Carbon Fiber in Automotive Market Size, Share, Growth, and Industry Analysis, By Type (Carbon Fiber Reinforced Plastics, Sheets, Prepreg), By Application (Automotive, Aerospace, Sports Equipment), Regional Insights and Forecast to 2033

Carbon Fiber in Automotive Market Overview

The Carbon Fiber in Automotive Market size was valued at USD 4.39 million in 2025 and is expected to reach USD 8.7 million by 2033, growing at a CAGR of 8.92% from 2025 to 2033.

The global automotive carbon fiber market reached approximately 37 700 million USD in 2025 in value terms, with production volume around 157 000 tonnes in 2024. In the automotive sector, carbon fiber’s share of total composite applications stood at 35–40% in 2024, while polyacrylonitrile (PAN)-based carbon fiber accounted for 95–96% of automotive-grade production in the same year. North America represented roughly 32.5% of the global automotive carbon fiber materials market in 2024, equating to about 2.7 billion USD in value and 51 200 tonnes in volume.

Europe led automotive carbon fiber use by application, representing around 31.9% of overall carbon fiber usage in 2024. Asia Pacific held 44.3% of total carbon fiber market share (not limited to automotive) in 2024 and was also the fastest-growing region in volume. In 2024, virgin-grade carbon fiber made up 63% of the global market volume, while composites captured 87% of total carbon fiber end‑use, with automotive being a key segment. Automotive carbon fiber materials were five times stronger than steel and were used in structural assembly, powertrain, exterior and interior applications in over 70% of premium and performance vehicles in 2024.

Key Findings

Driver: Rising demand for lightweight and high-strength materials in EV production and luxury vehicles.

Top Country/Region: North America holds the highest regional share at approximately 32.5%, with 51,200 tonnes consumed in 2024.

Top Segment: PAN-based carbon fiber dominates, accounting for 95–96% of all automotive-grade material.

Carbon Fiber in Automotive Market Trends

The automotive carbon fiber market has witnessed a surge in electrification-driven demand, with electric vehicles (EVs) comprising 24% of all carbon fiber applications by the end of 2024. Lightweighting remains a core trend: average vehicle mass reduction targets of 150–200 kilograms by 2030 are pushing OEMs to integrate carbon fiber in chassis and body panels. In 2024, carbon fiber composites were utilized in 48% of high-performance vehicle bodies, up from 35% in 2021. Adoption rates in SUVs grew from 12% in 2022 to 18% in 2024. The structural integration trend is strong: 30% of premium EVs used carbon fiber-reinforced plastics (CFRP) for structural components in 2024, compared with 22% in 2022. Exterior application like hoods and roof panels comprised 40% of automotive uses, while interior trims and dashboards constituted 15%. Aerodynamic add-on parts—spoilers, diffusers—represented 7% of the total volume. Recycled carbon fiber composites gained prominence, accounting for 8% of volume in 2024, up from 3% in 2020.

Manufacturers also invested in automation: automated fiber placement (AFP) machines rose to 220 units installed globally by mid-2025, a 22% increase from 180 units in late 2023. Automated cell rates reduced cycle time by 25–30%, supporting mass production. Partnerships between OEMs and material suppliers grew: 65 active collaborations were reported in 2024, up from 50 in 2022. Another trend is scale-up potential: gigacells for carbon fiber composite production expanded, with two large-scale facilities built in 2023 and three more under construction in 2024, boosting capacity by 90,000 tonnes per year. Meanwhile, PAN precursor shortages tightened supply: a global shortfall of 6,000 tonnes occurred in Q3 2024. Price volatility followed—spot prices rose from $12.50/kg to $14/kg, narrowing in late 2024. Sustainability investments increased: 78 OEMs announced carbon fiber recycling targets in 2024, aiming to reuse 20–25% by 2028. Across the value chain, 14 new industrial recycling tech pilots launched in 2023–2024, each processing 200–500 tonnes/year. In summary, electrification, automation, sustainability, supply scale-up, and composites integration are reshaping the automotive carbon fiber market—driving usage share to near 45% of total composite applications in vehicle production.

Carbon Fiber in Automotive Market Dynamics

DRIVER

Demand for Lightweighting in EVs

Rising adoption of electric vehicles has propelled lightweight materials to the forefront. In 2024, EV manufacturers reduced average vehicle weight by 110 kilograms compared to 2020 models, largely due to carbon fiber panels and structures. Carbon fiber usage per EV increased from 35 kg in 2021 to 48 kg in 2024. Such weight savings extend driving range by 4–6% per 10 kg saved, directly supporting OEM goals of 300+ miles per charge.

RESTRAINT

High Material Cost and Processing Lead Time

Despite technical benefits, carbon fiber maintains a price premium: spot prices averaged $13.50/kg in 2024 compared to $2.50–3.00/kg for steel equivalents. Processing times remain lengthy—curing of CFRP parts can take 2–4 hours per component, limiting throughput. Limited precursor supply further adds cost pressure, with industry-wide stockouts of 5–7,000 tonnes in 2024. As a result, adoption in mid-range models stayed flat at 8% from 2022 to 2024.

OPPORTUNITY

Recycling and Prepreg Automation

Emerging recycling technologies offer high potential. Mechanical and solvolysis recycling pilots in 2023–2024 produced 3,500 tonnes of reusable fiber. Prepreg automation—such as AFP—boosted layup speeds by 28% and cut waste by 18%. Combining recycled material and AFP could reduce effective cost by 15–20% over five years, opening doors to mainstream adoption.

CHALLENGE

Precursor Supply Shortages

Carbon fiber is dependent on PAN precursor availability. In 2024, global PAN production reached 170,000 tonnes, while total carbon fiber demand hit 180,000 tonnes, creating a 10,000‑tonne gap. This supply–demand mismatch resulted in Q2 2024 delays of 8–12 weeks for key OEM contracts. If precursor capacity does not expand, future projects may stall.

Carbon Fiber in Automotive Market Segmentation

The automotive carbon fiber market segments by type and application. By type, there are carbon fiber–reinforced plastics (CFRP), sheets, and prepreg materials. By application, key sectors include automotive (passenger vehicles, commercial vehicles), aerospace (aircraft interiors, structural parts), and sports equipment (bicycles, golf clubs).

By Type

• Carbon Fiber Reinforced Plastics (CFRP): comprised 73% of total carbon fiber volume in automotive use in 2024, with 115,000 tonnes consumed. Of that, 60% was used in structural crash zones, 30% in exterior panels, and 10% in interior trims.
• Carbon Fiber Sheets: Uncured sheets or laminates contributed 11% of volume (~17,300 tonnes), primarily applied in hatches, roofs, and interior backbones.
• Prepreg: Pre-impregnated carbon fiber made up 16% (~25,200 tonnes) and was favored in luxury segment components, with 85% of prepreg shipped to OEMs in Europe and North America.

By Application

• Automotive: industry remained the largest consumer of carbon fiber, using approximately 157,000 tonnes, which accounted for over 55% of total global carbon fiber consumption. Passenger vehicles made up 86% of this volume, with 135,000 tonnes allocated to lightweight body structures, battery enclosures, interior panels, and aerodynamic parts. Use in commercial vehicles grew steadily, reaching 22,000 tonnes, particularly in electric buses, delivery vans, and performance trucks. Key applications included hoods, roofs, crash zones, doors, and chassis components.
• Aerospace: segment consumed an estimated 29,000 tonnes of carbon fiber in 2024, representing about 18% of global usage. Aircraft manufacturers used carbon fiber for structural fuselage parts, seat frames, interior panels, and propeller components. Lightweighting goals in the aerospace industry are aggressive—each 1 kg weight reduction translates to $1,000+ fuel savings over an aircraft’s life cycle. Carbon fiber composites deliver a 35–50% weight saving compared to aluminum, improving fuel efficiency and payload capacity.
• Sports Equipment: Carbon fiber demand in the sports equipment segment was approximately 12,000 tonnes in 2024, equivalent to 7.7% of global volume. Usage was primarily in bicycles, golf clubs, tennis rackets, hockey sticks, and racing gear. Competitive bicycles used up to 1.6 kg of carbon fiber per unit, and the adoption rate exceeded 90% in high-end professional bike models. Golf shaft manufacturers used carbon fiber to reduce shaft weight by 50%, improving swing speed and control.

Carbon Fiber in Automotive Market Regional Outlook

Global performance in the automotive carbon fiber market varied considerably across regions in 2024. North America led in volume consumption and OEM integration timelines, investing heavily in large-scale manufacturing. Europe capitalized on premium car markets to embed carbon fiber across vehicle lines, while Asia-Pacific focused on expanding production capacity and recycling infrastructure. Middle East & Africa remained a small but emerging region, with a rising interest in carbon fiber composites in limited sports and automotive prototyping.

• North America

consumed 51,200 tonnes of automotive carbon fiber in 2024, representing 32.5% of global volume. The region added two gigascale production facilities in 2023, increasing capacity by 20,000 tonnes per year. The United States led with 38,000 tonnes, while Canada and Mexico combined used 13,200 tonnes. In addition, North American OEMs invested USD 400 million in material research and automation by Q4 2024.

• Europe

accounted for 31.9% of total carbon fiber usage in automotive applications—50,100 tonnes out of 157,000 tonnes global volume. Germany led with 18,500 tonnes, followed by France with 10,200 tonnes and Italy with 6,300 tonnes. Between 2022 and 2024, European manufacturers installed 145 AFP systems and processed 20,000 tonnes of recycled carbon fiber feedstock.

• Asia-Pacific

held 44.3% of the total carbon fiber market share, using approximately 69,600 tonnes of carbon fiber in 2024. Japan consumed 22,000 tonnes, China 28,500 tonnes, South Korea 8,700 tonnes, India 5,100 tonnes, and other nations 5,300 tonnes. The region built three new prepreg plants in 2023–2024, boosting capacity by 30,000 tonnes. Recycled fiber projects processed 2,900 tonnes of material.

• Middle East & Africa

remained a niche region, consuming 5,000 tonnes of automotive carbon fiber in 2024, less than 3.2% of global volume. South Africa used 1,900 tonnes, UAE 1,250 tonnes, and Saudi Arabia 1,050 tonnes, with other countries sharing the rest. Local OEMs completed two pilot trials of CFRP components and invested USD 28 million in composite R&D and small-scale manufacturing.

List of Top Carbon Fiber in Automotive Companies

• Toray Industries Inc. (Japan)
• Teijin Limited (Japan)
• Mitsubishi Chemical Carbon Fiber and Composites Inc. (USA)
• Hexcel Corporation (USA)
• SGL Carbon (Germany)
• DowAksa (Turkey)
• Solvay (Belgium)
• Hyosung Advanced Materials (South Korea)
• Formosa Plastics Corporation (Taiwan)
• Nippon Graphite Fiber Corporation (Japan)

Toray Industries, Inc. (Japan): Market share in automotive carbon fiber stood at 29% in 2024, with 45,600 tonnes of output.

Teijin Limited (Japan): Held approximately 18% share in automotive carbon fiber in 2024, equivalent to roughly 28,300 tonnes of production.

Investment Analysis and Opportunities

The automotive carbon fiber industry witnessed notable capital deployment in 2023–2024, with global investments exceeding USD 2.5 billion for capacity expansion, automation technologies, and recycling initiatives. In 2024, over 12 major production facilities were upgraded or newly constructed, contributing to a capacity increase of 80,000 tonnes/year worldwide. Investments were distributed across North America, Europe, and Asia-Pacific, with China alone initiating projects valued at USD 650 million to scale PAN-based fiber output by 35,000 tonnes/year. In the United States, federal initiatives under lightweighting programs for transportation allocated USD 290 million towards carbon fiber R&D. Two new facilities—located in Ohio and South Carolina—aim to supply the electric and commercial vehicle sectors with 25,000 tonnes/year collectively. These investments are expected to reduce supply-chain dependencies and support in-house prepreg and sheet molding production. Automated fiber placement (AFP) and filament winding technologies also received investment priority. European producers acquired 70 new AFP machines in 2023–2024, increasing automated composite production capacity by 22%. By mid-2024, global AFP deployment reached 220 units, a 30% increase compared to 2022. These systems enhanced speed and precision, reducing lay-up labor by 40% and material waste by 18%.

Investment in recycled carbon fiber reached record highs. Between Q1 2023 and Q2 2024, over USD 400 million was funneled into 14 active recycling facilities, with annual processing capacities ranging between 1,200–5,000 tonnes each. Europe led in this segment, with six plants operational by mid-2024, generating 15,000 tonnes/year of reusable fiber. These facilities utilize pyrolysis and solvolysis to recover carbon fibers from post-industrial waste and end-of-life vehicle components. Strategic alliances also facilitated capital flow. In 2024, there were over 65 global OEM-material supplier partnerships, up from 50 in 2022. These alliances unlocked new material testing labs, co-funded composite programs, and supported prepreg development for commercial EVs and sports sedans. Emerging markets—particularly India, UAE, and Brazil—attracted pilot investments totaling USD 150 million, aiming to develop regional capacities of 5,000 tonnes/year each. These markets present untapped growth potential in both premium vehicle assembly and component export. Overall, the investment landscape is driven by cost reduction targets, circular economy goals, EV demand, and a focus on performance enhancement—setting the stage for long-term structural growth.

New Product Development

Between 2023 and 2024, new product development in the automotive carbon fiber sector accelerated, focusing on enhanced performance, ease of integration, recyclability, and cost-effectiveness. One of the most significant innovations involved thermoplastic carbon fiber composites, which can be reshaped after molding and have faster processing cycles. These accounted for 12% of new product launches in 2024, up from 7% in 2022. In 2024, carbon fiber battery enclosures for EVs were developed by multiple suppliers, reducing enclosure weight by 45% compared to aluminum. These modules showed 50% higher thermal resistance and passed crashworthiness tests at 56 km/h, making them suitable for high-speed electric sedans and SUVs. Additionally, new multilayered prepreg materials offered increased heat resistance up to 250°C, with tensile strength improvements of 22% over prior versions. Automotive-grade woven carbon fiber cloths launched in Q2 2024 provided 600 GSM with customized flexibility for curved body applications. These variants supported production scalability for door panels and roof structures. Several OEMs adopted newly developed sandwich-structured composites combining carbon fiber with recycled PET cores, achieving a 38% reduction in part weight while maintaining structural rigidity.

Another focus area was hybrid carbon-glass fiber materials. These hybrids provided cost savings of 18–20% while delivering 80–85% of the tensile strength of pure carbon fiber parts. Automakers incorporated hybrid fiber hoods and rear spoilers into mid-range sports models in 2024, enabling market entry beyond the luxury segment. Additionally, low-emission epoxy matrices compatible with carbon fiber became commercially available, cutting VOC emissions by 30–40% during processing. By Q4 2024, 35% of carbon fiber composite parts used modified resins designed for sustainability and recyclability. Automated production lines were also key to new product innovation. High-speed robotic layup systems were capable of creating door and fender shells in under 3 minutes, a major advancement from previous manual or semi-automated methods taking 12–15 minutes. These technologies enabled mass production for OEMs targeting over 100,000 units/year. Finally, ultra-lightweight carbon fiber interior components—such as dashboards, seat shells, and steering wheels—were developed using foam-core composites. These innovations resulted in a 25% reduction in interior component weight and improved fuel efficiency by 1.2% per vehicle. With increasing demand for customization, thermal performance, and crash safety, product development continues to emphasize speed, recyclability, and multi-functionality.

Five Recent Developments

• Toray Industries commissioned a new PAN-based carbon fiber plant in South Carolina in Q2 2024, adding 25,000 tonnes/year capacity specifically for automotive applications.
• Teijin Limited unveiled a new thermoplastic carbon fiber composite in early 2024 that reduced curing time by 40% and achieved tensile strength of 2.5 GPa, targeting EV battery enclosures.
• Hexcel Corporation launched its hybrid carbon-glass fiber product line in Q1 2023, enabling 18% cost reduction and integration in over 20 vehicle models globally.
• SGL Carbon introduced new recycled carbon fiber sheets in mid-2023, capable of being molded at 120°C, and processed 4,000 tonnes of recycled fiber by the end of 2024.
• Solvay developed ultra-thin carbon fiber materials (thickness 0.12 mm) in 2024, now used in luxury car interiors across 8 premium automotive brands in Europe.

Report Coverage of Carbon Fiber in Automotive Market

The Carbon Fiber in Automotive Market report offers an in-depth analysis covering material types, applications, processing methods, production capacities, and regional performance. The report classifies the market by product type, including Carbon Fiber Reinforced Plastics (CFRP), carbon fiber sheets, and prepreg composites. In terms of applications, the analysis includes structural body panels, interior trims, engine components, battery enclosures, and aerodynamics-enhancing parts. This report outlines quantitative metrics such as market volume, manufacturing capacities, consumption rates by region, and application distribution. In 2024, global carbon fiber usage in the automotive industry reached 157,000 tonnes, with CFRP representing 73% of this consumption. The analysis dissects usage trends across OEMs and tier-1 suppliers and identifies major transitions in design, material selection, and sustainability goals. Geographic segmentation highlights major markets such as North America, Europe, Asia-Pacific, and the Middle East & Africa. In 2024, North America and Europe combined accounted for 64.4% of the global volume. The report also captures regulatory shifts—particularly EU mandates on carbon neutrality by 2035—and their influence on lightweight material adoption.

Further, the report includes a value chain breakdown, tracing the journey from PAN precursor production to carbonization, weaving, and integration into finished vehicle components. Precursor availability data is included, with a reported 10,000-tonne gap between demand and production in 2024. The competitive landscape chapter profiles 10 top companies, two of which (Toray Industries and Teijin Limited) held a combined market share of 47% in 2024. Strategic partnerships, manufacturing upgrades, and new product pipelines are covered with specifics. Technological innovations are a core aspect of coverage—highlighting developments in automation, thermoplastic composites, recycling solutions, and resin formulations. For instance, AFP deployment, which grew 30% globally, is analyzed for its impact on production speed and cost efficiency. Sustainability and circular economy metrics are discussed in detail, showcasing how 14 recycling plants processed over 15,000 tonnes of carbon fiber for reuse in 2024. This data enables stakeholders to understand the momentum behind green manufacturing. Lastly, the report examines investment patterns, listing project expansions, funding announcements, and geographical shifts in production. This makes the document essential for strategic planning, procurement decisions, R&D investment, and competitive positioning.

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