Automotive Carbon Fiber Market Overview, 2025-30

Carbon fiber, renowned for its exceptional strength-to-weight ratio, is increasingly adopted in the automotive industry, particularly in high-performance and luxury vehicles. Its ability to reduce vehicle weight without compromising strength or durability is crucial for improving fuel efficiency and reducing emissions, aligning with global sustainability goals. The automotive industry increasingly uses carbon fiber to reduce vehicle weight and improve fuel efficiency. Carbon fiber components help to enhance performance, safety, and overall design aesthetics in high-end sports cars and electric vehicles.

In March 2023, SGL Carbon launched carbon fiber named SIGRAFIL C T50-4.9/235 and the new SIGRAFIL C T50-4.9/235 possesses exceptional elongation (2.0%) and strength (4.9 GPa) standards. This carbon fiber is widely used in automotive applications. Europe stands at the forefront of the automotive carbon fiber market, primarily due to its stringent emission regulations and a strong emphasis on sustainable transportation. The European Union's rigorous emission targets compel automakers to seek innovative solutions to reduce vehicle weight and improve fuel efficiency. Consequently, carbon fiber composites are extensively utilized in premium and high-performance vehicles.

Advancements in manufacturing technologies, such as automated fiber placement and resin transfer molding, have streamlined production processes, making carbon fiber components more affordable and accessible for mass-market vehicles. Collaborations between automotive manufacturers and carbon fiber producers are leading to the development of customized solutions tailored to specific vehicle requirements, thereby broadening the scope of carbon fiber applications in the industry. Stringent government regulations on emission norms are a significant driver for the adoption of carbon fiber in automotive applications. For instance, the European Union's Regulation (EU) 2023/851 aims to enhance CO₂ emission performance standards for new passenger cars and light commercial vehicles, aligning with the EU's climate objectives.

According to the research report, "Global Automotive Carbon Fiber Market Overview, 2030,", the Global Automotive Carbon Fiber market was valued at more than USD 30.11 Billion in 2024, with the CAGR of 9.52% from 2025-2030. The primary factor behind the growth of the automotive carbon fiber market is the pressing need to reduce vehicle weight to meet stringent emission standards. Regulations such as the European Union's CO2 emissions norms and the U.S. Corporate Average Fuel Economy (CAFE) standards have made it mandatory for manufacturers to develop lighter vehicles that consume less fuel and emit fewer greenhouse gases.

Carbon fiber is increasingly being incorporated into vehicles, especially in high-performance and luxury models, due to its remarkable ability to reduce weight without compromising strength or durability. This is particularly important as manufacturers strive to balance performance and sustainability, making carbon fiber an essential material in achieving these goals. Technological advancements have also played a critical role in the carbon fiber market's expansion. Innovative manufacturing processes such as automated fiber placement (AFP) and resin transfer molding (RTM) are helping reduce production costs and increase the material's availability for mass-market vehicles.

These innovations are making carbon fiber more affordable and accessible to manufacturers, which, in turn, are encouraging more widespread adoption. Additionally, carbon fiber composites are being used in a variety of automotive components; including body panels, interiors, and structural parts, further extending its reach within the industry. Stringent emission regulations and a well-established automotive industry have led to extensive use of carbon fiber in both high-performance vehicles and mass-market models.

European manufacturers like BMW, Audi, and Mercedes-Benz have already adopted carbon fiber in their vehicles, with high-end models using carbon fiber components for weight reduction. This trend is further supported by European initiatives like the Green Deal and carbon-neutral targets set for 2050, making the region a leader in carbon fiber adoption.

Market Drivers

• Demand for High-Performance and Safety Features in Modern Vehicles: Modern consumers are not just looking for fuel efficiency - they also want vehicles that are safer, more durable, and offer superior driving performance. Carbon fiber is well known for its incredible strength-to-weight ratio and crash energy absorption capabilities. This makes it highly desirable for automakers aiming to improve vehicle rigidity and crash safety without adding unnecessary weight. Especially in performance vehicles and SUVs, carbon fiber components are used to enhance chassis stiffness, reduce body roll, and improve handling - all while keeping safety a top priority.
• Government Support and Incentives for Sustainable Materials: Governments worldwide are increasingly supporting the development and use of advanced materials like carbon fiber as part of broader sustainability and innovation strategies. In many regions, automotive manufacturers can access grants, tax benefits, and R&D subsidies when investing in lightweight, low-emission technologies. For instance, the European Union's Green Deal and funding from institutions like the U.S. Department of Energy promote the adoption of advanced composites in transport to reduce carbon footprints. Such incentives are helping reduce the financial risk for OEMs and suppliers adopting carbon fiber, accelerating its adoption in the automotive sector.

Market Challenges

• Limited Standardization and Design Complexity: Carbon fiber materials present unique engineering challenges that differ significantly from traditional metals. The lack of standardized design codes and simulation tools for composite materials makes it harder for engineers to develop carbon fiber components for mass production. Moreover, carbon fiber’s anisotropic nature - meaning its strength varies depending on the direction of the fibers - requires precise layering and orientation, adding design complexity. This slows down prototyping and increases development costs. Bridging the gap between material science and automotive design is critical, but until design and testing tools become more standardized, adoption will remain cautious and slower than desired.
• Supply Chain Constraints and Scalability Issues: The global carbon fiber supply chain is still maturing, and the capacity to meet future large-scale demand remains a challenge. Key raw materials like PAN and pitch are controlled by a relatively small number of suppliers, making the market vulnerable to supply disruptions and price volatility. Moreover, the carbon fiber industry must rapidly scale up to meet the demands of electric and lightweight vehicles, which will require substantial capital investment in production infrastructure. Without secure, scalable, and geographically diverse supply chains, automakers may hesitate to commit to carbon fiber for long-term platform integration.

Market Trends

• Development of Hybrid Composite Materials: A growing trend is the development of hybrid composites - materials that combine carbon fiber with other fibers like glass or natural fibers. These hybrids offer a good balance between performance and cost, making them attractive for semi-structural parts where ultra-high performance isn't required. For example, using a carbon-glass fiber hybrid can still achieve weight reduction and improved mechanical properties at a lower cost than pure carbon fiber. Automakers are experimenting with these hybrid materials in doors, floor panels, and interiors to gain partial benefits while managing expenses.
• Expansion of Carbon Fiber Use in Interior and Aesthetic Applications: While structural use is a core focus, carbon fiber is also becoming increasingly popular for interior trims, dashboards, steering wheels, and decorative panels, particularly in premium and sport-oriented vehicles. Consumers perceive carbon fiber as a symbol of luxury, precision, and performance, making it a desirable design element. This trend reflects a blending of engineering and branding strategies, where carbon fiber is used not only for function but also to elevate a vehicle’s visual and tactile appeal. With more customization and personalization in car interiors, aesthetic use of carbon fiber is likely to keep growing.

Pitch-based carbon fibers are gaining traction in the global automotive carbon fiber industry due to their superior thermal conductivity, stiffness, and cost-effectiveness in specific high-performance applications.

The rising demand for pitch-based carbon fibers in the global automotive carbon fiber industry can be attributed to their unique material properties that align well with emerging trends in high-performance vehicle design, especially in electric vehicles (EVs) and thermal management systems. Unlike PAN-based carbon fibers, which dominate the market for their strength and versatility, pitch-based carbon fibers are derived from petroleum or coal tar pitch and offer significantly higher modulus and thermal conductivity. These attributes make them ideal for structural and semi-structural automotive components where heat dissipation, lightweighting, and stiffness are critical.

With the growing electrification of vehicles, the need for materials that can manage heat from batteries, power electronics, and electric motors has intensified. Pitch carbon fibers, with their excellent thermal performance, are being explored for battery enclosures, heat sinks, and structural parts that require both rigidity and efficient heat management. Moreover, the automotive industry's push for fuel efficiency and reduction of CO₂ emissions is accelerating the use of lightweight composites, and pitch fibers offer a favorable strength-to-weight ratio.

Another factor boosting their growth is the increasing interest in next-generation mobility solutions, including sports and luxury electric vehicles, which demand materials that not only perform exceptionally but also contribute to overall system efficiency. Additionally, advancements in manufacturing processes are making pitch-based carbon fibers more cost-competitive than before, lowering the barriers for broader adoption.

Their recyclability and ability to be produced with more sustainable feedstocks are also becoming more attractive in a market that is under growing pressure to reduce environmental impact. Furthermore, automotive OEMs and tier suppliers are expanding their R&D efforts into alternative carbon fiber sources to reduce reliance on PAN precursors, whose supply chain is more tightly controlled and prone to price volatility.

The passenger vehicle segment is driving growth in the global automotive carbon fiber industry due to increasing demand for lightweight materials that enhance fuel efficiency, electric vehicle range.

The rapid growth of the passenger vehicle segment within the global automotive carbon fiber industry is primarily fueled by the rising need for lightweight materials that improve vehicle efficiency, sustainability, and performance. As governments around the world implement stricter emission standards and fuel economy regulations, automakers are under increasing pressure to reduce vehicle weight to comply with these requirements without compromising safety or driving dynamics. Carbon fiber, known for its exceptional strength-to-weight ratio, has become a strategic material in achieving these goals.

Its adoption in passenger vehicles is expanding from niche applications in sports and luxury models to broader use in mass-market vehicles, driven in part by the electrification of the automotive sector. Electric vehicles (EVs), which are experiencing explosive growth globally, benefit significantly from carbon fiber components because lighter structures directly translate into extended battery range and improved energy efficiency. Automakers are increasingly integrating carbon fiber into battery enclosures, body panels, and chassis elements to reduce weight and lower the center of gravity, enhancing both performance and safety.

Moreover, as consumer expectations for vehicle aesthetics and driving experience evolve, carbon fiber’s sleek, modern appearance and vibration-dampening qualities add both visual and functional value to passenger cars. Technological advancements in carbon fiber manufacturing, including cost-effective processes such as resin transfer molding (RTM) and high-speed automated layup techniques, are making it more viable for use in higher production volumes.

This has enabled OEMs to incorporate carbon fiber into a wider range of vehicle segments, from compact EVs to luxury sedans and SUVs. Additionally, collaborations between automotive manufacturers and carbon fiber suppliers have led to innovations in hybrid materials and tailored composites, further boosting feasibility for passenger vehicle applications.

The growth of carbon fiber in powertrain components within the global automotive industry is driven by the increasing demand for lightweight, high-strength materials that improve performance, fuel efficiency.

The growing adoption of carbon fiber in powertrain components is a significant trend in the global automotive industry, primarily due to its ability to deliver superior performance and efficiency in increasingly complex and high-performance powertrain systems, including those used in electric and hybrid vehicles. Carbon fiber’s remarkable strength-to-weight ratio, along with its stiffness and resistance to corrosion, make it an ideal material for critical powertrain components such as drive shafts, electric motor housings, and transmission parts. As the automotive industry transitions toward electrification, the powertrain's efficiency and weight become even more crucial.

Electric and hybrid vehicles are particularly sensitive to weight because it directly impacts battery efficiency, range, and overall vehicle performance. By replacing traditional metal components with lightweight carbon fiber parts, automakers can significantly reduce the weight of the powertrain, which in turn leads to improved energy efficiency and an extended driving range, particularly important for electric vehicles. In hybrid and electric powertrains, the need for high-strength, durable materials that can withstand the stresses of rapid acceleration, high torque, and thermal cycling has made carbon fiber an attractive choice.

Carbon fiber's ability to withstand high temperatures without degradation is crucial for components exposed to intense heat, such as electric motor casings and power inverters, ensuring longer lifespans and more reliable performance in demanding conditions. Additionally, the growing regulatory pressure on automakers to meet stricter emissions and fuel efficiency standards is pushing the adoption of lightweight materials in powertrain components. Reducing the overall weight of the vehicle helps in lowering CO₂ emissions and improving fuel efficiency, crucial for meeting environmental targets.

As carbon fiber technology advances, its manufacturing processes, such as resin transfer molding and automated fiber placement, are becoming more cost-effective, making it increasingly feasible to incorporate carbon fiber into mass-produced powertrain components. Innovations in hybrid composite materials, combining carbon fiber with other lightweight substances, are also expanding the material's application range.

The growth of the aftermarket sector in the global automotive carbon fiber industry is driven by the increasing demand for customization, enhanced performance, and aesthetic upgrades.

The global automotive carbon fiber industry has seen a significant expansion in the aftermarket sector, fueled by a growing consumer interest in customizing vehicles to improve both performance and aesthetics. Carbon fiber, known for its lightweight properties and superior strength, offers a combination of functional and visual benefits that appeal to car enthusiasts and owners of high-performance, luxury, and sports vehicles. One of the primary drivers of growth in the aftermarket for carbon fiber is the increasing demand for vehicle personalization. As consumers seek to differentiate their vehicles and enhance their driving experience, carbon fiber parts, such as body kits, spoilers, hoods, and interior trim, have become popular upgrades.

These modifications not only give vehicles a sleek, high-tech appearance but also contribute to weight reduction, which is particularly appealing to enthusiasts interested in improving handling and overall performance. Additionally, carbon fiber’s impact on performance extends beyond aesthetics. It is commonly used in the replacement of traditional components like bumpers, fenders, and hoods, as it helps reduce the vehicle’s overall weight, which can lead to enhanced acceleration, handling, and braking performance. This is especially important for performance-driven vehicles such as sports cars and racing models, where even small reductions in weight can lead to significant improvements in lap times and driving dynamics.

The rise in electric vehicles (EVs) and hybrids is also contributing to the aftermarket growth. As these vehicles emphasize efficiency and performance, carbon fiber has gained traction in aftermarket applications to enhance the lightweighting of both structural and non-structural parts. For example, aftermarket carbon fiber components are used to optimize battery enclosures, interior parts, and even exterior body panels, further improving the efficiency of EVs while providing an aesthetic upgrade. Furthermore, the increasing accessibility of carbon fiber manufacturing technologies has made these high-performance materials more affordable and available for consumers.

The Asia-Pacific region is leading the global automotive carbon fiber industry due to its advanced manufacturing capabilities, significant investments in research and development.

The Asia-Pacific region, comprising countries such as Japan, China, South Korea, and India, has long been a leader in automotive manufacturing, with well-established automotive giants like Toyota, Honda, Hyundai, and Geely, along with a rapidly growing electric vehicle (EV) market. The increasing focus on reducing vehicle weight for performance, fuel efficiency, and environmental sustainability has created a strong demand for carbon fiber, which is much lighter than traditional metals like steel and aluminum while offering superior strength and durability.

The Asia-Pacific region’s leadership in carbon fiber production is attributed to its ability to scale up production rapidly, thanks to well-developed manufacturing infrastructure, cost efficiencies, and access to key raw materials such as carbon. This region is home to some of the world’s most advanced carbon fiber production technologies, which have significantly reduced the material’s cost and made it more accessible for mass-market automotive applications. Japan, for example, is a global leader in carbon fiber production, with companies like Toray Industries playing a pivotal role in providing high-quality carbon fiber for both domestic and international automotive manufacturers.

The country’s expertise in composite materials and advanced manufacturing processes has given it a competitive edge in producing carbon fiber at large volumes and competitive prices, making it an essential player in the automotive industry worldwide. Beyond Japan, China has also rapidly grown to become a major force in the carbon fiber market, thanks to its vast industrial base, investments in technology, and a strong domestic automotive market. The Chinese government has heavily invested in advanced manufacturing technologies as part of its push for modernization and innovation, supporting the development of carbon fiber production capabilities.

• April 2024: Hyundai Motor Group partnered strategically with Toray Industries to advance material innovation for new-era mobility. The partnership aims to develop lightweight, high-strength materials for environmentally friendly, high-performance vehicles that include carbon fiber-reinforced polymer (CFRP) parts.
• March 2024: The Mitsubishi Chemical Group (MCG Group) announced the development of a carbon fiber prepreg material, the BiOpreg #400 series, using plant-derived resin. The fiber is aimed at being used in mobility applications, such as interior and exterior materials for automobiles and industrial applications.
• December 2023: Teijin Limited announced plans to start producing and selling Tenax carbon fiber made from environmentally friendly materials. This material helps reduce greenhouse gas emissions during the product's life cycle.
• October 2023: Toray Industries Inc. developed TORAYCA T1200 carbon fiber, which boasts the highest strength of 1,160 kilopounds per square inch (Ksi). This advancement aids the company in reducing its environmental footprint by using lighter carbon-fiber-reinforced plastic materials.

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.