Recycled Carbon Fiber Market Size, Share & Trends Analysis Report By Application (Automotive, Aerospace & Defense, Consumer Goods, Sporting Goods), By Region, And Segment Forecasts, 2023 - 2030

Recycled Carbon Fiber Market Size & Trends

The global recycled carbon fiber market size was estimated at USD 164.9 million in 2022 and  is expected to expand at a compound annual growth rate (CAGR) of 10.9% from 2023 to 2030. The market is driven by the rising demand for recycled carbon fiber in the automotive, aerospace, and defense industries. The automotive sector has a strong emphasis on reducing vehicle weight to enhance fuel efficiency and reduce emissions. Lightweight materials, including carbon fiber, offer an effective solution as they help automakers meet stringent fuel efficiency standards while maintaining safety and performance. Recycled carbon fiber, with its excellent strength-to-weight ratio, serves as an attractive alternative to traditional materials like steel and aluminum.

Moreover, rapid urbanization in both developed and developing economies, including the U.S., China, and India, has resulted in increasing government spending on the building & construction sectors to establish a variety of prospective infrastructure projects. These factors are expected to drive demand for recycled carbon fiber in the expanding building and construction industry. The U.S. is expected to witness significant growth on account of increasing environmental concerns, cost-effectiveness, and performance requirements. With increasing awareness regarding climate change and environmental conservation, there is a strong emphasis on reducing CO2 emissions and minimizing waste in the country.

Application Insights

Based on application, the automotive industry led the market with the largest revenue share of 36.2% in 2022 and is expected to grow at a significant CAGR during the forecast period. A rise in fuel prices has driven the need for fuel-efficient vehicles. Automotive manufacturers are focusing on improving the fuel efficiency of vehicles by reducing their overall weight. Recycled carbon fiber composites offer excellent mechanical properties, such as high tensile strength and stiffness. This makes them ideal for various automotive applications, including body panels, chassis components, and interior parts. Moreover, this can be engineered to meet specific performance requirements, allowing automakers to tailor material properties to their needs.

This flexibility in material design contributes to its adoption in diverse automotive applications. The aerospace and defense industry plays a significant role in driving the demand for recycled carbon fiber due to several critical factors, including its low weight for higher fuel efficiency and cost efficiency. The aerospace & defense industries are cost-sensitive, and any material used must offer value. Recycled carbon fiber often presents a cost-effective alternative to conventional virgin carbon fiber due to lower material procurement costs and energy savings during manufacturing. Furthermore, several governments and regulatory bodies around the world are imposing stricter emissions and environmental standards to reduce CO2 emissions.

This material supports sustainability goals by recycling materials, reducing waste, and minimizing the carbon footprint of manufacturing processes. Sporting goods manufacturers are increasingly adopting sustainable practices and eco-friendly materials to meet consumer demand for environmentally responsible products. It diverts carbon fiber waste from landfills and reduces the need for virgin carbon fiber, which has a larger carbon footprint. It also helps dampen vibrations, providing a smoother feel and enhanced comfort for athletes. This is particularly beneficial in sports equipment, such as tennis rackets, where reducing vibration can improve playability and performance.

Regional Insights

On the basis of region, Asia Pacific dominated the global market with a revenue share of 49% in 2022 and is estimated to grow at a significant CAGR over the forecast period. The Asia Pacific region has witnessed significant growth in the automotive industry, driven by rising income levels of the middle-class population, rapid urbanization, and increasing consumer demand for vehicles. As the automotive industry expands in countries including China, Japan, South Korea, and India, the demand for lightweight and eco-friendly materials, such as recycled carbon fiber, is likely to increase to enhance fuel efficiency and meet emissions standards.

The growing aerospace industry in Europe and North America, combined with stringent government regulations, is providing significant benefits to the market. Europe and North America have well-established and growing aerospace industries, with major players, such as Airbus, Boeing, Lockheed Martin, and Northrop Grumman headquartered in these regions. The demand for commercial and military aircraft is steadily increasing in response to factors like air travel growth, defense needs, and technological advancements. Fuel efficiency is a major concern for the aerospace industry due to its direct impact on operating costs, environmental sustainability, and compliance with emissions regulations.

Using recycled carbon fiber composites in aircraft structures helps reduce overall weight while maintaining or even improving structural integrity. This leads to substantial fuel savings and reduced greenhouse gas emissions. Europe and North America both have stringent environmental and safety regulations governing the aerospace industry. These regulations aim to reduce environmental impact, ensure passenger safety, and maintain the industry's global competitiveness. Product usage supports these sustainability goals by reducing waste, minimizing the environmental footprint of manufacturing, and conserving resources.

Key Companies & Market Share Insights

The key players are focused on increasing their market share by adopting various strategies, such as new product launches, research and development, mergers & acquisitions, and collaborations. The established players have a strong presence in the market as they possess extensive experience advanced technologies, and a wide range of applications. Leading companies are actively diversifying product applications beyond traditional sectors, such as aerospace & defense and automotive. They explore opportunities in wind energy, sporting goods, construction, and consumer electronics.

Recycled Carbon Fiber Market Report Scope

Global Recycled Carbon Fiber Market Report Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global recycled carbon fiber market report on the basis of application and region:

• Application Outlook (Revenue, USD Million, 2018 - 2030)

  • Automotive

  • Aerospace & Defense

  • Consumer Goods

  • Sporting Goods

  • Others

• Regional Outlook (Revenue, USD Million, 2018 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • UK

    • France

    • Spain

    • Italy

  • Asia Pacific

    • China

    • India

    • Japan

    • South Korea

  • Central & South America

    • Brazil

  • Middle East & Africa

    • Saudi Arabia