Carbon Fiber Market By Raw Material Outlook (Pitch Based, PAN Based); By Tow Size Outlook (Large Tow, Small Tow); By Application Type Outlook (Aerospace & Defense, Automotive, Sports/Leisure, Wind Turbines, Construction, Molding & Compound, Pressure Vessel, Others); By Geography, Segment revenue estimation, Forecast, 2023-2030

Introduction and Strategic Context

The Global Carbon Fiber Market was valued at $6.8 billion in 2023 and is projected to grow at a strong 10.5% CAGR from 2024 to 2030, reaching $13.6 billion by 2030, driven by lightweight materials, aerospace composites, automotive lightweighting, wind energy, high-performance composites, and advanced manufacturing, according to Strategic Market Research.

 

The increasing demand for renewable energy infrastructure, especially wind turbines, and advancements in manufacturing technologies like automated fiber placement (AFP) are key market growth drivers.

 

Carbon fiber is a lightweight material made of thin, dense crystalline carbon fibers tightly woven into a fabric or embedded in a resin matrix. It is commonly used in aerospace, automotive, sporting goods, and high-performance industrial applications where strength and weight reduction are critical.

 

The carbon fiber market is experiencing major developments driven by advancements in various industries. In 2023, the carbon fiber composites market experienced significant growth, led by automotive industry demand due to the weight and strength characteristics of the material, contributing to better fuel consumption and efficiency. In aerospace, carbon fiber usage continues to expand, with new aircraft models incorporating up to 50% of their structural components from carbon composites, reflecting a growing trend toward enhancing fuel efficiency and reducing weight. Additionally, the sports and recreation sector is adopting carbon fiber for high-performance equipment, which is forecasted to grow by around 15% annually. The rising focus on sustainable manufacturing practices is also boosting the development of recycled carbon fiber technologies, with a projected increase in market adoption of 20% annually over the next decade. These trends highlight carbon fiber's expanding role across multiple sectors due to its performance advantages and evolving production techniques.

 

Comprehensive Market Snapshot

• The Global Carbon Fiber Market was valued at USD 6.80 billion in 2023 and is projected to grow at a 10.5% CAGR from 2024 to 2030, reaching USD 13.60 billion by 2030.

• Based on a 23.0% share, the USA Carbon Fiber Market is estimated at USD 1.56 billion in 2023, and at a 9.4% CAGR is projected to reach approximately USD 2.9 billion by 2030.

• With a 29.0% share, the Europe Carbon Fiber Market is estimated at USD 1.97 billion in 2023, and at an 8.3% CAGR is expected to reach approximately USD 3.4 billion by 2030.

• Holding a 34.0% share, the Asia Pacific (APAC) Carbon Fiber Market is estimated at USD 2.31 billion in 2023, and at a 13.1% CAGR is projected to reach approximately USD 5.5 billion by 2030.

Regional Insights

• APAC accounted for the largest market share of 34% in 2023, driven by high-volume manufacturing, aerospace expansion, and wind energy investments.

• APAC is also expected to expand at the fastest CAGR of 7.5% during 2024–2030, supported by automotive electrification and renewable infrastructure growth.

 

By Raw Material

• PAN-Based Carbon Fiber held the dominant market position in 2023 with an approximate 85.0% share, reflecting its extensive use across aerospace, automotive, and wind turbine blade applications, with an estimated market value of around USD 5.78 billion.

• Pitch-Based Carbon Fiber accounted for the remaining 15.0% share in 2023, valued at approximately USD 1.02 billion, and is projected to grow at the fastest CAGR of 10.5% during 2024–2030, driven by rising demand for high thermal conductivity materials in batteries and electronics.

 

By Application

• Aerospace & Defense represented the largest application segment in 2023, accounting for 40.0% of global demand, supported by extensive use in aircraft structures and military platforms, with a market value of approximately USD 2.72 billion.

• Automotive applications held a 20.0% share in 2023, translating to an estimated market size of around USD 1.36 billion, driven by lightweighting initiatives and fuel-efficiency regulations.

• Wind Turbines accounted for 15.0% of the market in 2023, valued at approximately USD 1.02 billion, and are expected to grow at the fastest CAGR of 13.5% during 2024–2030 due to the adoption of longer and lighter turbine blades.

• Sports & Leisure applications represented 10.0% of the market in 2023, with an estimated value of around USD 0.68 billion, supported by demand for high-performance equipment.

• Construction accounted for 8.0% of global revenue in 2023, corresponding to approximately USD 0.54 billion, driven by strengthening and retrofitting applications.

• Pressure Vessels & Others held the remaining 7.0% share in 2023, valued at around USD 0.48 billion, supported by use in hydrogen storage and industrial gas containment.

 

By Tow Size

• Large Tow Carbon Fiber dominated the market in 2023 with an estimated 55.0% share, supported by strong demand from wind energy and infrastructure applications, translating to a market value of approximately USD 3.74 billion.

• Small Tow Carbon Fiber accounted for 45.0% of the global market in 2023, valued at around USD 3.06 billion, and is anticipated to grow at a higher CAGR during 2024–2030, driven by increasing aerospace-grade performance requirements.

 

Strategic Questions Guiding the Evolution of the Global Carbon Fiber Market

1. What products, fiber grades, raw materials, and downstream applications are explicitly included within the Global Carbon Fiber Market, and which materials or composites are considered out of scope?

2. How does the Carbon Fiber Market differ structurally from adjacent markets such as glass fiber, aramid fiber, advanced composites, and lightweight metals?

3. What is the current and forecasted size of the Global Carbon Fiber Market, and how is value distributed across key segments such as raw material type, fiber form, and application?

4. How is revenue allocated between PAN-based and pitch-based carbon fiber, and how is this mix expected to evolve over the forecast period?

5. Which application segments (e.g., aerospace & defense, automotive, wind energy, sports & leisure, pressure vessels) account for the largest and fastest-growing revenue pools?

6. Which segments contribute disproportionately to profitability and margin expansion rather than shipment volume alone?

7. How does demand vary between high-performance, mid-grade, and cost-optimized carbon fiber products, and how does this influence end-user adoption?

8. How are qualification requirements, certification cycles, and performance standards shaping adoption across different end-use industries?

9. What role do long-term supply contracts, customer switching costs, and qualification lock-ins play in sustaining segment-level revenue growth?

10. How are macro factors such as lightweighting regulations, decarbonization goals, and renewable energy investments shaping demand across carbon fiber segments?

11. What technical, regulatory, or cost-related barriers limit penetration in specific applications such as mass-market automotive or construction?

12. How do pricing pressure, capacity utilization, and raw material cost volatility influence revenue realization and margins across segments?

13. How strong is the current and mid-term innovation pipeline, and which emerging technologies or manufacturing processes could create new carbon fiber sub-segments?

14. To what extent will capacity expansions expand total addressable demand versus intensify price competition within existing segments?

15. How are advances in precursor materials, fiber processing, and recycling technologies improving performance, cost efficiency, and sustainability?

16. How will capacity additions, technology shifts, and potential commoditization reshape competitive dynamics across carbon fiber grades?

17. What role will recycled carbon fiber play in price erosion, sustainability-driven substitution, and access expansion across end-use industries?

18. How are leading manufacturers aligning their production footprints, product portfolios, and customer strategies to defend or grow market share?

19. Which geographic regions are expected to outperform global growth in the Carbon Fiber Market, and which application segments are driving this regional outperformance?

20. How should manufacturers, suppliers, and investors prioritize specific segments, technologies, and regions to maximize long-term value creation in the Global Carbon Fiber Market?

 

Segment-Level Insights and Market Structure for Global Carbon Fiber Market

The Global Carbon Fiber Market is structured around distinct material types, fiber forms, and application-driven demand pathways that reflect differences in performance requirements, cost sensitivity, qualification complexity, and end-use manufacturing environments. Each segment contributes differently to overall market value, competitive positioning, and long-term growth opportunities, shaped by application criticality, regulatory standards, and downstream industry adoption cycles.

 

Raw Material Type Insights:

PAN-Based Carbon Fiber

PAN-based carbon fiber represents the foundational and most widely adopted raw material segment within the global market. Its dominance is driven by a balanced combination of high tensile strength, structural reliability, and scalable production, making it suitable for performance-critical applications.

From a market perspective, PAN-based carbon fiber supports broad application coverage, ranging from aerospace and defense structures to automotive components and wind turbine blades. Its well-established manufacturing ecosystem, predictable performance characteristics, and compatibility with existing composite systems make it a core volume and revenue anchor for the industry.

Over time, the role of PAN-based carbon fiber is evolving through incremental improvements in precursor chemistry, process efficiency, and tow size optimization, allowing producers to address both premium and cost-sensitive applications. While its market leadership remains intact, ongoing innovation is increasingly focused on improving yield, reducing energy intensity, and enhancing recyclability rather than redefining performance benchmarks.

Pitch-Based Carbon Fiber

Pitch-based carbon fiber represents a more specialized and performance-driven segment, characterized by exceptional stiffness, thermal conductivity, and dimensional stability. Its adoption is concentrated in applications where functional performance outweighs cost considerations, such as thermal management systems, aerospace components requiring ultra-high modulus, and select energy storage technologies.

Commercially, pitch-based carbon fiber occupies a lower-volume but higher-complexity niche. Production processes are more technically demanding, and qualification cycles are often longer due to application specificity. As a result, this segment contributes disproportionately to innovation value rather than shipment volume.

Looking forward, pitch-based carbon fiber is gaining strategic relevance as demand increases for advanced thermal control, electrification-related applications, and next-generation energy systems. Continued refinement of pitch processing and fiber conversion techniques is expected to expand its applicability, particularly in areas where conventional PAN-based fibers face intrinsic performance limitations.

 

Material Type Insights:

PAN-Based Carbon Fiber

PAN-based carbon fiber represents the structural backbone of the global carbon fiber market, driven by its superior balance of tensile strength, modulus, and manufacturability. This material dominates high-performance applications such as aerospace structures, automotive components, and wind turbine blades, where consistent mechanical properties and certification compliance are essential.

From a market perspective, PAN-based carbon fiber benefits from entrenched qualification cycles and long-term supply relationships, particularly with aerospace and defense OEMs. While its production costs remain relatively high, continuous process optimization and scale expansion are reinforcing its position as the primary revenue-generating material segment. Over time, PAN-based carbon fiber is expected to retain its leadership role, even as cost pressures push manufacturers to improve yield efficiency and precursor utilization.

Pitch-Based Carbon Fiber

Pitch-based carbon fiber occupies a more specialized but increasingly strategic segment of the market. Its defining characteristics—high thermal conductivity, stiffness, and dimensional stability—make it well suited for applications such as thermal management systems, energy storage components, and select industrial uses.

Commercially, pitch-based carbon fiber has historically been limited by narrower application scope and higher technical complexity. However, rising demand for advanced thermal solutions in batteries, electronics, and energy systems is expanding its relevance. As manufacturers refine pitch processing techniques and broaden downstream use cases, this segment is expected to grow faster than the overall market, albeit from a smaller base.

 

Application Insights:

Aerospace and Defense

Aerospace and defense remains the single most value-intensive application segment in the carbon fiber market. Demand is driven by aircraft weight reduction mandates, fuel efficiency targets, and structural performance requirements. Carbon fiber is deeply embedded in both commercial and military platforms, resulting in stable, long-duration demand patterns.

From a commercial standpoint, this segment is characterized by high entry barriers, extensive certification processes, and long-term supply agreements. Although volume growth is moderate, aerospace and defense continues to generate disproportionate revenue and margin contribution relative to other applications.

Automotive

The automotive segment reflects a transition from niche to strategic adoption. Carbon fiber use is expanding beyond luxury and motorsport vehicles into electric vehicles and structural battery enclosures, where weight reduction directly impacts range and performance.

However, cost sensitivity remains a key constraint. As a result, adoption is increasingly focused on selective components rather than full structural integration. Over the forecast period, automotive demand is expected to grow steadily, supported by process automation, recycled fiber integration, and regulatory pressure to reduce vehicle emissions.

Wind Energy

Wind energy represents one of the fastest-growing application segments for carbon fiber. The push toward larger, longer turbine blades has elevated the need for materials that deliver high stiffness without excessive weight. Carbon fiber enables blade length expansion while maintaining structural integrity and energy efficiency.

Commercially, this segment is driven by renewable energy targets and large-scale infrastructure investments. While pricing pressure exists due to project-based procurement models, volume growth is strong, making wind energy a key driver of incremental carbon fiber demand.

Sports, Leisure, and Industrial Applications

Sports and leisure applications—including bicycles, rackets, and recreational equipment—serve as a visibility-driven segment that emphasizes performance and brand differentiation. Industrial applications, including pressure vessels, construction reinforcements, and machinery components, contribute stable but application-specific demand.

Together, these segments provide diversification beyond large OEM-driven markets and often serve as early adoption platforms for new fiber grades, forms, and cost-reduction strategies.

 

Segment Evolution Perspective

While established material types and continuous fiber formats continue to anchor current market value, emerging application-driven demand is reshaping the carbon fiber landscape. Growth is increasingly influenced by cost optimization, sustainability considerations, and scalable manufacturing models rather than performance alone.

At the same time, the rise of recycled carbon fiber, automation in fiber placement, and application-specific material customization are redefining how value is distributed across segments. Together, these dynamics are expected to gradually shift the market from a purely performance-led structure toward a more balanced model that integrates volume growth, cost efficiency, and sustainability-driven innovation.

 

Market Drivers (Key Drivers of Carbon Fiber Market Growth: Automotive, Aerospace, Sports, and Recycling Trends)

Several key factors drive the carbon fiber market. The automotive industry is a major driver, with lighter and more fuel-efficient vehicles on the rise. For example, carbon fiber composites will help reduce vehicle weight by 10-15% and improve fuel efficiency and performance. The automotive sector is increasingly using carbon fiber, with its market share expected to rise by approximately 25% over the next five years.

 

Second, the aerospace industry is a major driver due to the product’s ability to reduce aircraft weight and improve fuel efficiency. New aircraft manufacturers incorporate up to 50% carbon fiber composites into their designs, contributing to fuel savings and performance improvements.

 

Additionally, the demand for high-performance carbon fiber equipment in the sports and entertainment industries is growing, with a predicted growth of approximately 15% annually.

 

Lastly, advances in recycling technology enable the use of recycled carbon fiber to increase market growth, estimated to grow by 20% annually. This is consistent with a broader push for sustainability in manufacturing. All these factors combine to increase the use of carbon fiber in various industries.

 

Market Restraints (Market Constraints for Carbon Fiber: Cost, Raw Material Shortages, and Recycling Challenges)

High manufacturing costs are a major challenge, as carbon fiber production requires complex materials and expensive raw materials. This results in higher prices than traditional materials, making them unusable in low-cost industries.

 

Another restraint is the limited availability of raw materials. Carbon fiber production relies on precursor materials such as polyacrylonitrile (PAN), which can be subject to supply chain constraints and fluctuations in availability.

 

Moreover, the lack of widespread recycling infrastructure for carbon fiber composites can be a barrier. While advancements are being made, carbon fiber recycling remains less developed than that of other materials, potentially limiting its appeal in sustainability-focused applications.

 

Market opportunity (Renewable Energy and Recycling Innovations: Major Opportunities for Carbon Fiber)

The main opportunity in the carbon fiber market is its expansion for use in renewable energy, especially in wind turbine blades. The use of carbon fiber in wind turbines increases blade performance due to its capacity-to-weight ratio, allowing for longer and more efficient blades. The global wind energy market is expected to grow significantly and it is estimated the investment will exceed $1 billion by 2030. Availability. As a result, the demand for carbon fiber in wind turbine manufacturing is expected to increase significantly.

 

Additionally, advancements in recycling technologies present another significant opportunity. The development of efficient recycling methods for carbon fiber composites is projected to grow by around 20% annually over the next decade. This growth reflects the increasing emphasis on sustainability and the circular economy, which enables the reuse of carbon fiber and reduces environmental impact.

 

These factors combined highlight the potential for carbon fiber to capture substantial market share in emerging and evolving industries focused on efficiency, performance, and sustainability.

 

Comprehensive Segmentation of the Carbon Fiber Market

Raw Material Outlook

• Pitch Based

• PAN Based

 

Tow Size Outlook

• Large Tow

• Small Tow

 

Application Type Outlook

• Aerospace & Defense

• Automotive

• Sports/Leisure

• Wind Turbines

• Construction

• Molding & Compound

• Pressure Vessel

• Others

 

By Region

North America

• US

• Mexico

• Canada

• Rest of North America

 

Europe

• Switzerland

• Russia

• France

• Germany

• U.K

• Finland

• Turkey

• Netherlands

• Belgium

• Spain

• Italy

• Rest of Europe

 

Asia Pacific

• China

• India

• South Korea

• Japan

• Singapore

• Thailand

• Indonesia

• Malaysia

• Philippines

• Australia

• Rest of Asia-Pacific

 

LAMEA

• Brazil

• Saudi Arabia

• Argentina

• Uruguay

• Rest of LAMEA

 

Carbon Fiber Market Segment Analysis: Virgin vs. Recycled Fiber – Who Leads the Race?

By Raw Material

Leading Segment: Polyacrylonitrile (PAN)-Based Carbon Fiber

PAN-based carbon fiber dominates the market, accounting for over 85% of the market share in 2023, due to its superior tensile strength, modulus, & lightweight properties. It is widely used in aerospace and automotive applications for components like fuselages and structural frames. For example, Boeing 787 Dreamliner incorporates PAN-based carbon fiber for its lightweight design, resulting in 20% fuel efficiency improvement.

Fastest-Growing Segment: Pitch-Based Carbon Fiber

Pitch-based carbon fiber is the fastest-growing segment, with a CAGR of 10.5% from 2024 - 2030, due to its high thermal conductivity and stiffness. It is mostly used in thermal management applications like batteries & heat sinks. Companies like Toray Industries have been expanding their product portfolio to cater to this demand.

 

By Fiber Type

Leading Segment: Virgin Carbon Fiber

Virgin carbon fiber leads the market, contributing to around 80% of revenue, due to its consistent quality & high-performance properties. It is extensively used in aerospace, automotive & wind energy applications. For instance, Airbus A350 XWB utilizes virgin carbon fiber for over 50% of its structural components.

Fastest-Growing Segment: Recycled Carbon Fiber

Recycled carbon fiber is the fastest-growing segment, projected to grow at a CAGR of 12.3% as sustainability gains importance. It is increasingly adopted in automotive & construction applications due to its cost-effectiveness & reduced environmental impact. Companies like ELG Carbon Fibre and Carbon Conversions Inc. are pioneers in offering recycled carbon fiber for lightweight components.

 

By Form

Leading Segment: Continuous Carbon Fiber

Continuous carbon fiber is the leading segment, accounting for approximately 60% of the global market share in 2023. It is preferred for structural applications in aerospace & automotive industries, where high strength & durability are crucial. For instance, SpaceX Falcon 9 rockets use continuous carbon fiber for components requiring superior load-bearing capacity.

Fastest-Growing Segment: Long Carbon Fiber

Long carbon fiber is the fastest-growing segment, with a CAGR of 11%, driven by its increasing use in sporting goods & lightweight industrial applications. Products like carbon fiber tennis rackets & bicycles, manufactured by companies such as Head NV and Specialized, are fueling demand.

 

By Application

Leading Segment: Aerospace & Defense

The aerospace and defense segment leads the market, contributing 40% of revenue in 2023, as carbon fiber is extensively used in aircraft manufacturing to reduce weight and improve fuel efficiency. For example, carbon composites make up 50% of the Boeing 787 Dreamliner by weight, significantly reducing operating costs.

Fastest-Growing Segment: Wind Energy

Wind energy is the fastest-growing application, with a projected CAGR of 13.5% from 2024 to 2030, driven by the demand for lightweight & durable turbine blades. Companies like Vestas & Siemens Gamesa are adopting carbon fiber to produce longer & more efficient blades, increasing energy output.

 

By Region

Leading Region: North America

North America dominates the market, contributing over 35% of global revenue in 2023, owing to its advanced aerospace, automotive, and wind energy industries. The U.S. is a key contributor, with companies like Hexcel Corporation and General Motors leading in the adoption of carbon fiber in their operations.

Fastest-Growing Region: Asia Pacific

Asia Pacific is the fastest-growing region, with a CAGR of 13.2%, fueled by expanding manufacturing hubs in China, India, and Japan. The region’s growth is driven by growing demand in automotive & wind energy applications. For example, China's rapid expansion in wind turbine installations, accounting for 50% of global capacity in 2023, heavily utilizes carbon fiber materials.

 

Key Players in the Carbon Fiber Market

• Toray Industries, Inc.

• Hexcel Corporation

• SGL Carbon SE

• Mitsubishi Chemical Holdings Corporation

• Teijin Limited

• Cytec Solvay Group

• Zoltek Companies, Inc. (A Toray Group company)

• Formosa Plastics Corporation

• Rolls-Royce Holdings plc

• BASF SE

 

Carbon Fiber Market Report Coverage

Report Attribute	Details
Forecast Period	2023 – 2030
Market Size Value in 2023	USD 6.8 billion
Revenue Forecast in 2030	USD 13.6 billion
Overall Growth Rate	CAGR of 10.5%
Base Year for Estimation	2023
Historical Data	2017 – 2022
Unit	USD Billion, CAGR (2023 - 2030)
Segmentation	By Raw Material Outlook, By Tow Size Outlook, By Application Type Outlook, By Region
By Raw Material Outlook	Pitch Based, PAN Based
By Tow Size Outlook	Large Tow, Small Tow
By Application Type Outlook	Aerospace & Defense, Automotive, Sports/Leisure, Wind Turbines, Construction, Molding & Compound, Pressure Vessel, Others
By Region	North America, Europe, Asia-Pacific, LAMEA
Country Scope	US, Canada, Mexico, UK, Germany, France, China, Japan, India, South Korea, Australia, etc.
Pricing and Purchase Options	Avail customized purchase options to meet your exact research needs.

 

Recent Development in the Carbon Fiber Market

• In March 2024, The Italian company MAE S.p.A. and the producer of composite materials Jindal Advanced Materials (JAM) have partnered to invest Rs 2,700 crore towards the establishment of a 3,500 metric tonnes per year carbon fiber factory. According to a statement, the initiative will position JAM as a major supplier of carbon fiber. The announcement claims that JAM and Italian specialty chemical fiber company MAE S.p.A. have inked a deal to establish India's first carbon fiber factory, with a capacity of 3,500 MT per year, at an expense of Rs 2,700 crore. The plant will serve a variety of industrial demands by providing a wide range of intermediates, such as prepregs, textiles, multiaxial, and carbon fiber composites.

• In October 2023, Today Toray Industries, Inc. revealed that it had created TORAYCATM T1200 carbon fiber, which has the strongest strength in the world—1,160 kilopounds per square inch (Ksi). This product reduces environmental impact by making carbon fiber-reinforced plastic components lighter, creating new performance possibilities for consumer goods, defense, aerostructures, and alternative energy.

• In October 2023, Apply Carbon launched the world's first fully automated mass production plant for recycled carbon fiber. Carbon fiber production and disposal are environmentally demanding and energy-intensive. Recent events have demonstrated how sustainability is becoming a more crucial business principle. With the construction of a fully automated mass-production recycled carbon fiber factory, Apply Carbon is demonstrating its commitment to sustainability and upholding the eco-conscious creation of high-performance products. The business views this expenditure as a step toward creating a new standard for the carbon fiber sector.  Apply Carbon's new facility will produce nearly 4,000 metric tons of recycled carbon fiber yearly for use in various industries, including electronics, automotive components, and hydrogen fuel cells.