Carbon Fiber Market Global Report 2026

The carbon fiber market size has grown strongly in recent years. It will grow from $5.53 billion in 2025 to $6.04 billion in 2026 at a compound annual growth rate (CAGR) of 9.1%. The growth in the historic period can be attributed to innovations in aerospace materials, early adoption of advanced materials in sporting goods manufacturing, increasing utilization in defense applications, improvements in PAN-based fiber manufacturing processes, and growing demand for lightweight materials.

The carbon fiber market size is expected to see strong growth in the next few years. It will grow to $8.63 billion in 2030 at a compound annual growth rate (CAGR) of 9.3%. The growth in the forecast period can be attributed to increasing adoption of carbon fiber in electric vehicles, expansion of wind energy installations, growing application in pressure vessels and storage tanks, increasing emphasis on recyclable composite materials, and rising investment in advanced materials manufacturing. Major trends in the forecast period include broader use of lightweight composite materials, rising demand for high-strength carbon fibers, increasing adoption of recycled carbon fiber, expansion of carbon fiber applications within the automotive industry, and greater emphasis on material performance and durability.

The expanding automotive sector is anticipated to support the growth of the carbon fiber market in the coming years. The automotive industry comprises a wide range of organizations and companies engaged in the design, engineering, production, promotion, sale, and servicing of motor vehicles. Growth in the automotive sector is being supported by increasing consumer demand for personal transportation, which is contributing to higher vehicle production and motivating manufacturers to broaden their model portfolios. Carbon fiber is used to manufacture lightweight and high-strength body parts and components for vehicles, helping enhance fuel efficiency, vehicle performance, and overall weight reduction, particularly in advanced vehicles. For instance, in September 2025, according to the European Automobile Manufacturers Association, a Belgium-based association, global new car registrations totaled 37.4 million units during the first half of 2025, reflecting a 5% increase compared with the corresponding period of the previous year. Therefore, the expanding automotive industry is driving the growth of the carbon fiber market.

Key companies operating in the carbon fiber market are concentrating on developing innovative products, such as low-temperature chemical recycling of carbon-fibre-reinforced plastics (CFRP), which preserves fiber strength and quality to support the circular-economy reuse of high-performance carbon fiber materials. Low-temperature chemical recycling of CFRP refers to a process that uses a specialized decomposition agent to break down thermoset resins under milder conditions, enabling the recovery of carbon fibers while preserving their mechanical and surface properties. For example, in November 2025, Toray Industries Inc., a Japan-based provider of carbon-fiber composite materials, textiles, resins, and industrial materials, launched this new carbon-fiber recycling technology. The process successfully decomposes various types of CFRP waste and recovers carbon fibers that retain more than 95% of the tensile strength of virgin carbon fiber, while generating significantly lower CO₂ emissions compared to virgin fiber production. The recovered fibers demonstrate 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-fiber nonwovens combine the functional characteristics of carbon fiber, including thermal conductivity and electromagnetic shielding, with aesthetic appeal, making them potentially suitable for applications across automotive, construction, electronics, and consumer goods.

In November 2025, Twisted Automotive, a UK-based group providing premium automotive restoration and marine vessel manufacturing through Twisted Automotive and Twisted Marine, acquired KS Composites Limited, an advanced composites specialist, for an undisclosed amount. Through this acquisition, Twisted aims to incorporate advanced carbon-fibre engineering and manufacturing expertise to accelerate innovation and establish an internal supply capability for future high-performance automotive and marine products. KS Composites Limited is a UK-based provider of advanced composite and GRP (glass-reinforced plastic) components, offering specialized 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.

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