Carbon Fiber Reinforced Polymer Market

Market Overview

The global carbon fiber reinforced polymer market size was valued at USD 3.31 billion in 2023 and is projected to reach a value of USD 7.05 billion by 2032, registering a CAGR of 8.76% during the forecast period (2024-2032). The increase in carbon fiber reinforced polymer market share during the forecast period is related to lightweight carbon fiber reinforced polymers’ applications in the automobile sector and the aerospace industry's aluminum replacement with CFRP.

Carbon Fiber Reinforced Polymer is a solid and light fiber-reinforced plastic containing carbon fibers called CFRP. Carbon fibers are primarily used for applications where strength-to-weight ratio and stiffness are required, such as automotive, aerospace, sports equipment superstructure of ships, and civil engineering. In carbon fiber reinforced polymer, the binding polymer is often a thermoset resin such as epoxy. 

However, other thermosets or thermoplastic polymers, such as polyester, vinyl ester, or nylon, are seldom used. The composite material may contain aramid, aluminum, ultra-high-molecular-weight polyethylene (UHMWPE), glass, and carbon fibers. However, the final CFRP product's properties differ in accordance with the additives introduced to the binding matrix (resin); the most common additive is silica. However, other additives, such as rubber and carbon nanotubes, can also be used.

Highlights

• Thermosetting resins dominate the market by resin.
• The automotive industry leads the market by end-user.

Market Dynamics

Global Carbon Fiber Reinforced Polymer Market Drivers:

Lightweight Carbon Fiber Reinforced Polymers’ Applications in the Automobile Sector

Automobile manufacturers are looking for alternatives to conventionally used products such as iron and aluminum in automotive parts manufacturing. The carbon fiber reinforced polymer market revenue generated from the automotive industry was around USD 5 billion in 2018 globally. In the automotive sector, carbon fiber reinforced polymers are well known in the racing yacht and superyacht sectors for their lightweight carbon fiber rigging.

Aerospace Industry's Replacement of Aluminium with CFRP

The global demand for carbon fiber reinforced polymer is expected to grow at a high pace, owing to its widespread adoption in the aerospace industry. The aerospace industry is now witnessing the replacement of aluminum with carbon fiber-reinforced polymers. It is extensively used in the manufacturing of radio-controlled helicopters' tails, airbus livery, and other structural materials such as paneling interiors, among others.

Furthermore, carbon fiber provides a rigidity that is 2 to 5 times greater than that of steel and aluminum, contingent upon the fiber used. In the case of specific components that will be stressed exclusively along a single plane and are constructed from one-direction carbon fiber, their stiffness will be 5-10 times greater than that of steel or aluminum (of the same weight).

Global Carbon Fiber Reinforced Polymer Market Restraints:

Volatile Costs and Raw Material Availability 

Carbon fiber-reinforced polymers are expensive compared to other fiber-reinforced polymers, such as glass fiber and aramid. In addition, the price of CFRP is almost ten times higher than that of steel and aluminum used in the automobile sector. This factor can hamper the growth of carbon fiber-reinforced polymers in the global market. As of now, aerospace, defense, and high-end car manufacturing companies are primarily using carbon fiber-reinforced polymers. For instance, the expensive car manufacturer Lamborghini uses CFRP in their supercars. Besides, the long production cycle of carbon fiber reinforced polymer leads to less production of goods in a specific time interval, which limits its use in the application where a higher number of CFRP is required in a short time interval.

Global Carbon Fiber Reinforced Polymer Market Opportunity:

Technological Advancements

Technical advancements are a defining characteristic of the carbon fiber reinforced plastic (CFRP) sector. Key firms in the industry are working to create their own manufacturing technologies and are concentrating on producing precursors in-house. In order to maintain their dominant position in the structural fiber reinforced plastic (CFRP) market and capitalize on emerging prospects for growth, businesses are making strategic investments in acquisitions, collaborations, and the development of new products.

Industry Adoption

Due to its exceptional qualities, such as its high strength-to-weight ratio and stiffness, carbon fiber reinforced plastic (CFRP) is gaining popularity in various industries, including aerospace, defense, automotive, sports equipment, marine, civil engineering, electrical isolation, and construction. Due to its lightweight nature and strength, carbon fiber reinforced plastic (CFRP) is increasingly used in the aerospace industry to replace traditional materials such as aluminum. This result has driven significant adoption and market expansion.

Regional Analysis

The global carbon fiber reinforced polymer market analysis is conducted in North America, Europe, Asia-Pacific, the Middle East and Africa, and Latin America.

North America Dominates the Global Market

North America is the most significant market shareholder and is estimated to grow at a CAGR of 8.35% over the forecast period. North America is a critical region in the CFRP market, with the United States, Canada, and Mexico as significant contributors. The region's strong presence in aerospace, automotive, and wind energy industries significantly drives the demand for CFRP. The aerospace sector, in particular, benefits from CFRP's lightweight and high-strength properties, which are crucial for improving fuel efficiency and performance in aircraft manufacturing. 

Furthermore, the United States possessed a carbon fiber production capacity of 45,300 metric tons in 2018, thereby underscoring the dominant market position of North America. Conversely, Europe holds the second-largest proportion of the CFRP market because of its substantial influence in sectors such as defense, aerospace, and automotive. The adoption of CFRPs is most prevalent in these regions, with North America housing the most prominent automotive, aerospace, and defense industries.

Europe is estimated to grow at a CAGR of 9% over the forecast period. Germany, the United Kingdom, France, Italy, and Spain are notable contributors due to their advanced automotive and aerospace industries. The region's focus on reducing carbon emissions and improving vehicle fuel efficiency further propels the demand for CFRP. Additionally, Europe's wind energy sector benefits from CFRP's application in manufacturing wind turbine blades. Europe is endowed with a burgeoning building and construction industry, with Italy's use of carbon fiber-reinforced polymers generating approximately USD 586.3 million in 2017. 

Asia-Pacific is the largest market for CFRP, driven by rapid industrialization and growth in critical sectors such as automotive, aerospace, and construction. China, Japan, India, and South Korea are significant players. China's expanding automotive and aerospace industries significantly contribute to market growth. The region's focus on infrastructure development and increasing use of CFRP in construction also drive demand.

The Middle East and Africa region shows promising growth potential for the CFRP market. Countries like Saudi Arabia, UAE, and South Africa are key contributors. The region's investment in infrastructure projects and the growing aerospace and automotive sectors drive the demand for CFRP. Additionally, using CFRP in oil and gas applications for its corrosion resistance properties further supports market growth.

Segmental Analysis

The global carbon fiber reinforced polymer market is segmented based on Resin and End-User.

The market is further segmented by Resin into thermosetting resin and thermoplastic resin.

Thermosetting resins are polymers that, upon curing, endure a chemical reaction that results in the formation of irreversible cross-linked structures. In manufacturing carbon fiber reinforced polymer (CFRP), these resins are extensively utilized because of their exceptional mechanical characteristics and thermal resistance. In CFRP, thermosetting resins such as vinyl ester, epoxy, and polyester are frequently used for applications requiring dimensional stability, rigidity, and strength. They are widely distributed across various sectors, including civil engineering, sports equipment, aerospace, and automotive. Incorporating thermosetting resin into CFRP enhances the composite material's strength and lightweight, rendering it well-suited for challenging applications where durability and performance are paramount.

Thermoplastic resins are polymers that exhibit a thermal-induced softening and subsequent solidification phase, enabling their reshaping and recycling. These polymers provide several benefits, including robustness, recyclability, and processing simplicity. On the CFRP market, thermoplastic resins, such as those utilized in Elium® resin, are acquiring traction due to their potential for cost-effective production, impact resistance, and recyclability. Wind energy, construction, transportation, marine, and consumer products are all sectors in which they are utilized. Sustainability concerns have been effectively addressed by introducing thermoplastic resin, exemplified by Elium, into the CFRP market. This innovation provides numerous advantages, including but not limited to recyclability, lightweight, durability, and cost-effectiveness. This paradigm shift is anticipated to significantly impact industries such as wind power, boat construction, hydrogen storage, and concrete reinforcement.

The market is further segmented by End-User into Automotive, Aerospace, Sports equipment, Building and Construction, Wind power industry, and Others.

The automotive industry is progressively adopting CFRPs owing to their fuel efficiency-improving potential, lightweight characteristics, and high strength-to-weight ratio. The automotive industry has adopted carbon fiber-reinforced polymers as substitutes for conventional materials such as aluminum and iron, resulting in diminished weight and enhanced performance.

The aerospace industry extensively uses CFRPs to reduce weight, increase fuel efficiency, and enhance overall performance in military aircraft and helicopters. There is a growing trend in aerospace applications to substitute aluminum with carbon fiber-reinforced polymers due to their superior strength and lightweight properties.

Sports equipment manufacturing utilizes CFRPs owing to their exceptional strength and lightweight characteristics. Racing yachts and superyachts are prominent industries that extensively use carbon fiber-reinforced polymers due to their exceptionally light weight.

Using CFRPs in the building and construction sector is advantageous, particularly in applying structural materials such as interior paneling. Using carbon fiber-reinforced polymers in Europe's building and construction industry yielded substantial financial gains.

The wind energy sector represents a significant end-user industry using CFRP applications. Reinforced with high-performance polymers, carbon fiber composites reduce mass significantly and increase structural integrity, rendering them optimal materials for wind turbine components.

Recent Developments

• February 2024- NREL's bio-derivable epoxies and thermoforming innovations in recyclable carbon fiber composites. This innovation reduces prices and greenhouse gas emissions, making the material more sustainable and multipurpose. Nicholas Rorrer of the National Renewable Energy Laboratory (NREL) is replacing heavy steel parts with recyclable carbon fiber composites to decarbonize vehicle manufacturing.