The carbon fiber composites market is projected to expand from USD 23.7 billion in 2025 to USD 44.7 billion by 2035, growing at a CAGR of 6.5% during the forecast period. This steady growth reflects increasing demand and advancements in the industry, driving significant investment and innovation across various sectors.
The market is booming as the sectors are preferring composite materials that are light in weight and perform better. These composites are well-renowned for their strength-to-weight ratio, resistance to corrosion, and durability, so they are mainly used in aerospace, automotive, and renewable energy sectors.
The increased focus on fuel efficiency and reduced carbon footprint has made the industries adopt advanced materials that perform better while being environmentally friendly. The growing emphasis on R&D is paving the way to produce cost-effective, high-quality carbon fiber composites, which, in turn, are being used globally at a faster pace.
The evolution of carbon fiber composites industry is greatly influenced by the technological interventions that are taking place. The use of innovations like Automated Fiber Placement (AFP) and additive manufacturing has resulted in a considerable gain in production efficiency through cost-cutting while still maintaining product consistency.
Besides that, there are also efforts to create recyclable and bio-based carbon fibers which are ultimately leading to the enhancement of the sustainability and consequently making it the composite eco-friendlier. The companies are also adopting the hybrid approach of using carbon fiber composites combined with other composites, to optimize the mechanical properties in special applications in aerospace, wind energy, and high-end sportswear.
Manufacturing costs remain the most difficult challenge for such operations in the production of these materials. The polyacrylonitrile (PAN) that is specifically utilized in the carbon fiber production is relatively expensive, which results in the limited use of it. Moreover, the automation process and the introduction of new methods become a burden and contribute to the higher price of carbon fiber compared to traditional metals such as aluminum and steel.
Therefore, this material has been applied exclusively in highly specialized fields, primarily in aerospace, defense, and premium automobiles. Now, however, the advent of low-cost manufacturing processes has paved the way, mainly for the application of AFP, Resin Transfer Molding (RTM), and 3D printing to seep into previously untouched territory in environments like automotive, construction, and industrial sectors.
Presently, the electrification of vehicles (EVs) and renewable energy instruments is promoting the use of carbon fiber composites, which is reflected in the demand surge. Automotive companies like Tesla and BMW are employing carbon-fiber-reinforced polymer (CFRP) units to yearly cut the EV battery 4rto and add miles to their range.
Technologies for wind power generation are witnessing a similar pattern and are utilizing carbon fiber composites by installing lighter and more durable structures, for example, wind turbine blades that make it possible for energy production and maintenance to be more efficient and economical.
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The carbon fiber composites market has grown to a good extent from 2020 to 2024. There is a high need from the aerospace, automotive, and wind energy sectors. Need for strong yet lightweight material that is durable too has urged manufacturers to spend on sophisticated technology. Additionally, increased interest in recycling and biobased materials is on the agenda. The industry will only grow as carbon fiber composites are used pervasively across new markets such as hydrogen storage, 3D printing, and future mobility.
Between 2025 and 2035, the industry is likely to observe significant changes with the thrust as automation has accelerated and AI is being applied to manufacturing. The developments will bring production more cost-effective and efficient, making carbon fiber composites affordable for a large number of industries. Self-healing, smart-sensing, high-performance, and multifunctional composites will open new possibilities in defense, healthcare, and robotics.
Sustainability issues will promote the use of low-energy manufacturing processes and closed-loop recycling chains. Geopolitical tensions and local production needs will shape the global carbon fiber composites market toward regionalized supply chains.
| 2020 to 2024 | 2025 to 2035 |
|---|---|
| Stricter environmental regulations drove lightweight materials for fuel efficiency. | Sustainability mandates push recycling initiatives & bio-based carbon fiber. |
| AFP & RTM improved manufacturing efficiency. | AI-driven material optimization, 3D printing, & self-healing composites emerge. |
| Aerospace, automotive, & wind energy dominated demand. | Hydrogen storage, urban air mobility, & next-gen sporting goods expand. |
| Pilot programs for carbon fiber recycling gained traction. | Circular economy models scale with full recycling & closed-loop supply chains. |
| COVID-19 caused supply chain disruptions & material shortages. | Localization & robotic automation enhance efficiency & cost-effectiveness. |
| Weight reduction & fuel efficiency drove industry adoption. | Electrification, renewable energy, & composite-based infrastructure accelerate growth. |
Beyond the traditional aerospace and sporting goods domains, these composites are finding new high-growth applications. In the renewable energy sector, carbon fiber is increasingly used in wind turbine blades - especially as turbines grow in size - because carbon fiber can reduce blade weight by ~30% versus fiberglass, allowing longer, and more efficient blades.
The push for clean energy (e.g. China’s “double carbon” goals for 2030/2060) has significantly boosted demand for carbon fibers in wind power, with carbon gradually replacing fiberglass in critical blade structures
Another booming area is hydrogen storage-carbon fiber composite pressure vessels (Type IV hydrogen tanks) are needed for fuel cell vehicles and industrial hydrogen storage, and this segment is growing explosively (the hydrogen composite tank market is projected to grow ~30% annually this decade). Urban Air Mobility and Drones represent a nascent but promising application - air taxis, UAVs, and drones require ultra-light high-strength materials, making carbon fiber essential for frames and rotors.
In the medical field, these composites are used for imaging equipment (radiolucent patient tables in X-ray/MRI machines), prosthetics and orthotics (lightweight, durable limbs/braces), and high-end wheelchairs and implants.Sporting goods is also a steady market, with high-performance bicycles, golf clubs, tennis rackets and hockey sticks - carbon fiber offers athletes a luxury combination of stiffness and light weight.
CFRP is even being embraced by civil infrastructure with seismic retrofitting (carbon fiber wraps/plates used to strengthen bridges and buildings) and lightweight architectural elements. These new and growing applications in energy, mobility, medical and infrastructure are generating new demand streams for composites that augment core aerospace/defense and auto spaces.
| Customer Pain Points | Potential Solutions for Players |
|---|---|
| High material costs | Improve logistics, increase production capacity, explore local sourcing |
| Inconsistent quality | Manufacture through its block copolymer and filament winding technologies. |
| Long lead times | Enhance logistics, augment production capacity, consider working with local suppliers |
| Process inefficiencies (slow autoclave curing) | Develop out-of-autoclave curing techniques, use faster manufacturing methods |
| Resin compatibility issues (delamination, weak bonding) | Enhance surface treatments, develop better resin systems |
| Limited recyclable/sustainable composite options | Experts recommend investing in recyclable composites, looking into closed-loop manufacturing |
| Lack of technical support for design and machining | Collaborate for R&D, offer training programs, improve customer serviceice |
| Countries | CAGR (2025 to 2035) |
|---|---|
| USA | 5.5% |
| UK | 5.9% |
| European Union (EU) | 6.1% |
| Japan | 6.3% |
The USA leads the industry, influenced by aerospace (Lockheed Martin, Boeing), defense, and electric vehicle industries (Tesla, GM, Ford). Carbon fiber allows for higher aircraft fuel efficiency and longer-range electric vehicle battery capability. Investment in wind power fuel demand for lengthier, more lightweight turbine blades, with composites also finding use in bridge and seismic retrofitting applications as part of infrastructure projects.
The USA Department of Energy funds for the development of recyclable carbon fiber and automation to reduce costs and environmental footprint. Strict emissions controls also drive adoption. Even with expensive production and supply chain limitations, innovations in manufacturing processes are increasing applications across industries. FMI is of the opinion that the USA carbon fiber composites market is set to grow at 5.5% CAGR from 2025 to 2035.
Growth Factors in the USA
| Key Factors | Details |
|---|---|
| High Demand in Aerospace | Strong demand from Boeing & defense sector |
| Automotive Expansion | Growing use in EVs & lightweight vehicles |
| Government Support | Investments in clean energy & defense applications |
| Innovation & R&D | Advancements in resin and fiber technology |
| Renewable Energy | Increasing use in wind turbine blades |
The industry is driven by aerospace (Rolls-Royce, BAE, Airbus UK), automotive (Jaguar Land Rover, Formula 1, and renewable energy. The UK Aerospace Technology Institute sponsors lightweight material development to enhance cost-effectiveness. The EV industry is growing fast, where these composites increase vehicle performance. Wind energy investments are active with the UK's net-zero 2050 initiative, raising the demand for lightweight turbine blades. Building applications, such as bridge reinforcement, are developing. But excessive expenses restrict mass use. Efforts to create affordable and recyclable carbon fiber products are set to propel strong growth over the next few years. FMI is of the opinion that the UK industry is set to grow at 5.9% CAGR from 2025 to 2035.
Growth Factors in the UK
| Key Factors | Details |
|---|---|
| Sustainability Push | Carbon-neutral goals drive demand |
| Aerospace Leadership | Strong presence of Airbus & Rolls-Royce |
| Automotive Sector | Expansion of EVs & lightweight materials |
| Circular Economy Initiatives | Focus on recycling carbon fiber |
| Government Policies | Net-zero emissions strategy supports adoption |
The EU is a primary region for carbon fiber, with high demand in aerospace (Airbus), automotive (EVs, hybrids), and wind power (wind farms). Germany, France, and Italy dominate production and utilization. Conservative EU emissions regulations drive the adoption of lightweight materials to enhance fuel efficiency. Offshore wind power projects largely use carbon fiber for the durability and improving the performance of blades. The construction industry is using composites into making green buildings. FMI is of the opinion that the European Union market is set to grow at 6.1% CAGR from 2025 to 2035.
Growth Factors in European Union
| Key Factors | Details |
|---|---|
| Green Energy Transition | EU Green Deal promotes lightweight materials |
| Automotive Advancements | High demand from BMW, Volkswagen, and Tesla |
| Wind Energy Boom | Increasing use in turbine blades |
| Aerospace Innovation | Airbus & European space projects drive demand |
| Recycling & Sustainability | Strong focus on circular economy initiatives |
Japan leads the world in carbon fiber manufacturing, with industry giants Toray Industries and Mitsubishi Chemical based there. The aerospace industry partners with Boeing, and automakers (Toyota, Honda, and Nissan) use carbon fiber in EVs and hydrogen fuel cell vehicles. Carbon fiber is utilized by the robotics and electronics industries for lightweight, high-strength parts. Industry growth is fueled by Japan's emphasis on innovation, sustainability, and automation. Continued research into bio-based carbon fiber and recyclable composite material is in line with worldwide sustainability and follows Japan's role as a world leader in advanced carbon fiber technology and production. FMI is of the opinion that the Japanese carbon fiber composites market is set to grow at 6.3% CAGR from 2025 to 2035.
Growth Factors in Japan
| Key Factors | Details |
|---|---|
| Leading Manufacturers | Toray & Teijin drive global production |
| Automotive Lightweighting | High use in hybrid & EVs (Toyota, Honda) |
| Advanced Robotics | Demand from robotics & industrial automation |
| Government Support | R&D funding for high-performance composites |
| Sustainability Trends | Growing efforts in carbon fiber recycling |
Epoxy is the largest segment in thermosetting carbon fiber composites, thanks to their high mechanical properties, heat resistance, and chemical stability. Indeed, these composites are common in aerospace, automotive, and wind energy applications, where strength and durability are paramount. And finally, their super adhesion and moisture resistance make them even more favorable to use in structural and high-stress applications.
Even with these benefits, thermosetting composites face limitations including prolonged curing, difficulty recycling, etc., limiting their widespread adoption in some industries. Fortunately, recent developments in rapid-curing resins and bio-based thermoset polymers are responding to these issues with greater sustainability and improved production efficiencies.
Advanced aerospace and renewable energy industries in North America and Europe continue to lead the way as the most dominant markets. Thermosets still dominate the industry, however, the recyclability and ease of processing of thermoplastic composites are emerging as strong competitors to thermosets thermosetting composites.
Thermoplastic carbon fiber composites are quickly gaining traction in the industry, thanks to their recyclability, ease of processing and the ability to reform them under heat. Thermoplastics do not need curing as thermosetting composites, allowing for shorter production times and better scalability. Increasingly, these materials are used in automotive, aerospace and consumer goods sectors, where the strength, toughness and lightweight properties of the different materials are prized. "Their plastics can be shaped, remolded and recycled, making them a sustainable choice in line with global initiatives to minimize environmental damage.
Technological advancements in automotive manufacturing, aerospace industry innovation, and stringent environmental regulations are driving the adoption of thermoplastic composites in North American and Europe. Asia-Pacific region accounts for the fastest-growing industry as the demand for automotive and electronics is increasing with China and Japan investing a lot in the production of thermoplastic composites. Thermoplastics have already begun to offer a competitive advantage over thermosetting composites in an increasing number of applications, as industries focus on sustainability and efficiency.
Carbon fiber composites are required for light-weight and strong structures in aircrafts, and thus, the aerospace industry is the major consumer of these composites. Since these composites possess numerous application advantages, most major manufacturers such as Boeing and Airbus are using them in fuselage, wings, and other structural components, helping improve fuel efficiency and reduction in emissions. The statement that these composites' superior fatigue resistance, corrosion protection, and durability are crucial in today's aviation is not hyperbole.
The industry is further stimulated by the growing demand for unmanned aerial vehicles (UAVs) and electric aircraft. Utilizing the material's durability and light weight, these applications improve operating efficiency. North America and Europe dominate the market owing to stringent regulations restraining carbon emissions, thereby promoting the use of lightweight materials. But high production costs and complex manufacturing processes continue to be the biggest obstacles. Innovations in resins and automation of composite manufacturing will achieve lower costs and higher processing efficiency for wider adoption in aerospace.
These composites are permeating automotive industry at an ever-faster pace, most notably into electric and high-performance vehicles. The use of carbon fiber-reinforced polymer (CFRP) helps reduce vehicle weight, which, in turn, improves fuel efficiency and performance, as well as increases the battery range of electric vehicles (EVs). Premium brands like BMW, Audi, and Lamborghini deploy CFRP in their chassis, body panels, and wheels to achieve a balance between lightweight architecture, structural integrity, and aerodynamics.
These are expanding the industry, with crash safety standards and structural soundness in the forefront. However, their expense and difficulty achieving economies of scale hinder widespread deployment in mass-market cars. Cost-effective production innovations like recycled carbon fiber and hybrid composites are making carbon fiber more attainable for the mainline automotive manufacturers. Asia-Pacific, particularly
The industry is characterized by fierce competition between key players vying for share through several portfolios for growth. The major companies in the industry include Toray Industries, Teijin Limited, Mitsubishi Chemical Group Corporation, Hexcel Corporation, and Solvay, and each company pursues a different strategy to ensure competitive advantage.
Toray Industries
Toray Industries bolsters its hold in the industry through vertical integration by strategic acquisitions. Its acquisition of Zoltek in 2014 brought an extension of its production facility for creating cost-effective carbon-fiber products, which are intended for a wider range of industrial applications beyond that of the composites market. The company continues to work on innovative research and development in line with the evolving sectors, such as aerospace and automotive.
Teijin Limited
Teijin Limited is emphasizing sustainability as well as technological advancement. In 2023, the company launched the green Tenax Carbon Fiber, which is produced from sustainable acrylonitrile as well as obtained from recycled raw materials and biomass-derived products. This is a clear indication of Teijin's conversion to environmental responsibility and the market need for high-performance materials.
Mitsubishi Chemical Group Corporation
Mitsubishi Chemical Group Corporation secured its position in the marketplace into further market share diversification through acquisitions and partnerships. For example, in 2022, the company entered into an agreement with the Japan Windsurfing Association in respect to promoting recycling activity for carbon fiber that has been utilized in windsurfing equipment, which showed the commitment of the company toward sustainability.
Hexcel Corporation
Hexcel Corporation is engaged in constant innovations and enters into strategic collaborations for bolstering its market stronghold. In 2021, Hexcel signed a contract with Dassault for providing carbon fiber prepreg for the Falcon 10X program, strengthening the presence of Hexcel in aerospace. Hexcel continues to invest in the expansion of manufacturing capabilities as evident from the inauguration of a carbon fiber plant in France to meet the increasing demand from aerospace and industrial markets.
Solvay
Solvay has moved along the development trajectory through product innovation and alliances toward expansion. The introduction of LTM 350, an advanced epoxy prepreg carbon fiber tooling material in 2022, seeks to result in the industry's experiencing time and cost savings, particularly in aerospace, automotive, and race car manufacturing. Solvay's undivided focus on developing advanced materials fits into the requirement of the industry for time and cost efficient and high-performance solutions.
The strategies adopted by these companies are a blend of innovation, sustainability, strategic partnerships, and expanding efforts that drive the competitive landscape.
In 2025 the market is estimated to be worth USD 23.7 billion.
The market is predicted to reach a size of USD 44.7 billion by 2035.
Some of the key companies include Toray + Zoltek, SGL Carbon, Toho, MRC, Hexcel Corporation, Rock West Composites, Hengshen, Mitsubishi Chemical Fiber Corporation, Teijin Limited, and Solvay.
Japan is slated to grow at 6.3% CAGR during the study period and is expected to emerge as a key hub for product manufacturers.
Epoxy is the largest segment in thermosetting carbon fiber composites.
By end use, the segmentation is as aerospace, automotive, wind turbines, sports & leisure, civil engineering, marine applications, and other end uses.
By matrix material, the segmentation is as polymer matrix (thermosetting and thermoplastics), carbon matrix, ceramics matrix, metal matrix, and hybrid matrix.
By region, the segmentation is North America, Latin America, Europe, the Middle East & Africa, and Asia Pacific.
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