Carbon Fiber Market: by Precursor Type; Tow Size (1-12 k, 24-48 k, >48 k); Modulus; End Users; Region - Market Size, Industry Dynamics, Opportunity Analysis and Forecast for 2025-2035

Exploring the Accelerating Growth of the Global Carbon Fiber Market: Poised to Reach US$ 52.16 Bn by 2050 with a CAGR of 11.07%

Carbon fiber is an advanced material made of extremely thin but highly strong crystalline filaments formed from carbon atoms. The global carbon fiber market is expanding steadily as demand rises for lightweight, high-performance materials across aerospace, automotive, construction, and renewable energy. In 2024, the market was valued at approximately US$ 3.47 billion, reflecting stronger adoption in applications where durability, weight reduction, and efficiency gains are essential. Over the outlook period, the carbon fiber market is expected to reach US$ 15.30 billion by 2035, growing at a CAGR of 14.44% from 2025 to 2035.

This growth is closely tied to material substitution trends, as manufacturers pursue solutions that can deliver high strength-to-weight performance while supporting fuel efficiency and structural reliability. Carbon fiber’s expanding use case footprint continues to strengthen demand across industrial value chains, positioning it as a critical enabler for next-generation engineering requirements.

Noteworthy Market Developments

The carbon fiber market in 2025 reflects intensified competition, with companies increasingly using strategic collaboration to accelerate innovation and broaden market access. In June 2025, Dow announced plans to sell its 50% stake in the DowAksa carbon fiber joint venture to its Turkish partner, Aksa Akrilik Kimya. Valued at approximately $125 million, the transaction is expected to finalize in the third quarter of 2025.

At the same time, capacity expansion activity is increasing across Asia and Europe as demand scales. In China, the market’s strategic importance is rising, demonstrated by PetroChina’s announcement of plans to enter the sector through a joint venture with Changsheng (Langfang) Technology. These initiatives highlight the pace at which production ecosystems are being strengthened to meet growing industrial pull.

To stabilize costs and improve raw material availability for inputs such as carbon fibers and resins, vertical integration is becoming a key competitive strategy. Companies are investing across multiple value-chain stages to reduce dependency on external suppliers and enhance operating efficiency. In recycling innovation, Fairmat, a French startup focused on carbon fiber composite recycling, secured €51.5 million in a Series B funding round to scale technologies designed to deliver high-quality recycled carbon fiber materials for a broad set of industries.

Core Growth Drivers

Aerospace continues to be a primary demand engine for carbon fiber, driven by its need for materials that combine low weight with exceptional strength. Weight reduction remains critical in aircraft manufacturing, as lower mass directly improves fuel efficiency and helps reduce greenhouse gas emissions. As environmental standards tighten and airlines pursue cost optimization, carbon fiber composites are becoming increasingly central to modern aircraft design.

In 2024, aerospace manufacturers expanded the use of carbon fiber composites across components including fuselage panels, wings, and interior structural elements. These applications enable meaningful reductions in weight while maintaining structural integrity and safety. The strength-to-weight advantage also supports improved aircraft performance, including range, payload capacity, and maneuverability. As a result, airlines benefit from lower operating costs and reduced emissions, aligning with both commercial priorities and sustainability requirements.

Emerging Technology Trends

Carbon fiber manufacturing remains highly energy-intensive, shaping both sustainability priorities and cost competitiveness across the carbon fiber market. The energy burden contributes to higher production costs while increasing pressure to improve environmental performance. In 2024, this dynamic accelerated innovation in recycling technologies that are reshaping circularity pathways for composite materials.

Recycling methods for carbon fiber are becoming more efficient and economically viable, enabling recovery from end-of-life composites and reintegration into manufacturing without substantial loss of mechanical properties. Approaches including pyrolysis, solvolysis, and mechanical reclamation are gaining traction as alternatives to traditional disposal routes such as landfilling or incineration. As these processes scale, recycled carbon fiber is increasingly positioned as a supply-supporting pathway that can help manage cost pressures while strengthening sustainability credentials across downstream industries.

Barriers to Optimization

Carbon composites are widely used across aerospace, automotive, construction, oil and gas, and wind energy due to their high performance and lightweight characteristics. However, carbon fiber production remains expensive, which elevates the cost of carbon composite components and limits broader adoption. This pricing barrier remains especially restrictive for sectors seeking large-scale deployment but constrained by cost sensitivity.

The cost structure is strongly influenced by precursor yield and precursor pricing. Polyacrylonitrile (PAN) remains the dominant precursor, yet the conversion rate from PAN to carbon fiber is only about 50%, requiring high precursor input volumes to produce usable output. In addition, the average price of PAN-based carbon fibers that do not meet aerospace-grade specifications remains around USD 21.5 per kilogram. These price levels can remain prohibitive for many manufacturers, particularly smaller or domestic producers without the economies of scale required to absorb raw material and processing costs.

Detailed Market Segmentation

By Precursor Type, Polyacrylonitrile (PAN) type carbon fiber remained the market leader in 2024, holding a 73.31% share. This position is supported by improving manufacturing technologies and expanding industrial adoption for PAN-based fibers. The segment’s CAGR of 11.09% highlights growing penetration across high-growth and emerging end-use categories.

By Tow Size, the 24-48k tow size category dominated in 2024 with a 70.07% share, reflecting changing economics and expanding application versatility in carbon fiber manufacturing. The segment is advancing at a CAGR of 11.16%, strengthened by its suitability for automated composite production, particularly in robotic placement systems that require scalable throughput and repeatable processing.

By End Users, the aerospace and defense segment accounted for 26.02% of total revenue in 2024 and also posted the highest projected CAGR of 11.23%. This performance reinforces aerospace and defense as a key driver of quality requirements and innovation standards within the industry. The resurgence and expansion of commercial aviation has further accelerated demand for carbon fiber components across airframe and structural applications.

By modulus, Standard Modulus (T300 -T700) grades maintained dominance in 2024 with an 82.05% share. This leadership reflects broad applicability across industries where dependable performance and cost efficiency must align. The grade range is widely selected for engineering programs that require reliable mechanical strength without premium pricing burdens.

Segment Breakdown

By Precursor Type

• PAN Type Carbon Fibre
• Pitch Type Carbon Fibre

By Tow Size

• 1-12 k
• 24-48 k
• >48 k

By Modules

• Standard Modulus (T300 -T700)
• Intermediate Modulus (T800-T1100)
• High Modulus (M35-M60)

By End User

• Aerospace & Defence
• Automotive
• Pressure vessels / Hydrogen storage
• Wind & Energy
• Infrastructure/civil
• Consumer

By Region

• North America
• Europe
• Asia Pacific
• Middle East & Africa
• South America

Geographical Breakdown

The carbon fiber market is heavily concentrated in Asia Pacific, which holds a market share exceeding 42%. This regional leadership is supported by strong production capabilities and integrated demand across multiple high-consumption industrial sectors. Asia Pacific has established itself as a global manufacturing center for carbon fiber through large-scale capacity, advanced process adoption, and supply chain depth that supports high-volume output.

Within the region, China is the leading producer with an annual production capacity of 160,300 metric tons. Japan and South Korea follow closely, together forming a high-capacity supply base that supports aerospace, automotive, and wind energy demand globally. These markets continue to reinforce Asia Pacific’s ability to meet both quality and volume expectations required by high-value downstream industries.

Leading Market Participants

• Advanced Composites Inc.
• BASF SE
• Formosa M Co. Ltd
• Hexcel Corporation
• Mitsubishi Chemical Carbon Fiber & Composites Inc.
• Nippon Graphite Fiber Co. Ltd.
• SGL Group
• Solvay
• Teijin Limited
• Toray Industries Inc
• Zoltek Corporation
• Other Prominent players