• In November 2021, the subsidiary Zoltek, under Toray Industries, invested around USD 130 million to expand its capacity by over 40,000 filaments, significantly boosting its low‑cost, high‑volume carbon fiber output.

• In February 2025, Toray CMA unveiled a 30,000 sq ft plant expansion in Spartanburg, SC, adding 3,000 metric tons per year of carbon fiber capacity. This upgrade bolsters supply for hydrogen, CNG, and clean energy pressure‑vessel applications. It reflects Toray’s commitment to sustainable, industrial‑scale expansion.

In this report, the CF & CFRP Market has been segmented by Raw Material Type, Source, Resin Type, Manufacturing Process, End-Use Industry and Geography.

CF & CFRP Market, Segmentation by Raw Material Type

The CF & CFRP Market has been segmented by Raw Material Type into Polyacrylonitrile (Pan-Based) Carbon Fibers, Pitch-Based Carbon Fiber and Rayon-Based Carbon Fiber.

Polyacrylonitrile (PAN-Based) Carbon Fibers

PAN-based carbon fibers dominate the CF & CFRP market due to their superior tensile strength, lightweight characteristics, and widespread use in aerospace, automotive, and sports equipment. Their strong mechanical performance makes them the preferred raw material, capturing approximately 90% of the global market share.

Pitch-Based Carbon Fiber

Pitch-based carbon fibers are known for their high modulus and excellent thermal and electrical conductivity. They are primarily used in thermal insulation, satellite structures, and industrial heating systems. Despite niche applications, this segment accounts for around 8% of the market.

Rayon-Based Carbon Fiber

Rayon-based carbon fibers have largely fallen out of favor due to lower mechanical properties and limited supply chains. However, they are still utilized in some high-temperature applications and research settings. This segment contributes roughly 2% to the global market.

CF & CFRP Market, Segmentation by Source

The CF & CFRP Market has been segmented by Source into Virgin CF and Recycled CF.

Virgin CF

Virgin carbon fiber is the dominant source in the CF & CFRP market, offering uncompromised strength, high stiffness, and excellent performance across industries such as aerospace, automotive, and wind energy. Its consistency and quality make it the first choice for high-performance applications, commanding approximately 92% of the market.

Recycled CF

Recycled carbon fiber is gaining traction due to growing emphasis on sustainability and cost reduction. It is increasingly used in automotive components, consumer goods, and sporting equipment, where ultra-high mechanical properties are less critical. This segment accounts for around 8% of the market and is expected to grow with advancements in recycling technologies.

CF & CFRP Market, Segmentation by Resin Type

The CF & CFRP Market has been segmented by Resin Type into Thermosetting CFRP and Thermoplastic CFRP.

Thermosetting CFRP

Thermosetting CFRP dominates the market owing to its high strength-to-weight ratio, dimensional stability, and excellent fatigue resistance. Commonly used resins include epoxy, polyester, and vinyl ester, making it ideal for aerospace, automotive, and wind energy applications. This segment captures approximately 81% of the global market.

Thermoplastic CFRP

Thermoplastic CFRP is gaining momentum due to its recyclability, toughness, and faster processing times. It is used in mass production environments like automotive and consumer electronics, where quick cycle times and impact resistance are crucial. This segment accounts for around 19% of the market and is expected to grow steadily.

CF & CFRP Market, Segmentation by Manufacturing Process

The CF & CFRP Market has been segmented by Manufacturing Process into Lay-Up Process, Compression Molding Process, Resin Transfer Molding Process, Filament Winding Process, Injection Molding Process, Pultrusion Process and Other Processes.

Lay-Up Process

The lay-up process is the most widely adopted manufacturing method for CFRP, known for its versatility and suitability for complex, large components. It is heavily used in aerospace structures and automotive panels where high strength and low weight are essential. This segment holds approximately 34% of the global market.

Compression Molding Process

Compression molding offers fast cycle times and high-volume production, making it ideal for automotive parts and sporting goods. Its ability to deliver precise shapes with minimal material waste supports a market share of about 18%.

Resin Transfer Molding Process

Resin transfer molding (RTM) is used for mid-to-high volume production of complex-shaped components. It enables good surface finish and high fiber volume fraction, especially in marine and construction sectors. This segment accounts for approximately 14% of the market.

Filament Winding Process

Filament winding is widely used for producing cylindrical components like pipes, tanks, and pressure vessels. It provides excellent directional strength and process automation. This method contributes about 11% of the market.

Injection Molding Process

Injection molding of CFRP is gaining popularity for producing small, intricate parts at high speed. Common in the electronics and automotive sectors, this method offers cost efficiency and is responsible for roughly 9% of the market.

Pultrusion Process

Pultrusion is ideal for continuous linear profiles like rods, beams, and structural supports. Known for consistent quality and low operational costs, this segment makes up around 8% of the global share.

Other Processes

Other processes include 3D printing, automated fiber placement, and vacuum infusion techniques used for specialized and prototype CFRP components. These emerging technologies collectively account for about 6% of the market.

CF & CFRP Market, Segmentation by End-Use Industry

The CF & CFRP Market has been segmented by End-Use Industry into Aerospace & Defense, Wind Energy, Automotive, Sporting Goods, Civil Engineering, Pipe & Tank, Marine, Electrical & Electronics, Medical and Other Applications.

Aerospace & Defense

Aerospace & defense is the largest end-use industry for CF & CFRP, driven by the demand for lightweight, high-strength materials in aircraft structures, missile components, and satellite frames. CFRP enhances fuel efficiency and structural performance, securing approximately 35% of the global market.

Wind Energy

In wind energy, CF & CFRP are extensively used in turbine blades due to their high stiffness, light weight, and fatigue resistance. Their use supports the construction of larger and more efficient turbines. This segment contributes around 17% of the market.

Automotive

The automotive sector increasingly uses CFRP for body panels, chassis components, and interior parts to improve fuel economy and crash performance. As electric vehicles rise, CFRP adoption continues to expand, accounting for about 15% of the market.

Sporting Goods

Sporting goods manufacturers leverage CFRP for bicycles, golf clubs, rackets, and hockey sticks, offering lightweight strength and performance enhancement. This segment represents roughly 8% of global demand.

Civil Engineering

In civil engineering, CFRP is applied in structural reinforcement, bridge retrofitting, and earthquake-resistant designs due to its corrosion resistance and long-term durability. This segment makes up approximately 6% of the market.

Pipe & Tank

CFRP is used in manufacturing chemical-resistant pipes and high-pressure storage tanks for industries like oil & gas and chemical processing. The segment contributes about 5% to the global share.

Marine

Marine applications include boat hulls, masts, and propellers, where CFRP ensures weight reduction and corrosion resistance. This segment accounts for approximately 4% of the market.

Electrical & Electronics

In the electronics sector, CFRP is used for shielding casings, structural frames, and circuit board reinforcements due to its thermal conductivity and EMI shielding properties. This segment holds around 3% of the global share.

Medical

CFRP is used in prosthetics, surgical instruments, and imaging equipment components thanks to its biocompatibility and non-magnetic properties. The medical segment contributes approximately 3% of the market.

Other Applications

The “Other Applications” segment includes use in robotics, industrial machinery, and luxury consumer products. These niche applications collectively account for about 4% of the total market.

CF & CFRP Market, Segmentation by Geography

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

CF & CFRP Market Share (%), by Geographical Region

North America

North America holds a strong position in the CF & CFRP market, driven by high demand in the aerospace & defense and automotive industries. The region benefits from advanced composite manufacturing infrastructure and established OEMs, securing approximately 32% of the global market share.

Europe

Europe is a key region for CF & CFRP, supported by widespread adoption in wind energy, automotive engineering, and sporting goods. Regulatory support for lightweight, sustainable materials and innovation hubs in Germany, France, and the UK contribute to its roughly 28% share.

Asia Pacific

Asia Pacific leads the CF & CFRP market, propelled by booming automotive production, expanding aerospace investments, and increasing demand in infrastructure and electronics. With strong contributions from China, Japan, and South Korea, the region commands approximately 34% of the market.

Middle East and Africa

The Middle East and Africa region is witnessing growing adoption of CF & CFRP in oil & gas, infrastructure reinforcement, and military applications. While still emerging, the region contributes around 3% to the global market and shows potential for future growth.

Latin America

Latin America’s CF & CFRP market is expanding steadily, supported by applications in automotive components, civil engineering, and renewable energy structures. Brazil and Mexico are the major contributors, with the region accounting for approximately 3% of global demand.

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

Drivers, Restraints and Opportunity Analysis

Drivers

• Reduction in overall vehicle and component weight
• Improved mileage and energy savings

• Enhanced structural performance with less material - The ability to achieve enhanced structural performance with less material is a key driver propelling growth in the carbon fiber (CF) and carbon fiber-reinforced polymer (CFRP) market. CFRP materials offer a superior strength-to-weight ratio compared to traditional materials such as steel and aluminum. This allows manufacturers across industries—particularly aerospace, automotive, and sports equipment—to produce lighter yet stronger components. By using less material without compromising mechanical performance, companies can reduce both material costs and product weight, leading to improved efficiency and fuel savings.

  In sectors like aerospace and defense, every kilogram saved can translate into significant performance and cost advantages. Aircraft structures made from CFRP not only reduce fuel consumption but also lower emissions, aligning with the industry’s sustainability goals. Similarly, in the automotive industry, lighter vehicles contribute to better fuel economy and acceleration, while meeting stringent environmental regulations and consumer demand for high-performance designs.

  The structural efficiency of CFRP also enhances product lifespan and durability. With high resistance to fatigue, corrosion, and environmental degradation, CFRP components maintain integrity under extreme conditions, reducing maintenance requirements and life-cycle costs. This performance reliability makes CFRP an attractive choice for infrastructure, wind energy, and marine applications, where long-term durability and structural stability are critical.

  The ability to tailor fiber orientations and resin systems allows for custom engineering of CFRP composites for specific load-bearing applications. This level of design flexibility means products can be optimized for maximum performance with minimal material use, supporting innovation in everything from prosthetics and bicycles to drones and satellite structures. As industries increasingly prioritize lightweighting without sacrificing strength, the role of carbon fiber and CFRP materials in delivering structural performance with reduced material input continues to be a major growth driver.

Restraints

• Expensive fabrication and energy requirements
• Scarcity of specialized input materials

• Intricate and time-consuming production steps - The multistage fabrication process required to manufacture carbon fiber and carbon fiber-reinforced polymer (CFRP) products is inherently intricate and time-consuming, creating a significant restraint on the growth of the CF & CFRP market. Production begins with converting polyacrylonitrile (PAN) or pitch into fiber, followed by stabilization, carbonization at temperatures above 1,000 °C, surface treatment, and sizing. Each step demands precise temperature control, inert atmospheres, and continuous monitoring to achieve the desired tensile strength and modulus, driving up energy consumption and production costs.

  After fiber manufacture, additional layers of complexity emerge in prepregging, lay-up, and autoclave curing. Prepreg lines must accurately coat fibers with resin, then store them in cold conditions to preserve out-time. Hand or robotic lay-up of multiple plies requires meticulous alignment to avoid voids and wrinkles, while autoclave cycles lasting several hours apply elevated pressure and temperature to consolidate laminates. These lengthy cycle times limit throughput, making it difficult to meet large-volume demand—particularly in cost-sensitive segments such as mainstream automotive and consumer electronics.

  The necessity for capital-intensive equipment—from high-temperature furnaces to massive autoclaves—coupled with a reliance on highly skilled technicians and quality-assurance specialists further inflates up-front investment and operational expenses. Smaller manufacturers often struggle to justify these expenditures, curbing market entry and slowing capacity expansion. Even established aerospace suppliers face scheduling bottlenecks when autoclave slots are over-booked, lengthening project lead times and delaying product launches.

Opportunities

• Use of lightweight materials to boost efficiency
• Growth in solar, wind, and clean energy systems

• Rising demand for EV components and batteries - The surging demand for electric vehicles (EVs) is directly boosting the carbon fiber (CF) and carbon fiber-reinforced polymer (CFRP) market, as automakers race to offset heavy battery packs with lighter structures. CFRP’s superior strength-to-weight ratio allows designers to reduce vehicle mass while maintaining crashworthiness, which translates into longer driving range and lower energy consumption—critical selling points in the competitive EV landscape.

  Key applications include battery enclosures, underbody shields, and structural chassis members. Switching from aluminum or steel to CFRP can cut component weight by up to 50 percent, enabling larger battery capacities without exceeding gross vehicle weight limits. CFRP’s inherent thermal stability and corrosion resistance also protect lithium-ion cells from road debris, coolant leaks, and thermal runaway, enhancing overall safety and durability.

  Beyond lightweighting, CFRP composite designs offer automakers greater flexibility in shaping aerodynamic body panels and integrating sensors for advanced driver-assistance systems (ADAS). Rapid advances in high-volume resin-transfer molding (RTM) and snap-cure epoxy systems are reducing cycle times, making CFRP more cost-competitive for mainstream EV models. As government incentives and stricter emission regulations accelerate EV adoption, large-scale investments in CFRP production lines and recycling infrastructure are gaining momentum.

  Battery manufacturers themselves are exploring carbon-fiber current collectors and conductive additives to improve energy density and thermal management inside the cell. This dual role—both as a structural material and an electrochemically active ingredient—positions CF & CFRP at the heart of next-generation EV platforms. Consequently, rising EV demand acts as a powerful driver that will continue to expand the carbon fiber composites market for years to come.

Key players in CF & CFRP Market include;

• Toray Industries Inc.
• Teijin Limited
• Mitsubishi Chemical Holdings Corporation
• SGL Group
• Formosa Plastics Corporation
• Hexcel Corporation
• Hyosung
• Tencate
• Dowaksa
• Cytec Solvay Group
• Taekwang Industrial Co. Ltd.
• Gurit Holdings AG
• Plasan Carbon Composites
• SK Chemicals
• Nippon Graphite Fiber Corporation

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