AUTOMOTIVE CARBON FIBER MARKET SIZE:

The Automotive Carbon Fiber Market Size was valued at USD 25.70 Billion in 2023 and is expected to reach USD 66.86 Billion by 2032 and grow at a CAGR of 11.23% over the forecast period 2024-2032.

The Automotive Carbon Fiber Market is recording tremendous growth due to increasing government policies from major automotive hubs like Japan, China, the USA, France, and Germany focusing on emission cut and increasing the efficiency of the vehicles. The Japanese government has issued stricter guidelines over emissions lately, which is forcing the car manufacturers towards the use of lighter materials, like carbon fiber. Carbon fiber composites help to save mass at levels of 50%-70%. The country, focused on carbon neutrality initiatives, has encouraged new processes for the production of electric vehicles with carbon fiber; the nation is aligned with the vision of "Made in China 2025". Meanwhile, the USA Department of Energy started funding carbon fiber research to lower the cost of producing this material and hence light composites more sustainable. This development is meant to make further benefits for automotive carbon fiber integration.

• In April, 2023, the European Parliament and the Council agreed upon Regulation (EU) 2023/851 for tightening up the emission performance standards of new passenger cars and new light commercial vehicles, with a 100% cut from cars and vans in 2035. There is an improvement in fuel economy by 6%-8% for every 10% loss in vehicle weight.

Technological advancements have played a landmark role in making carbon fiber more accessible to the masses. Advancements in manufacturing, including high-speed Resin Transfer Molding, and recycling technology will further make carbon fiber cheaper and viable. Many new models of vehicles scheduled for launch in 2023 and 2024 are employing carbon fiber in structural and cosmetic components, and therefore demand is expected to build further. Automobile companies will emphasize strength, durability, and weight loss by using carbon fiber for battery casings, structural frameworks, and aerodynamic exteriors.

MARKET DYNAMICS

KEY DRIVERS:  

• Growing demand for lightweight cars that would enhance fuel efficiency.

In pursuit of strict government emissions regulations, the global automotive sector is increasingly moving toward enhanced fuel efficiency. The weight of the vehicle is directly proportional to its fuel consumption, and therefore, there is a need for materials with low weight-to-strength ratios. Carbon fiber is nearly 50% lighter than steel, yet equally or even stronger, and reduces the weight considerably, which translates to significant reductions in fuel consumption.

For instance, the U.S. Environmental Protection Agency (EPA) states that 10% reduction in vehicle weight will result in an improvement of about 6–8% fuel efficiency.

Europe's Clean Mobility Package has also called for a reduction in vehicle weight to meet its target average CO2 emissions from new cars at 15% reduction levels by 2025. In combination with the worldwide trend of preferring economical ways of fuel, this regulatory environment will reinforce the demand for carbon fiber in vehicle production.

• Growing demand of the electric vehicles (EVs) with light weight structure.

The market growth in China and Europe is showing large-scale exponential growth. The shift towards EVs has created a huge demand for light-weight materials to counterbalance the added weight due to batteries. Those can well be responsible for 20-30% of the total weight of the vehicle. This is one thing that carbon fibre's strength-to-weight ratio will help a lot with optimizing the range of a vehicle.

The emphasis of the European Union's Green Deal on zero-emission mobility is also spurring the EV producers to use advanced lightweight materials for the attainment of such goals. As per the projected growth rate of adoption of EV, the demand for lightweight materials like carbon fiber will significantly increase in the coming years.

RESTRAIN:

• High production costs still create a barrier for the widespread use of carbon fiber.

High production cost is one of the major barriers that restrain the wider use of carbon in the automotive industry. It is also very compared to other normal material like steel and aluminum.The process of producing carbon fiber is an energy-intensive process involving specialized equipment, which makes it up to five times more expensive compared to other materials. Typically, the production of carbon fiber consumes 55-165 kWh per Kg and costs in the range of USD 33-66 per kg. This cost factor has been particularly limiting for mid- and low-priced vehicles, where manufacturers margin is not as high.

BY TYPE

Passenger Vehicle Commercial Vehicle In 2023, passenger vehicles gained the largest share of 64% of the market for automotive carbon fiber. The main driver for this huge demand for carbon fiber in passenger vehicles is the increasing focus on lowering weight to enhance fuel efficiency, which also corresponds to the increased regulatory pressure worldwide to reduce emissions.

Premium passenger vehicles, especially luxury and sports cars, have been using carbon fibre continuously for body panels, interior parts and structural frames in order to realize improved performance and durability. These sections are using carbon fiber, not for aesthetic reasons only, but because of its strength-to-weight ratio directly impacting better handling and speed-a quality of major importance in the high end luxury market.

Commercial Vehicles, however, is the fastest-growing segment with anticipated growth rate of 11.96% from 2024 to 2032. Carbon fiber applications are gaining ground in commercial vehicles as fleet owners and logistics companies look for ways to optimize fuel efficiency and vehicle lifespan. More and more parts, especially load-carrying structures and reinforcements, and key parts of other categories such as electric commercial vehicles, are adopting carbon fiber material with the aim of reducing vehicle weight directly to improve battery life and range.

BY APPLICATION

Based on application, the Automotive Carbon Fiber Market was primarily dominated by Structural Assembly in 2023, accounting for 39% of the total market share. This is because the material is strong and lightweight; in structural components, this is very important. Carbon fiber is extensively used in the key assemblies of a vehicle, such as chassis, frames, and load-bearing parts. This is due to durability and efficiency in fuel consumption, especially in high-performance and electric vehicles. The structural components made with carbon fiber not only make the vehicles safer but also ensure lower emissions, a factor much valued by an environmentally conscious automobile maker or consumer.

Meanwhile, the fastest growth in terms of CAGR over the forecast period from 2024 to 2032 would be for interior applications at 12.93%. Carbon fiber is emerging as a preferred material mainly for interior designs as consumers increasingly demand premium aesthetics and performance in their vehicle interiors. This appeal by the carbon fiber has been underscored in sleek appearance, flexibility, as well as durability and used for its components such as dashboards, trim, and the seating structures. In addition, a recent history with electric vehicles, with increased interior space for comfort, has supported increased interest in using carbon fiber in light and stylish applications. As producers try to create sophisticated and eco-friendly interior features, the automotive carbon fiber market is on the course of upward growth in this sector.

REGIONAL ANALYSIS

Europe accounted for the largest share of the Automotive Carbon Fiber Market in 2023 at 50% mainly due to the presence of luxury automotive manufacturers and stringent environmental regulations. European countries, especially Germany and France, are highly stringent on the emission standards. Therefore, auto manufacturers have a high pressure to adhere to the set levels of reduction in CO₂ emissions with the help of lightweight materials. Carbon fiber is gaining its preference in luxury as well as performance vehicles, where there is a requirement for weight reduction but no loss of strength. This demand from European policies identifies carbon fiber as a necessary component of the car industry in the region for sustainability.

The Asia Pacific region is projected to observe the fastest growth rate, with a CAGR of 12.35% from 2024 to 2032. Factors driving the growth in this region are speedy industrialization, growing production of electric vehicles, and government policies favoring carbon reduction. Countries like China and Japan are not only the major automotive markets but are focusing on the building of infrastructure and providing subsidies to support development of lightweight and electric vehicles. Asian Pacific's increase mirrors a larger trend toward using advanced materials in the manufacture of autos, which are pushed by consumer demand and government incentives to reduce their impact on the environment.

Top 20 Major Companies in the Automotive Carbon Fiber Market

• Toray Industries (Carbon Fiber Composites, Resin)

• SGL Carbon SE (Carbon Fiber Fabrics, Composite Materials)

• Hexcel Corporation (Carbon Fiber Prepreg, Adhesives)

• Teijin Limited (Carbon Fiber, Thermoplastics)

• Mitsubishi Chemical Corporation (Carbon Fibers, Composite Materials)

• Hyosung Advanced Materials (Carbon Fiber Yarn, Reinforcement)

• Solvay SA (Advanced Composites, Carbon Fiber Products)

• Formosa Plastics Corporation (Carbon Fibers, Resin Solutions)

• Zoltek Corporation (Carbon Fiber Tow, Composite Laminates)

• Cytec Industries (Advanced Composite Materials, Carbon Fabrics)

• Nippon Graphite Fiber Corporation (Carbon Fiber, Graphite Materials)

• Gurit Holdings AG (Composite Materials, Prepregs)

• Plasan Carbon Composites (Automotive Parts, Carbon Fiber Components)

• Rock West Composites (Carbon Fiber Tubes, Structural Components)

• Composites One (Carbon Fiber Fabrics, Resins)

• Toho Tenax (Carbon Fiber Yarn, Composite Solutions)

• DowAksa (Carbon Fiber, Reinforcements)

• BASF SE (Resins, Carbon Fiber Composites)

• Saertex GmbH (Carbon Fiber Fabrics, Reinforcement)

• Sigmatex Ltd. (Carbon Fiber Textiles, Composite Materials)

MAJOR SUPPLIERS (Components, Technologies)

• SABIC

• Huntsman Corporation

• PPG Industries

• 3M Company

• Arkema Group

• Royal DSM

• Evonik Industries

• Covestro AG

• Momentive Performance Materials

• Akzo Nobel

MAJOR CLIENTS

• BMW Group

• Toyota Motor Corporation

• Ford Motor Company

• Tesla, Inc.

• General Motors (GM)

• Honda Motor Company

• Volkswagen Group

• Mercedes-Benz

• Nissan Motor Co., Ltd.

• Ferrari N.V.

• Audi AG

• Porsche AG

• McLaren Automotive

• Jaguar Land Rover

• Lucid Motors

• Rivian Automotive

• Fisker Inc.

• Maserati

• Aston Martin Lagonda

• Lamborghini

RECENT TRENDS

July 2024: Utilizing carbon fiber and bionic design, the high-performance car is able to be produced race-ready in production with the help of the collaborative effort between Porsche and Action Composites. The company designed and manufactured a new carbon fiber safety cage solution that lightens one of its series race vehicles in a single process via one-shot compression molding.

September 2024: According to Railway Supply, Chinese concern China Energy Railway Equipment Co., Ltd. has introduced the first series of carbon fibre open freight cars at the production facilities in Qiqihar, Heilongjiang Province. Six trains are to be produced based on this new model. The first carbon fiber open freight cars from Chinese company China Energy Railway Equipment Co., Ltd. are reported by the news portal Railway Supply. The novelty doesn't much resemble traditional steel models of the same kind of railway transport.