• In September 2021, SGL Carbon ramped up its production by investing millions to expand and upgrade the soft‑felt carbonization plant in Meitingen, Germany, significantly boosting its capacity for advanced carbon felt solutions.

• In June 2024, Morgan Advanced Materials launched a state‑of‑the‑art graphite felt R&D center in the UK, dedicated to developing high‑temperature insulation materials for aerospace and energy storage industries.

In this report, the Carbon Felt & Graphite Felt Market has been segmented by Raw Material Type, Type, Product Type, Application, and Geography.

Carbon Felt & Graphite Felt Market, Segmentation by Raw Material Type

The Carbon Felt & Graphite Felt Market has been segmented by Raw Material Type into Pan-Based Carbon Felt & Graphite Felt, and Rayon-Based Carbon Felt & Graphite Felt & Pitch-Based Carbon Felt and Graphite Felt.

PAN-Based Carbon Felt & Graphite Felt

PAN-based carbon felt and graphite felt dominate the market with a share of approximately 70%. Derived from polyacrylonitrile (PAN) fibers, this type is known for its excellent chemical resistance, high purity, and mechanical strength. It is widely used in high-temperature insulation, batteries, and fuel cells due to its thermal stability and oxidation resistance.

Rayon-Based Carbon Felt & Graphite Felt

Rayon-based felts account for around 20% of the market. Known for their fine fiber structure and low ash content, these felts offer superior thermal insulation and are often used in vacuum furnaces and semiconductor manufacturing. Their ability to withstand extreme temperatures while maintaining structural integrity makes them valuable in specialized industrial applications.

Pitch-Based Carbon Felt & Graphite Felt

Pitch-based carbon and graphite felts contribute about 10% of the global market. These felts offer high thermal conductivity and are commonly used in energy storage systems such as redox flow batteries. Their graphitic structure enhances electrical conductivity and makes them ideal for electrochemical applications where both performance and durability are required.

Carbon Felt & Graphite Felt Market, Segmentation by Type

The Carbon Felt & Graphite Felt Market has been segmented by Type into Carbon Felt, and Graphite Felt.

Carbon Felt

Carbon felt holds the majority share in the market, accounting for approximately 60%. It is widely used in thermal insulation, furnace linings, and energy storage systems due to its low thermal conductivity, lightweight nature, and chemical resistance. Its ability to perform well in inert or reducing atmospheres makes it a preferred material in vacuum furnaces and high-temperature applications.

Graphite Felt

Graphite felt accounts for around 40% of the market and is primarily chosen for applications requiring superior electrical and thermal conductivity. It is typically used in redox flow batteries, fuel cells, and high-performance furnaces. Graphite felt’s stability at ultra-high temperatures and oxidation resistance make it ideal for demanding electrochemical and industrial processes.

Carbon Felt & Graphite Felt Market, Segmentation by Product Type

The Carbon Felt & Graphite Felt Market has been segmented by Product Type into Soft Felt, and Rigid Felt.

Soft Felt

Soft felt dominates the carbon felt & graphite felt market with an estimated 65% share. It is widely used in thermal insulation for vacuum furnaces, graphite heaters, and energy storage systems. Its flexibility, lightweight structure, and ease of installation make it highly suitable for complex shapes and configurations, particularly in high-temperature environments.

Rigid Felt

Rigid felt accounts for approximately 35% of the market and is used where dimensional stability and structural strength are critical. It is commonly applied as insulation panels and structural liners in industrial furnaces and reactors. Rigid felt offers superior durability and thermal resistance, making it ideal for heavy-duty and long-duration thermal applications.

Carbon Felt & Graphite Felt Market, Segmentation by Application

The Carbon Felt & Graphite Felt Market has been segmented by Application into Furnace, Batteries, Filters, and Others.

Furnace

The furnace segment holds the largest share, accounting for approximately 50% of the carbon felt & graphite felt market. These felts are extensively used as thermal insulators in high-temperature vacuum furnaces and inert atmosphere furnaces. Their low thermal conductivity, lightweight design, and ability to withstand extreme temperatures make them ideal for industrial heating systems.

Batteries

Batteries represent around 30% of the market, driven by rising demand for energy storage solutions such as vanadium redox flow batteries (VRFBs) and lithium-ion batteries. Carbon and graphite felts act as electrode materials due to their excellent conductivity, corrosion resistance, and electrochemical stability.

Filters

Filters account for about 12% of the market. In this segment, felts are used in gas purification, air filtration, and liquid filtration systems due to their porous structure, chemical resistance, and durability. Their performance in high-temperature filtration environments makes them suitable for industrial and chemical processing.

Others

The ‘Others’ segment, comprising approximately 8%, includes applications in semiconductor processing, electronics cooling, and solar energy systems. These niche uses leverage the felts' thermal conductivity and dimensional stability in critical high-tech environments.

Carbon Felt & Graphite Felt Market, Segmentation by Geography

In this report, the Carbon Felt & Graphite Felt Market has been segmented by Geography into five regions; North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.

Carbon Felt & Graphite Felt Market Share (%), by Geographical Region

North America

North America holds approximately 20% of the carbon felt & graphite felt market. Key contributors include the United States and Canada, driven by demand in thermal insulation systems, energy storage technologies, and fuel cells. The region also benefits from a strong focus on advanced materials and industrial furnace manufacturing.

Europe

Europe accounts for around 23% of the market, with major demand coming from Germany, France, United Kingdom, Italy, and Spain. The region has a mature base of automotive and aerospace industries and a growing interest in renewable energy storage solutions like redox flow batteries.

Asia Pacific

Asia Pacific dominates the market with over 40% share. Countries such as China, Japan, India, South Korea, and Australia are major players due to rapid industrialization, increasing investments in renewable energy infrastructure, and the expansion of electronics and battery manufacturing. China, in particular, is a leading producer and consumer.

Middle East and Africa

Middle East and Africa contribute about 7% to the market. Countries like UAE, Saudi Arabia, and South Africa are seeing growth in energy efficiency technologies, metallurgical industries, and clean energy projects, which supports the adoption of carbon and graphite felts.

Latin America

Latin America holds a market share of approximately 10%. Brazil, Mexico, and Argentina are the key markets, driven by increasing use of felts in industrial furnaces, chemical processing, and the growing battery materials sector.

This report provides an in depth analysis of various factors that impact the dynamics of Carbon Felt & Graphite Felt Market. These factors include; Market Drivers, Restraints and Opportunities Analysis.

Drivers, Restraints and Opportunity Analysis

Drivers

• Growing demand for high-temperature insulation
• Increased adoption in batteries and fuel cells

• Rising focus on energy efficiency in industrial applications - As industries worldwide strive to minimize their carbon footprint and enhance operational sustainability, there is a growing emphasis on energy-efficient solutions. This trend is significantly driving demand in the Carbon Felt & Graphite Felt Market, as these materials are widely known for their exceptional insulation properties and heat resistance. They play a vital role in reducing energy loss in high-temperature environments, such as furnaces, kilns, and thermal processing units, which are core to heavy industrial operations.

  The ability of carbon and graphite felts to provide lightweight, thermally stable, and low thermal conductivity solutions makes them highly effective in improving energy efficiency across various industrial applications. By minimizing heat dissipation and optimizing thermal insulation, these materials contribute to reduced energy consumption and improved cost-efficiency for end-users. This aligns with global energy-saving mandates and environmental regulations, positioning carbon and graphite felts as critical components in modern energy-efficient industrial infrastructure.

Restraints

• Limited awareness in emerging economies
• Performance limitations in harsh chemical environments

• Competition from Alternatives - The Carbon Felt & Graphite Felt Market faces a considerable restraint from the growing availability and adoption of alternative insulation and heat-resistant materials. Advanced ceramics, metal-based insulation, and other synthetic composites are gaining popularity due to their tailored thermal, structural, and economic benefits in various industrial applications. These alternatives often offer enhanced durability, ease of installation, or cost advantages that challenge the market share of carbon and graphite felts.

  Moreover, some of these competing materials are better suited for specific chemical or mechanical resistance requirements, making them more attractive in specialized sectors such as aerospace, semiconductor manufacturing, or high-pressure environments. The rapid pace of innovation in material science has further expanded the range of substitute solutions, creating pricing and performance competition. This intensifies the pressure on manufacturers of carbon and graphite felts to continuously innovate and justify their value proposition amid an increasingly crowded thermal insulation landscape.

Opportunities

• Development of advanced energy storage systems
• Growing investment in renewable energy technologies

• Innovation in composite manufacturing applications - The Carbon Felt & Graphite Felt Market is witnessing a promising opportunity driven by ongoing innovation in composite manufacturing applications. As industries demand lightweight, durable, and high-temperature-resistant materials, carbon and graphite felts are increasingly being explored as integral components in advanced composite structures. Their unique thermal insulation, conductivity, and corrosion resistance make them ideal for enhancing the performance of composite systems used in sectors like aerospace, automotive, and energy.

  One of the most exciting developments is their application in next-generation aerospace and defense technologies, where materials must withstand extreme environments while maintaining structural integrity. Carbon felts, when integrated into composites, provide efficient heat shielding and electromagnetic interference shielding. Similarly, graphite felts contribute to structural stability and energy efficiency in various high-end engineering uses, especially in components exposed to elevated temperatures or harsh chemicals.

  The growing interest in additive manufacturing and customized material engineering is further expanding the potential uses of carbon-based felts in composite solutions. Manufacturers are experimenting with hybrid material designs, combining felts with polymers, ceramics, or resins to create bespoke products tailored to specific performance needs. This approach opens doors for specialized applications in battery casings, fuel cells, and space-grade materials.

  As sustainability becomes a global priority, the industry is also exploring eco-friendly composite solutions using recyclable and thermally stable materials. Carbon and graphite felts, being durable and reusable, align well with these sustainability goals. This trend is expected to catalyze their integration in composite manufacturing across emerging and traditional industries alike, ultimately fueling market growth in the near future.

Key players in Carbon Felt & Graphite Felt Market include;

• SGL Group
• Toray Industries, Inc.
• Kureha Corporation
• Nippon Carbon Co., Ltd.
• Beijing Great Wall Co., Ltd.
• Chemshine Carbon Co. Ltd
• CM Carbon Co., Ltd.
• Gansu Haoshi Carbon Fiber Co., Ltd.
• CFC Carbon Co.
• Ceramaterials

In this report, the profile of each market player provides following information:

• Company Overview and Product Portfolio
• Market Share Analysis
• Key Developments
• Financial Overview
• Strategies
• Company SWOT Analysis