The carbon fiber market is expected to grow from USD 6.188 billion in 2025 to USD 10.594 billion in 2030, at a CAGR of 11.35%.
Carbon fiber is a lightweight synthetic fiber that has high chemical resistance, and tensile strength, and is temperature tolerant. Such fiber owing to its rich performance features is used in aircraft parts, wind turbine blades, and components of high end-cars. Moreover, fiber also finds its usage as a construction material where it is used for the external strengthening of concrete columns. Also, the fiber is well suited for the construction of exterior trim, windows, decks, and door systems in residential buildings. The growing number of housing starts in countries has provided major growth opportunities to the carbon fiber market. For instance, according to the Canada Mortgage and Housing Corporation, in September 2022, the number of housing starts in Canada stood at 298,811 units showing a 19% rise in comparison to 2021 for the same month. Moreover, carbon fiber forms a great material to be used for prosthetic limbs and implant applications for the replacement of damaged bone. The number of orthopedic surgeries is witnessing a surge over the years, For instance, the American Academy of Orthopedic Surgeons reported, in 2021, reporting a number of knee and hip bone replacement surgeries 2.4 million in the US showing an 18.3% increase in comparison to the number of surgical procedures conducted in 2020. Furthermore, according to the 2022 annual report of the Australia Orthopaedic Association National Joint Replacement Surgery Registry, in 2021, the total number of joint replacement surgeries reported in 2021 Australia stood at 1.85 million.
Based on industry vertical, the carbon fiber market is segmented into automotive, building & construction, aerospace, energy generation, medical & healthcare, and others. The aerospace sector is projected to hold a decent market share during the forecast period. Carbon fiber adoption for an aircraft fuselage, wings, and tails is attributable to its high durability, strength, and low-weight features which improve the overall fuel efficiency and aerodynamic performance of the aircraft. Commercial aircraft manufacturing is making progressive use of carbon fiber, and with the growing air traffic, the demand for such aircraft has also increased. Major aircraft manufacturers such as Being are reporting an increase in revenue in their commercial aircraft segment. For instance, according to Boeing’s annual report, the company earned a revenue of US$ 19,493 million in its commercial airplanes for 2021 which represented a 20.6% increase over 2020’s revenue.
Carbon fiber in comparison to fiberglass provides improved strength and being light weighted it enables the blades to rotate at a higher speed thereby creating electricity at a much more efficient rate. The growing demand for a renewable and inexhaustible energy source for electricity generation has increased the wind energy capacity in countries. For instance, according to World Economic Forum, wind turbine capacity in the US increased by 14.2 gigawatts in 2020 followed by 17.1 gigawatts in 2021. Furthermore, according to the recent data from the Ministry of New And Renewable Energy, in Q2 of 2022, India added 430.4 megawatts of wind power capacity, showing an 80% increase in comparison to 239.6 megawatts installed in Q2 of 2021. Such growing wind power capacity is expected to accelerate the demand and usage of carbon fiber for turbine blades application, thereby boosting the overall market growth.
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