgin fiber segment will be significant during the forecast period. It is a class of composite materials that contain carbon fibers. These fibers can be bonded together with a variety of different matrix materials, including metals, plastics, and ceramics. They are prized for their lightweight, high strength, and low thermal expansion. They are used in a wide range of applications, including aircraft and spacecraft components, wind turbine blades, sporting goods, and medical implants.

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The virgin fiber (VCF) segment was valued at 125.72 million tons in 2017. Virgin fiber allows manufacturers to produce parts with very tight tolerances, which is essential for many high-performance applications. However, there are a few drawbacks to using virgin fiber. First, they can be quite expensive due to the high cost of the raw materials. Second, the manufacturing process can generate a significant amount of waste material. Finally, there is a risk that parts made from virgin fiber composites may not be compatible with existing repair or recycling infrastructure.

Key Regions

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North America is estimated to contribute 35% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The growth of the Market in North America can be attributed to the high consumption of carbon composite in industries such as aerospace, automotive, wind energy, and construction. North America is one of the largest exporters of the market. In the automotive industry, the three domestic sports car models, namely Chevrolet Corvette Stingray, Ford Mustang Shelby GT500KR, and Viper SRT are the major automotive users of carbon composite. Automotive manufacturers use lightweight materials such as carbon composite to make their vehicles lightweight and fuel-efficient. Hence, the abovementioned factors are expected to increase the demand which will fuel the growth of the Market in North America during the forecast period.

Market Dynamics and Customer Landscape

The market thrives in production hubs leveraging cutting-edge 3D printing and semiconductor technologies, catering to diverse industries such as aerospace, civil engineering, military, and motorsports. These sectors demand high-strength materials including glass fibers and plastic fibers like Polyacrylonitrile (PAN) and Pitch, with industry leader SGL Carbon specializing in the production of pressure vessels. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

Key Market Driver

The increasing demand for fuel-efficient vehicles is notably driving market growth. The automotive industry is one of the major end-users of carbon composite. Consumers are increasingly shifting from traditional passenger cars to fuel-efficient cars because of high fuel costs and fluctuating fuel prices. Factors such as the availability of alternative fuels and awareness regarding the benefits of green vehicles and light vehicles can have a direct impact on the global market.

Further, stringent government norms to reduce GHG emissions, carbon dioxide emissions, and other harmful pollutants augment the demand for fuel-efficient and light vehicles. They reduce the overall weight of vehicles by 40-50% and increase fuel efficiency by 30-35%. Hybrid electric cars, battery cars, plug-in hybrid electric cars, and compressed air-based cars are some of the fuel-efficient vehicles preferred by consumers. The extensive use of these vehicles significantly reduces their overall weight. Hence, the abovementioned factors are expected to drive the growth of the global market during the forecast period.

Market Trend

Developments in end-user industries is the key trend in the market. Carbon composite for automotive composites plays a key role in the manufacture of various vehicles. Carbon composite is used in exterior components, interior components, structural and powertrain components, chassis systems, and others. Hence, the growth of the market is directly influenced by the market expansions by automobile manufacturers.

 Moreover, the most important factor is the intent of the governments to promote the sales of EVs. For instance, in June 2019, the German government and the car industry agreed to increase joint subsidies for electric car buyers and extended the program to 2025. The EV industry is nurtured by governments globally to curb carbon emissions. Hence, these factors can result in an increase in the number of EV launches and thereby influence the demand, which is expected to fuel the growth of the market in focus during the forecast period.

Market Challenge

High competition from substitutes is the major challenge impeding market growth. The widely used in a range of applications, including automotive, aerospace and defense, construction, and wind energy. Substitutes such as glass fiber, aluminium, copper, basalt fiber, aramid fibers, and natural fiber pose serious challenges to the growth of the global carbon composite market as the substitutes have similar end-use applications.

Additionally, basalt fiber and natural fiber have numerous applications in many industries, including automotive and construction. Similarly, aramid (aromatic polyamide) fibers demonstrate high mechanical strength and resist damage. Natural fiber composites are characterized by low density, high specific strength, excellent stiffness, high young modulus, low toxicity, and abrasion resistance. The rising demand for substitutes is likely to hamper the growth of the global Market during the forecast period.

Customer Landscape

The Market forecasting report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the market report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth and forecasting strategies.

MarketCustomer Landscape

Who are the Major Market Companies?

Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

Sigmatex UK Ltd.  - The company offers such as woven carbon fiber fabrics, and spread tow carbon fiber fabrics.

The report also includes detailed analyses of the competitive landscape of the market and information about 15 market Companies, including:

• Formosa M Co. Ltd.
• Gurit Holding AG
• Hexcel Corp.
• Innegra Technologies
• Jiangsu Hengshen Co. Ltd.
• Mitsubishi Chemical Corp.
• Nippon Steel Corp.
• Plasan  Inc.
• SAERTEX GmbH and Co.KG
• SGL Carbon SE
• Solvay SA
• Teijin Ltd.
• Toray Industries Inc.
• TPI Composites Inc.
• Zhongfu Shenying Carbon Fiber Co. Ltd.

Qualitative and quantitative analysis of Companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize Companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize Companies as dominant, leading, strong, tentative, and weak.

Segment Overview

This market analysis and report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027. 

• Type Outlook 
  • Virgin fiber (VCF)
  • Recycled fiber (RCF)

• End-user Outlook 
  • Aerospace and defense
  • Automotive
  • Wind energy
  • Sporting goods
  • Others

• Region Outlook 
  • North America
    • The U.S.
    • Canada
  • Europe
    • U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • South America
    • Brazil
    • Argentina
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

You may also interested in below market reports:

• Carbon Fiber Market Carbon Fiber Market Analysis North America, Europe, APAC, South America, Middle East and Africa - US, China, Japan, Germany, Russia - Size and Forecast 
• Carbon Fiber in the Automotive Composites Market Carbon Fiber in the Automotive Composites Market Analysis APAC, Europe, North America, South America, Middle East and Africa - US, China, Japan, India, Germany - Size and Forecast
• Carbon Fiber Prepreg Market Carbon Fiber Prepreg Market Analysis North America, APAC, Europe, South America, Middle East and Africa - US, China, Japan, Germany, UK - Size and Forecast

Market Analyst Overview

The market is witnessing significant growth across various industries, including civil engineering, military, and motorsports. Utilizing materials like glass fibers, plastic fibers, Polyacrylonitrile (PAN), and pitch, this market caters to pressure vessels for hydrogen and fuel cell vehicles, as well as CNG storage tanks. Despite challenges like lack of standardization, carbon composites find applications in sports goods, consumer goods, luxury cars, and lightweight vehicles, reducing CO2 emissions. End-use industries such as the aircraft industry, wind energy sector, and semiconductor manufacturing rely on these materials for environmental sustainability and high-strength properties. Notable players like Boeing and Airbus drive innovation in carbon matrix composites, contributing to renewable energy and electric vehicle advancements.

Further, the market is witnessing substantial growth driven by diverse applications, including fuel cell electric vehicles and light commercial vehicles. PAN carbon fibers and pitch carbon fibers are integral components in this market, particularly in the pressure vessels segment for gas storage, including liquid propane gas, compressed natural gas, and renewable natural gas. Carbon composites also play a pivotal role in hydrogen gas storage solutions. With the use of materials like vinyl ester and epoxy, these composites provide high-performance solutions for various end-use industries. Notably, the market caters to the demand for lightweight components in light commercial vehicles, further driving innovation and growth in the carbon composites industry.

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What are the Key Data Covered in this Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the growth of the market between 2023 and 2027
• Precise estimation of the Marketsize and its contribution of the market in focus to the parent market
• Accurate predictions about upcoming trends and changes in consumer behaviour
• Growth of the industry across North America, Europe, APAC, South America, and Middle East and Africa
• Thorough analysis of the market’s competitive landscape and detailed information about Companies
• Comprehensive analysis of factors that will challenge the growth of Market Companies

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