Carbon fiber is composed of carbon atoms ranging from 5 to 10 micrometers. A combination of chemical and mechanical processes is used to produce this fiber. The typical process involves spinning, stabilizing, carbonizing, surface treatment and sizing. A few properties that make this material suitable and highly preferred by the automotive, aerospace, sports, defense, etc. industries are high tensile strength, low weight, high stiffness, high chemical and temperature resistance, low thermal expansion and so on.
The Global Carbon Fiber Market was valued at US$ 3.20 Bn in 2020 and is expected to reach US$ 5.40 Bn by 2027 and is expanding at a CAGR of 7.7% during the forecast period.
The pandemic has led to the deceleration in the growth of the automotive and aerospace industries. The expansion of these industries directly impacts the growth of the carbon fiber market since the majority of the demand is generated by these two industries. The lockdowns imposed across the globe has created a temporary halt in manufacturing activities while closing down several indirectly related companies. This has created a sudden void in the supply chain which has had a negative effect on the carbon fiber market. Since the emergence of COVID-19, the valuation of the market has dropped by nearly USD 2.0 billion.
The Polyacrylonitrile (PAN)-based carbon fiber will garner the largest market share in terms of both value and volume between 2021 and 2027.
The carbon fiber market is segmented on the basis of raw material into polyacrylonitrile (PAN), pitch and rayon-based carbon fiber. Among these, PAN is projected to dominate the market owing to its versatility. Around 90% of the fiber is manufactured using PAN. It provides better temperature resistance and high tensile strength as compared to other raw materials. The lower procurement cost of PAN will further support the segment’s growth.
The composite application segment will witness a substantial increase during the forecast timeline.
The global carbon fiber market is bifurcated into composite and non-composite on the basis of application. Between the two, the former is envisaged to lead the application segment owing to the rising demand from the aerospace & defense sector. The composite type provides strength, rigidity and improved tensile strength which widens its application base making it suitable for a wide variety of components and therefore favoured by the aforementioned industry.
Among the end-use industry, the aerospace segment is anticipated to account for the largest market share in terms of value and volume.
Among all major end-use industries where carbon fiber finds its applications, the aerospace & defense industry is estimated to bring in a significant growth for the carbon fiber market during the forecast period. The growth of this industry due to the increased production of Boeing and Airbus will propel the carbon fiber market upward.
The driver, restraint, opportunity and challenge of the carbon fiber market are as follows:
Accounting for more than one-third of the total carbon fiber market, the aerospace industry will fuel the expansion of the market due to increased production. The wind energy sector uses carbon fiber for the production of light-weight turbine blades and their components. The shift to renewable energy will boost the wind energy sector and thereby the carbon fiber market. Change from conventional metal bodies to light-weight yet equally durable and force withstanding bodies, the automotive sector is all set to push for the augmentation of the market.
The current cost of carbon fiber makes it economically not viable for the use in the production of commercial vehicles. The fiber is used only in racing cars and certain high-end sports cars. The cost of the material, therefore restricts the expansion of the market into other industries where cost is a very crucial factor. For instance, the employment of these materials in structural parts is expected to increase significantly provided the cost is lowered.
Continuous R&D in the additive manufacturing field is widening the scope of materials that are suitable for use with the 3D printing technology. The growth of this technology, its economic feasibility and incorporation into various industries will create numerous opportunities for the carbon fiber market.
Carbon fiber is generally used in specialty applications such as aircrafts and turbines blades and occasionally in the auto sector. Since, the cost is the major restricting factor, the expansion of the market will largely depend on the development of low-cost technologies that will help reduce the cost of the material.
Regional Analysis:
The European regional market is home to well-established automotive manufacturers such as BMW, Fiat, Bentley as well as sports car manufacturers such as Ferrari, Lamborghini, Maserati, etc. The region is leading the innovation in the aerospace & defense sector with the successful launch of the Eurofighter and Airbus 320 family. Also, Germany and UK have launched a large number of wind energy installations. All these factors will drive the carbon fiber market in the region.
The Asia – Pacific region of the carbon fiber market is estimated to witness the highest growth rate due to soaring demand from the automotive and aerospace & defense sector. The demand for light-weight construction equipment in Japan, presence of nearly 200 small aircraft parts manufacturers in China, upsurge in wind energy projects in India and many more are fueling the market growth in the region.
The key players operating in the carbon fiber market are:
The research report analyses the ecosystem of carbon fiber market and categorizes it to forecast the revenues and analyse the trends in each of the following below-mentioned market segments.
By Product Type
By Application
By End-use Industry
By Region
The report also provides in-depth analysis of recent news developments and investments
Priyanka has been writing chemicals & material market research reports for the last 12 years. A post-graduate, her specialization is in the chemicals sector. Preparing end-to-end reports covering minute details for market insights, competitive intelligence and trend analysis in the CMFE sector.
Research Methodology
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