[168 Pages Report] The carbon fiber market is projected to grow from USD 4.7 billion in 2019 to USD 13.3 billion by 2029, at a CAGR of 11.0% between 2019 and 2029. The market is growing due to its increasing demand from aerospace & defense, automotive, and wind energy industries.

Aerospace & defense end-use industry is expected to be the largest consumer of carbon fiber globally

The major end-user industries in the carbon fiber market include aerospace & defense, automotive, sports & recreation, and wind energy. The aerospace & defense industry accounted for a major share of the market, in terms of value and volume. This is due to the increased production of aircraft by Boeing and Airbus. Boeing and Airbus have a projected demand for nearly 9,000 new wide-bodied aircraft over the next 20 years. The use of carbon fiber in narrow-body aircraft is also witnessing growth t. According to The Teal Group, aircraft production is set to grow at 5.8% annually, from an estimated market size of USD 164 billion in 2017 to USD 218 billion by 2022.

PAN-based carbon fiber to account for a major share of the carbon fiber market, in terms of value and volume during the forecast period

PAN-based carbon fiber dominate the overall carbon fiber market as they are widely applicable in aerospace & defense, automotive, sports & recreation, wind energy, and other industries. This fiber has high strength modulus in comparison to other types of carbon fibers. PAN-based carbon fiber is used more due to its cost-effectiveness and better quality of fiber produced. This carbon fiber precursor possesses high tensile strength and elastic modulus. It gives more than 85% yield of carbon fiber.

Europe is expected to lead the carbon fiber market during the forecast period.

Europe is a key carbon fiber market. The market is growing due to the high demand for materials with excellent strength, lightweight, and chemical and corrosion resistance properties. The market in the region is driven by the presence of large aircraft manufacturers, electric car manufacturers, and offshore wind farm installations in the region. In aerospace & defense industry the region is at the forefront of innovation with the successful launch of Airbus A320 family and Eurofighter. Europe is home to some of the prominent automotive manufacturers such as BMW, Fiat, and Bentley. These automotive manufacturers use carbon fiber composites in various structural automotive parts such as bonnets, bumpers, and frontends. There are a large number of offshore wind energy installations, especially in the UK and Germany.

Market Dynamics

Driver: Consolidation of aircraft manufacturers and high demand for next-generation, single-aisle aircrafts

Aircraft manufacturers are becoming stronger through consolidation for new single-aisle regional aircraft manufacturing projects. In 2018, Embraer (S�o Paulo, Brazil) entered into a joint venture with Boeing for the production of regional commercial aircraft. Airbus and Bombardier (Quebec, Canada) entered into a partnership for the production of the C Series aircraft. In 2018, JetBlue purchased 60 Airbus A220-300s, the new designation for the former C-Series aircraft.

Single-aisle airplanes are expected to command the largest share of new aircraft deliveries during the forecast period. These aircraft are expected to fulfill around 70% of the future commercial aircraft demand. With the retirement of A30 aircraft production, all the players in the entire aerospace production value chain are looking for the future. Currently, only Boeing 787, 777X, and Airbus A350 are in production that are using carbon fiber. New demand for carbon fiber is expected to come from the next-generation single-aisle aircraft. The new midsize airplane - NMA, or, 797) - a single-aisle, mid-range plane designed by Boeing is expected to replace the company�s retired Boeing 757 aircraft. This aircraft is also expected to have AFP-made, autoclave-cured wings and fuselage structures.

Restraint: High cost of carbon fiber

In the automotive industry, carbon fiber is currently used only in racing cars and some high-end sports car as the cost of carbon fiber at present is about USD 8 to USD 15/lb. If the cost of carbon fiber decreases to about USD 5 to USD7/lb., it will be used on a much larger scale in automobiles. Usage of carbon fiber composite structural parts is expected to increase to a great extent, provided the cost is reduced. Oak Ridge National Laboratory (ORNL) located in the US is aggressively working to define low-cost carbon fiber (LCCF) technologies. The price for aerospace grade carbon fiber currently ranges from USD 30 to USD 80/lb. In other applications such as industrial, sporting goods, and wind energy, the price ranges from USD 10 to USD 20/lb. There are many new applications of carbon fiber based composite which are not yet commercially feasible as they are expensive.

Opportunity: Increasing use of carbon fiber in 3D printing

3D printing technology involves the printing of a 3D object from a digital model by stacking thin materials. This is a sophisticated technology used for several applications and does not require large equipment setup. This technology can be used to print several objects in a short time span. Continuous carbon fibers are used in 3D printing as if it offers high strength and rigidity compared to other metallic materials. The content and orientation of carbon fiber are controllable, which eases the optimization process. 3D printing using carbon fibers also allows for high accuracy in the manufacturing of parts for various end-use industries such as aerospace, automotive, and dental. This technology will revolutionize the carbon fiber manufacturing process and will offer significant opportunities for the market players.

Challenge: Production of low-cost carbon fiber

The high cost of carbon fiber is one of the major concerns associated with its growth. Carbon fiber is still not used in large applications due to its high cost. Developing low-cost technologies is a major challenge for researchers and key manufacturers. In the automotive industry, carbon fiber composites are only introduced in high-end and luxury cars due to their high cost. With the production of low-cost carbon fiber, there will be an increased use in the automotive industry than the aerospace industry, where high-grade carbon fiber is used.

Scope of the Report

Report Metric Details Years considered for the study 2019�2029 Base year 2018 Forecast period 2019�2024 and 2019-2029 Units considered Value (USD Million), Volume (Kiloton) Segments Raw material, Product type, Fiber type, Modulus, Application, End-use industry, and Region Regions Europe, North America, APAC, MEA, and Latin America Companies Toray Industries Inc. (Japan), SGL Group (Germany), Hexcel Corporation (U.S.), Mitsubishi Rayon Co. Ltd. (Japan), Teijin Limited (Japan), Formosa Plastics Corporation (Taiwan), Solvay (Belgium), Jiangsu Hengshen Co. Ltd. (China), Hyosung (South Korea), DowAksa (Turkey)

This research report categorizes the carbon fiber market based on raw material, product type, fiber type, modulus, application, end-use industry and region.

On the basis of Raw material, the carbon fiber market has been segmented as follows:

PAN�based carbon fiber

Pitch�based carbon fiber

Rayon�based carbon fiber

On the basis of Product Type, the carbon fiber market has been segmented as follows:

Continuous carbon fiber

Long carbon fiber

Short carbon fiber

On the basis of Fiber Type, the carbon fiber market has been segmented as follows:

Virgin carbon fiber

Recycled carbon fiber

Standard modulus

gIntermediate modulus

High modulus

Composite

Non-composite

Aerospace & defense

Automotive

Wind Energy

Sporting goods

Electrical & electronics

Civil Engineering

Pipe & Tank

Marine

Others (Medical, Oil & gas, 3D printing, High speed & metro train, Hydrogen gas storage, Electrode for batteries)

Europe

North America

APAC

MEA

Latin America

Key Market Players

The carbon fiber market comprises major solution providers, such as Toray Industries Inc. (Japan), SGL Group (Germany), Hexcel Corporation (U.S.), Mitsubishi Rayon Co. Ltd. (Japan), Teijin Limited (Japan), Formosa Plastics Corporation (Taiwan), Solvay (Belgium), Jiangsu Hengshen Co. Ltd. (China), Hyosung (South Korea), DowAksa (Turkey). The study includes an in-depth competitive analysis of these key players in the carbon fiber market, with their company profiles, recent developments, and key market strategies.

Recent Developments

In January 2019, Teijin entered into an agreement with Bombardier Aerostructures and Engineering Services for the supply of its TENAX carbon fiber material. This helped the company in its medium-term growth in the aircraft business.

In October 2018, Hexcel Corporation opened its new advanced composites plant at the Les Roches-Roussillon Chemicals Industry Platform in France. This plant will help in responding to the needs of aerospace customers for carbon composite materials.

In November 2017, Toray Industries, Inc. developed new higher tensile strength and tensile modulus carbon fiber named TORAYCA MX series. This carbon fiber is mainly for aerospace, industrial, and sports applications.

Key Questions addressed by the report

Which are the major end-use industries of carbon fiber?

Which industry is the major consumer of carbon fiber?

Which region is the largest and fastest-growing market for carbon fiber?

What are the major product types of carbon fiber?

What are the major applications of carbon fiber?

What are the major modulus types of carbon fiber?

What are the major fiber types of carbon fiber?

What are the major strategies adopted by leading market players?

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