The Carbon Fiber in Automotive Market Size was valued at USD 2.78 Billion in 2022. The Carbon Fiber in the Automotive industry is projected to grow from USD 9.2 Billion in 2023 to USD 6.09 Billion by 2030, exhibiting a compound annual growth rate (CAGR) of 6.4% during the forecast period (2023 - 2030). The rising upcoming development in the fields of automobiles, aerospace & defense, and wind energy industries shall augment the market growth. Growing automotive demand, along with an increasing need for lightweight vehicles, is anticipated to drive the overall market. The need for fuel-efficient vehicles and strict government regulations regarding carbon emissions are key factors driving the industry outlook.
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Rising car production, along with the surging need for lightweight vehicles, is likely to fuel the carbon fiber market growth. The increasing demand from manufacturers to produce automotive body parts such as hoods, deck lids, bumper beams, and fenders may favor the product demand. Adopting carbon fibers increases the durability of vehicles, thus longer life auto parts. Composites are primarily used in motorsports and luxury vehicles, which are driving the market. Companies are adopting strategies and investing in processes that can reduce the overall vehicle’s weight. Hence, the application of carbon fiber reinforced polymer (CFRP) is widely used in high-end supercars. The material has a very high strength-to-weight ratio, and the density is as low as 1.6g/cc, making it extremely lightweight. The advantage of a lightweight car is to have better fuel efficiency, and a 10% reduction in weight can save up to 6% to 8% of fuel in automobiles. Carbon fiber for cars is lighter, which can lead to reduced fuel consumption
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Additionally, Car companies such as Audi, BMW, Honda, Polestar, and General Motors are focusing on collaborating with carbon composite material manufacturers for mass production and are investing in their processes to support low-cost composite materials.
The Carbon Fiber in Automotive market segmentation, based on Application, includes Exterior, Chassis System, Interior, Pressure Vessel, Power Train System, and Underbody System. External components led to a market share for their use based on automotive composite qualities such as high impact strength, high tensile strength, and high chemical and abrasion resistance, which are required to comply with the automobile manufacturing standards for external components. The increasing preference for composites in sports cars and luxury vehicle engines and external components is likely to have a beneficial effect on overall market growth. In addition, increased R&D efforts are also projected to spur the growth of the segment over a forecast period to enhance composite utilization in structural and motor components.
Based on Material, the Carbon Fiber in Automotive market segmentation includes Textile, Long Fiber Thermoplastic (LFT), Sheet Molding Compound (SMC), Short Fiber Thermoplastic (SFT), and Prepreg. Transmission of resin is a procedure of low-pressure closed molding used to make rooftops, front air barriers, and rear spoilers. Autoclave molding is used to manufacture high-strength-to-weight, dense, void-free products. For the generation of large and difficult components, injection molding is used. Three-dimensional items can readily be built with suitable preforms of different thicknesses.
Figure 2: Carbon Fiber in Automotive Market, by Material, 2023 & 2030 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
By region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The Asia-Pacific market registered the largest market share in 2018 to positive automotive sales in countries such as China, India, and Japan. High investments from the public and private sectors in the manufacturing of electric vehicles are likely to propel the adoption of carbon fiber during the forecast period. According to the International Energy Agency, in 2018, the electric car fleet exceeded 5.1 million, up by 2 million from the previous year and sales of the new electric car almost doubled. In North America, the US has the largest market for automobiles. High demand for a second car in the region has negatively impacted the sale of new cars in the region. In addition, consumer attitude toward spending less on new car purchases has slowed the growth of the automotive industry in the region.
Figure 3: CARBON FIBER IN AUTOMOTIVE MARKET SHARE BY REGION 2023 (%)
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Europe is the largest automotive hub with the presence of a large number of automobile producers in the region; this positively influences the market growth—Germany is the leading country-level market. Stringent regulations implemented by (EPA) Environmental Protection Agency have increased the demand for lightweight and fuel-efficient vehicles, thus driving the carbon fiber in the automotive industry market in the region during the assessment period.
The market in the Middle East & Africa is likely to grow at a sluggish rate during the forecast period. The Latin American market is expected to exhibit remarkable growth owing to the positive growth avenues in Brazil and Mexico.
Major market players are spending a lot of money on R&D to increase their product lines, which will help Carbon Fiber in the Automotive market grow even more. Market participants are also taking a range of strategic initiatives to grow their worldwide footprint, with key market developments such as new product launches, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations. Competitors in the Carbon Fiber in the Automotive industry must offer cost-effective items to expand and survive in an increasingly competitive and rising market environment.
The major market players are investing a lot of money in R&D to expand their product lines, which will spur further market growth for Carbon Fiber in Automotive. With significant market development like new product releases, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations, market participants are also undertaking various strategic activities to expand their presence. To grow and thrive in a market climate that is becoming more competitive and growing, competitors in the Carbon Fiber in the Automotive industry must offer affordable products.
Manufacturing locally to cut operating costs is one of the main business tactics manufacturers use in the Carbon Fiber in the Automotive industry to benefit customers and expand the market sector. The Low-Profile Additives market has recently given medicine some of the most important advantages. Major Carbon Fiber in Automotive market players, including Hexcel Corporation (US), Mitsubishi Chemical Carbon Fiber and Composites Inc. (US), SGL Carbon SE (Germany), and others, are attempting to increase market demand by funding R&D initiatives.
Hexcel is a manufacturer of composite materials and engineered products. It operates in two segments: Composite Materials and Engineered Products. The Composite Materials segment manufactures and markets carbon fibers, fabrics and specialty reinforcements, prepregs and other fiber-reinforced matrix materials, structural adhesives, honeycomb, molding compounds, tooling materials, polyurethane systems, and laminates.
Also, SGL Carbon (formerly known as SGL Group) is a manufacturer of graphite and composite materials and products for chemical and industrial applications. It operates in four business units: Carbon Fibers, Composite Solutions, Graphite Solutions, and Process Technology. The company offers carbon fibers, textiles, pre-impregnated materials, fiber-reinforced components, and specialty graphite solutions for the automotive,
Hexcel Corporation (US)
Mitsubishi Chemical Carbon Fiber and Composites Inc. (US)
SGL Carbon SE (Germany)
Cytec Solvay Group (US)
Teijin Limited (Japan)
DOWAKSA (US)
Formosa Plastic Corp. (Taiwan)
ZOLTEK (US)
Sigmatex Ltd
Toray Industries Inc. (Japan)
In August 2020, Mitsubishi Chemical Corporation completed the acquisition of CFK Valley Stade Recycling GmbH & Co. KG (CFK) and carboNXT, two German carbon fiber recycling companies.
In February 2020, The ANAND Group collaborated with FAR-UK for the development of carbon fiber composites and for reducing carbon emissions. FAR-UK manufactures and designs lightweight structural composite solutions.
Carbon Fiber in Automotive Application Outlook
Exterior
Chassis System
Interior
Pressure Vessel
Power Train System
Underbody System
Carbon Fiber in Automotive Material Outlook
Textile
Long Fiber Thermoplastic (LFT)
Sheet Molding Compound (SMC)
Short Fiber Thermoplastic (SFT)
Prepreg
Carbon Fiber in Automotive Regional Outlook
North America
US
Canada
Europe
Germany
France
UK
Italy
Spain
Rest of Europe
Asia-Pacific
China
Japan
India
Australia
South Korea
Australia
Rest of Asia-Pacific
Rest of the World
Middle East
Africa
Latin America
| Report Attribute/Metric | Details |
| Market Size 2022 | USD 2.78 Billion |
| Market Size 2023 | USD 9.2 Billion |
| Market Size 2030 | USD 6.09 Billion |
| Compound Annual Growth Rate (CAGR) | 6.4% (2023-2030) |
| Base Year | 2023 |
| Market Forecast Period | 2023-2030 |
| Historical Data | 2018 & 2020 |
| Market Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Application, Material, and Region |
| Geographies Covered | North America, Europe, Asia Pacific, and the Rest of the World |
| Countries Covered | The U.S, Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil |
| Key Companies Profiled | Hexcel Corporation (US), Mitsubishi Chemical Carbon Fiber and Composites Inc. (US), SGL Carbon SE (Germany), Cytec Solvay Group (US), Teijin Limited (Japan), DOWAKSA (US), Formosa Plastic Corp. (Taiwan), ZOLTEK (US), Sigmatex Ltd, and Toray Industries Inc. (Japan) |
| Key Market Opportunities | Policies enforced by regulatory bodies to lower overall vehicle weight. |
| Key Market Dynamics | It is used in the automotive industry to manufacture lightweight vehicles. Carbon fiber is used in the brakes of racing cars and luxury vehicles. |
Carbon Fiber Automotive Market Highlights:
Frequently Asked Questions (FAQ) :
The Carbon Fiber in Automotive market size was valued at USD 2.78 Billion in 2022
The market is projected to grow at a CAGR of 6.4% during the forecast period, 2023-2030
Asia Pacific had the largest share of the Carbon Fiber in Automotive market
The key players in the market are Hexcel Corporation (US), Mitsubishi Chemical Carbon Fiber and Composites Inc. (US), SGL Carbon SE (Germany), Cytec Solvay Group (US), Teijin Limited (Japan), DOWAKSA (US), Formosa Plastic Corp. (Taiwan), ZOLTEK (US), Sigmatex Ltd, and Toray Industries Inc. (Japan)
The Exterior categories dominated the market in 2023
The Sheet Molding Compound (SMC) had the largest share in the market for Carbon Fiber in Automotive.
Team Lead - Research Anshula mandaokar holds an academic degree in chemical engineering and has been contributing to the field for more than 5 years. she has expertise in market research and business consulting and serves as a team lead for a reputed market research firm under the chemicals and materials domain spectrum. she has worked on multiple projects, generating explicit results in a quick turnaround time. her understanding of data interpretation justifies her role as a leader.
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