As per a Published report by Fortune Business Insights™, the global carbon fiber market share is projected to reach USD 4,088.8 million by 2028. The high demand for automotive, coupled with the rising need for lightweight vehicles are expected to bolster growth. As per the India Brand Equity Foundation (IBEF), the sales of passenger vehicles surged by 14.19% in India in October 2020, compared to 2019. Fortune Business Insights™ presented this information in a new report, titled, “Carbon Fiber Market, 2021-2028.”
The report further states that the carbon fiber market stood at USD 2,238.6 million in 2020. It is set to exhibit a CAGR of 8.3% during the forecast period between 2021-2028.
Solvay Joins Hands with SGL Carbon to Provide Composite Materials to Build Lighter Airplanes
In January 2020, Solvay partnered up with SGL Carbon to develop high-performance composite materials to build lighter airplanes. The decision was taken because of the urgent need to reduce the aircraft’s weight and reduce emissions in the atmosphere. As per a company official, “This partnership will help us to create a new carbon fiber composite material for the aviation industry. As this is only the beginning, we are screening these materials for using them in one of our programs. The era of lightweight aircraft is about to take off to a whole new level.”
Closure of Manufacturing Facilities amid COVID-19 Pandemic to Obstruct Growth
The automobile industry was affected severely because of the COVID-19 pandemic. In Japan, South Korea, Italy, U.K., Germany, and U.S., automakers showcased a direct impact of the pandemic in 2020. It is compelling OEMs to strengthen their supply chains owing to disruptions. At the same time, a wide range of industries have shut down their manufacturing facilities to prevent transmission.
The report included four significant measures in estimating the current market size. Exhaustive secondary research was conducted to collect information about the parent market. Our next step included primary research to authenticate these sizing, assumptions, and findings with various industry experts. We have also used bottom-up and top-down approaches to calculate the size of this industry.
Drivers & Restraints-
Rising Usage of CFRP to Manufacture Lightweight Vehicles will Favor Growth
Numerous companies are investing huge sums in developing processes to lower the weight of vehicles. Therefore, the usage of carbon fiber reinforced polymer (CFRP) has increased in high-end supercars. CFRP has a density as low as 1.6g/cc and possesses an excellent strength-to-weight ratio. Also, lightweight cars can save around 6% to 8% of fuels and have much better fuel efficiency. These factors are anticipated to accelerate the carbon fiber market growth in the upcoming years. However, the cost of this fiber is very high. It mainly depends on the cost of the precursor and the yield, which, in turn, may obstruct growth.
Large Tow Segment to Grow Rapidly Stoked by Rising Production of Intermediate Modulus
By the application, the market is categorized into aviation, aerospace & defense, automotive, wind turbines, sports & leisure, construction, and others. Based on the precursor, it is segmented into pitch and PAN. Below is a brief note on the tow criterion:
By Tow: The market is classified into large tow and small tow. Amongst these, the large tow segment earned 3% and 24.6% in terms of the carbon fiber market share globally and in the U.S., respectively. Several companies nowadays are trying to create new strategies to develop large-tow intermediate modulus.
Europe to Lead Backed by Increasing Presence of Electric Vehicle Manufacturers
North America: The increasing need to use renewable resources has resulted in the surging installation of wind farms in North America. Additionally, lightweight carbon fiber is extensively used in the aviation sector of this region.
Asia Pacific: The region is expected to showcase considerable growth on account of the rising government spending on multiple infrastructure projects and rapid urbanization. Apart from that, China is exhibiting the higher utilization of construction composites in the construction of houses, bridges, and tunnels.
Europe: The market in this region stood at USD 756.5 million in 2020 in terms of revenue. It is expected to dominate throughout the forthcoming years because of the rising expenditure of automakers in R&D activities to create affordable and effective carbon composite materials. Besides, the presence of numerous electric car manufacturers in the region would propel growth.
Key Companies Aim to Intensify Competition through Acquisitions and New Product Launches
The global market for carbon fiber houses several companies, such as Teijin Limited, Toray Industries, and ZOLTEK Corporation. They are majorly focusing on purchasing local firms, launching state-of-the-art products, or partnering up with reputed organizations. Below is one of the latest industry developments:
June 2019: Liberty Hall Capital Partners announced the execution of an agreement with Sekisui Chemical Group to sell AIM Aerospace worth USD 510 million. This new acquisition would help Sekisui Chemical to expand its geographic reach, diversify its customer base, and broaden its capabilities.