Carbon Fiber Market Report 2026

The carbon fiber market size has grown strongly in recent years. It will grow from $5.52 billion in 2025 to $6.02 billion in 2026 at a compound annual growth rate (CAGR) of 9%. The growth in the historic period can be attributed to aerospace material innovation, early adoption in sporting goods manufacturing, increasing use in defense applications, advancements in PAN-based fiber production, rising demand for lightweight materials.

The carbon fiber market size is expected to see strong growth in the next few years. It will grow to $8.57 billion in 2030 at a compound annual growth rate (CAGR) of 9.2%. The growth in the forecast period can be attributed to increasing adoption in electric vehicles, expansion of wind energy installations, growing use in pressure vessels and tanks, rising focus on recyclable composites, increasing investments in advanced material manufacturing. Major trends in the forecast period include increasing use of lightweight composite materials, rising demand for high-strength carbon fibers, growing adoption of recycled carbon fiber, expansion of carbon fiber applications in automotive, enhanced focus on performance and durability.

The expansion of the carbon fiber market is poised to be fueled by the burgeoning automotive industry. This sector encompasses a multitude of entities involved in the complete lifecycle of motor vehicles. Carbon fiber, renowned for its lightweight and robust characteristics, plays a pivotal role in crafting vehicle parts and components, notably enhancing fuel efficiency, performance, and weight reduction in vehicles. As per the Asia Automotive Analysis, South Korea witnessed an 8.5% surge in automobile production in 2022, totaling 3,756,491 units. Thus, the thriving automotive industry acts as a primary driver for the carbon fiber market.

Major companies operating in the advanced composites recycling market are concentrating on developing innovative solutions, such as low-temperature chemical recycling of carbon-fibre-reinforced plastics (CFRP) that maintains fibre strength and quality, to support circular-economy reuse of high-performance carbon fibre materials. Low-temperature chemical recycling of CFRP refers to a process that employs a specialized decomposition agent to break down thermoset resins under milder conditions, enabling the recovery of carbon fibres while preserving their mechanical and surface characteristics. For example, in November 2025, Toray Industries Inc., a Japan-based supplier of carbon-fibre composite materials, textiles, resins, and industrial materials, introduced this new carbon-fibre recycling technology. The process effectively decomposes various types of CFRP waste and recovers carbon fibres retaining more than 95% of the tensile strength of virgin carbon fibre, while generating significantly lower CO₂ emissions compared to virgin fibre production. The recovered fibres show minimal breakage, low resin residue, and high surface quality, allowing them to be processed into sheet-form nonwoven fabrics with uniform or textured surfaces. These recycled carbon-fibre nonwovens combine functional properties such as thermal conductivity and electromagnetic shielding with aesthetic appeal, making them suitable for applications in automotive, construction, electronics, and consumer goods.

In November 2025, Twisted Automotive, a UK-based group providing premium automotive restorations and marine vessel manufacturing through Twisted Automotive and Twisted Marine, acquired KS Composites Limited for an undisclosed amount. Through this acquisition, Twisted aims to integrate advanced carbon-fibre engineering and manufacturing capabilities to accelerate innovation and secure in-house supply for future high-performance vehicles and marine products. KS Composites Limited is a UK-based company specializing in advanced composite and GRP (glass-reinforced plastic) components, offering expert carbon-fibre manufacturing, composite fabrication, and precision engineering services to automotive, marine, and niche OEM customers.

Major companies operating in the carbon fiber market are Toray Industries Inc., Solvay S.A., Nippon Graphite Fiber Co. Ltd., Teijin Limited, Hexcel Corporation, Hyosung Advanced Materials Corp., Mitsubishi Chemical Carbon Fiber and Composites Inc., Formosa M Co. Ltd., DowAksa, SGL Carbon SE, Zoltek Corporation, Zhongfu Shenying Carbon Co. Ltd., Jiangsu Hengshen Co. Ltd., Jilin Chemical Fiber Group Co. Ltd., BASF SE, Covestro AG, Cytec Solvay Group, Toho Tenax Co. Ltd., Kureha Corporation, Kordsa Teknik Tekstil A.S., AKSA Akrilik Kimya Sanayii A.S., Carbon Conversions Inc., Carbon-Core Corp., Carbon Revolution, Dexcraft, Kamenskvolokno JSC, Rock West Composites, Plasan Carbon Composites, ELG Carbon Fibre, Composites Horizons, Textum Inc., PRF Composite Materials.

Western Europe was the largest region in the carbon fiber market in 2025. The regions covered in the carbon fiber market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the carbon fiber market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The carbon fiber market consists of sales of PAN type carbon fiber, pitch type carbon fiber, filaments, tows, yams, rovings and continuous carbon fiber. Values in this market are ‘factory gate’ values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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