Global Carbon Fiber Market Size, Share, Growth Analysis, By Precursor(PAN, Pitch), By Tow(Large Tow, Small Tow), By Application(Aviation, Aerospace & Defense) - Industry Forecast 2024-2031

Carbon Fiber Market Driver

• Increasing Product Usage in Automotive Sector to Drive Market Growth

Carbon fiber market growth is expected to be fueled by rising automotive production and a growing need for lightweight vehicles. Manufacturers' increased demand for vehicle body parts such as hoods, deck lids, bumper beams, and fenders may encourage product demand. The use of carbon fibers boosts vehicle durability, resulting in longer life auto parts. The market is being driven by the usage of composites in motorsports and premium vehicles.

Companies are implementing ideas and investing in processes that will reduce the overall weight of the vehicle. As a result, carbon fibre reinforced polymer (CFRP) is frequently employed in high-end supercars. The material has an extraordinarily high strength-to-weight ratio and a density as low as 1.6g/cc, making it extremely light. A lightweight car has a higher fuel efficiency, and a 10% weight reduction can save up to 6% to 8% of fuel in automobiles.

Automobile manufacturers such as Audi, BMW, Honda, Polestar, and General Motors are focusing on mass production collaboration with carbon composite material makers and investing in their processes to enable low-cost composite materials. For example, in May 2019, General Motors cooperated with Teijin, a Japanese information technology, chemical, and pharmaceutical corporation, to use CFRTP in their high production vehicle, and the material is already being mass produced.

Carbon Fiber Market Restraint

• High Cost of Product to Hinder Market Growth Slightly

Due to their high performance and lightweight features, carbon composites are widely employed in the aerospace, automotive, construction, oil and gas, and wind energy industries. Nonetheless, the product is more expensive than metal. The cost of the product is a key impediment to the widespread use of carbon composites in a variety of industries. The cost of CF is closely tied to the yield and cost of the precursor used to produce it. At the moment, the typical cost of non-aerospace quality PAN-based carbon fibers is roughly USD 21.5 per kg, with a conversion efficiency of only 50%.

When the cost of the product is reduced, it will be used on a much greater scale in the automotive and aerospace industries. Many cost-cutting measures are underway, including the creation of low-cost, high-yielding precursors for manufacturers. That will considerably lower the cost of CF. In addition, researchers from the United States Department of Energy's Oak Ridge National Laboratory (ORNL) demonstrated a manufacturing approach that will lower product costs by up to 50% and energy consumption by more than 60%.