Recycled Carbon Fiber Market Expected to Reach $432.5 Million by 2031—Allied Market Research

According to a new report published by Allied Market Research, titled, “Recycled Carbon Fiber Market," The recycled carbon fiber market was valued at $139.0 million in 2021, and is estimated to reach $432.5 million by 2031, growing at a CAGR of 12% from 2021 to 2031. 

Recycled carbon fiber is a product obtained from reclamation of fibers from carbon fiber-reinforced composites (CFRC). Recycled carbon is prized for its durability, strength, stiffness, and light-weighing qualities it brings to products. It is especially useful in sports equipment, electronics, automotive, and aerospace end uses.

Aerospace & defense sectors are the primary drivers for growth and development in the recycled carbon fiber market. Aerospace industry has strict performance product requirements for end uses in commercial aircrafts, engines, satellites, helicopters, and launchers. Thus, low tow recycled carbon fibers are employed in aerospace end uses. Structural materials in aircrafts such as paneling interiors are made using recycled carbon fiber products.

Recycled carbon fiber materials possess mechanical properties such as high tensile strength, impact resistance, reliability, fuel efficiency, and temperature resistance, which make them ideal for use in aerospace industry. High R&D activities are carried out for process improvements in the methods applicable for production of CFRP materials for aerospace industry.

Companies such as Airbus and Boeing and their long-term production schedules, the demand for recycled carbon fiber is further projected to grow in aerospace industry. In addition, new properties of recycled carbon fiber are discovered as a result of heavy R&D activities, which increases the end use of recycled carbon fiber materials in the industry. Flexing property of recycled carbon fiber is now employed for production of wing systems, increasing the use of recycled carbon fiber materials in aerospace end uses.

Furthermore, recycled carbon fiber products are indispensable in manufacturing high-performance sports equipment owing to properties such as excellent stiffness, high strength, good mechanical performance, and its lightweight. Rise in the use of recycled carbon fiber composites in numerous sports equipment is expected to boost the recycled carbon fiber market. Governments of various countries such as India and UK have put more emphasis on promoting sports activities, which in turn has surged the demand for recycled carbon fiber products for sporting equipment end uses. This factor may act as one of the key drivers responsible for the growth of the recycled carbon fiber market during the forecast period.

However, lack of availability of composite waste and requirement of skilled workforce in manufacturing recycled carbon fiber may restrain the growth of the recycled carbon fiber market during the forecast period.

On the contrary, governments of both developed and developing economies are constantly engaged in promoting the utilization of environment-friendly products among various end use sectors. Countries such as the U.S., Japan, Germany, and others are focusing on the use of sustainable products instead of petroleum-derived products. This factor has led end use sectors such as building & construction, automotive, and aerospace & defense to use recycled carbon fiber for various end uses.

Moreover, volatile Organic compounds (VOCs) are compounds having low water solubility and high vapor pressure. They are emitted as gases from certain solids or liquids and include a variety of chemicals that may have short- and long-term adverse health effects. Furthermore, several government agencies such as the United States Environmental Protection Agency (U.S. EPA), European Union, and Central Pollution Control Board have laid down laws and regulations for the emission limits of VOCs. For instance, the United States Environmental Protection Agency (U.S. EPA) regulates VOCs at Federal level in 40 CFR 59, which is the National Volatile Organic Compound Emission Standards for consumer and commercial products.

Recycling of carbon fiber produces little or no VOCs, which in turn has surged the potential end uses of recycled carbon fiber among several end use sectors. This is anticipated to increase the demand for recycled carbon fiber; thus, creating lucrative opportunities for the market.

The recycled carbon fiber market is segmented on the basis of source, end use, and region. By source, the market is segregated into wind & turbine scrap, aerospace scrap, and others. The aerospace scrap segment dominated the global market, in terms of revenue in 2021. The rising advancements in producing high-tech fighter jets where carbon fiber is widely used owing to its lightweight and high strength has eased the availability of used carbon fiber for carbon fiber recycling companies from aerospace scrap. Furthermore, recycling carbon fiber from aerospace composite scrap has environmental and business benefits. This factor is leading to progress in a shift from pilot scale to industrial operations of carbon fiber recycling from aerospace scrap.

By end use, the recycled carbon fiber industry is divided into automotive & transportation, construction, marine, industrial, and others. The automotive & transportation end use segment dominated the global market, in terms of revenue in 2021 with 38.9% of the global recycled carbon fiber market share. Sustained economic growth has surged the need for faster and reliable mode of transportation where recycled carbon fiber is widely used in various transportation equipment owing to its light weight/high stiffness, low bending, high-speed operation, and other significant characteristics. This may act as one of the key drivers responsible for the recycled carbon fiber market growth.

Furthermore, factors such as increasing disposable income, technological upgrades, and spurring rise in original equipment manufacturers (OEMs) have led the automotive & transportation sector to witness a significant growth where recycled carbon fiber is used for manufacturing various auto parts to absorb large amount of impact energy and increase overall safety of the vehicle. This is one of the major recycled carbon fiber market trend. For instance, according to a report published by the Government of Canada, the automotive industry in Canada plays a key role in Canada’s economy with a contribution of around $12.5 billion to gross domestic product (GDP) in 2020. This is anticipated to increase the demand for recycled carbon fiber among the growing automotive & transportation sector.

Region wise, the recycled carbon fiber market analysis is conducted across North America, Europe, Asia-Pacific, and LAMEA. The Europe recycled carbon fiber market size is projected to grow at the highest CAGR during the forecast period, and accounted for a major market share in 2021, Germany is the most promising country-level market in the region with increased adoption of recycled carbon fiber in the automotive & transportation sector.

According to a report published by Germany Trade and Invest, Germany has witnessed an increased consumer demand for private and public vehicles with electric vehicles giving an additional push to the transportation industry. Moreover, the region has a strong presence of key automobile leaders such as Mercedes-Benz, Bayerische Motoren Werke Aktiengesellschaft (BMW), and Audi which are consistently adding value by producing highly advanced vehicles. This may enhance the performance of the recycled carbon fiber market.

Furthermore, countries such as the UK and Italy have put more emphasis on building & construction activities where recycled carbon fiber is used for constructing windows, door systems, exterior trim, decks, columns, fences, and pergolas. According to a report published by Construction Product Association, the construction output in UK rose by 12.9% in 2021 and 5.2% in 2022. This may enhance the performance of the recycled carbon fiber market in the European region.

Key players operating in the global recycled carbon fiber market include Toray Industries, Inc., SGL Carbon, Carbon Conversions, Shocker Composites, LLC, Bcircular, Procotex, Vartega Inc, Sigmatex, Carbon Fiber Remanufacturing, Gen 2 Carbon Limited.

COVID-19 impact analysis

According to a report published by Society of Indian Automobile Manufacturers (SIAM), sale of passenger vehicles, commercial vehicles and two‐wheeler vehicles declined by 51%, 88%, and 40% respectively in March 2020. Moreover, several automotive companies have either shutdown or shrank their operations where recycled carbon fiber is used in the production of front & rear fenders, front wheelhouses, and hoods & roofs due to the risk of infections among the workforce. This has temporarily hampered the demand for recycled carbon fiber market amid the COVID-19 period. 

Moreover, COVID-19 has put a temporary break on various aircraft manufacturing projects, which in turn reduced the demand for recycled carbon fiber used in the production of Boeing 777, Boeing 787, Airbus A320, Airbus A320, satellites, and rockets. In addition, the recycled carbon fiber market has witnessed a downfall in demand in the construction sector, owing to temporary halt on various building and construction projects amid the COVID-19 period. 

However, the building & construction and transportation activities have started functioning with full capacity post the COVID-19 period, which in turn has enhanced the performance of the recycled carbon fiber market. For instance, according to a report published by the Office for National Statistics in December 2021, the total construction output in Europe increased by 12.7% in 2021 as compared to 2020 owing to rise in new construction projects and building repair & maintenance-related activities.

Furthermore, factors such as rise in awareness for eco-friendly activities coupled with increasing corporate social responsibility (CSR) for promoting sustainable products may augment the utilization of recycled carbon fiber among several end use sectors: thus, boosting the market growth.

Key findings of the study

• By source, the aerospace scrap segment is estimated to display the highest growth rate, in terms of revenue, registering a CAGR of 12.3% from 2022 to 2031.
• By end use, the automotive & transportation segment is estimated to display the highest growth rate, in terms of revenue, registering a CAGR of 12.5% from 2022 to 2031.
• By region, North America garnered the highest share of more than 35.0% in 2021, in terms of revenue, growing at a CAGR of 12.1%.