North America Automotive Carbon Fiber Market Outlook, 2030

The North American Carbon Fiber Market is witnessing a rise in demand for lightweight, high-strength materials, especially in the aerospace and automotive industries. This shift is driven by the need to reduce fuel consumption and emissions. The US Department of Energy reported in 2023 that lightweight vehicles can improve fuel efficiency by up to 35%. In line with this trend, major players like Toray Industries and Hexcel Corporation have expanded their production facilities to meet the growing demand for carbon fiber-based materials. In Canada, the adoption of carbon fiber composites is particularly noteworthy.

The interior segment is experiencing exponential growth, with carbon fiber being utilized in components such as steering wheels, gear knobs, dashboards, and seats. This trend is driven by consumer demand for both aesthetic appeal and weight reduction. For example, Tesla offers a Carbon Fiber Interior Wrap Kit for its Model 3 in Canada, catering to this market preference.

In the United States, the automotive carbon fiber market is experiencing robust growth, propelled by the need for weight reduction to meet fuel economy standards and reduce greenhouse gas emissions. Carbon fiber's application in electric and hybrid vehicles is particularly significant, as reducing weight is crucial for maximizing range and battery efficiency.

However, the market faces challenges, including high production costs and limited production capacity. The complex processes involved in carbon fiber manufacturing contribute to its expense, posing a barrier to widespread adoption. Regulatory frameworks in North America are increasingly supportive of sustainable practices, encouraging the use of lightweight materials like carbon fiber.

These regulations, coupled with consumer demand for high-performance and eco-friendly vehicles, are creating a conducive environment for the growth of the automotive carbon fiber market. As technological advancements continue and production processes become more cost-effective, carbon fiber is poised to play an even more significant role in shaping the future of automotive design and manufacturing in North America.

According to the research report "North America Automotive Carbon Fiber Market Outlook, 2030,", the North America Automotive Carbon Fiber market is expected to reach a market size of more than USD 12.71 Billion by 2030. The US Department of Energy (DOE) in 2023 noted that the cost of fiberglass composites is 40-60% lower than that of carbon fiber composites (DOE, 2023). In September 2023, Toray Industries expanded its carbon fiber production capacity in North America with the opening of a new manufacturing facility in Tennessee. This investment is aimed at meeting the increasing demand for lightweight materials in the automotive and aerospace industries.

The rising technical barriers to the widespread adoption of carbon fiber materials in various industries are hindering market growth. The complexity of the manufacturing processes and lack of standardization are significant challenges for new market entrants. Technological innovations in manufacturing processes have played a crucial role in the growth of the automotive carbon fiber market in North America. Historically, carbon fiber was considered a high-cost material, limiting its use to luxury and performance vehicles. However, advances in automated fiber placement (AFP), resin transfer molding (RTM), and other manufacturing techniques have made carbon fiber more accessible and cost-effective for mass-market applications.

These innovations have also improved the consistency and quality of carbon fiber components, helping manufacturers to scale production and bring costs down, ultimately allowing the material to be used in a broader range of vehicles. Furthermore, the increasing demand for performance vehicles and luxury cars has accelerated the adoption of carbon fiber in North America.

Consumers are becoming more conscious of vehicle performance, safety, and sustainability, which has pushed automakers to invest in carbon fiber as part of their efforts to meet these evolving demands. As consumer preferences shift toward vehicles that are not only environmentally friendly but also high-performing and visually appealing, carbon fiber offers an ideal solution that aligns with these trends.

Market Drivers

• Demand for Lightweight Vehicles to Improve Fuel Efficiency: In North America, stringent regulations from agencies like the U.S. Environmental Protection Agency (EPA) and the National Highway Traffic Safety Administration (NHTSA) are pushing automakers to produce vehicles with lower greenhouse gas emissions and improved fuel efficiency. Carbon fiber’s high strength-to-weight ratio makes it an ideal material for achieving these goals. By incorporating carbon fiber into vehicle structures, manufacturers can significantly reduce weight, thereby improving mileage. This has especially become a major driver in the production of electric vehicles (EVs), where reducing weight can extend driving range - an essential selling point in the competitive EV market.
• Growth of the Electric Vehicle (EV) Sector: The rise in demand for electric and hybrid vehicles across the U.S. and Canada is driving the adoption of advanced lightweight materials like carbon fiber. EV manufacturers, including both startups like Rivian and established players like Ford and GM, are increasingly exploring carbon fiber to offset the heavy weight of battery packs. The Biden administration’s push toward EV adoption, through incentives and infrastructure investments, has also catalyzed R&D efforts in lightweight materials. This shift is prompting increased investment in carbon fiber production and integration capabilities in the North American automotive sector.

Market Challenges

• High Production Costs and Limited Economies of Scale: One of the most significant challenges in the North American carbon fiber automotive market is its high cost compared to traditional materials like steel or aluminum. Carbon fiber manufacturing is energy-intensive, and current production volumes don't yet benefit from large-scale economies. As a result, carbon fiber is primarily used in high-end vehicles, niche sports cars, or luxury models. Mass-market vehicle manufacturers often hesitate to integrate carbon fiber components extensively due to the cost implications, limiting broader adoption across the industry.
• Complex Recycling and Environmental Concerns: While carbon fiber offers benefits in terms of vehicle emissions during use, its end-of-life disposal remains a concern in North America. The recycling infrastructure for composite materials, particularly carbon fiber-reinforced polymers (CFRPs), is still underdeveloped. Most recycling techniques are either inefficient or cost-prohibitive at scale. Additionally, the industry faces pressure to address the full lifecycle sustainability of vehicles, including materials recovery. These environmental and logistical hurdles hinder widespread use and require advancements in closed-loop recycling technologies.

Market Trends

• Increased Investment in Local Carbon Fiber Manufacturing: To reduce reliance on overseas suppliers and lower production costs, many North American automotive OEMs and suppliers are investing in domestic carbon fiber facilities. For example, companies are forming partnerships or acquiring firms with advanced composite manufacturing capabilities to secure local supply chains. Additionally, R&D investments are being directed toward developing lower-cost precursors and faster production methods. This reshoring trend not only supports cost reduction but also aligns with national goals of strengthening domestic manufacturing resilience.
• Integration of Carbon Fiber in Multi-Material Structures: Rather than using carbon fiber exclusively, North American automakers are increasingly adopting a multi-material approach, combining carbon fiber with metals like aluminum and high-strength steel. This trend allows manufacturers to balance cost, performance, and manufacturability. Carbon fiber is strategically used in parts like roof panels, hoods, and body frames where weight savings yield the most benefit. Advanced joining technologies are being developed to seamlessly integrate carbon fiber with other materials, expanding its usability without redesigning entire vehicles.

Polyacrylonitrile (PAN) is the fastest-growing material in North America's automotive carbon fiber industry due to its superior performance, cost-effectiveness, and increasing demand for lightweight, fuel-efficient vehicles.

Polyacrylonitrile (PAN) has emerged as the fastest-growing material in the North American automotive carbon fiber industry for a multitude of reasons, with its superior performance characteristics, cost-effectiveness, and the automotive sector's need for lighter, more fuel-efficient vehicles driving this trend. PAN-based carbon fibers offer a high strength-to-weight ratio, which is crucial for the automotive industry where reducing vehicle weight is directly linked to improved fuel efficiency and reduced carbon emissions.

As automotive manufacturers face stricter fuel economy and emissions standards, there is an increasing need to integrate lightweight materials like carbon fiber into vehicle designs to meet these requirements without compromising performance. PAN-based carbon fibers provide a robust solution because they possess excellent mechanical properties such as high tensile strength, stiffness, and fatigue resistance, making them ideal for critical automotive applications, including body panels, chassis, and interior components.

The versatility of PAN-based carbon fibers also contributes to their growing adoption, as they can be tailored to meet specific performance demands in various automotive systems, enhancing vehicle safety, durability, and aesthetic appeal. Additionally, the growing trend towards electric vehicles (EVs) and the shift away from traditional internal combustion engine vehicles further amplify the demand for lightweight materials that can offset the weight of heavy battery packs and maximize the driving range.

From a cost perspective, while carbon fibers have traditionally been expensive to produce, advancements in PAN processing technologies and economies of scale are making them more accessible to automotive manufacturers. The development of more efficient manufacturing processes, such as automated fiber placement (AFP) and continuous fiber-reinforced thermoplastics, is helping to reduce production costs, making PAN-based carbon fibers a more viable option for mass-market vehicles.

The two-wheeler vehicle type is the fastest-growing sector in North America's automotive carbon fiber industry due to its increasing demand for lightweight, high-performance components that enhance speed, fuel efficiency, and overall riding experience.

The two-wheeler vehicle type is the fastest-growing sector in North America's automotive carbon fiber industry, driven by the rising demand for lightweight, durable, and high-performance materials that improve the overall speed, fuel efficiency, and riding experience of motorcycles and scooters. As urban transportation continues to evolve, two-wheelers have gained popularity due to their cost-effectiveness, ease of maneuverability, and fuel efficiency. Carbon fiber, with its exceptional strength-to-weight ratio, is an ideal material for these vehicles, as it allows manufacturers to reduce the overall weight of the bike without compromising structural integrity or safety.

This weight reduction is critical for improving fuel efficiency and enhancing the performance of two-wheelers, making them more appealing to consumers, especially in markets where fuel costs and environmental concerns are major considerations. The automotive industry’s increasing emphasis on reducing vehicle emissions aligns well with the adoption of carbon fiber in two-wheelers, as lighter bikes require less energy to operate, leading to lower emissions and improved fuel economy. Additionally, carbon fiber offers superior durability and resistance to corrosion, which is particularly valuable for two-wheelers exposed to varying weather conditions, road debris, and frequent use.

In North America, the shift toward more eco-friendly transportation options, combined with advances in carbon fiber manufacturing technologies that reduce production costs, has contributed to the rapid growth of carbon fiber in the two-wheeler market. The industry has also benefited from innovations in composite materials and production techniques, making carbon fiber more accessible to manufacturers, allowing for its integration into mainstream two-wheeler production.

Structural assembly is leading in North America's automotive carbon fiber industry due to its ability to enhance vehicle strength, safety, and lightweight performance, which are crucial for meeting stringent regulatory requirements and consumer demands for fuel efficiency and sustainability.

Structural assembly applications are at the forefront of North America’s automotive carbon fiber industry because of their critical role in improving vehicle strength, safety, and overall performance while simultaneously reducing weight - key factors driving the automotive industry's push toward more fuel-efficient and environmentally friendly vehicles. As governments implement stricter regulations on fuel economy and emissions, automotive manufacturers are increasingly turning to lightweight materials like carbon fiber to help meet these standards. Structural components, such as frames, chassis, and safety-critical parts, must combine both strength and durability.

Carbon fiber, with its remarkable strength-to-weight ratio, is particularly well-suited for these applications, offering a way to significantly reduce a vehicle’s overall weight without compromising structural integrity. This weight reduction directly contributes to better fuel efficiency and lower emissions, making carbon fiber an essential material for automakers striving to meet increasingly rigorous environmental standards.

In addition to enhancing fuel economy, carbon fiber’s superior mechanical properties, such as high tensile strength, stiffness, and impact resistance, make it an ideal choice for structural assemblies that must withstand the forces and stresses encountered during normal vehicle operation and, more importantly, during collisions. The use of carbon fiber in structural assembly applications also improves vehicle safety, as the material can be engineered to absorb impact energy efficiently, providing better crash protection for occupants.

As automotive manufacturers move toward lighter, more efficient electric vehicles (EVs), the role of carbon fiber in structural assembly becomes even more critical. EVs, which typically feature heavy battery packs, require lightweight materials to offset the added weight and optimize vehicle range. Carbon fiber’s use in structural assembly helps achieve this balance, making it an essential material for the growing EV market in North America.

OEM (Original Equipment Manufacturer) sales channels are leading in North America's automotive carbon fiber industry due to their ability to ensure high-quality, mass-produced components that meet stringent industry standards and meet the growing demand for lightweight.

The OEM (Original Equipment Manufacturer) sales channel is the dominant force in North America's automotive carbon fiber industry because of its critical role in ensuring the consistent production of high-quality components that meet the rigorous standards required for modern vehicles. OEMs provide automakers with the necessary infrastructure to mass-produce carbon fiber parts that adhere to strict safety, quality, and performance requirements. The automotive sector is increasingly focused on incorporating lightweight materials such as carbon fiber into various vehicle components, including body panels, frames, and interior parts, to improve fuel efficiency, reduce emissions, and enhance overall vehicle performance.

OEMs are uniquely positioned to handle large-scale production of these high-performance materials, making them essential in meeting the growing demand for carbon fiber in the automotive industry. As automakers work to comply with stricter fuel economy and emissions regulations, they rely on OEMs to supply the necessary carbon fiber components to meet these goals. The need for mass production and high-quality standards in the automotive market means that OEMs are typically the most trusted and reliable source for carbon fiber components, as they have the technical expertise, advanced manufacturing capabilities, and resources to produce large volumes of parts at scale.

Additionally, OEMs have well-established relationships with automakers, which allow for greater collaboration in the design and production of custom carbon fiber components that meet specific performance requirements. This collaboration ensures that the carbon fiber parts integrated into vehicles are not only lightweight but also durable, crash-resistant, and optimized for the latest technological advancements in automotive design. The increasing shift toward electric vehicles (EVs) further strengthens the dominance of OEMs in the carbon fiber market, as EV manufacturers prioritize lightweight materials to offset the weight of battery packs and maximize driving range.

The United States is leading the North American automotive carbon fiber industry primarily due to its advanced manufacturing capabilities, substantial investments in research and development.

The U.S. has long been a global leader in the automotive industry, and its leadership in carbon fiber production is closely tied to its ability to innovate and push the boundaries of automotive engineering. Carbon fiber, known for being lightweight yet incredibly strong, plays a crucial role in the modern automotive sector, particularly in performance vehicles, electric cars, and those designed for fuel efficiency. The U.S. automotive industry, with its deep-rooted presence of major companies like Ford, General Motors, and Tesla, has increasingly focused on reducing vehicle weight to meet fuel efficiency standards and reduce carbon emissions.

Carbon fiber, being lighter than steel and aluminum while offering similar or even superior strength, has become the material of choice for high-performance and electric vehicles, such as Tesla’s Model S or the Ford GT. The U.S. has invested heavily in carbon fiber research and development, with numerous partnerships between automotive giants, material science companies, and universities. Institutions like MIT and Stanford are collaborating with automakers to refine carbon fiber production techniques, reduce manufacturing costs, and improve the material’s properties for automotive use. This focus on innovation has allowed the U.S.

to produce lighter, stronger, and more cost-effective carbon fiber, which is crucial for mainstream automotive applications. Another factor is the significant investments in the manufacturing infrastructure required to produce carbon fiber. While carbon fiber production has traditionally been expensive, the U.S. has worked to scale up production facilities and improve manufacturing efficiency. Furthermore, the growing focus on electric vehicles (EVs) in the U.S., with companies like Tesla leading the way, has driven the demand for carbon fiber due to its role in reducing weight, thereby improving battery efficiency and range. EV manufacturers are particularly interested in lightweight materials to offset the weight of large battery packs.

Considered in this report:

• Historic Year: 2019
• Base year: 2024
• Estimated year: 2025
• Forecast year: 2030

Aspects covered in this report:

• Automotive Carbon Fiber Market with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Material:

• Polyacrylonitrile (PAN)
• Pitch

By Application:

• Structural Assembly
• Powertrain Components
• Interior and Exterior

By Sales Channel:

• OEM
• Aftermarket

The approach of the report:

This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and listing out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, annual report of companies, analyzing the government generated reports and databases.

After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducted trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers in regional aspects, tier aspects, age group, and gender. Once we have primary data with us we have started verifying the details obtained from secondary sources.

Intended audience:

This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to agriculture industry, government bodies and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.