Automotive Carbon Fiber Market Outlook, 2030

The automotive industry has long been at the forefront of innovation, striving to meet the demands of performance, safety, and environmental sustainability. In recent years, one of the most transformative materials in the industry has been carbon fiber. Carbon fiber, known for its lightweight and high-strength properties, is revolutionizing the automotive sector by offering improved fuel efficiency, enhanced performance, and a significant reduction in vehicle weight. This material, once reserved for aerospace and high-performance sports cars, has gradually found its way into mainstream vehicles, marking a significant shift in how automobiles are designed and manufactured.

Over the past decade, carbon fiber has gradually moved beyond niche applications into mass-market vehicles. As global regulations on fuel efficiency and emissions have become stricter, automakers have been under increasing pressure to develop lightweight, fuel-efficient cars. Carbon fiber plays a crucial role in achieving these goals, and its use is expected to grow rapidly as manufacturers continue to explore ways to meet regulatory standards while enhancing vehicle performance. One of the most notable developments in the automotive carbon fiber industry is the adoption of carbon fiber-reinforced polymers (CFRP).

CFRP is a composite material made by combining carbon fibers with a polymer resin, resulting in a strong, lightweight, and versatile material that is easier to manufacture and more cost-effective than pure carbon fiber. This has made carbon fiber more accessible to mass-market vehicles, where cost constraints are more critical. For example, the BMW i3 and i8 are among the first mass-produced electric vehicles (EVs) to feature extensive use of carbon fiber, particularly in the car's passenger cell and body structure. The success of these models has demonstrated the feasibility of using carbon fiber in high-volume production, paving the way for other automakers to incorporate the material into their vehicles.

According to the research report “Global Automotive Carbon Fiber Market Outlook, 2030”, the global market is projected to reach market size of USD 51.38 Billion by 2030 increasing from USD 30.11 in 2024, growing with 9.52% CAGR by 2025-30. The future of carbon fiber in the automotive industry appears bright, with continued growth expected in both the use of carbon fiber composites and the adoption of electric vehicles. The need for lightweight materials to improve fuel efficiency, reduce emissions, and increase vehicle performance will only increase as global environmental regulations become more stringent. Automakers are also exploring the integration of carbon fiber into new vehicle designs, including autonomous vehicles and smart cars.

As these vehicles become more complex, requiring lightweight yet durable materials to support advanced sensors, batteries, and other electronic systems, carbon fiber’s role in automotive design will continue to evolve. Additionally, as the market for electric and hybrid vehicles expands, carbon fiber will play an even more critical role in meeting the specific demands of EV design, including energy efficiency and battery performance. The automotive carbon fiber industry is also poised to benefit from collaborations and partnerships between automakers, carbon fiber manufacturers, and technology companies.

These collaborations will likely accelerate the development of new materials, production techniques, and recycling methods, further driving innovation and reducing costs. Additionally, the use of carbon fiber in EVs is particularly significant because lighter vehicles require less energy to operate, directly contributing to improved battery life and range - two critical factors for the success of electric vehicles in the market.

Market Drivers

• Electric Vehicle (EV) Adoption and Lightweighting Demand: The rapid global shift toward electric vehicles is a key driver for carbon fiber use. EVs benefit immensely from lightweight materials since reducing vehicle mass directly improves battery range and energy efficiency. Carbon fiber, with its high strength-to-weight ratio, is ideal for EV chassis, body panels, and structural components.
• Stringent Emission Regulations and Fuel Efficiency Standards: Governments worldwide are tightening fuel economy and emission regulations. Automakers are under pressure to reduce the environmental footprint of vehicles, making lightweight materials like carbon fiber critical for compliance. This is especially true in Europe, China, and North America, where regulatory frameworks are aggressively pushing for greener mobility solutions.

Market Challenges

• High Production Costs and Limited Scalability: Carbon fiber is significantly more expensive than traditional materials like steel or aluminum, due to complex manufacturing processes and high raw material costs. This makes it difficult for widespread use in cost-sensitive, mass-market vehicles, limiting its penetration to premium or performance-oriented segments.
• Recycling and End-of-Life Management: Unlike metals, carbon fiber is harder to recycle efficiently. Current methods of reclaiming carbon fiber are either too costly or degrade the quality of the material. With increasing emphasis on circular economy practices and sustainability, the lack of robust recycling infrastructure poses a major hurdle.

Market Trends

• Hybrid Material Development (e.g., CFRP with Metal or Thermoplastics) : To strike a balance between performance and cost, manufacturers are developing hybrid structures combining carbon fiber with metals or thermoplastics. This allows for tailored material performance while reducing the overall cost of production and simplifying repair processes.
• Automation and Mass Production Techniques: The industry is witnessing innovation in automated carbon fiber layup and molding processes like high-pressure resin transfer molding (HP-RTM). These advances are making it more feasible to integrate carbon fiber components into higher-volume vehicle production lines, particularly in mid-range electric and hybrid vehicles.

Polyacrylonitrile (PAN) is leading in the automotive carbon fiber market because it provides the optimal balance of cost, performance, and scalability in the production of high-quality carbon fiber composites.

Polyacrylonitrile (PAN) is the dominant precursor in the production of carbon fiber for the automotive industry due to its ability to produce fibers with superior mechanical properties, such as high tensile strength and stiffness, which are critical for automotive applications. PAN-based carbon fibers are produced through a process of thermal stabilization and carbonization, which ensures a consistent and reliable product suitable for various automotive components. The automotive sector, which increasingly focuses on lightweighting to improve fuel efficiency and reduce emissions, benefits from PAN carbon fibers as they offer a high strength-to-weight ratio, crucial for performance optimization.

Additionally, PAN is relatively easier to process at scale compared to other precursors like pitch-based carbon fibers, making it more cost-effective for mass production. With the increasing demand for high-performance vehicles and electric vehicles (EVs), where lightweighting is essential for battery range, PAN-based carbon fibers offer a viable solution for both premium and mass-market vehicles.

The growing use of automated manufacturing processes for PAN-based carbon fibers also makes it possible to scale production more efficiently, reducing costs over time and driving broader adoption across the automotive industry. As the market continues to grow, PAN’s ability to provide high-quality, durable, and lightweight materials positions it as the leading precursor in the automotive carbon fiber market.

Passenger vehicles are leading in the automotive carbon fiber market due to the increasing demand for lightweight materials that enhance fuel efficiency, reduce emissions, and improve overall vehicle performance.

Passenger vehicles represent the largest segment of the automotive carbon fiber market primarily because of the growing emphasis on fuel efficiency, reduced environmental impact, and improved performance, all of which are facilitated by the use of lightweight materials. Carbon fiber, with its exceptional strength-to-weight ratio, allows manufacturers to significantly reduce the overall weight of vehicles without compromising structural integrity or safety. This is particularly important in light of stringent global regulations on fuel efficiency and emissions, which push automakers to develop lighter, more efficient vehicles.

As fuel efficiency becomes a critical factor in meeting regulatory standards and consumer demands, the adoption of carbon fiber in passenger vehicles has accelerated. The material is used in various components such as body panels, chassis, and interior structures to reduce weight, enhance acceleration, and improve handling, contributing to a more efficient driving experience.

Additionally, as automakers push to electrify their fleets and produce more energy-efficient electric vehicles (EVs), carbon fiber plays a key role in reducing the weight of EVs, thereby extending their driving range by minimizing battery load. With passenger vehicles making up the largest portion of global car sales and increasingly adopting sustainable practices, the demand for carbon fiber in this segment is expected to continue growing, positioning it as the leading application in the automotive carbon fiber market.

Structural assembly is leading in the automotive carbon fiber market due to the need for high-strength, lightweight materials that improve vehicle safety, performance, and efficiency.

Structural assembly is one of the most critical areas for the application of carbon fiber in the automotive industry because it directly influences a vehicle's overall strength, rigidity, and safety performance. The demand for stronger, lighter structures in vehicles has surged, driven by the need to meet stringent safety standards, reduce weight for fuel efficiency, and improve overall vehicle performance. Carbon fiber is ideal for structural applications due to its high tensile strength, durability, and light weight, which allows automakers to design safer, more efficient vehicles without compromising performance.

Components like the vehicle frame, crash structures, and reinforcement panels can all benefit from the use of carbon fiber, as it enhances the strength-to-weight ratio, improving both crashworthiness and handling. By reducing the weight of these structural components, automakers can not only make vehicles more fuel-efficient but also improve handling dynamics and acceleration, which are important performance aspects for consumers.

Additionally, carbon fiber's ability to withstand high-impact forces and its corrosion resistance make it an attractive material for automotive structural assembly, increasing the longevity and safety of vehicles. As the automotive industry moves towards more sustainable, high-performance designs, carbon fiber’s role in structural assembly is expected to grow, with automakers increasingly using it to meet the evolving demands for safety, efficiency, and performance.

Original Equipment Manufacturers (OEMs) are leading in the automotive carbon fiber market due to their ability to integrate advanced materials into high-performance and mass-market vehicles, meeting the demands for lightweight, fuel-efficient, and sustainable designs.

OEMs are at the forefront of the automotive carbon fiber market because they play a crucial role in the large-scale adoption and integration of carbon fiber into vehicle production. As the automotive industry faces increasing pressure to meet global fuel efficiency standards, reduce emissions, and enhance vehicle performance, OEMs are incorporating carbon fiber into a wide range of vehicles - from premium models to mass-market cars and electric vehicles (EVs). OEMs have the resources, technological infrastructure, and expertise to invest in and scale the production of carbon fiber components, making it possible to apply this material in a broader range of vehicle segments.

Carbon fiber's lightweight yet durable properties make it a perfect fit for reducing vehicle weight without sacrificing safety or strength, which is essential for improving fuel efficiency and electric vehicle range. For instance, in the case of electric vehicles, where weight reduction is crucial for optimizing battery life and range, OEMs are leading the way in incorporating carbon fiber into key components like chassis, body panels, and structural elements.

Additionally, as consumer demand for eco-friendly and high-performance vehicles grows, OEMs are able to leverage carbon fiber's advanced properties to differentiate their models in the competitive market, attracting environmentally conscious consumers seeking both sustainability and performance. Through extensive research and development (R&D), OEMs are also driving innovation in carbon fiber manufacturing, making the material more cost-effective and efficient for mass production. As a result, OEMs are central to the continued expansion of carbon fiber use across the automotive market, pushing the industry toward more efficient, safer, and greener vehicle designs.

Europe is leading in the automotive carbon fiber market due to its strong regulatory framework, which drives the adoption of lightweight materials to meet stringent fuel efficiency and emission reduction targets.

Europe is a key leader in the automotive carbon fiber market, largely due to its progressive environmental regulations and the region's strong commitment to sustainability in vehicle manufacturing. The European Union (EU) has set ambitious targets for reducing carbon emissions and improving fuel efficiency, both of which are driving automakers to seek out innovative materials that can reduce vehicle weight while maintaining performance and safety. Carbon fiber, with its lightweight and high-strength properties, is an ideal solution to meet these regulatory demands, helping automakers comply with increasingly stringent CO2 emissions standards.

European manufacturers, such as BMW, Audi, and Mercedes-Benz, have been at the forefront of integrating carbon fiber into their vehicle designs, particularly in premium and electric vehicles (EVs), where weight reduction is crucial for improving battery range and energy efficiency. Additionally, the region’s robust automotive R&D infrastructure and collaboration between manufacturers, carbon fiber producers, and research institutions have fostered the development of advanced manufacturing techniques that make carbon fiber more accessible and cost-effective.

Europe's leading role in the electric vehicle market also supports the growing demand for carbon fiber, as lightweighting is a critical factor in maximizing EV performance and range. Furthermore, the EU's focus on circular economy practices and sustainable production processes has encouraged the development of carbon fiber recycling technologies, making it a more sustainable choice for the automotive industry.

• In March 2025, McLaren has unveiled a groundbreaking carbon fiber manufacturing technique, dubbed Automated Rapid Tape (ART) carbon, by repurposing a method from the aerospace sector for its supercars. This innovative approach automates the application of dry composite tape, ensuring precise fiber placement and enhancing the strength-to-weight ratio. The McLaren W1 will be the inaugural model to showcase this technology, with intentions to integrate it into upcoming supercar models.
• In March 2025, Mercedes has revealed that their 2025 model, the W16, will pioneer the use of sustainable carbon fiber composites in Formula 1. Given that carbon fiber composites constitute about 75% of the materials in their race cars, bolstering both performance and safety, these advancements present a prime opportunity to curtail the car's carbon footprint.
• In March 2023, SGL Carbon launched carbon fiber named SIGRAFIL C T50-4.9/235 and the new SIGRAFIL C T50-4.9/235 possess exceptional elongation (2.0%) and strength (4.9 GPa) standards. This carbon fiber is widely used in automotive applications.
• In October 2023, TORAY INDUSTRIES, INC. expanded by introducing its new production facility in Gumi, North Gyeongsang Province. This production facility will produce carbon fibers for car body parts.

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.