Carbon Fiber Reinforced Plastic (CFRP) Market Expected to Reach $15.4 Billion by 2030

According to a new report published by Allied Market Research, titled, "Carbon Fiber Reinforced Plastic (CFRP) Market by Raw Material, Resin Type, and Application: Global Opportunity Analysis and Industry Forecast, 2021–2030," the global carbon fiber reinforced plastic (CFRP) market was valued at $7.0 billion in 2020, and is projected to reach $15.4 billion by 2030, growing at a CAGR of 8.3% from 2021 to 2030.

Carbon fiber reinforced plastic (CFRP) is a composite material composed of carrier substance (matrix), reinforcing component, and carbon fiber embedded into carrier substance.

Carbon fiber reinforced plastic embedded with epoxy resin can be molded into complicated shapes where steel and aluminum tend to be molded, making CFRP widely used in production of aerospace seats to different frame structures. Metal parts tend to corrode when they come in contact with other metallic surface, owing to environmental conditions. CFRP materials are resistance to corrosion when they are in contact with metals or itself. This in turn enhances longevity of metal parts. These factors are predicted to notably contribute toward the growth of the global market. Moreover, helicopter rotor blades and tail sections are made up of CFRP. Use of carbon fiber reinforced plastic in production of instrument enclosures, doors, and interior components also drives the demand for CFRP in the global market.

However, conductivity and cost of carbon fiber composites is anticipated to hamper the market growth. Conductivity of CFRP may be advantageous or disadvantageous depending upon its application. CFRP are highly conductive in nature while fiber glass is insulative in nature. Thus, many applications in the utility industry use fiberglass over CFRP, which is expected to hamper the carbon fiber reinforced plastic market growth during the forecast period.    

Weight to strength ratio of CFRP is the prime advantage, making it an ideal substitute product over steel and aluminum. For instance, according to research conducted by Oak Ridge National Laboratory (ORNL) in 2019, replacement of carbon fiber reinforced plastic structure over steel or aluminum structure is expected to reduce 60% mass and improve the fuel efficiency by 30%. Light weight of vehicles, in turn reduces the overall cost and increases robustness of the body parts without compromising on performance level. This factor is anticipated to create lucrative opportunities for the expansion of the carbon fiber reinforced plastic (CFRP) market in the future.

The carbon fiber reinforced plastic (CFRP) market is segmented on the basis of raw material resin type, application, and region.

By raw material, the market is segregated into polyacrylonitrile (PAN), petroleum pitch, and others. The polyacrylonitrile (PAN) based carbon fiber reinforced plastic (CFRP) type dominated the global market in terms of revenue in 2020, with over two-third of the total share. PAN-based CFRP offer high strength and modulus properties making them widely used in aerospace, automotive, and sporting goods industries, which drives the market growth.

By resin type, the carbon fiber reinforced plastic (CFRP) market is classified into thermosetting and thermoplastic. The thermosetting resin type dominated the global market in terms of revenue in 2020, with over three-fourth of the total share. Use of thermoset resins such as polyester, epoxy, and phenol during formulation of carbon fiber reinforced plastic offers advantages such as resistance to solvents, improved fatigue strength, and improved finishing qualities.

By application, the market is divided into aerospace & defense, wind turbines, automotive, sports equipment, building & construction, and others. The aerospace & defense dominated the global market in terms of revenue in 2020, with over one-third of the total share. Aircraft grade aluminum was widely used for the construction of aircraft bodies and wings owing to its fatigue resistance. However, in recent years, CFRP has supersede the use of aluminum in aerospace construction. In addition, CFRP is used in Airbus A350, A380, and new military liftplane (A400M), further boosting the carbon fiber reinforced plastic (CFRP) market growth.

Region-wise, the carbon fiber reinforced plastic (CFRP) market is analyzed across North America, Europe, Asia-Pacific, and LAMEA. The LAMEA carbon fiber reinforced plastic (CFRP) market size is projected to grow at the highest CAGR during the forecast period and accounted for 44.9% carbon fiber reinforced plastic (CFRP) market share in 2020. Regulatory authorities in Saudi Arabia are coming up with business strategies such as partnership and join ventures in order to establish and increase the demand of aerospace industry. This factor is anticipated to escalate the demand of carbon fiber reinforced plastic market in LAMEA.

Key players operating in the global carbon fiber reinforced plastic (CFRP) market include Solvay S.A., DowAksa Advanced Composites Holdings B.V., Formosa, Plastics Corporation, Hexcel Corporation, Jiangsu Hengshen Fibre Material Co. Ltd., Mitsubishi Rayon Co. Ltd., SGL Carbon SE, Teijin Limited, Toray Industries, and Zhongfu Shenying Carbon Fiber Co. Ltd.

COVID-19 Analysis

The novel coronavirus (COVID-19) is an incomparable global pandemic that has spread to over 180 countries and caused huge losses of lives and the economy around the globe. The carbon fiber reinforced plastic market is negatively impacted due to the wake of COVID-19 owing to its dependence on building & construction, automotive, aerospace, and other sectors. The increase in risk of infection among the workforce results in delayed construction projects during the COVID-19 scenario where carbon fiber reinforced plastic is widely used in beams, columns, and slabs to enhance its tensile strength. For instance, according to an article published by CAN in 2020, the Construction Industry Joint Committee (CIJC) said that the shortage of manpower may lead to delay in construction projects attributed to workplace safety, and other factors. Moreover, several carbon fiber reinforced plastic manufacturers have either shut down or shrank their operations which in turn have resulted in supply chain disruptions. This has temporarily hampered the demand for carbon fiber reinforced plastic market amid the COVID-19 period. In addition, the falling income of customers has led to contraction of the demand of carbon fiber reinforced plastic among the automotive sectors. For instance, according to a report published by Wipro, the sales of passenger cars saw a 30% decline in March 2020 as compared to March 2019, owing to lockdowns and shutdowns of auto plants. In addition, the travel restrictions imposed by the governments of various countries have led the aerospace & aviation sectors to witness temporary downfall. Also, COVID-19 has put a temporary break on various aircraft manufacturing projects which in turn has shrank the demand for carbon fiber reinforced plastic among the aerospace & aviation sectors.

Key Findings of Study

• The petroleum pitch raw material is estimated to display the highest growth rate, in terms of revenue, registering a CAGR of 8.7% from 2021 to 2030.
• The thermoplastic resin type is anticipated to register the highest CAGR of 8.6% during the forecast period.
• The wind turbine application is estimated to display the highest growth rate, in terms of revenue, registering a CAGR of 9.1% from 2021 to 2030.
• LAMEA garnered the highest share of 44.9% in 2020, in terms of revenue, growing at a CAGR of 8.9%.