Asia Pacific Carbon Fiber Market Outlook to 2030

Asia Pacific Carbon Fiber Market Overview

• The Asia Pacific Carbon Fiber Market was valued at USD 1.7 billion. The market is growing due to its lightweight, high-strength, and corrosion-resistant properties, making it essential in industries such as aerospace, automotive, and renewable energy. Increasing demand for fuel-efficient vehicles, along with the growth in the aerospace sector, has propelled the market.
• Major Players in the market are Toray Industries, Mitsubishi Chemical Holdings Corporation, Teijin Limited, Hexcel Corporation, and SGL Carbon SE dominating the landscape. These companies are leading in production and innovation, with substantial investments in research and development to improve product quality and reduce production costs.
• Toray Industries has announced growth projections for its carbon fiber composite materials, expecting a revenue increase from 282 billion yen in 2022 to 370 billion yen by 2025. The company also plans to double its capital investment, driven by demand in hydrogen storage and renewable energy sectors.
• China is the dominant the market, by its large-scale manufacturing capabilities, government support, and growing demand from industries such as aerospace, automotive, and wind energy. Chinas Belt and Road Initiative (BRI) has spurred infrastructural growth, further driving the demand for advanced materials like carbon fiber.

Asia Pacific Carbon Fiber Market Segmentation

The market is segmented into various factors like product, application, and region.

By Product: The market is segmented by product into continuous carbon fiber, long carbon fiber, and short carbon fiber. Continuous carbon fiber held the largest market share due to its extensive use in aerospace and automotive industries, where high strength and lightweight properties are essential.

By Application: The market is segmented by application into aerospace & defense, automotive, wind energy, and construction. The aerospace & defense segment held the largest market share due to the growing use of carbon fiber in the production of aircraft components like fuselages and wings, which require lightweight and high-strength materials.

By Region: The market is segmented by region into China, South Korea, Japan, India, Australia, and Rest of APAC. China held the largest market share by its robust manufacturing base and government support for the carbon fiber industry.

Asia Pacific Carbon Fiber Market Competitive Landscape

• Teijin Limited: In 2023, Teijin Limited announced a strategic partnership with Airbus to develop next-generation aircraft components using carbon fiber. This partnership aims to reduce aircraft weight by 20%, improving fuel efficiency and reducing carbon emissions.
• Mitsubishi Chemical Holdings: In 2023, Mitsubishi Chemical Group acquired full ownership of CPC SRL, an Italian company specializing in carbon fiber reinforced plastic (CFRP) components. This strategic acquisition is aimed at expanding Mitsubishi's vertically integrated carbon fiber supply chain, positioning it as a key player in the automotive market's transition to lightweight materials, crucial for fuel efficiency and emissions reduction.

Asia Pacific Carbon Fiber Market Analysis

Market Growth Drivers

• Increasing Demand from Automotive Sector: The market is experiencing robust demand due to the rising need for lightweight materials in the automotive industry. Carbon fiber's ability to enhance vehicle performance and reduce fuel consumption is key for electric vehicle (EV) manufacturers. EV production in the region is expected to surpass 10 million units, boosting carbon fiber adoption.
• Wind Energy Expansion: In 2023, global wind turbine manufacturers installed a record 120.7 GW of new capacity, driven by growth in home markets such as China, which accounted for 81.6 GW. Chinese suppliers dominated, with Goldwind emerging as the top supplier. This surge highlights the region's strong wind energy sector growth.
• Rising Infrastructure Investments: Countries like China and India are investing heavily in infrastructure projects requiring advanced materials like carbon fiber. China's Belt and Road Initiative is expected to contribute, increasing demand for high-performance, durable materials, thereby driving the market forward.

Market Challenges

• Supply Chain Disruptions: The global supply chain, still recovering from the pandemic, faces challenges in the carbon fiber industry. In 2023, supply chain issues caused a shortage of raw materials, leading to delays in production and higher prices. These disruptions are expected to continue into 2024, impacting market growth.
• Lack of Recycling Infrastructure: Recycling carbon fiber remains a challenge in the Asia Pacific region. In 2023, only 10,000 tons of carbon fiber waste was recycled, representing a small fraction of total production. This has created sustainability challenges, limiting market expansion.

Government Initiatives

• China's Carbon Neutrality Goals: The government initiative to attract $1 trillion in investments for carbon neutrality by 2030. This includes enhancing renewable energy infrastructure, promoting electric vehicles, and developing carbon capture technologies. By aligning with the Sustainable Development Goals (SDGs), the initiative aims to create 5 million green jobs.
• Japan's Renewable Energy Push: In 2023, Japan aimed to expand its offshore wind energy capacity to 10 gigawatts by 2030, supported by new government auctions totaling 1.8 gigawatts across four regions. This initiative aligns with Japans commitment to renewable energy, contributing to its carbon neutrality target by 2050.

Asia Pacific Carbon Fiber Market Future Outlook

The future trends include increased adoption of carbon fiber in electric vehicles, aerospace, wind energy, and advancements in recycling technologies.

Future Market Trends

• Adoption in Electric Vehicles: The adoption of carbon fiber in electric vehicle (EV) production will grow significantly over the next five years. By 2028, it is projected that over 20 million EVs will incorporate carbon fiber components, driven by the need for lightweight materials to extend battery life.
• Growth in Wind Energy: The wind energy sector will increasingly use carbon fiber for turbine blades, with an estimated 30,000 new wind turbines being installed annually by 2028. This growth will drive the demand for carbon fiber, particularly in China and India.