Recycled Carbon Fiber Market Size

Global Recycled Carbon Fiber Market size was valued at USD 145.6 million in 2023 and is poised to grow from USD 162.93 million in 2024 to USD 400.53 million by 2032, growing at a CAGR of 11.9% during the forecast period (2025-2032).

Growing emphasis on sustainability, surging adoption of carbon fiber in automotive and aerospace industries, imposition of stringent regulations to promote recycling, advancements in recycling technologies, and expanding application scope in multiple industry verticals are driving sales of recycled carbon fiber.

Surging demand for sustainable materials as a result of the rising eco-consciousness among consumers and businesses is primarily boosting the adoption of recycled carbon fiber. Emergence and preference for recycled carbon fiber as a lower-cost alternative to virgin carbon fiber is also creating new business scope for market players. Launch of new initiatives to create circular economy models around the world are also slated to offer new opportunities in the long run.

Extensive demand for recycled carbon fiber in the automotive industry from electric vehicles to reduce weight and promote efficiency are also slated to drive revenue generation for market players. Growing emphasis on reducing fuel consumption of aircraft is promoting the adoption of recycled carbon fiber in the manufacturing of non-critical aircraft components. High investments in aerospace and defense R&D are also slated to drive the global recycled carbon fiber market growth in the future.

Launch of stringent regulations to promote sustainability and use of recycled carbon fiber in consumer good manufacturing are also slated to expand the application scope for recycled carbon fiber suppliers in the long run. On the contrary, inconsistent fiber quality and mechanical properties, limited awareness among developing countries, challenges in supply chain infrastructure, competition from alternative materials, and high processing and recycling costs are estimated to impede the sales of recycled carbon fiber across the study period and beyond.

Key Market Attributes

In June 2024, Thermolysis Co. Ltd., a renowned name in the carbon fiber recycling business and innovator in research of microwave-lysis technology announced the launch of its new RCF brand. The new socially responsible brand is focused on developing multiple bike accessories including pads, seats, cycling shoe boards, light stands using carbon fiber recycled via the thermolysis process. The company claims to use a carbon fiber regeneration process that is ISO 14067 certified. The novel process emits only one-fifth of the CO2 emissions emitted when making new fiber. The company has also achieved UL 2809 certification to verify the origin of its rCF material waste and promote traceability for materials used in its products.

In April 2024, UBE Corporation, a renowned Japanese chemicals company known for manufacturing plastics and chemicals announced the launch of a new composite material to reduce emissions. The new products are made from recycled carbon fiber using technology from Shinryo Corporation to extract high-quality carbon fiber from used parts that contain carbon fiber. The new composite products are designed for use in automotive and sports-related applications. Launch of such new products depicts UBE’s commitment to sustainability and helps it get one step close to its vision for a better world by 2030.

In January 2024, Vartega, a leading innovator in carbon fiber recycling based in the United States announced that it had closed its oversubscribed $10 million preferred equity financing. The company intended to use the capital to resolve the issues associated with the world’s toughest advanced materials recycling. Diamond Edge Ventures led the financing to help Vartega enhance its proprietary recycling technology and provide manufacturers with a sustainable source of high-quality recycled carbon fiber. Fenix Fiber and Fenix Fiber+ are Vartega’s most esteemed offerings available to end users in its EasyFeed Bundles. Vartega is expected to emerge as a leading innovator in circular economy through such capital injections in the long run.