Carbon Fiber Automotive Market

Increasing Product Usage in Automotive Sector to Drive Market Growth.

Rising car production, along with the surging need for lightweight vehicles, is likely to fuel the carbon fiber market growth. The increasing demand from manufacturers to produce automotive body parts such as hoods, deck lids, bumper beams, and fenders may favor the product demand. Adopting carbon fibers increases the durability of vehicles, thus longer life auto parts. Composites are primarily used in motorsports and luxury vehicles, which are driving the market. Companies are adopting strategies and investing in processes that can reduce the overall vehicle’s weight.

Hence, the application of carbon fiber reinforced polymer (CFRP) is widely used in high-end supercars. The material has a very high strength-to-weight ratio, and the density is as low as 1.6g/cc, making it extremely lightweight. The advantage of a lightweight car is to have better fuel efficiency, and a 10% reduction in weight can save up to 6% to 8% of fuel in automobiles. Carbon fiber for cars is lighter, which can lead to reduced fuel consumption

Additionally, Car companies such as Audi, BMW, Honda, Polestar, and General Motors are focusing on collaborating with carbon composite material manufacturers for mass production and are investing in their processes to support low-cost composite materials.

The Global Carbon Fiber in Automotive Market Industry is poised for substantial growth, with projections indicating a market size of 6.49 USD Billion in 2024 and an expected increase to 13.3 USD Billion by 2035. This growth trajectory suggests a compound annual growth rate of 6.71% from 2025 to 2035. Such figures highlight the increasing integration of carbon fiber in automotive applications, driven by factors such as lightweighting, regulatory compliance, and consumer preferences for high-performance vehicles. The market's expansion reflects a broader trend towards sustainable and efficient automotive solutions, positioning carbon fiber as a key material in the future of the industry.

The rise of electric vehicles (EVs) is significantly influencing the Global Carbon Fiber in Automotive Market Industry. As automakers strive to enhance the range and efficiency of EVs, the lightweight properties of carbon fiber become increasingly appealing. Carbon fiber components can help reduce the overall weight of electric vehicles, thereby improving battery performance and extending driving range. This trend is evident as major automotive manufacturers integrate carbon fiber into their EV designs, aligning with global sustainability goals. The market's growth trajectory is expected to be bolstered by the increasing adoption of EVs, further propelling the demand for carbon fiber solutions.

The Global Carbon Fiber in Automotive Market Industry is experiencing a surge in demand for lightweight materials, driven by the automotive sector's focus on enhancing fuel efficiency and reducing emissions. Carbon fiber composites are significantly lighter than traditional materials such as steel and aluminum, which contributes to improved vehicle performance. In 2024, the market is projected to reach 6.49 USD Billion, reflecting a growing recognition of carbon fiber's advantages. As manufacturers increasingly adopt these materials to meet stringent regulatory standards, the market is expected to expand further, with projections indicating a potential growth to 13.3 USD Billion by 2035.

Regulatory frameworks aimed at reducing greenhouse gas emissions are exerting pressure on the automotive industry, thereby impacting the Global Carbon Fiber in Automotive Market Industry. Governments worldwide are implementing stringent emissions standards, compelling manufacturers to seek innovative solutions to comply with these regulations. Carbon fiber's lightweight characteristics enable automakers to produce vehicles that meet or exceed these standards while maintaining performance. As a result, the adoption of carbon fiber in automotive applications is likely to increase, as manufacturers prioritize compliance and sustainability. This trend is expected to contribute to the market's growth, with projections indicating a significant expansion in the coming years.

Technological innovations in the production of carbon fiber are playing a crucial role in the Global Carbon Fiber in Automotive Market Industry. Advanced manufacturing techniques, such as automated fiber placement and resin transfer molding, enhance the efficiency and cost-effectiveness of carbon fiber components. These advancements not only reduce production costs but also improve the quality and consistency of the final products. As a result, automotive manufacturers are more inclined to incorporate carbon fiber into their designs, thereby driving market growth. The anticipated compound annual growth rate of 6.71% from 2025 to 2035 suggests a robust future for carbon fiber applications in the automotive sector.

The Global Carbon Fiber in Automotive Market Industry is also influenced by shifting consumer preferences towards high-performance vehicles. As consumers increasingly demand vehicles that offer superior speed, handling, and efficiency, manufacturers are turning to carbon fiber as a solution. The material's strength-to-weight ratio allows for the design of vehicles that not only perform better but also provide enhanced safety features. This growing consumer interest in performance-oriented vehicles is likely to drive the demand for carbon fiber components, further solidifying its position in the automotive market. The anticipated growth in this sector aligns with the overall expansion of the carbon fiber market.

By region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The Asia-Pacific market registered the largest market share in 2018 to positive automotive sales in countries such as China, India, and Japan. High investments from the public and private sectors in the manufacturing of electric vehicles are likely to propel the adoption of carbon fiber during the forecast period. According to the International Energy Agency, in 2018, the electric car fleet exceeded 5.1 million, up by 2 million from the previous year and sales of the new electric car almost doubled.

In North America, the US has the largest market for automobiles. High demand for a second car in the region has negatively impacted the sale of new cars in the region. In addition, consumer attitude toward spending less on new car purchases has slowed the growth of the automotive industry in the region.

Figure 3: CARBON FIBER IN AUTOMOTIVE MARKET SHARE BY REGION 2023 (%)

Source: Secondary Research, Primary Research, Market Research Future Database, and Analyst Review

Europe is the largest automotive hub with the presence of a large number of automobile producers in the region; this positively influences the market growth—Germany is the leading country-level market. Stringent regulations implemented by (EPA) Environmental Protection Agency have increased the demand for lightweight and fuel-efficient vehicles, thus driving the carbon fiber in the automotive industry market in the region during the assessment period.

The market in the Middle East & Africa is likely to grow at a sluggish rate during the forecast period. The Latin American market is expected to exhibit remarkable growth owing to the positive growth avenues in Brazil and Mexico.

Major market players are spending a lot of money on R&D to increase their product lines, which will help Carbon Fiber in the Automotive market grow even more. Market participants are also taking a range of strategic initiatives to grow their worldwide footprint, with key market developments such as new product launches, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations. Competitors in the Carbon Fiber in the Automotive industry must offer cost-effective items to expand and survive in an increasingly competitive and rising market environment.

The major market players are investing a lot of money in R&D to expand their product lines, which will spur further market growth for Carbon Fiber in Automotive. With significant market development like new product releases, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations, market participants are also undertaking various strategic activities to expand their presence. To grow and thrive in a market climate that is becoming more competitive and growing, competitors in the Carbon Fiber in the Automotive industry must offer affordable products.

Manufacturing locally to cut operating costs is one of the main business tactics manufacturers use in the Carbon Fiber in the Automotive industry to benefit customers and expand the market sector. The Low-Profile Additives market has recently given medicine some of the most important advantages. Major Carbon Fiber in Automotive market players, including Hexcel Corporation (US), Mitsubishi Chemical Carbon Fiber and Composites Inc. (US), SGL Carbon SE (Germany), and others, are attempting to increase market demand by funding R&D initiatives.

Hexcel is a manufacturer of composite materials and engineered products. It operates in two segments: Composite Materials and Engineered Products. The Composite Materials segment manufactures and markets carbon fibers, fabrics and specialty reinforcements, prepregs and other fiber-reinforced matrix materials, structural adhesives, honeycomb, molding compounds, tooling materials, polyurethane systems, and laminates.

Also, SGL Carbon (formerly known as SGL Group) is a manufacturer of graphite and composite materials and products for chemical and industrial applications. It operates in four business units: Carbon Fibers, Composite Solutions, Graphite Solutions, and Process Technology. The company offers carbon fibers, textiles, pre-impregnated materials, fiber-reinforced components, and specialty graphite solutions for the automotive,