U.S. Carbon Fiber Market Size, Share & COVID-19 Impact Analysis, By Precursor (PAN and Pitch), By Tow (Large Tow and Small Tow), By Application (Aviation, Aerospace & Defense, Automotive, Wind Turbines, Sports & Leisure, Construction, and Others), and Country Forecast 2023-2030

The U.S. carbon fiber market size was worth USD 953.1 million in 2022 and is projected to grow at a CAGR of 7.7% during the forecast period.

Carbon fiber contains 90% or more carbon content. It is manufactured from PAN and pitch by the process of thermal conversion. The product properties, including high stiffness, lower thermal expansion, higher tensile strength, and superior chemical resistance, have increased its demand from several industries. The growth of industries such as aerospace & defense, aviation, automotive, wind turbines, sports & leisure, and construction, having a greater demand for the product, is anticipated to drive the U.S. carbon fiber market expansion during the forecast period.

The decrease in composite manufacturing during the COVID-19 pandemic led to the automotive sector’s decline which consequently affected the carbon fiber industry. However, with the gradual increase in demand for vehicles as transportation activity normalized in 2021, fiber product consumption peaked in the U.S.

LATEST TRENDS

Manufacturing of Sustainable Products to Provide Competitive Edge

Several end-use industries focus on using sustainable raw materials to manufacture products to reduce carbon emissions and comply with environmental regulations. Manufacturing carbon-based fiber from conventional materials results in significant carbon emissions. Therefore, major players in the market focus on manufacturing products from alternative sustainable raw materials to reduce carbon emissions. Researchers and industry partners are involved in projects to manufacture products from coal tar, a by-product formed in the steel industry. The product developed will raise the coal tar pitch value by 5 to 55 times compared to the current value. The product would be suitable for high-stiffness and low-weight composite manufacturing.

In December 2020, the Oak Ridge National Laboratory (ORNL) collaborated with the University of Kentucky Center for Applied Energy Research (CAER) for projects that transform coal into carbon fiber and composite with an investment of about USD 10 million. The research was initiated to study the major challenges in coal feedstock & processing and product manufacturing. This development was aimed to increase the production of low-cost products, propelling the U.S. carbon fiber market growth.

DRIVING FACTORS

Growing Product Demand from the Aerospace & Defense Industry to Boost Market Growth

Fuel efficiency and travel time are significant factors in the aerospace industry and are the major drivers for the increasing demand for carbon-based fibers. The primary factors driving the high demand for the product in the aerospace industry comprise the low weight-to-strength ratio, high-temperature tolerance, high stiffness, and high tensile strength provided by the product. These advantages enable increased fuel efficiency of the airplanes. The low weight of helicopters, planes, and space shuttles is directly related to less fuel needed to rise in the air. Furthermore, lighter airplanes require less travel time and more distance covered, meaning rarer or no refueling stops. This leads to increased product demand in the aerospace industry.

The industry has been using advantageous carbon fiber parts, where a major composition of aircraft includes composite materials to make the wings, seat frame, outer body, and tail. For example, the 787 Dreamliner manufactured and sold by Boeing has around 35 metric tons of composite, making it durable and lightweight. This provides additional fuel efficiency and better aerodynamics, allowing less maintenance and making fiber composite airplanes more profitable. This results in high demand for carbon-based fiber from the aerospace and defense industry, driving market growth.

RESTRAINING FACTORS

High Product Manufacturing Cost to Limit Market Growth

The manufacturing cost of the product is directly linked to the raw material cost from which it is obtained. Raw materials, including PAN and Pitch, have witnessed significant price rise recently. Further, the cost of product manufacturing for crucial applications in several industries, such as aerospace and defense, increases due to the requirement of high-quality raw materials.

Prices of the pitch have observed significant fluctuations recently due to the prices of the raw materials such as crude oil and coal. The average cost of PAN-based fibers utilized in non-aerospace applications is about USD 21.5 per kg with only 50% conversion efficiency. The high prices increase the difficulty for small-scale and domestic manufacturers to excel in the market, hindering market growth.

SEGMENTATION

By Precursor Analysis

Based on precursor, the market is bifurcated into PAN (polyacrylonitrile) and pitch.

The PAN segment accounted for a leading U.S. carbon fiber market share in 2022 and is projected to retain its dominance during the forecast period. The properties of PAN-based products, including higher tensile strength, high modulus, and greater tolerance to higher temperature, have caused an increase in its demand from several end-use industries, including automotive, aerospace & defense, and construction. Moreover, the rising product demand from wind turbines and sport & leisure applications is anticipated to drive the market growth significantly.

The pitch segment is anticipated to register a considerable growth rate by the end of the forecast period. Pitch-based products have a low negative coefficient, low electrical resistivity, high modulus, and higher thermal conductivity, leading to their demand from sports & leisure and aerospace & defense industries.

By Tow Analysis

Based on the tow of the product, the market is segmented into large tow and small tow.

The small tow segment of the market accounted for a largest share in 2022 and is anticipated to grow with relatively higher CAGR during the forecast period. Small tow fibers are rovings that contain 24,000 or fewer filaments. Higher modulus and higher strength provided by the small tow fibers enable their applications in the aerospace and defense industry, which is anticipated to drive product adoption during the forecast period.

Large tow fibers contain 48,000 to 320,000 carbon filaments. The large tow segment is anticipated to grow considerably during the forecast period. The growth can be attributed to the increased investment by manufacturers toward the production of large tow fibers.

By Application Analysis

Based on application, the market is divided into aviation, aerospace & defense, automotive, wind turbines, sports & leisure, construction, and others.

The aviation, aerospace & defense segment held the largest market share in 2022 and is projected to retain its leading share during the forecast period. The product is widely used in the aviation, aerospace, and defense industries for interiors, propellers/rotors, engine blades, brackets, wide-body wings, and single-aisle wings. The recent past has witnessed significant growth in product demand across the aerospace & defense industry, owing to technological advancements in these industries, which is anticipated to continue during the forecast period.  

Product properties such as high modulus, tensile strength, temperature tolerance, and strength-to-weight ratio have increased the product demand from the automotive, wind turbines, and sports and leisure industries. The product is preferred for manufacturing products where energy efficiency plays an important role. This trend is anticipated to continue during the forecast period, boosting the U.S. market growth.

KEY INDUSTRY PLAYERS

Key players operating in the industry include established players and emerging market players. Prominent players operating in the market include Hexcel Corporation, ZOLTEK Corporation, TORAY INDUSTRIES, INC., Solvay, HYOSUNG ADVANCED MATERIALS, Mitsubishi Chemical Carbon Fiber and Composites, Inc., and Teijin Limited. The majority of the players in the market are focusing on enhancing their geographical reach by entering partnerships or acquisition of regional players. In addition, established players in the market are focusing on enhancing product sustainability.

LIST OF KEY COMPANIES PROFILED:

• Hexcel Corporation (U.S.)


• ZOLTEK Corporation (U.S.)


• Advanced Composites Inc. (U.S.)


• Mitsubishi Chemical Carbon Fiber and Composites, Inc. (U.S.)


• HYOSUNG ADVANCED MATERIALS (South Korea)


• TORAY INDUSTRIES, INC. (Japan)


• Solvay (Belgium)


• Nippon Graphite Fiber Co., Ltd. (Japan)


• TEIJIN LIMITED (Japan)


• Formosa M Co., Ltd. (South Korea)

KEY INDUSTRY DEVELOPMENTS:

• May 2022 - Solvay expanded its SolvaLite portfolio and invested in the Xencor LFT production unit to include prepregs for automotive body panels. SolvaLite 714 Prepregs, is a new generation of unidirectional woven fabric and carbon fiber products portfolio pre-saturated with epoxy resin SolvaLite 714.


• June 2021 – Zoltek Companies, Inc. increased its carbon fiber production capacity of its plant located in Guadalajara, Mexico. The company's plant would produce 13,000 metric tons of product, resulting in the total annual production of its PX35 fiber reaching 28,000 metric tons. The move is anticipated to help the company strengthen its position as a leader in the market.

REPORT COVERAGE

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The study report thoroughly examines key factors such as leading companies, applications, and products. It also provides market trends and highlights significant industry advancements. The study includes different variables that have contributed to the market growth in recent years and the factors listed above. It examines the industry's newest market dynamics, opportunities, and historical data, and revenue growth estimates at the country levels.

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