Global Carbon Fiber In Automotive Market Growth, Share, Size, Trends and Forecast (2025 - 2031)

• December 2023: Teijin Limited announced plans to start producing and selling Tenax carbon fiber made from environmentally friendly materials. This material helps in the reduction of greenhouse gas emissions throughout the product's life cycle.

• December 2023: Foton Motor introduced a super low-carbon truck, the Toano V next-generation light bus, and a full range of hybrid vehicles.

The global carbon fiber in automotive market is experiencing significant growth due to the increasing demand for lightweight and fuel-efficient vehicles. Carbon fiber's high strength-to-weight ratio makes it an ideal material for automotive applications, particularly in high-performance and luxury vehicles where reducing weight without compromising strength is crucial. This material's ability to enhance fuel efficiency and reduce emissions aligns with stringent environmental regulations and the global push toward sustainability.

The market is segmented by type into Sheet Molding Compound (SMC), Short Fiber Thermoplastic (SFT), Long Fiber Thermoplastic (LFT), and others. SMC is widely used for its moldability and structural integrity in large parts like body panels. SFT and LFT, which incorporate short and long carbon fibers respectively, offer varying balances of strength and flexibility, suitable for a range of applications from smaller components to structural parts. These materials are applied across various automotive systems, including exteriors, power trains, under-body systems, chassis, and interiors, providing enhanced performance, durability, and aesthetic appeal.

Geographically, the market spans North America, Europe, Asia Pacific, the Middle East and Africa, and Latin America. North America and Europe lead in innovation and adoption, driven by established automotive industries and regulatory standards. Asia Pacific, particularly China and Japan, is rapidly expanding due to a growing automotive sector and a focus on electric vehicles. The Middle East, Africa, and Latin America are emerging markets, with increasing adoption driven by economic growth and automotive production. Key players like Toray Industries, SGL Carbon, and Teijin Limited are instrumental in driving market advancements and expanding applications of carbon fiber in the automotive industry.

Global Carbon Fiber In Automotive Segment Analysis

In this report, the Global Carbon Fiber In Automotive Market has been segmented by Type, Application and Geography.

Global Carbon Fiber In Automotive Market, Segmentation by Type

The Global Carbon Fiber In Automotive Market has been segmented by Type into Sheet Molding Compound (SMC), Short Fiber Thermoplastic (SFT), Long Fiber Thermoplastic (LFT) and Others.

SMC is a high-strength composite material widely used for its excellent moldability and structural integrity, making it ideal for producing large, complex parts such as body panels and structural components. SFT consists of short carbon fibers embedded in a thermoplastic matrix, valued for its ease of processing and recyclability, suitable for manufacturing smaller, less structurally demanding components. LFT features longer carbon fibers within a thermoplastic matrix, providing a balance between strength and flexibility, commonly used for structural applications that require a combination of durability and impact resistance.

These materials are applied across various automotive systems, including exteriors, power trains, under-body systems, chassis, and interiors. In exterior applications, carbon fiber is used in body panels, roofs, and aerodynamic parts, enhancing vehicle performance and fuel efficiency due to its lightweight properties. In power train systems, it is utilized for parts such as drive shafts and engine components, contributing to reduced rotational mass and improved energy efficiency. The under-body system benefits from carbon fiber’s corrosion resistance and durability, making it suitable for parts like floor panels and protective shields. In the chassis system, carbon fiber composites create lightweight and robust structures, enhancing vehicle stability and handling, while interior applications include dashboard panels, seat frames, and trim elements, adding aesthetic appeal and strength.

Geographically, the market spans North America, Europe, Asia Pacific, the Middle East and Africa, and Latin America. North America and Europe lead in innovation and adoption, driven by established automotive industries and stringent regulatory standards. The Asia Pacific region, particularly China and Japan, is rapidly expanding due to a growing automotive sector and a focus on electric vehicles. Meanwhile, the Middle East, Africa, and Latin America are emerging markets with increasing adoption driven by economic growth and automotive production. Key players such as Toray Industries, SGL Carbon, and Teijin Limited are driving market advancements, continually innovating to expand the applications of carbon fiber in the automotive industry.

Global Carbon Fiber In Automotive Market, Segmentation by Application

The Global Carbon Fiber In Automotive Market has been segmented by Application into Exterior, Power Train System, Under Body System, Chassis System, Interior and Others.

Carbon fiber's unique properties make it highly suitable for a range of automotive applications, each leveraging its lightweight and high-strength characteristics to enhance vehicle performance and efficiency.

In exterior applications, carbon fiber is extensively used for body panels, roofs, and aerodynamic parts. These components benefit from carbon fiber's lightweight nature, which significantly reduces the overall weight of the vehicle, leading to improved fuel efficiency and handling. Additionally, the aesthetic appeal of carbon fiber adds a premium touch to high-end and performance vehicles.

For power train systems, carbon fiber components such as drive shafts and engine parts help reduce rotational mass, resulting in better energy efficiency and enhanced vehicle performance. In under body systems, carbon fiber's corrosion resistance and durability make it an ideal material for floor panels and protective shields, providing long-lasting protection and reducing maintenance needs. The chassis system also benefits from carbon fiber composites, which create lightweight yet robust structures that improve vehicle stability and handling. Interior applications include dashboard panels, seat frames, and trim elements, where carbon fiber not only contributes to weight reduction but also adds to the vehicle's luxurious feel. Other applications encompass various uses where carbon fiber’s unique properties offer significant advantages, such as in electrical components and fuel system parts.

Geographically, the market covers North America, Europe, Asia Pacific, the Middle East and Africa, and Latin America. Each region experiences varying degrees of adoption and innovation in carbon fiber applications, driven by local automotive industry dynamics and regulatory environments. North America and Europe are at the forefront of innovation and adoption, while Asia

Global Carbon Fiber In Automotive Market, Segmentation by Geography

In this report, the Global Carbon Fiber In Automotive Market has been segmented by Geography into five regions; North America, Europe, Asia Pacific, Middle East and Africa and Latin America.

Global Carbon Fiber In Automotive Market Share (%), by Geographical Region, 2024

The global carbon fiber in automotive market is geographically segmented into North America, Europe, Asia Pacific, the Middle East and Africa, and Latin America, with a report timeline extending from 2020 to 2030. North America is one of the leading regions for the adoption of carbon fiber in automotive manufacturing. The region is characterized by a strong presence of key automotive manufacturers and a growing demand for lightweight, fuel-efficient vehicles. With increasing emphasis on reducing carbon emissions and improving vehicle performance, carbon fiber is gaining traction in high-performance vehicles, including electric cars and sports cars. The market is also supported by government regulations focused on sustainability and reducing vehicle weight to improve fuel efficiency.

In Europe, the automotive industry is increasingly turning to carbon fiber as a solution for lightweighting and enhancing vehicle performance. European automotive manufacturers, especially those in Germany and France, are adopting carbon fiber to meet stringent environmental standards and improve fuel economy. The region's focus on electric vehicles (EVs) is further driving the demand for carbon fiber due to its weight-saving benefits, which are crucial for extending the range and efficiency of EVs. Europe is also home to several key players in the automotive carbon fiber market, fostering innovation and increasing the availability of advanced carbon fiber materials.

The Asia Pacific region is expected to experience significant growth in the carbon fiber automotive market due to the rapid expansion of the automotive sector, especially in countries like China, Japan, and India. The increasing production of electric vehicles, government incentives for adopting lightweight materials, and growing consumer demand for energy-efficient cars are key factors propelling the use of carbon fiber. Additionally, major automotive manufacturers in the region are integrating carbon fiber into their vehicle designs to stay competitive and align with global sustainability trends. The Middle East and Africa, along with Latin America, are also witnessing gradual growth, although at a slower pace, with automotive markets evolving and beginning to incorporate more lightweight materials to meet emerging demands for fuel-efficient vehicles.

This report provides an in depth analysis of various factors that impact the dynamics of Global Carbon Fiber In Automotive Market. These factors include; Market Drivers, Restraints and Opportunities Analysis.

Drivers, Restraints and Opportunity Analysis

Drivers

• Lightweight
• Fuel Efficiency
• Emission Regulations

• High Strength - High strength is one of the most significant attributes of carbon fiber, making it an ideal material for various automotive applications. Carbon fiber composites are known for their superior tensile strength, which allows them to withstand significant stress and strain without deforming or breaking. This property is crucial in automotive components that need to endure high impact forces and mechanical loads, such as body panels, structural supports, and suspension systems.

  The high strength of carbon fiber also contributes to significant weight reduction in automotive designs. Traditional materials like steel and aluminum, while strong, are much heavier than carbon fiber. By replacing these materials with carbon fiber composites, manufacturers can produce lighter vehicles without compromising structural integrity. This weight reduction translates to improved fuel efficiency, as lighter vehicles require less energy to accelerate and maintain speed.

  The high strength-to-weight ratio of carbon fiber opens up new possibilities for innovative automotive designs and engineering solutions. Designers can create more aerodynamic shapes and integrate complex geometries that were previously unattainable with conventional materials. This flexibility not only enhances the aesthetic appeal of vehicles but also improves their performance characteristics, such as handling, speed, and acceleration.

Restraints

• High Cost
• Manufacturing Complexity
• Recycling Challenges

• Limited Mass Production - Limited mass production is a significant restraint in the widespread adoption of carbon fiber in the automotive industry. The manufacturing process for carbon fiber composites is complex and time-consuming, involving several steps such as weaving the fibers, impregnating them with resin, and curing the composite material under high pressure and temperature. This intricate process requires specialized equipment and skilled labor, leading to longer production times and higher costs compared to traditional materials like steel and aluminum.

  Another factor contributing to the limited mass production of carbon fiber is the high cost of raw materials. The production of carbon fiber begins with the precursor material, typically polyacrylonitrile (PAN), which undergoes a series of chemical and thermal treatments to convert it into carbon fibers. These processes are energy-intensive and require significant capital investment, leading to higher prices for carbon fiber compared to conventional materials.

  Efforts are underway to address these challenges and improve the mass production capabilities of carbon fiber. Innovations in manufacturing technologies, such as automated layup processes and advanced resin transfer molding, aim to streamline production and reduce costs. Additionally, research into alternative precursor materials and more efficient production methods holds promise for making carbon fiber more accessible for mass-market automotive applications.

Opportunities

• Electric Vehicles
• R&D Investments
• Advanced Manufacturing

• Emerging Markets - Emerging markets represent a significant opportunity for the global carbon fiber in automotive market, driven by rapid economic growth and increasing automotive production. Countries in regions such as Asia Pacific, Latin America, and parts of Africa are experiencing a surge in automotive manufacturing and sales, fueled by rising incomes and urbanization.

  In particular, the Asia Pacific region, including China, India, and Southeast Asian countries, is a hotspot for automotive industry growth. China, as the largest automotive market globally, is heavily investing in electric vehicles (EVs) and other green technologies to combat pollution and reduce reliance on fossil fuels. The government’s supportive policies and incentives for EV production are encouraging automakers to adopt lightweight materials like carbon fiber to enhance vehicle efficiency and extend battery life.

  Latin America and parts of Africa also offer promising opportunities for the carbon fiber in automotive market. Countries like Brazil, Mexico, and South Africa are witnessing steady growth in their automotive industries, supported by economic development and an increasing focus on sustainability. The adoption of carbon fiber in these regions can be driven by the need to improve vehicle performance and comply with emerging environmental regulations.

Key players in Global Carbon Fiber In Automotive Market include;

• Hexcel Corporation
• Mitsubishi Chemical Carbon Fiber and Composites Inc.
• SGL Carbon S
• Cytec Solvay Group
• Teijin Limited
• DOWAKSA
• Formosa Plastic Corp.
• ZOLTEK
• Toray Industries Inc.
• Sigmatex Ltd.

In this report, the profile of each market player provides following information:

• Company Overview and Product Portfolio
• Key Developments
• Financial Overview
• Strategies
• Company SWOT Analysis