According to the market research report released by Research and Markets in January 2020, the compound annual growth rate of the carbon fiber market from 2020 to 2025 is expected to exceed 12%. Demand in the aerospace and defense sectors will continue to grow rapidly.
Carbon Fiber Market Overview
According to the report "Carbon Fiber Market-Growth, Trends, and Forecast (2020-2025)" released by Research and Markets in January 2020, the compound annual growth rate of the carbon fiber market from 2020 to 2025 is expected to exceed 12%.
The main factors driving market growth include increased demand for fuel-efficient and light vehicles, and increased use of carbon fiber in the aerospace and defense sectors. However, the high cost of carbon fiber and the availability of cheap alternatives (such as glass fiber) are expected to hinder the growth of the market studied.
Growing demand in aerospace and defense
Carbon fibers are ideal for aerospace and defense applications because they can provide the required strength, durability, and stability. Due to its light and strong design structure, conventional metal structures are increasingly being replaced by carbon fiber reinforced plastics (CFRP) on aircraft. From the interior of an airplane or jet to the rotor of a helicopter, composite materials are becoming an integral part of the aerospace industry.
In the defense industry, CFRP can be used in missile defense, ground defense, and military marines. In the Asia-Pacific region, the aerospace industry is growing at a rapid rate because many countries / regions have increased spending on defense platforms and technologies. In addition, in terms of passenger travel, Southeast Asia is still the fastest growing region. The increasing use of carbon fiber in aircraft, coupled with the increase in the number of aircraft placed on the market each year, is expected to provide tremendous growth opportunities for the carbon fiber market of the aerospace industry during the forecast period.
Germany will dominate the European market
Europe accounts for more than 30% of the global market, and Germany accounts for more than 25% of the European market. Germany is also one of the major producers of sporting goods and equipment. International brands such as Adidas and Puma, as well as brands such as Kettler and Triumph have production bases in the country. This is expected to contribute to the demand for carbon fiber during the forecast period.
In addition, Germany ranks first in the European automobile market with 41 assembly and engine production plants, accounting for one-third of the total European automobile production. Germany is one of the leading manufacturing bases in the automotive industry, with manufacturers from different fields, such as equipment manufacturers, material and component suppliers, engine manufacturers, and entire system integrators.
The German aviation industry includes more than 2,300 companies throughout the country, of which northern Germany is a region with a high concentration of companies. Germany is one of the leading manufacturing bases in the aircraft industry and has manufacturers from different market segments. As the demand from major end-user industries grows, the carbon fiber market is expected to grow during the forecast period.
Competitive landscape analysis
The carbon fiber market is highly integrated. The current major companies in the carbon fiber market include Hexcel, Mitsubishi Chemical Carbon Fiber and Composites, SGL Carbon, Teijin Co., Ltd., Toray Industries, etc. The top 10 companies in the carbon fiber industry account for almost 85 %.