Automotive carbon fiber is a composite material made of carbon fibers that are combined and then reinforced with a resin or polymer. The fibers themselves are incredibly strong, lightweight, and resistant to heat, making them an ideal material for use in high-performance applications like aerospace, sporting equipment, and of course, automotive manufacturing.
Also, one of the biggest advantages of carbon fiber in cars is its impact on the environment. The lightweight nature allows for vehicles to be more
fuel-efficient, resulting in reduced emissions & a lower carbon footprint. In addition, the use in
electric cars can extend their range & enhance their efficiency, making them a more environmentally friendly option than traditional gasoline-powered vehicles.
As per learn.g2 In 2023, the U.S. car manufacturing market was valued at $104.1 billion. In 2022, 10.9 million light trucks and 2.9 million cars were sold in the U.S. Additionally, motor vehicles and parts were the second-largest export from the country in 2021, with a total of 105 billion items exported.
The automotive sector provides a wide range of jobs. Approximately 923,000 people in the U.S. work in manufacturing motor vehicles and parts. Another 1,251,600 Americans are employed at car dealerships, contributing to the car industry’s growth and success.
People in the car industry work in various fields, such as vehicle manufacturing, sales, design, and engineering. These jobs support the production and innovation of vehicles, making the automotive industry a key part of the U.S. economy.
Automotive Carbon Fiber Market continues its rapid expansion due to increasing consumer demand for lightweight yet high-performance materials. Carbon fiber provides unique benefits such as reduced weight, enhanced fuel efficiency and enhanced vehicle dynamics that make it essential material in modern automobile designs, especially electric vehicles (EVs) and high-performance cars.
Recent advancements in carbon fiber production are significantly lowering manufacturing costs and making this material more accessible, thanks to techniques such as automated fiber placement and 3D printing that increase production efficiency and precision, expanding its applications within the automotive industry and furthering widespread adoption of carbon fiber components within mainstream vehicles.
Carbon fiber has also experienced strong demand from the electric vehicle sector, where its application plays a pivotal role in increasing battery efficiency and driving range. Automakers are focused on reducing vehicle weight to increase performance; as a result, carbon fiber components like structural components, body panels, and interior elements offer both performance and aesthetic advantages for enhanced EV performance.
Sustainability trends are driving innovation within the automotive carbon fiber market. Manufacturers are prioritizing recyclability when developing carbon fiber materials and investing in eco-friendly alternatives - this not only meets regulatory requirements but also helps automakers reduce their environmental footprint, opening up new opportunities in an ever-evolving marketplace landscape.
The US Automotive Carbon Fiber Market
The US Automotive Carbon Fiber Market is projected to reach
USD 8.0 billion in 2024 at a compound annual growth rate of
10.9% over its forecast period.
The automotive carbon fiber market in the US benefits from growth opportunities driven by growing demand for lightweight and high-performance vehicles. Innovations in carbon fiber manufacturing & a strong focus on electric and high-end vehicles enhance market potential.
Government regulations driving for better fuel efficiency & lesser emissions also drive adoption. In addition, the development of carbon fiber technology & the expansion of automotive production facilities promote the market's growth.
Further, the market includes the rising demand for lightweight, fuel-efficient vehicles and developments in manufacturing technologies that reduce costs. However, challenges like the high production costs of carbon fiber and limited recycling infrastructure, challenge broad adoption. In addition, the market faces competition from alternative materials & potential fluctuations in raw material prices, impacting growth prospects.
Key Takeaways
- Market Growth: The Automotive Carbon Fiber Market size is expected to grow by 47.6 billion, at a CAGR of 11.6% during the forecasted period of 2025 to 2033.
- By Material: The Polyacrylonitrile (PAN) segment is expected to lead in 2024 with a major & is anticipated to dominate throughout the forecasted period.
- By Application: Structural Assembly is expected to lead the Automotive Carbon Fiber market in 2024.
- By Sales Channel: Original Equipment Manufacturers (OEMs) segment is expected to get the largest revenue share in 2024 in the Automotive Carbon Fiber market.
- Regional Insight: Europe is expected to hold a 33.9% share of revenue in the Global Automotive Carbon Fiber Market in 2024.
- Use Cases: Some of the use cases of Automotive Carbon Fiber include structural integrity, performance parts, and more.
Use Cases:
- Lightweight Components: Carbon fiber is utilized to manufacture lightweight body panels, which minimize overall vehicle weight and enhance fuel efficiency & performance.
- Structural Integrity: It is used in the chassis and other structural elements to improve rigidity and safety without adding significant weight.
- Aesthetic Enhancements: Carbon fiber trim & interior elements provide a sleek, high-tech look, improving the visual appeal of luxury and sports cars.
- Performance Parts: High-performance components like drive shafts, spoilers, and wheels benefit from carbon fiber's strength and lightweight properties, enhancing vehicle dynamics and handling.
Market Dynamic
Driving Factors
Lightweight and Fuel Efficiency Demands
The push for lightweight materials to enhance fuel efficiency & reduce emissions is a major growth driver in the automotive carbon fiber market. Carbon fiber's high strength-to-weight ratio makes it a suitable substitute for traditional materials like steel & aluminum, allowing manufacturers to meet strict environmental regulations and enhance vehicle performance.
Advances in Manufacturing Technologies
Innovations in carbon fiber manufacturing technologies, like automated fiber placement and
3D printing, are driving market growth by minimizing production costs and time. These developments make carbon fiber more accessible for mass production, supporting its adoption in a broader range of automotive applications, including structural components and body panels.
Restraints
High Production Costs
The high costs associated with carbon fiber production, including raw materials and manufacturing processes, are a major restraint in the automotive carbon fiber market, making carbon fiber components more expensive than traditional materials, and limiting their adoption to high-end & luxury vehicles rather than mass-market applications.
Recycling and Sustainability Challenges
Recycling carbon fiber composites creates significant challenges due to the complex and energy-intensive processes required. These sustainability issues impact the broader adoption of carbon fiber in the automotive industry, as manufacturers look for more environmentally friendly and cost-effective alternatives to meet regulatory & consumer demands for greener products.
Opportunities
Growing Electric Vehicle Market
The fast expansion of the electric vehicle (EV) market provides a major opportunity for the automotive carbon fiber industry. EV manufacturers are highly adopting carbon fiber to minimize vehicle weight and enhance battery efficiency, which extends the driving range and is anticipated to drive demand for carbon fiber components in the EV sector.
Increasing Adoption in Mainstream Vehicles
As production technologies advance & costs decrease, carbon fiber becomes more accessible for mainstream automotive applications. The increasing focus on enhancing fuel efficiency and reducing emissions across all vehicle segments, like mid-range and economy cars, opens new opportunities for carbon fiber to be used in a variety of automotive components, from interior parts to structural elements.
Trends
Integration with Advanced Manufacturing Techniques
Recent trends in the automotive carbon fiber market involve the combination of advanced manufacturing techniques like automated fiber placement, resin transfer molding, and 3D printing. These methods enhance production efficiency and precision, allowing the creation of complex & lightweight carbon fiber components at lesser costs, thereby increasing their adoption across many vehicle models.
Increased Collaboration and Partnerships
There is a major trend of collaborations and partnerships between automotive manufacturers & carbon fiber producers. These strategic alliances focuses on to innovate and scale up the production of carbon fiber components, making them more affordable and widely available, which is further driving the development of new applications and improving the overall competitiveness of the automotive carbon fiber market.
Research Scope and Analysis
By Material
By material, the market has been categorized into Polyacrylonitrile (PAN), and Pitch, among these the PAN segment is expected to lead and grow in the automotive carbon fiber market in 2024 due to its properties that improve the performance of carbon fiber. As the primary raw material for high-quality carbon fiber, PAN provides superior tensile strength and durability, important for automotive applications.
Its availability & relatively affordable production process make it a preferred choice for manufacturers. Innovations in PAN processing have led to better material characteristics and lower production costs, further driving its adoption and boosting the overall growth of the carbon fiber market in the automotive sector.
Further, Pitch-based carbon fiber is also expected to play a significant role in the automotive carbon fiber market by providing exceptional thermal conductivity and high modulus properties. Derived from petroleum or coal tar pitch, this type of carbon fiber is ideal for applications requiring superior stiffness and heat resistance.
Its distinctive characteristics make it suitable for specialized automotive components, improving vehicle performance and safety. As the need for advanced materials in automotive design grows, the usage of pitch-based carbon fiber is increasing, contributing to the market's expansion and the development of innovative automotive solutions.
By Propulsion
Internal Combustion Engine (ICE) vehicles will drive the growth of the automotive carbon fiber market by using carbon fiber components to enhance fuel efficiency and minimize emissions. As regulations become stricter, manufacturers are largely adopting lightweight carbon fiber materials to lower vehicle weight and enhance performance. Carbon fiber's strength & durability also contribute to better safety & handling characteristics, which supports innovation and greater integration of carbon fiber, promoting its broad use in the automotive industry.
Further, Plug-in Hybrid Electric Vehicles (PHEVs) are also expected to contribute to the growth of the automotive carbon fiber market by using carbon fiber to improve fuel efficiency and electric range. The lightweight properties of carbon fiber minimize the overall vehicle weight, allowing PHEVs to maximize battery efficiency & performance, which is used in structural components & body panels, enhancing both aerodynamics and safety. As the need for environmentally friendly and efficient vehicles rises, the integration of carbon fiber in PHEVs drives innovation and market expansion.
By Vehicle Type
Two-wheelers are set to dominate the automotive carbon fiber market in 2024 by using carbon fiber's lightweight and high-strength properties to improve performance and fuel efficiency. With the higher demand for electric and high-performance motorcycles, carbon fiber components like frames, wheels, and body panels are becoming more prevalent.
These materials not only enhances acceleration and handling but also contribute to longer battery life in electric models. The rising popularity of two-wheelers globally is driving the adoption of carbon fiber, promoting innovation and market expansion.
Further, Passenger vehicles are also expected to show significant growth and drive the automotive carbon fiber market over the forecast period by incorporating lightweight, high-strength carbon fiber components to improve fuel efficiency and safety.
As manufacturers focus on meeting strict emission regulations & consumer demand for performance, carbon fiber is highly used in structural and aesthetic parts, which not only boosts vehicle performance & fuel economy but also accelerates the adoption of carbon fiber in mainstream automotive production.
By Application
In terms of application, the market has been categorized into structural assembly, powertrain components, interiors, and exteriors. Among these Structural assembly is projected to lead the automotive carbon fiber market in 2024. As carbon fiber has an exceptional strength-to-weight ratio it is ideal for critical structural components like frames, chassis, and subframes.
By minimizing the vehicle weight, carbon fiber enhances fuel efficiency and performance while maintaining safety and durability. As automakers look to meet stringent emissions regulations & improve vehicle dynamics, the need for carbon fiber in structural assemblies is growing, driving innovation & broader adoption within the industry.
Further, the usage of carbon fiber in automotive interiors is growing steadily by providing a blend of luxury, durability, and lightweight benefits. Carbon fiber trim, dashboard components, and seat structures improves the aesthetic appeal and performance of vehicle interiors. Its lightweight nature contributes to complete vehicle weight reduction, enhancing fuel efficiency. In addition, carbon fiber's strength & resistance to wear & tear ensure long-lasting, high-quality interior finishes. As consumer requirements for premium and efficient vehicles increases, carbon fiber's role in interiors is expanding.
By Sales Channel
Original Equipment Manufacturers (OEMs) are expected to be leading the market in 2024, as they play a major role in driving the growth of the automotive carbon fiber market. By incorporating carbon fiber components into their vehicle designs, OEMs performance, fuel efficiency, and overall vehicle appeal.
Their large-scale production capabilities & established market presence support the broad adoption of carbon fiber, making it a standard in new models. In addition, OEMs' investment in R&D accelerates innovation, driving down costs and enhancing material properties. Collaborations between carbon fiber producers & OEMs also streamline supply chains, allowing a consistent and reliable supply of high-quality carbon fiber products.
Further, the aftermarket plays are expected to grow a significant rate over the forecasted period by providing customization & performance improvement options to vehicle owners. Enthusiasts & professionals look for carbon fiber parts for their superior strength and weight reduction benefits, fueling demand.
The aftermarket provides a variety of carbon fiber products, from body kits to interior trim, allowing consumers to upgrade & personalize their vehicles, which drives innovation and competition, further advancing the market.
The Automotive Carbon Fiber Market Report is segmented on the basis of the following
By Material
By Propulsion
- Internal Combustion Engine
- Battery Electric Vehicles
- Hybrid Electric Vehicles
- Plug-in Hybrid Electric Vehicles
- Fuel Cell Electric Vehicles
By Vehicle Type
- Two Wheeler
- Passenger Vehicle
- Commercial Vehicle
By Application
- Structural Assembly
- Powertrain Components
- Interiors
- Exteriors
By Sales Channel
Regional Analysis
Europe is expected to contribute
33.9% of the total market share of the automotive carbon fiber market in 2024 and dominate, due to its strong focus on sustainability and strict emission regulations. As major automotive manufacturers in Europe are investing in carbon fiber technology to create lightweight, fuel-efficient vehicles.
The region's advanced research & development infrastructure promotes innovations in carbon fiber applications. In addition, government incentives for green technologies & the presence of key industry players drive the adoption of carbon fiber, making Europe a major contributor to market expansion.
Further, the Asia Pacific region is expected to show a growth in the highest automotive carbon fiber market during the forecast period, driven by fast industrialization and a booming automotive sector. Key countries like China, Japan, & South Korea are investing heavily in advanced materials to improve vehicle performance & fuel efficiency.
The region's aims on electric vehicles & sustainable transportation further boost carbon fiber demand. In addition, competitive manufacturing costs & a strong supply chain network support the production & adoption of carbon fiber, majorly contributing to market growth.
By Region
North America
Europe
- Germany
- The U.K.
- France
- Italy
- Russia
- Spain
- Benelux
- Nordic
- Rest of Europe
Asia-Pacific
- China
- Japan
- South Korea
- India
- ANZ
- ASEAN
- Rest of Asia-Pacific
Latin America
- Brazil
- Mexico
- Argentina
- Colombia
- Rest of Latin America
Middle East & Africa
- Saudi Arabia
- UAE
- South Africa
- Israel
- Egypt
- Rest of MEA
Competitive Landscape
The automotive carbon fiber market is characterized by strong competition, driven by technological advancements and cost reduction efforts. Companies are aiming to improve the production processes & develop innovative applications to gain a competitive edge. The market sees a mix of established players & new entrants, all looking to enhance product performance & reduce costs.
Strategic partnerships, R&D investments, and expanding production capacities are common strategies. In addition, the growing demand for lightweight, fuel-efficient vehicles is pushing manufacturers to adopt carbon fiber, further strengthening competition as they look to meet evolving consumer and regulatory requirements.
Some of the prominent players in the Global Automotive Carbon Fiber are
- Toray Industries
- BASF SE
- Mitsubishi Chemical Corporation
- DOW Inc
- Nippon Graphite Fiber CO
- SGL Cabron
- Hexcel Corporation
- Kemrock Industries & Export Ltd
- Solvay SA
- Tenjin Ltd
- Other Key Players
Recent Developments
- In July 2024, Carbon Revolution plc announced that OIC released an incremental USD 5 million of the depositary USD 35 million facility early, of which, as a result of this most recent release, USD 25 million has been released. Further, proceeds from the OIC investment will constantly fund the company as it works to satisfy the growing demand from Carbon Revolution’s OEM customers.
- In July 2024, China presented an advancement in high-speed rail technology as the country launched the first carbon fiber-only passenger train in history, The train is noticeably lighter than conventional trains, and will help cut pollution tremendously.
- In April 2024, Hyundai Motor Group announced a strategic collaboration with Toray Group, a prominent Japanese chemical company, which focuses on using hi-tech materials, like carbon fiber, to improve the performance and safety of upcoming mobility innovations. Further, the companies have committed to a joint effort to develop carbon fiber-reinforced plastic and other lightweight materials. By combining Hyundai's expertise in vehicle technology with Toray's material prowess, the alliance looking to elevate the performance and safety standards of mobility products.
- In October 2023, McLaren announced that the company would be testing the use of advanced recycled carbon fiber (rCF) on Lando Norris and Oscar Piastri’s cars at the 2023 United States Grand Prix, which also shows the latest step in the Woking team’s goal to develop a fully circular F1 car by 2030 and to help identify and test advanced technologies and materials on the journey towards achieving its net zero target.
- In July 2023, Dash-CAE launched a new carbon fiber monocoque chassis, the TR01. Delivering a change in price-to-performance ratio, the chassis allows an affordable and versatile solution for hypercar, supercar, and motorsport projects in the growing performance automotive and motorsport industries.
- In July 2023, Toray Industries, Inc. announced plans to grow regular tow carbon fiber production capacity at two facilities. Capital investments will add lines to the Spartanburg plant in South Carolina, USA, of Toray Composite Materials America, Inc., and the Gumi plant in Gyeongsangbuk-do, Korea of Toray Advanced Materials Korea Inc, which will expand the Toray Group’s annual capacity by over 20% to 35,000 metric tons beginning in 2025.