The automotive carbon fiber market was valued at USD 22.08 billion in 2021, and it is expected to grow up to USD 40.85 billion in 2027 with a CAGR of 10.80% during the forecast period 2022-2027.

The COVID-19 pandemic severely impacted the market owing to the complete standstill of global transport, imports, and exports. Major manufacturing industries shut down their plant due to restrictions worldwide, and the research and production that goes into the carbon fiber market were hindered. With the majority of the world's carbon fiber production industries located in Japan, the supply chain for the automotive industry was disrupted.

Carbon fiber is a lightweight material and has high-strength characteristics that can be designed for enhanced performance in automotive applications. They offer improvement in structural, functional, or cosmetic properties. To make vehicles lighter, cleaner, safer, and more cost-effective, the leading carbon fiber suppliers are responding to the needs and expectations of the vehicle OEMs, system suppliers, and customers. Many car companies, such as BMW, Audi, GM, Honda, and Polestar, have established agreements with carbon fiber material producers for mass production and are investing in their processes to support low-cost carbon fiber manufacturing.

By enacting stringent emission norms and rising fuel prices, carbon fiber, a great alternative to conventional metals, can reduce the vehicle's weight. This can improve the fuel efficiency and performance of the engine while the fiber's physical strength limits are almost twice as high as those of conventional metals. The rise in demand for electric vehicles across the globe is likely to increase the penetration of carbon fiber to enhance the range of electric vehicles.

Europe is expected to be the market leader due to the presence of many car manufacturers such as Ferrari, Lamborghini, Koenigsegg, Pagani, etc., who use a lot of carbon fiber in manufacturing their cars. Europe is closely followed by North America and Asia-Pacific with growing demand for performance vehicles. Within the Asia-Pacific, China and Japan are poised to be the two largest markets.

Key Market Trends

Increasing Adoption of Carbon Fiber in Automobiles

The automotive industry has started using carbon fiber for strong, lightweight parts that increase speed and improve aerodynamics and fuel efficiency. Currently, most carbon fiber automotive parts are used in high-end sports cars and European supercars; however, some carbon fiber composite parts are available in the aftermarket. Vehicle parts such as body components, wheels and rims, and interior finishes utilize carbon fiber for their unique properties and sleek appearance.

Advanced materials such as carbon fiber are essential for boosting the fuel economy of modern cars for maintaining performance and safety. Since it takes lesser energy to accelerate a lighter object than a heavier one, lightweight materials offer great potential for increasing vehicle efficiency and fuel economy. A 10% reduction in the vehicle’s weight can transpire to a 6% to 8% increase in fuel economy.

BMW uses carbon fiber components in the upper portions of their 7-series sedan, such as roof elements and supporting pillars with the intention of lowering the car’s center of gravity. The Alfa Romeo 4C, on the other hand, has a complete carbon fiber chassis, which cuts the weight of the vehicle down to just 2500lbs. Other cars of similar styles and sizes generally weigh 3000lbs or more, making the 4C a lightweight luxury in its class. BMW and its carbon fiber producing partner, the SGL Group, spent close to USD 1 billion for establishing the supply chain for the CFRP used in the i3 and i8. Audi is also using carbon fiber to produce the rear wall of the space frame for its A8 sedan. Even from the supply side, carbon fiber manufacturers have been ramping up their production capacities, which will further help in the adoption of carbon fiber in automobiles.

Major players are investing in the research and development of carbon fiber components to enhance vehicle efficiency. For instance,

· In May 2022, Hexcel developed a new product range that combines Hexcel resin systems made with bio-derived resin content with natural fiber reinforcements to create material solutions for Automotive, Winter Sports, Marine, and Wind Energy applications.

Europe is Dominating the Market

With the enactment of stringent emission norms and fuel economy standards in the European region, automobile manufacturers in Germany, Italy, and France, such as BMW, Volkswagen, Audi, etc., have started using carbon fiber composites in manufacturing their vehicles.

Companies are trying to invent new parts made of carbon fiber that can reduce the vehicle's total weight to a great extent. The application of carbon-fiber-reinforced plastic (CFRP) has been widely adopted for the production of automotive bodies, particularly in hyper-car manufacturers such as Ferrari, Lamborghini, and Porsche.

Europe is the largest carbon fiber manufacturer market because it is home to sports, super, and hypercar manufacturers like Porsche, Mercedes Benz, Audi, BMW, Ferrari, and Lamborghini.

Followed by Europe, Asia-Pacific is also expected to dominate the automotive carbon fiber market in terms of revenue during the forecast period. The major presence of manufacturing industries across China, India, and Japan is likely to create an opportunity for the market.

Competitive Landscape

The automotive carbon fiber market is a consolidated market. The top 10 players account for most of the market share. Major companies in the carbon fiber market include Hexcel Corporation, Mitsubishi Chemical Carbon Fiber and Composites Inc., SGL Carbon SE, Teijin Limited, and Toray Industries Inc.

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• 1 INTRODUCTION

  • 1.1 Study Assumptions

  • 1.2 Scope of the Study

• 2 RESEARCH METHODOLOGY

• 3 EXECUTIVE SUMMARY

• 4 MARKET DYNAMICS

  • 4.1 Market Drivers

  • 4.2 Market Restraints

  • 4.3 Industry Attractiveness - Porter's Five Forces Analysis

    • 4.3.1 Bargaining Power of Suppliers

    • 4.3.2 Bargaining Power of Buyers/Consumers

    • 4.3.3 Threat of New Entrants

    • 4.3.4 Intensity of Competitive Rivalry

    • 4.3.5 Threat of Substitute Products

• 5 MARKET SEGMENTATION

  • 5.1 Application

    • 5.1.1 Structural Assembly

    • 5.1.2 Powertrain Components

    • 5.1.3 Interiors

    • 5.1.4 Exteriors

  • 5.2 Vehicle Type

    • 5.2.1 Passenger Car

    • 5.2.2 Commercial Vehicle

  • 5.3 Geography

    • 5.3.1 North America

      • 5.3.1.1 United States
      • 5.3.1.2 Canada
      • 5.3.1.3 Rest of North America

    • 5.3.2 Europe

      • 5.3.2.1 Germany
      • 5.3.2.2 United Kingdom
      • 5.3.2.3 France
      • 5.3.2.4 Rest of Europe

    • 5.3.3 Asia-Pacific

      • 5.3.3.1 China
      • 5.3.3.2 Japan
      • 5.3.3.3 India
      • 5.3.3.4 South Korea
      • 5.3.3.5 Rest of Asia-Pacific

    • 5.3.4 South America

      • 5.3.4.1 Brazil
      • 5.3.4.2 Argentina
      • 5.3.4.3 Rest of South America

    • 5.3.5 Middle-East and Africa

      • 5.3.5.1 United Arab Emirates
      • 5.3.5.2 South Africa
      • 5.3.5.3 Rest of Middle-East and Africa

• 6 COMPETITIVE LANDSCAPE

  • 6.1 Vendor Market Share

  • 6.2 Company Profiles*

    • 6.2.1 Toray Industries

    • 6.2.2 Hexcel Corporation

    • 6.2.3 Mitsubishi Chemical Carbon Fiber and Composites Inc

    • 6.2.4 SGL Carbon SE

    • 6.2.5 Solvay

    • 6.2.6 Teijin Ltd

    • 6.2.7 DowAksa USA LLC

    • 6.2.8 A&P Technology Inc

    • 6.2.9 Zoltek Corp

    • 6.2.10 Toho Tenax Europe GmbH

• 7 MARKET OPPORTUNITIES AND FUTURE TRENDS