Pitch-Based Carbon Fiber Market is projected to be worth USD 121.07 million by 2030, registering a CAGR of 6.5% during the forecast period (2021 - 2030).
Pitch-Based Carbon Fiber Market Overview
The pitch-based carbon fiber market share is expected to be USD 104,337.2 thousand in US Dollars by December of 2027. The CAGR during this period is expected to be 6.5%. Carbon fiber is light and is mostly (95%) composed of reinforced carbon. Carbon fiber is a lightweight material made primarily of 95% reinforced carbon. Since pitch-based carbon fibers are the finest carbon threads that are extremely thin with high tensile strength compared to their low weight, they are in high demand in the carbon fiber market. When woven and coated with a polymer, this fiber has a variety of beneficial qualities. It can keep its shape even when exposed to extreme heat and endure chemical exposure.
The pitch-based carbon fiber is mostly used in the automotive and sports industries. Both industries have a high demand for pitch-based carbon fibers due to their high melting point, durability, and strength; they can drive the pitch-based carbon fiber market growth in the forecast period.
A major market growth restraining factor would be the availability of other low-priced, equally effective counterparts. Since pitch-based carbon fiber is not very affordable, the high pricing factor can be the ultimate challenge for the key manufacturers in various industries, influencing them to turn to other affordable materials such as fiberglass fabric or PAN-based carbon fiber.
The significant and continually expanding demand for pitch-based carbon fiber in both the aerospace and defense industries and the automobile industry can be the key opportunity to enhance revenue value in the pitch-based carbon fiber market. It's also opening up many doors, such as an alternative energy industry like wind energy, which is rapidly expanding, and pitch-based carbon fiber is required to efficiently generate enough energy from wind.
The pitch-based carbon fiber market has suffered from a slight setback because of COVID-19. National governments have closed boundaries and imposed indefinite or temporary lockdowns and quarantines in the attempt to stop the spread of the virus.
The pitch-based carbon fiber market has suffered the most in the ability to find raw materials from reliable distributors because of COVID-19. This has brought the cost of manufacturing pitch-based carbon fiber up substantially. Governments have also temporarily complicated matters by introducing new rules and regulations to control the spread of COVID-19.
The major companies in the pitch-based carbon fiber market are:
● Hexal Corporation - USA
● Hyosung Corporation - South Korea
● SGL Carbon - Germany
● Mitsubishi - Japan
● Teijin Limited - Japan
● Cytec Industries - USA
● Toray Industries - Japan
● DowAksa - Georgia
● Svetlogorsskhimvolonkno - Belarus
● Nippon Graphite Fiber - Japan
Market overviewThis fiber is valuable because it has many useful properties when woven and coated with a polymer. Many industries including alternative energy, aerospace and defense, automotive, sports & leisure, and construction. What they value the most about pitch-based carbon fiber is its high strength and tensile strength in comparison to its lower weight, its ability to retain shape even when subjected to intense heat, and its ability to withstand chemical exposure.
One of the main industries that are driving growth in the pitch-based carbon fiber market is aerospace & defense. The auto industry is the second major contributor to the rapid growth in demand for pitch-based carbon fiber. Both industries need the strength, high melting point, and durability that pitch-based carbon fiber offers.
The immense and rapidly rising demand for pitch-based carbon fiber in both the aerospace & defense and the automobile industry is creating a predictable and steady income source for the pitch-based carbon fiber market. It is also creating many opportunities. One of these comes from the alternative (wind energy) industry. This industry is growing fast and needs pitch-based carbon fiber to generate sufficient energy from wind efficiently.
One main factor that is keeping the pitch-based carbon fiber market from realizing its true potential is the fact that many lower-priced products are equally as effective as pitch-based carbon fiber on the market.
Pitch-based carbon fiber is not very affordable. It is extremely high price is going to present a major challenge in terms of current and future growth generation and potential. The higher cost is driving many smaller companies (especially) to use more affordable materials like PAN-based carbon fiber and fiberglass fabric. These two materials have many of the same effects and benefits as pitch-based carbon fiber.
Cumulative growth analysis
The overall CAGR for the pitch-based carbon fiber industry is 6.5%. Though this is fairly strong growth, many restraints and challenges remain. Perhaps this the reason why revenue for this industry is only in the several hundreds of thousands of dollars instead of several millions of dollars. However, the next generation of pitch-based carbon fiber is incorporating many technological advancements and innovations. This will drive future growth.
There is a silver lining. The pitch-based carbon fiber market growth may well be picking up. This is thanks to new technological advances. One of these is carbon fiber that is made from mesophase coal pitch. This is an inexpensive material. The product is of the same quality as traditional pitch-based carbon fiber. This is one of the reasons why growth in the pitch-based carbon fiber market is starting to increase - its retail price to the end consumer is becoming much more affordable.
The main industries that use pitch-based carbon fiber are aerospace and defense, automotive, alternative energy, sports and leisure, construction, etc... These industries have an insatiable demand for this material largely because of its many useful qualities and properties.
Many new technologies are spurring pitch-based carbon fiber market growth. The main reason for this is because the cost of producing pitch-based carbon fiber is declining substantially. The manufacturers can pass these savings off to the end consumer in the form of lower prices.
One type of new technology is mesophase coal pith. Pitch-based carbon fibers that are made from this raw material are stronger, lighter, and more flexible than conventional pitch-based carbon fiber. A bonus is that they are also priced substantially less than their older counterparts.
There are three types of pitch-based carbon fiber: type, application, and region. The type of category can be further subdivided into composite and non-composite categories. The composite segment accounted for 94.4% of the overall pitch-based carbon market share. This segment alone is expected to have a CAGR of 6.5% over the next four years (until 2025.)
Many industries need the types of properties and qualities of this category of pitch-based carbon. This is the main reason for its rapid growth and large market share.
Many industries need pitch-based carbon fiber. These are aerospace and defense, automotive, wind energy, sports & leisure, and construction. Of course, this is just a handful of the many industries that find pitch-based carbon fiber useful. The aerospace industry used this type of carbon fiber the most. Its CAGR is 7% and this industry is expected to be worth 55,559,2 thousand US Dollars by December of 2027.
Governments around the world are spending more on their defense and aerospace capacities and facilities. The result is a demand for the raw materials (pitch-based carbon fiber) that make the equipment and drones that drive these industries. The alternative energy is also experiencing healthy growth. Its CAGR is expected to be more than 6.5% from 2019 to 2027. The third industry is the automotive industry. It also uses carbon fiber and is expected to have high CAGR largely because using lighter materials in cars helps reduce overall carbon emissions.
Five regions use pitch-based carbon fiber. They are the North American region, the Asia-Pacific region, the European region, the Latin American region, and the MENA region. The Asia-Pacific region had the highest pitch-based carbon market share at 36.2%.
This region is experiencing rapid economic and population growth. Therefore, demand for aerospace and energy products is exploding. These industries have traditionally used pitch-based carbon fiber. Alternative energy is also starting to take off there. The CAGR for the projected period is expected to be 7%. The Chinese market is expected to have a CAGR of 7.5% from 2019 to December 2027.
The North American region accounted for the second-largest pitch-based carbon market share. The main reason why is exponential growth in the aerospace and defense industries. However, the construction and sports industries are growing in Canada. The CAGR in Canada is expected to be 5% in this period. CAGR in America is expected to be 6.5%.
The pitch-based carbon fiber market is very competitive. The next generation of carbon fiber uses new technologies that make its manufacture and distribution relatively inexpensive. This results in lower barriers to entry. Many companies are seeing that the market is lucrative. Therefore, both entrenched and new players are entering the market at breakneck speed.
A major player in the pitch-based carbon fiber market is Hexal Corporation (USA.) It is surviving by using a two-pronged strategy. The first prong is to bring newer and more effective products that use new and innovative technologies. The second prong is to enter joint ventures. One such JV is between Hexal and Arkema (France.)
These two giants have set up an R&D center in France. The objective is to produce a new generation of lightweight pitch-based carbon fiber. This fiber would have many more applications. It would (therefore) be used by many more industries.
In April 2021
Mitsubishi Chemical Corporation partnered with Dymon Co. Ltd, a robot and space development company. According to the agreement, MCC would deliver carbon fiber reinforced plastic, and thermoplastic materials, along with technical support to Dymon Co. Ltd.
The pitch-based carbon fiber market is experiencing a CAGR of over 6.5%. This is expected to continue until December of 2027. However, market growth and usage remain low in comparison to its potential. The main reason for this is the high cost of this type of carbon fiber. Many companies are responding by forming joint ventures whose objectives are to do research and development to find the technologies that will allow manufacturers to produce pitch-based carbon fiber at affordable prices.
|Forecast Period||2022 to 2030|
|Historical Data||2019 & 2020|
|Forecast Units||Value (USD Million)|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, and Trends|
|Segments Covered||By Type, Application and Region|
|Geographies Covered||North America, Europe, Asia-Pacific, and Rest of the World (RoW)|
|Key Vendors||Hexal Corporation - USA, Hyosung Corporation - South Korea, SGL Carbon - Germany, Mitsubishi - Japan, Teijin Limited - Japan, Cytec Industries - USA, Toray Industries - Japan, DowAksa - Georgia, Svetlogorsskhimvolonkno - Belarus, Nippon Graphite Fiber - Japan|
|Key Market Opportunities||The immense and rapidly rising demand for pitch-based carbon fiber in both the aerospace & defense and the automobile industry|
|Key Market Drivers||One of the main industries that are driving growth in the pitch-based carbon fiber market is aerospace & defense.|
The pitch-based carbon fiber market would have 6.38% CAGR during the forecast period of 2018 to 2023.
The pitch-based carbon fiber market valuation would be USD 104,337.2 thousand by 2023.
The composite segment dominates with a 94.4% global share.
The aerospace segment has the lead in the pitch-based carbon fiber market.
The Asia Pacific region would dominate the pitch-based carbon fiber market.