Carbon Fiber Global Market Report 2026

Carbon fiber, a high-performance synthetic fiber, is produced through the carbonization of acrylic fiber at elevated temperatures. Known for its lightweight yet robust properties, it finds widespread applications demanding low weight, high rigidity, and excellent conductivity. Its uses span diverse industries including automotive for making car bodies, aerospace for crafting aircraft components, as well as in sporting goods such as fishing rods, golf club shafts, and tennis rackets.

Two primary categories of carbon fibers exist, virgin fiber (VCF) and recycled carbon fiber (RCF). VCF denotes fibers sourced for the first time, akin to virgin materials used in paper production, while RCF involves reusing fibers, akin to recycled paper. These fibers are derived from various materials such as polyacrylonitrile (PAN), petroleum pitch, and rayon, and are further categorized into large tow and small tow variants. Their applications range from composite materials and textiles to microelectrodes and catalysis. Industries such as aerospace and defense, automotive, wind energy, as well as sports equipment heavily rely on these fibers for their specific properties and durability.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report's Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

Tariffs are influencing the carbon fiber market by increasing costs of imported precursor materials, processing equipment, and high-temperature furnaces used in fiber production. Aerospace and automotive manufacturers in North America and Europe are most affected due to reliance on imported high-grade fibers, while Asia-Pacific faces cost pressures on export-driven production. These tariffs are raising material costs and affecting project economics. However, they are also supporting domestic fiber manufacturing, recycled carbon fiber development, and regional supply chain strengthening.

The carbon fiber market research report is one of a series of new reports from The Business Research Company that provides carbon fiber market statistics, including carbon fiber industry global market size, regional shares, competitors with a carbon fiber market share, detailed carbon fiber market segments, market trends and opportunities, and any further data you may need to thrive in the carbon fiber industry. This carbon fiber market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The carbon fiber market size has grown strongly in recent years. It will grow from $5.52 billion in 2025 to $6.02 billion in 2026 at a compound annual growth rate (CAGR) of 9.0%. The growth in the historic period can be attributed to aerospace material innovation, early adoption in sporting goods manufacturing, increasing use in defense applications, advancements in PAN-based fiber production, rising demand for lightweight materials.

The carbon fiber market size is expected to see strong growth in the next few years. It will grow to $8.57 billion in 2030 at a compound annual growth rate (CAGR) of 9.2%. The growth in the forecast period can be attributed to increasing adoption in electric vehicles, expansion of wind energy installations, growing use in pressure vessels and tanks, rising focus on recyclable composites, increasing investments in advanced material manufacturing. Major trends in the forecast period include increasing use of lightweight composite materials, rising demand for high-strength carbon fibers, growing adoption of recycled carbon fiber, expansion of carbon fiber applications in automotive, enhanced focus on performance and durability.

The expansion of the carbon fiber market is poised to be fueled by the burgeoning automotive industry. This sector encompasses a multitude of entities involved in the complete lifecycle of motor vehicles. Carbon fiber, renowned for its lightweight and robust characteristics, plays a pivotal role in crafting vehicle parts and components, notably enhancing fuel efficiency, performance, and weight reduction in vehicles. As per the Asia Automotive Analysis, South Korea witnessed an 8.5% surge in automobile production in 2022, totaling 3,756,491 units. Thus, the thriving automotive industry acts as a primary driver for the carbon fiber market.

Major companies operating in the advanced composites recycling market are concentrating on developing innovative solutions, such as low-temperature chemical recycling of carbon-fibre-reinforced plastics (CFRP) that maintains fibre strength and quality, to support circular-economy reuse of high-performance carbon fibre materials. Low-temperature chemical recycling of CFRP refers to a process that employs a specialized decomposition agent to break down thermoset resins under milder conditions, enabling the recovery of carbon fibres while preserving their mechanical and surface characteristics. For example, in November 2025, Toray Industries Inc., a Japan-based supplier of carbon-fibre composite materials, textiles, resins, and industrial materials, introduced this new carbon-fibre recycling technology. The process effectively decomposes various types of CFRP waste and recovers carbon fibres retaining more than 95% of the tensile strength of virgin carbon fibre, while generating significantly lower CO2 emissions compared to virgin fibre production. The recovered fibres show minimal breakage, low resin residue, and high surface quality, allowing them to be processed into sheet-form nonwoven fabrics with uniform or textured surfaces. These recycled carbon-fibre nonwovens combine functional properties such as thermal conductivity and electromagnetic shielding with aesthetic appeal, making them suitable for applications in automotive, construction, electronics, and consumer goods.

In November 2025, Twisted Automotive, a UK-based group providing premium automotive restorations and marine vessel manufacturing through Twisted Automotive and Twisted Marine, acquired KS Composites Limited for an undisclosed amount. Through this acquisition, Twisted aims to integrate advanced carbon-fibre engineering and manufacturing capabilities to accelerate innovation and secure in-house supply for future high-performance vehicles and marine products. KS Composites Limited is a UK-based company specializing in advanced composite and GRP (glass-reinforced plastic) components, offering expert carbon-fibre manufacturing, composite fabrication, and precision engineering services to automotive, marine, and niche OEM customers.

Major companies operating in the carbon fiber market are Toray Industries Inc., Solvay S.A., Nippon Graphite Fiber Co. Ltd., Teijin Limited, Hexcel Corporation, Hyosung Advanced Materials Corp., Mitsubishi Chemical Carbon Fiber and Composites Inc., Formosa M Co. Ltd., DowAksa, SGL Carbon SE, Zoltek Corporation, Zhongfu Shenying Carbon Co. Ltd., Jiangsu Hengshen Co. Ltd., Jilin Chemical Fiber Group Co. Ltd., BASF SE, Covestro AG, Cytec Solvay Group, Toho Tenax Co. Ltd., Kureha Corporation, Kordsa Teknik Tekstil A.S., AKSA Akrilik Kimya Sanayii A.S., Carbon Conversions Inc., Carbon-Core Corp., Carbon Revolution, Dexcraft, Kamenskvolokno JSC, Rock West Composites, Plasan Carbon Composites, ELG Carbon Fibre, Composites Horizons, Textum Inc., PRF Composite Materials

Western Europe was the largest region in the carbon fiber market in 2025. The regions covered in the carbon fiber market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

The countries covered in the carbon fiber market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The carbon fiber market consists of sales of PAN type carbon fiber, pitch type carbon fiber, filaments, tows, yams, rovings and continuous carbon fiber. Values in this market are 'factory gate' values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

Carbon Fiber Market Global Report 2026 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.

This report focuses carbon fiber market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.

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Where is the largest and fastest growing market for carbon fiber ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward, including technological disruption, regulatory shifts, and changing consumer preferences? The carbon fiber market global report from the Business Research Company answers all these questions and many more.

The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, total addressable market (TAM), market attractiveness score (MAS), competitive landscape, market shares, company scoring matrix, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.

• The market characteristics section of the report defines and explains the market. This section also examines key products and services offered in the market, evaluates brand-level differentiation, compares product features, and highlights major innovation and product development trends.
• The supply chain analysis section provides an overview of the entire value chain, including key raw materials, resources, and supplier analysis. It also provides a list competitor at each level of the supply chain.
• The updated trends and strategies section analyses the shape of the market as it evolves and highlights emerging technology trends such as digital transformation, automation, sustainability initiatives, and AI-driven innovation. It suggests how companies can leverage these advancements to strengthen their market position and achieve competitive differentiation.
• The regulatory and investment landscape section provides an overview of the key regulatory frameworks, regularity bodies, associations, and government policies influencing the market. It also examines major investment flows, incentives, and funding trends shaping industry growth and innovation.
• The market size section gives the market size ($b) covering both the historic growth of the market, and forecasting its development.
• The forecasts are made after considering the major factors currently impacting the market. These include the technological advancements such as AI and automation, Russia-Ukraine war, trade tariffs (government-imposed import/export duties), elevated inflation and interest rates.
• The total addressable market (TAM) analysis section defines and estimates the market potential compares it with the current market size, and provides strategic insights and growth opportunities based on this evaluation.
• The market attractiveness scoring section evaluates the market based on a quantitative scoring framework that considers growth potential, competitive dynamics, strategic fit, and risk profile. It also provides interpretive insights and strategic implications for decision-makers.
• Market segmentations break down the market into sub markets.
• The regional and country breakdowns section gives an analysis of the market in each geography and the size of the market by geography and compares their historic and forecast growth.
• Expanded geographical coverage includes Taiwan and Southeast Asia, reflecting recent supply chain realignments and manufacturing shifts in the region. This section analyzes how these markets are becoming increasingly important hubs in the global value chain.
• The competitive landscape chapter gives a description of the competitive nature of the market, market shares, and a description of the leading companies. Key financial deals which have shaped the market in recent years are identified.
• The company scoring matrix section evaluates and ranks leading companies based on a multi-parameter framework that includes market share or revenues, product innovation, and brand recognition.

Scope

• Markets Covered:1) By Type: Virgin Fiber (VCF); Recycled Carbon Fiber (RCF)
• 2) By Raw Material: Polyacrylonitrile (PAN); Petroleum Pitch; Rayon
• 3) By Tow: Large Tow; Small Tow
• 4) By Application: Composite Materials; Textiles; Microelectrodes; Catalysis
• 5) By End-Users: Aerospace And Defense; Automotive; Wind Energy; Pipes And Tanks; Sporting Goods; Other End-Users
• Subsegments:
• 1) By Virgin Fiber (VCF): PAN-Based Virgin Fiber; Pitch-Based Virgin Fiber; High-Strength Virgin Fiber; High-Modulus Virgin Fiber
• 2) By Recycled Carbon Fiber (RCF): Melt-Process Recycled Fiber; Recycled Fiber from Polymer Matrix Composites; Recycled Fiber from Thermoset Composites; Chopped Recycled Carbon Fiber
• Companies Mentioned: Toray Industries Inc.; Solvay S.A.; Nippon Graphite Fiber Co. Ltd.; Teijin Limited; Hexcel Corporation; Hyosung Advanced Materials Corp.; Mitsubishi Chemical Carbon Fiber and Composites Inc.; Formosa M Co. Ltd.; DowAksa; SGL Carbon SE; Zoltek Corporation; Zhongfu Shenying Carbon Co. Ltd.; Jiangsu Hengshen Co. Ltd.; Jilin Chemical Fiber Group Co. Ltd.; BASF SE; Covestro AG; Cytec Solvay Group; Toho Tenax Co. Ltd.; Kureha Corporation; Kordsa Teknik Tekstil A.S.; AKSA Akrilik Kimya Sanayii A.S.; Carbon Conversions Inc.; Carbon-Core Corp.; Carbon Revolution; Dexcraft; Kamenskvolokno JSC; Rock West Composites; Plasan Carbon Composites; ELG Carbon Fibre; Composites Horizons; Textum Inc.; PRF Composite Materials
• Countries: Australia; Brazil; China; France; Germany; India; Indonesia; Japan; Taiwan; Russia; South Korea; UK; USA; Canada; Italy; Spain.
• Regions: Asia-Pacific; South East Asia; Western Europe; Eastern Europe; North America; South America; Middle East; Africa
• Time Series: Five years historic and ten years forecast.
• Data: Ratios of market size and growth to related markets, GDP proportions, expenditure per capita,
• Data Segmentations: country and regional historic and forecast data, market share of competitors, market segments.
• Sourcing and Referencing: Data and analysis throughout the report is sourced using end notes.
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