North America Carbon Fiber Market Outlook to 2028

North America Carbon Fiber Market Overview

The North America Carbon Fiber Market was valued at 47 kilotons in 2023, driven by the rising demand across industries like aerospace, automotive, and renewable energy. The increasing need for lightweight, durable materials to enhance fuel efficiency and reduce emissions has contributed significantly to the market's growth.

Some of the leading players in the North America Carbon Fiber Market include Hexcel Corporation, Toray Industries, Mitsubishi Chemical Holdings, SGL Carbon, and Teijin Limited. These companies have established significant market share through continuous investments in research and development, innovative product offerings, and mergers and acquisitions aimed at expanding their production capacities.

The cities that dominate the North America Carbon Fiber Market include Los Angeles, Seattle, and Detroit. Los Angeles is home to a significant aerospace industry presence, including companies like Boeing and Northrop Grumman, which drive carbon fiber demand. Seattle's dominance is due to the headquarters of Boeing, a key player in aerospace manufacturing. Detroit remains a hub for the automotive sector

In 2023, Mitsubishi Chemical Holdings announced a USD 300 million expansion of its U.S. production facilities to meet growing demand for carbon fiber in electric vehicles. This move reflects the increased importance of carbon fiber in meeting sustainability goals across industries, particularly as the U.S. transitions to clean energy.

North America Carbon Fiber Market Segmentation

By Product Type: The North America Carbon Fiber Market is segmented by product type into Continuous Carbon Fiber, Long Carbon Fiber, and Short Carbon Fiber. In 2023, Continuous Carbon Fiber dominated the market due to its extensive use in the aerospace and automotive industries. Its high tensile strength and flexibility make it a preferred choice for manufacturers requiring high-performance materials.

By End-Use Industry: The North America Carbon Fiber Market is segmented by end-use industry into Aerospace & Defense, Automotive, Wind Energy, Sporting Goods, and Construction. Aerospace & Defense dominated the market in 2023, driven by the increasing demand for lightweight materials to enhance fuel efficiency and reduce emissions in aircraft and defense vehicles.

By Region: The North America Carbon Fiber Market is segmented by region into the United States and Canada. The United States dominated the market in 2023 due to its advanced automotive and aerospace industries, where carbon fiber is increasingly used to meet fuel efficiency and performance requirements.

North America Carbon Fiber Market Competitive Landscape

Company

Establishment Year

Headquarters

Hexcel Corporation

1948

Stamford, CT, USA

Toray Industries

1926

Tokyo, Japan

Mitsubishi Chemical Holdings

1933

Tokyo, Japan

SGL Carbon

1878

Wiesbaden, Germany

Teijin Limited

1918

Tokyo, Japan

SGL Carbon: SGL Automotive Carbon Fibers, a joint venture between SGL Group and BMW Group, is set to invest USD 100 millionto expand its Moses Lake facility in Washington in 2023. This expansion willdoublethe current production capacity to meet the increasing demand for carbon fiber, particularly for BMW's electric vehicles.

Hexcel Corporation: In 2023, Hexcel Corporation expanded its engineered core operations plant in Casablanca, Morocco, with a USD 100 millioninvestment to double its production capacity, primarily to meet the increasing demand from the aerospace sector.

North America Carbon Fiber Industry Analysis

North America Carbon Fiber Market Growth Drivers:

Increasing Demand from Aerospace Industry: The aerospace sector is a major driver for carbon fiber demand, with the market projected to grow significantly. Carbon fiber's lightweight and high-strength properties are essential for improving fuel efficiency in aircraft. The aerospace industry accounted for20% of global carbon fiber consumptionas of 2020, highlighting its critical role in market growth.

Expansion of Wind Energy Projects: The wind energy sector is increasingly utilizing carbon fiber to manufacture lightweight and durable wind turbine blades. As of 2020, the wind energy industry accounted for around 23% of global carbon fiber consumption, making it the largest consumer of carbon fiber. The growing investment in renewable energy projects further supports this trend.

Technological Advancements: Innovations in carbon fiber manufacturing processes and materials are making carbon fiber more accessible and cost-effective, encouraging its adoption across various industries, including automotive, aerospace, and consumer goods.

North America Carbon Fiber Market Challenges:

Supply Chain Disruptions: In 2023, disruptions in the global supply chain, particularly in the availability of raw materials from Asia, caused delays in carbon fiber production. Mitsubishi Chemical Holdings reported a 10% reduction in production output due to supply chain bottlenecks.

Environmental Concerns: Carbon fiber production has raised environmental concerns due to its energy-intensive manufacturing process. In 2024, the U.S. Environmental Protection Agency (EPA) reported that carbon fiber production generates 2.5 metric tons of CO2 emissions for every ton of carbon fiber produced.

North America Carbon Fiber Market Government Initiatives:

Carbon Fiber Technology Facility (CFTC): Established by the U.S. Department of Energy's Vehicles Technologies Office (VTO) at Oak Ridge National Laboratory, the CFTC was created to lower the production costs of carbon fiber. This facility enables companies to test low-cost carbon fiber for various industries, including clean energy technologies.

Funding for Renewable Carbon Fiber: The U.S. Department of Energy's Bioenergy Technologies Office announced funding for developing processes that produce carbon fiber precursors from renewable, non-food-based biomass feedstocks. This initiative aims to make carbon fiber production more sustainable and reduce reliance on fossil fuels, addressing environmental concerns associated with traditional carbon fiber manufacturing

North America Carbon Fiber Market Future Outlook

The North America Carbon Fiber Market is expected to experience robust growth through 2028, driven by increasing adoption in electric vehicles, aerospace, and renewable energy sectors. As industries strive to improve energy efficiency and reduce emissions, carbon fiber will play a key role in achieving these goals.

Future Market Trends

Increased Use in Electric Vehicles: Over the next five years, the automotive industry will increasingly adopt carbon fiber to meet stricter fuel efficiency and emissions regulations. Electric vehicle manufacturers will prioritize lightweight carbon fiber components to improve battery life and extend vehicle range, contributing to the materials growing use.

Growth in Renewable Energy Applications: The wind energy sector will continue to see increased demand for carbon fiber in the production of wind turbine blades. As governments push for more renewable energy installations, carbon fibers lightweight and durable properties will make it a key material in improving turbine efficiency and lowering maintenance costs.
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