Carbon Fiber Reinforced Plastic Market Size Growth - By Material (PAN-based, Pitch-based), By Product (Thermosetting CFRP, Thermoplastic CFRP), By Application (Automotive, Aerospace, Wind Turbines, Sport Equipment, Molding & Compounding, Construction, Pressure Vessels and Others), and By Region: Statistics Reports, Supply & Demand Analysis, Global Opportunity 2025-2032

Global Market Synopsis, Forecast, Trend, and Growth Up To 2032

Carbon Fiber Reinforced Plastic Market was valued at US$ 29.66 Bn in 2025, it is estimated to grow at a CAGR of 12.22 % from 2025 to 2032 and reach US$ 49.98 Bn by the end of 2032. Growth in the carbon fiber reinforced plastic industry in the coming years is likely to be fueled by the rapid growth of infrastructures as well as substantial use of CFRP in producing various building and construction materials.

Carbon fiber reinforced plastic, also known as CFRP, is a composite material made up of carbon fibers and a polymer matrix. Carbon fiber reinforced plastic has become highly popular in numerous industrial sectors due to its lightweight yet high-strength attribute. Due to distinct properties in market products, carbon fiber reinforced plastic was used a lot in various applications such as aerospace, wind energy, automotive, recreational equipment, robotics, sporting goods, medical technology, measurement technology, automation technology, and many more. Advanced engineering materials in particular represent an excellent example of how CFRP exhibits an extraordinary innovation. Over the years, it also opened up new areas of application constantly. Its attractive combination of low weight, high durability, and high strength has made it a game-changer in several industries.

Carbon Fiber Reinforced Plastic Market Growth Drivers

The fast rate of industrialization and urbanization is likely to boost the growth of this market during the forecasting period.

The burgeoning expense of the defense and aerospace industry will likely act as a catalyst for growth in the market.

The increasing usage of carbon fiber-reinforced plastic in surgical implants, along with other medic medical applications, is expected to contribute to the growth of the market during the projected years. High demand for sporting goods will enhance the rate of growth in the carbon fiber reinforced plastic market.

Some of the aerospace applications find carbon fiber-reinforced polymers as a promising replacement for aluminum because of their high strength and lightweight properties.

Market Dynamics

Driver

Ramp growth in the wind energy sector

Carbon fiber reinforced plastic market is expected to witness upsurge in the forecast period with rapid growth in the wind energy sector. Demand for wind energy has been expanding with an increasing number of R&D efforts, due to helpful policies, rising fuel prices, and the growing trend of clean energy. Wind is now widely used to produce electricity with the kinetic energy of moving air transformed into electrical energy. Carbon fiber reinforced plastics have increasingly become more popular for longer diameters of over 100 meters to capture energy even better. CFRP provides a lighter weight and greater rigidity. It is lighter than the conventional glass fibre composite materials.

Restrains

High price

Carbon fiber reinforced plastic is an expensive material, and the high price of this composite is likely to be a restraining factor for carbon fiber reinforced plastic market growth. The high cost of carbon fiber reinforcement plastic makes it costly in many industries and hence restricts its usage. Furthermore, easy availability of several cheap-rated materials acting as a substitute for CFRP reduces the adoption of carbon fiber reinforced materials.

Opportunities

Rising demand for fuel-efficient and light-weight vehicles

Expansion in demand for fuel-efficiency and weight-light vehicles is expected to provide the opportunity for carbon fiber reinforced plastic market growth during the forecast period. The growing fuel prices along with strict government regulations have resulted in a need for more fuel-efficient vehicles, thereby propelling the demand for carbon fiber reinforced plastic in automobile manufacturing.

Several Governments around the world are promoting the usage of fuel-efficient vehicles, which emit less pollutants. The manufacturers of automobiles around the world are focusing on reducing automotive curb weight to reduce emission. Products made from carbon fibre reinforced plastic are highly accepted in the automotive industry worldwide as an alternative to iron and aluminium for reducing weight and increasing the overall efficiency of cars.

According to a research brief by the ICCT, in 2023 China continued to be the world's largest EV market. The nation sold more than 7 million EVs, gobbling up a 33% share in the worldwide sales of new light-duty electric vehicles (LDVs). That was nine percentage points higher than the 24% share of EV sales in 2022.

In 2023, the four largest LDV markets, comprising the United States, Europe, China, and India, accounted for around 63% of sales, while nearly 88% of global EV sales took place in these four markets.

Market Scope

Competitive Landscape

Some of the major players functioning in the carbon fiber reinforced plastic industry include:

• Hexcel Corporation
• Hyosung Corporation
• TEIJIN LIMITED
• ALLRed & Associates Inc.
• Röchling
• Nikkiso Co. Ltd
• Gurit Holding AG
• Solvay
• DowAksa
• Cytec Solvay Group
• Toray Industries, Inc.
• SGL Group
• Formosa M Co. Ltd
• Mitsubishi Chemical Corporation
• Nippon Graphite Fiber Co. Ltd
• SABIC

Carbon Fiber Reinforced Plastic Market Segmentation

The global Carbon Fiber Reinforced Plastic market can be classified into by material, by product, and by application. In terms of by material, the market is segmented into PAN-based, pitch-based.

Based on by product, the market is divided into thermosetting CFRP, thermoplastic CFRP.

In terms of by application the market is segmented into automotive, aerospace, wind turbines, sport equipment, molding & compounding, construction, pressure Vessels, and Others

By Material Segment

This segment was able to hold the market share of the global PAN-based market in the year 2023. PAN is one of the most used raw materials for CFRP production. Due to better strength, stability, and a higher yield of carbon, it is also the most used precursor for carbon fiber. Being almost wholly dependent upon the precursor for all primary characteristics like tensile strength, carbon fiber-reinforced plastic tends to take along these properties from the precursor also. Also, around 90% of carbon fibre produced is based on polyacrylonitrile. Thus, such factors will likely favor the growth of this segment.

Pitch-based is expected to be the best growing segment for the carbon fiber reinforced plastic market over the next years. Pitch-based CFRP possesses excellent mechanical properties and thermal properties. Rising demand in various applications in aerospace, sports & leisure, and thermal management is likely to boost the growth of this segment over the next years.

By Application Segment

The aerospace segment accounted for the largest share of the carbon fiber reinforced plastic market in 2023. Increasing demand demand for fuel-efficient and light aircraft are mainly responsible for growth in the segment. Carbon fiber reinforced plastic materials are most widely used in helicopters, planes, and space shuttles. CFRP has good specific tensile strength, modulus, and fatigue strength. Therefore, it is the most commonly used material in airframe structural applications, especially in aircraft structures. Conventional metals are being replaced by CFRP in aircraft structures because of their strong strength-to-weight ratio. CFRP assumes a crucial importance in space development due to the fact that it experiences excellent specific strength, elasticity modulus, and high dimensional stability even in extremely large temperature changes; this has enabled high-precision observations in space. Rapid technological developments along with an increase in R&D activities are likely to decrease flight weight, increase fuel consumption and thus improve overall performance for military aircraft as well as helicopters.

By Product Segment

Carbon fiber reinforced plastic was the dominant product for the thermosetting CFRP segment of the carbon fiber reinforced plastic market in 2023. Polyester, epoxy, and vinyl resins are some of the thermosetting resins used widely while formulating carbon fiber reinforced plastic. Thermoset resins have many benefits, including being good at resistance towards heat and high temperature, superior resistance to solvents and corrosives, excellent finishing qualities for polishing and painting, superior adhesion, high fatigue strength, and a lot more. They are used in a variety of applications, including the sports equipment industry, civil engineering, automotive, and aerospace industries.

The thermoplastic CFRP segment is expected to grow significantly in the market for carbon fiber reinforced plastic in the forecast period. Thermoplastics are used in structural composite parts like Acrylonitrile Butadiene Styrene (ABS), Polyaryletherketones (PAEK), and Polyetheretherketone (PEEK). Huge research and development work enables companies to obtain manufacturing processes for making thermoplastic CFRP with improved properties. The two key advantages that thermoplastic composites offer for some manufacturing applications are as follows: higher resistance to impacts and can be made malleable. These are what propel the segment forward.

Regional Perspectives

The European carbon fiber reinforced plastic market size has been shown to be at USD 11.72 billion for the year 2024, and it is estimated to be about USD 20.90 billion by the year 2034, and it is expanding at a CAGR of 6.40% from the year 2025 to 2032.

Carbon Fiber Reinforced Plastic Industry Share in Europe

Europe has been portraying the largest share of carbon fiber reinforced plastics in the year 2023. It has the large establishment of key aircraft and automobile companies within this region. Europe hosts many big producers of large aircraft composites. European corporations and residents require more competitive sources of energy, which should be sufficiently reliable and clean. By strategic importance, wind is an industry in Europe. Addition of every new turbine reduces imports of energy and vulnerability to leaps in volatile fossil fuel prices. It also reduces the costs of electricity. The use of CFRP in the production of wind turbine blades gives a significant boost to the wind energy industry in Europe. The European market is highly focused on the improvement of vehicle fuel efficiency and reduction of carbon emissions. Other key drivers include high R&D efforts, rising demand for high-performance products in the defense sectors, growing usage of CFRP in the building and construction sector, increasing production of wind turbines, rapid industrialization and accessories, and a supporting government framework. Furthermore, demand is rising in aerospace, marine, military, automotive, sporting goods, wind energy, industrial equipment, and others end-users.

The European Wind Energy Competitiveness Report 2025 gives an annual turnover amounting to € 94 billion for the European wind industry.

Wind energy in Europe maintained 370,000 jobs and added € 57.2 billion to Europe's GDP in 2024. For each GW of onshore wind installed, the European wind industry generated € 3.4 billion value added to the European economy in 2024. For every new GW of offshore wind, this figure was € 2.8 billion. The REPowerEU plan will see wind power contribute to GDP to the tune of € 113 billion by 2031. That is nearly twice the contribution of the sector in 2024. Today, wind power provides 20% of Europe's electricity and much more in many other countries: Denmark 56%, Ireland 36%, Germany 31%, UK 29%, Netherlands 27%, and Spain 27%.

To put it in perspective, this vision of the EU Commission sees wind as half of Europe's electricity by 2050, and wind energy capacity will rise up to 1,300 GW, from just 220 GW today. That means a 15x increase in offshore wind in the EU, but most of the GW capacity growth will come from onshore wind.

North America is considered to lead the market in carbon fiber reinforced plastic growth rates during this forecast period. The region has a strong demand for CFRP, and major contributors of these demands are from the United States, Canada, and Mexico. Contributing factors to the growth of the region include rapid growth in the expansion of wind energy, increased usage of CFRP in various medical applications, investment in research and development, established automotive manufacturers, increasing utilization of CFRP in the aerospace segment, growing production of defense equipment, and enhanced demand for carbon-fiber-reinforced plastic solutions in the automotive segment for the reduction of automotive weight.

In addition, the significant emphasis on infrastructure development and increasing utilization of CFRP in construction also propels the product demand. Besides, technological advancements as well as government policies related to energy-efficient and environmental-friendly products are expected to elevate the demand for CFRP manifold in the North American region.

The United States spent $820 billion on national defense in fiscal year 2023, an amount accounting for 14 percent of federal spending, the Office of Management and Budget said.

The United States' defense spending rose to $56 billion between 2023 and 2024 due mainly to additional military aid that was supplied to assist Ukraine in its war. The United States spends more on defense than the next nine countries combined.

The defence expenditure of the United States has increased to USD 56 billion dollars, in part from additional military aid given to support Ukraine in its ongoing conflict. It is stated that the United States spends more on defence than the next nine countries combined.

The IRA committed USD 40 billion for direct investment for spurring the development of the U.S. offshore wind supply chain, including U.S.-flagged ship builds, further enabling domestic production across the entire industry.

The U.S. Energy Information Administration said total annual U.S. electricity generation from wind energy increased from about 6 billion kWh in 2000 to about 434 billion kWh in 2022. Wind turbines accounted for about 10.3% of total U.S. utility-scale electricity generation in 2022.

Recent Developments

Solvay launched LTM 350, a next-generation carbon fiber epoxy prepreg tooling material, in September 2022. The company says this material should bring significant time and cost savings to the industrial, aerospace, automotive, and race car markets.

In June 2024, Nexa3D announced a new innovation: Xyon, the next-generation carbon fiber-fiber-filled plastic 3D printing filament, it says will revolutionize the industry. This will be designed for desktop and industrial applications and fulfils Nexa3D's promise of offering quality at an affordable cost while driving customer-centric processes.

Aug. 2024, Formosa Plastics Corporation (FPC) established strategic collaboration with the South-Korea based start-up recycler of carbon fiber composite, CATACK-H, providing the total solution from virgin CF, waste recycling to recycled CF for its clients; this cooperation will further enhance FPC's realization of its sustainable strategy and advancement of its recycling-based society.

In June 2024, Farsoon Technologies launched a new high-performance carbon-fiber reinforced PA6 material called FS6130CF-F for its industrial 'Flight' 3D printing systems.

The Mitsubishi Chemical Group announced full acquisition of the popular Italian firm, CPC SRL (CPC), a company that specializes in the manufacture and distribution of automobile parts using carbon fiber reinforced plastic, in October 2023.

Segments Covered in the Report

By Material

• PAN-based
• Pitch-based

By Product

• Thermosetting CFRP
• Thermoplastic CFRP

By Application

• Automotive
• Aerospace
• Wind Turbines
• Sport Equipment
• Molding & Compounding
• Construction
• Pressure Vessels
• Others