Middle East and Africa Carbon Fiber Market Outlook to 2028

Middle East and Africa Carbon Fiber Market Overview

The Middle East and Africa carbon fiber market size in 2023 is US$ 136 million. This growth is driven by increasing demand from the aerospace, automotive, and construction industries, where carbon fibers lightweight and high-strength properties are highly sought after. Additionally, the growing emphasis on sustainability and fuel efficiency has pushed industries towards adopting carbon fiber materials. This trend is expected to continue driving the market, as highlighted by recent industrial growth in the region.

Major players in the Middle East and Africa carbon fiber market include Hexcel Corporation, Toray Industries Inc., SGL Carbon SE, Mitsubishi Chemical Holdings Corporation, and Teijin Limited. These companies have established a strong presence due to their extensive product portfolios and investment in local manufacturing facilities. For instance, Toray Industries has been actively expanding its supply chain networks to enhance its distribution capabilities within the region.

In 2023, Teijin Limited announced the opening of a new research and development center in Dubai focused on advanced carbon fiber composites. This center aims to develop new applications for carbon fiber in the automotive and aerospace sectors, catering to the growing demand in the region. The initiative is part of Teijins strategy to localize production and enhance customer proximity in emerging markets like the Middle East.

Dubai, Riyadh, and Johannesburg are the dominant cities in the Middle East and Africa carbon fiber market. In 2023, Dubai leads due to its strategic location, well-developed infrastructure, and strong government support for innovation and sustainable materials. Riyadh is a key player owing to Saudi Arabias Vision 2030, which focuses on economic diversification and advanced materials. Johannesburg dominates in Africa due to South Africas advanced automotive and aerospace sectors.

Middle East and Africa Carbon Fiber Market Segmentation

By Product Type: The market is segmented by product type into continuous carbon fiber, short carbon fiber, and long carbon fiber. In 2023, continuous carbon fiber has a dominant market share due to its extensive use in the aerospace and automotive industries. The demand for continuous carbon fiber is primarily driven by its superior strength and rigidity, making it ideal for high-performance applications in these sectors. The continuous fiber's ability to provide structural integrity in aircraft and automotive body parts contributes significantly to its dominance.

By End-User: The market is further segmented by end-user into aerospace & defense, automotive, construction, and sports & leisure. In 2023, the aerospace & defense sector holds the largest market share, driven by increasing investments in the aerospace industry, particularly in the UAE and Saudi Arabia. Carbon fiber's lightweight properties contribute to fuel efficiency, crucial for reducing operational costs in aircraft. Furthermore, the growing focus on strengthening defense capabilities in these countries has led to an uptick in demand for carbon fiber-based components.

By Region: By region, the market is segmented into Israel, United Arab Emirates (UAE), Jordan, Morocco, South Africa, and Rest of MEA. In 2023, the United Arab Emirates led the market. The UAE's dominance is attributed to its strong focus on diversifying the economy, with significant investments in aerospace, automotive, and renewable energy sectors.

Middle East and Africa Carbon Fiber Competitive Landscape

Company Name

Establishment Year

Headquarters

Hexcel Corporation

1948

Stamford, USA

Toray Industries Inc.

1926

Tokyo, Japan

SGL Carbon SE

1992

Wiesbaden, Germany

Mitsubishi Chemical Holdings Corporation

2005

Tokyo, Japan

Teijin Limited

1918

Tokyo, Japan

Hexcel Corporation: In March 2022, Hexcel broke ground on an expansion project at its engineered core manufacturing plant in the Midparc Free Trade Zone in Casablanca, Morocco. The expansion will double the size of the existing facility to 24,000 square meters and increase employment from 120 to 400 people by 2023.

Toray Industries Inc.: Toray Industries, Inc., announced that U.S. subsidiary Zoltek Companies, Inc., will bolster its large-tow carbon fiber (with more than 40,000 filaments) production capacity in 2023. The upgrade will cost around USD$130 million. A Zoltek facility in Jalisco, Mexico, will lift its annual capacity around 54%, to more than 20,000 tons, boosting the combined annual capacity of that companys Mexican and Hungarian operations to about 35,000 metric tons.

Middle East and Africa Carbon Fiber Market Analysis

Growth Drivers

Increased Investment in Aerospace and Defense Sector: A key growth driver for the Middle East and Africa carbon fiber market is the rising investment in aerospace and defense sectors. In 2024, the UAE and Saudi Arabia allocated over USD 105 billion to enhance their military and aerospace capabilities. This surge in spending drives demand for lightweight carbon fiber composites, particularly in aircraft manufacturing, expected to grow by 30% by 2025.

Growing Electric Vehicle (EV) Production: The automotive industry in the Middle East and Africa is seeing a rapid shift towards electric vehicles, with countries like the UAE and South Africa leading the charge. In 2024, the number of electric vehicles produced in these regions increased by 40% compared to the previous year, driven by government incentives and a growing focus on sustainability. Carbon fiber is crucial in reducing vehicle weight, enhancing energy efficiency, and extending battery life, making it a key material for EV production. This trend is expected to boost the carbon fiber market as more manufacturers adopt lightweight materials to meet regulatory requirements and consumer demand for efficient vehicles.

Expansion of Renewable Energy Projects: Several Middle Eastern and African countries are investing heavily in renewable energy projects, such as wind and solar power, to diversify their energy sources and reduce carbon emissions. Carbon fiber is essential in manufacturing wind turbine blades due to its strength and lightweight properties, which improve energy generation efficiency. As these countries aim to increase their renewable energy capacity, the demand for carbon fiber in energy sector applications is expected to grow significantly.

Challenges

High Cost of Carbon Fiber Production: Despite its benefits, carbon fiber remains an expensive material to produce, primarily due to the high cost of raw materials and energy-intensive manufacturing processes. This cost barrier limits its adoption, particularly in price-sensitive markets within Africa. Additionally, small and medium-sized enterprises (SMEs) in the region may find it challenging to invest in carbon fiber due to these high costs, slowing market growth.

Limited Local Manufacturing Capabilities: The Middle East and Africa have limited local manufacturing capabilities for carbon fiber, with most advanced materials being imported from Europe, North America, or Asia. This reliance on imports increases lead times and costs, affecting the supply chain efficiency and limiting the market's ability to respond quickly to rising demand.

Government Initiatives

UAEs Industrial Strategy 2024: The UAE government launched its Operation 300bn initiative to enhance the country's industrial sector, aiming to increase its contribution to the national GDP from AED 133 billion to AED 300 billion by 2031. This initiative focuses on advanced manufacturing, including sectors such as petrochemicals, plastics, and renewable energy equipment, with an emphasis on innovative and sustainable materials like carbon fiber.

South Africas Automotive Masterplan 2021-2035: In 2024, the South African government allocated funds to promote the use of sustainable materials, including lightweight materials like carbon fiber, in automotive manufacturing. This initiative is part of a broader strategy to enhance vehicle performance and reduce emissions, thereby driving demand for advanced materials in the region.

Middle East and Africa Carbon Fiber Market Future Outlook

Market Trends

The Middle East and Africa Carbon Fiber Market is projected to grow exponentially by 2028. This growth will be driven by the Increased Investment in Aerospace and Defense Sector, Growing Electric Vehicle (EV) Production and Expansion of Renewable Energy Projects.

Rising Demand for Lightweight Vehicles: Over the next five years, the growing demand for lightweight vehicles, especially electric vehicles (EVs), is set to significantly boost the carbon fiber market. As automakers focus on enhancing fuel efficiency and reducing emissions, carbon fiber's high strength-to-weight ratio becomes crucial. Global regulatory pressures for carbon reduction further amplify this trend, driving increased carbon fiber adoption in vehicle manufacturing to meet sustainability goals and improve EV performance and range.

Expansion of Local Manufacturing Capabilities: By 2028, several Middle Eastern and African countries are projected to set up local carbon fiber manufacturing facilities, which will reduce their reliance on imports and significantly boost regional production capabilities. These facilities will streamline supply chains, lowering transportation costs and lead times, while supporting local industries like aerospace, automotive, and renewable energy. This move is expected to stimulate economic growth, foster innovation, and position these regions as key players in the global carbon fiber market.
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