The carbon fiber market was valued at US$ 3,060.37 million in 2019 and is projected to reach US$ 6,838.67 million by 2027; it is expected to grow at a CAGR of 10.7% from 2020 to 2027.
Carbon fibers are long thin strands with a diameter of ~0.005–0.01 mm. These fibers provide high strength to vessels or systems in which they are incorporated, which helps prevent the explosions of gas storage systems. They provide high tensile strength along with high-temperature tolerance and durability to the final products. Carbon fibers exhibit excellent corrosion resistance, higher stiffness and strength, and longer lifespans than other materials, such as aluminum and steel. Hence, these fibers find their application in broad end-use industries. They are rigid and chemically inert, which makes them difficult to compress and stretch.
Based on raw material, the carbon fiber market is segmented into PAN and pitch. The PAN segment led the carbon fiber market with a larger share in 2019. PAN, i.e., polyacrylonitrile fibers provide better productivity and excellent processing properties. They have lower costs than pitch fibers. The PAN-based carbon fibers are widely used in various applications due to their greater strength and modulus than pitch-based carbon fibers. Pitch-based carbon fibers have been developed recently, and their demand is increasing in low-cost applications.
By region, the carbon fiber market is segmented into North America, Europe, Asia Pacific (APAC), South America, and Middle East and Africa (MEA). The market in APAC is expected grow at the fastest CAGR during the forecast period. With the growth of the aerospace & defense, automotive, construction, and other industries, the demand for carbon fiber has substantially gone up in India, China, and Japan, which is driving the growth of the market. Moreover, the carbon fiber market in APAC is witnessing the entry of new manufacturers. For instance, Reliance Industries Limited invested in India’s first carbon fiber unit to cater to the demand generated by aerospace and defense players, along with extending their presence to the carbon fiber products.
The COVID-19 pandemic first began in Wuhan (China) in December 2019. As of February 2021, the US, India, Brazil, Russia, the UK, France, Spain, Italy, Turkey, Germany, Colombia, and Argentina are among the worst-affected countries in terms of confirmed cases and deaths. The pandemic has affected economies and industries in various countries due to government-imposed lockdowns and travel bans, and business shutdowns. Chemical and materials is one of the major industries suffering serious disruptions in the form of supply chain breaks, technology events cancellations, office shutdowns, etc. The shutdown of various plants and factories in regions such as North America, Europe, Asia Pacific, South America, and the Middle East and Africa has affected the global supply chain and negatively impacted the manufacturing, delivery schedules, and product sales. Furthermore, various companies have already predicted possible delays in product deliveries and slump in future sales of their products. The travel bans imposed by countries in Europe, Asia, and North America are affecting the business collaborations and partnerships opportunities. All these factors are affective the chemical and materials industry activities and thus are restraining the growth of various markets related to this industry.
Toray Industries, Inc.; Plastics Corporation; SGL Carbon; Solvay; Hexcel Corporation; Tejin Limited; DowAksa; and Mitsubishi Chemical Corporation are among the major players operating in the global carbon fiber market.
The overall global carbon fiber market size has been derived in accordance with to both primary and secondary sources. To begin the research process, exhaustive secondary research has been conducted using internal and external sources to obtain qualitative and quantitative information related to the market. Also, multiple primary interviews have been conducted with industry participants to validate the data, as well as to gain more analytical insights into the topic. The participants of this process include industry experts such as VPs, business development managers, market intelligence managers, and national sales managers?along with external consultants such as valuation experts, research analysts, and key opinion leaders?specializing in the global carbon fiber market.