Automotive Carbon Fiber Composites Market Size & Forecast Report - 2025 to 2030

The global automotive carbon fiber composites market size was valued at around USD 26 billion in 2024 and expected to grow at a significant CAGR of around 9% during the forecast period from 2025 to 2030. The market is experiencing robust growth, driven by the rising demand for lightweight materials that enhance fuel efficiency and reduce carbon emissions. Carbon fiber composites offer high strength-to-weight ratios, superior stiffness, and excellent corrosion resistance, making them ideal for structural and aesthetic automotive applications such as body panels, chassis, and interior components. Automakers are increasingly incorporating these composites into vehicles to comply with stringent emission standards and improve performance. Additionally, the growing adoption of electric vehicles (EVs) has accelerated demand, as lightweight materials play a crucial role in extending battery range and improving overall efficiency.

Moreover, advancements in manufacturing technologies such as resin transfer molding (RTM) and automated fiber placement (AFP) are reducing production costs, making carbon fiber composites more accessible for mass-market vehicles. Leading manufacturers are investing in research and development to enhance recyclability and reduce production cycle times. While high costs and complex fabrication processes remain challenges, continuous innovation and strategic collaborations between automotive OEMs and composite material suppliers are expected to drive market expansion. As a result, the global automotive carbon fiber composites market is poised for steady growth over the coming decade.

Key Findings:

• Global market valued at USD 26 billion in 2024, growing at ~9% CAGR (2025–2030).
• Growth driven by demand for lightweight materials to improve fuel efficiency and reduce emissions.
• Rising adoption in electric vehicles (EVs) to extend battery range and efficiency.
• Thermoset composites dominate due to high strength, stiffness, and reliability.
• Resin Transfer Molding (RTM) is the leading manufacturing process for complex parts.
• Asia-Pacific leads regionally, driven by EV production, industrial expansion, and supportive policies.
• Major players include Toray, Teijin, SGL Carbon, Hexcel, Mitsubishi Chemical, BASF, Solvay, DowAksa, Zoltek, and Sigmatex.

Market Snapshot:

Automotive Carbon Fiber Composites Market Key Drivers:

Lightweighting remains a core driver in the automotive sector as manufacturers strive to hit increasingly strict CO₂ emissions and fuel‐economy targets. Use of advanced composites such as carbon fiber allows automakers to reduce vehicle mass significantly, which is especially important for electric vehicles (EVs) (where every kilogram saved translates to increased driving range). At the same time, the trend toward global electrification and hybridisation is boosting demand for materials that provide high strength at low weight, making carbon-fiber composites an attractive option for body panels, structural members and battery enclosures.

Another major driver is the continuing evolution of manufacturing technologies and material systems which are making carbon‐fiber composites more cost-effective and suitable for higher-volume applications. Innovations in resin systems, automated fibre placement, rapid curing and hybrid materials are helping bridge the cost and scalability gap between premium vehicles and mass-market applications. Alongside that, regulatory emphasis on sustainability, recyclability and lifecycle impact is encouraging suppliers to develop greener composite solutions. Recently, Envalior announced that at JEC World 2025 it is launching a thermoplastic-fiber composite beam (currently in series production for a German premium OEM) and a full-scale battery enclosure prototype using thermoplastic composites aimed at EVs.

Industry Trends Fueling the Automotive Carbon Fiber Composites Market Growth:

• Growing Penetration into Electric Vehicle (EV) Platforms: One of the most prominent trends in the market is the rapid integration of carbon fiber composites into electric vehicle (EV) architectures. As automakers race toward electrification, the need for lightweight materials has become critical to counterbalance the heavy weight of lithium-ion batteries. By incorporating carbon fiber composites in battery enclosures, body panels, and underbody structures, manufacturers can significantly reduce overall vehicle mass—leading to extended driving range and improved energy efficiency. Additionally, many governments worldwide have tightened emissions regulations, compelling OEMs to adopt materials that help them meet CO₂ targets. For instance, the EU’s 2030 target mandates a 55% reduction in new car emissions, which is accelerating the use of carbon fiber composites in next-generation EV models. This trend underscores the material’s growing importance as a strategic enabler for achieving sustainability and performance goals in the EV sector.
• Advancements in Manufacturing Technologies and Processes: Another major trend reshaping the market is the technological evolution in composite manufacturing. Traditional carbon fiber production has been limited by high costs and long cycle times, restricting its use to luxury or performance vehicles. However, recent innovations such as resin transfer molding (RTM), automated fiber placement (AFP), and thermoplastic resin systems have drastically improved production efficiency. These methods allow faster curing, reduced wastage, and improved precision, enabling carbon fiber components to be produced at higher volumes and lower costs. Furthermore, hybrid material systems—such as carbon-glass fiber blends—are being developed to offer optimal strength-to-weight ratios at reduced expense. These advancements are helping democratize carbon fiber composites, making them viable not only for high-performance sports cars but also for mainstream passenger and commercial vehicles.
• Focus on Sustainability and Recyclability: Sustainability has become a defining focus area across the automotive supply chain, and carbon fiber composites are no exception. While these materials are valued for their durability and weight reduction, their limited recyclability has long been a concern. Recent efforts are addressing this through recycled carbon fiber (rCF) initiatives and the use of bio-based or thermoplastic resins that facilitate end-of-life recovery. Companies are exploring closed-loop recycling systems to reclaim fibers from production waste and end-of-life vehicles, thereby minimizing environmental impact. In addition, carbon fiber manufacturers are working on energy-efficient production methods to lower the carbon footprint of composite manufacturing. This trend is aligned with global sustainability commitments and circular economy principles, reflecting how the automotive industry is evolving toward environmentally responsible material use.
• Strategic Collaborations and Supply Chain Integration: Given the complex and capital-intensive nature of composite manufacturing, collaboration across the supply chain has become essential. Automotive OEMs are forming strategic alliances with composite material suppliers, chemical companies, and technology providers to co-develop innovative solutions and achieve economies of scale. For instance, major automakers like BMW, Toyota, and Ford have partnered with carbon fiber producers to secure material supply and co-engineer lightweight structures. This vertical integration helps reduce dependency on external suppliers, ensures consistent material quality, and accelerates R&D efforts. Additionally, as cost reduction remains a top priority, many companies are investing in localized production facilities and automation technologies to streamline supply chains and minimize logistics costs.

Future Opportunities Reshaping the Automotive Carbon Fiber Composites Market’s Evolution:

One significant opportunity lies in expanding into emerging markets, particularly across the Asia-Pacific region—including China, India, and Southeast Asia—where vehicle production and electrification efforts are accelerating rapidly. As governments in these regions tighten fuel-efficiency regulations and promote EV adoption, automakers are increasingly turning to carbon fiber composites to meet lightweighting and performance goals. Localized manufacturing and partnerships with regional suppliers will allow companies to optimize production costs and strengthen supply chains. Moreover, the growing demand for high-performance electric vehicles, luxury cars, and commercial fleets in these markets creates an excellent platform for composite manufacturers to expand their footprint beyond traditional Western markets.

Another promising opportunity lies in the advancement of sustainable and cost-efficient manufacturing processes for carbon fiber composites. Innovations such as thermoplastic composites, faster curing systems, and hybrid fiber materials are making large-scale production more viable and environmentally friendly. In addition, recycling technologies for reclaiming carbon fibers from production waste and end-of-life vehicles are opening pathways toward a circular economy. These technological and environmental developments will help bridge the gap between high-performance applications and mainstream automotive production. Companies that invest early in automated production, recycling infrastructure, and sustainable composite chemistry are likely to gain a strong competitive edge in the next decade.

Market Insights:

By Type: The Thermoset Composites Segment Dominated the Global Automotive Carbon Fiber Composites Market

The global automotive carbon fiber composites market is bifurcated into type, manufacturing process, application, vehicle type, and geography. On the basis of type, the thermoset carbon fiber composites currently dominate the automotive market, primarily due to their superior mechanical strength, rigidity, and dimensional stability. These properties make them ideal for structural applications such as chassis components, crash-critical body panels, and high-performance EV battery enclosures. Thermoset composites have been widely used in premium and luxury vehicles for years, and automakers continue to rely on them for applications where safety, stiffness, and performance cannot be compromised. Additionally, well-established manufacturing methods like resin transfer molding (RTM) and hand lay-up techniques support the production of complex geometries and high-strength components, further solidifying thermosets’ dominance.

Despite the growing interest in thermoplastic composites due to their recyclability, faster processing, and suitability for high-volume production, thermoset composites maintain the largest market share because high-value automotive segments prioritize performance over cost-efficiency. Vehicles in the luxury, sports, and high-performance EV categories continue to rely heavily on thermosets for weight reduction and structural integrity. The segment’s established supply chains, proven reliability, and extensive design flexibility allow manufacturers to meet stringent safety and regulatory standards, which is critical in automotive applications. As a result, thermoset composites remain the primary choice for automakers aiming to balance lightweighting with maximum performance and durability.

By Manufacturing Process: The Resin Transfer Molding Sub-category Holds the Largest Share of Automotive Carbon Fiber Composites Market

On the basis of manufacturing process, the global automotive carbon fiber composites market is further segmented into resin transfer molding (RTM), compression molding, injection molding, and prepreg layup. The resin transfer molding (RTM) is the dominant manufacturing process in the automotive carbon fiber composites market due to its balance of high mechanical performance, design flexibility, and scalability. RTM allows manufacturers to produce complex, large, and structurally critical components such as chassis frames, body panels, and crash-relevant parts with excellent dimensional accuracy and surface finish. The process also minimizes material waste, which is a significant advantage given the high cost of carbon fiber. Automakers, particularly in the premium, electric, and high-performance vehicle segments, prefer RTM because it delivers the necessary strength and rigidity while supporting lightweighting objectives that are crucial for efficiency and safety standards.

Although other processes like prepreg layup offer superior mechanical properties, their high cost, labor-intensive operations, and longer cycle times restrict them to niche, low-volume applications. Compression molding and injection molding are better suited for mid- to high-volume production but often cannot achieve the same structural performance as RTM. Consequently, RTM maintains its dominant position in the market by providing a practical combination of performance, cost-efficiency, and adaptability, allowing automakers to meet regulatory, safety, and design requirements while producing carbon fiber components at a reasonable scale. Its widespread adoption, particularly in structural EV components, ensures it will remain the preferred choice in the foreseeable future.

The automotive carbon fiber composites market research report presents the analysis of each segment from 2020 to 2030 considering 2024 as the base year for the research. The compounded annual growth rate (CAGR) for each respective segment is calculated for the forecast period from 2025 to 2030.

Historical & Forecast Period

• 2020-23 – Historical Year
• 2024 – Base Year
• 2025-2030 – Forecast Period

Global Automotive Carbon Fiber Composites Market Segmentation:

By Type:

• Thermoset Composites
• Thermoplastic Composites

By Manufacturing Process:

• Resin Transfer Molding (RTM)
• Compression Molding
• Injection Molding
• Prepreg Layup

By Application:

• Structural Assembly
• Powertrain Components
• Interiors
• Exteriors

By Vehicle Type:

• Passenger Car
• Commercial Vehicle

By Region:

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East & Africa

Regional Analysis: Asia Pacific Leads the Automotive Carbon Fiber Composites Market

As of 2024, the Asia-Pacific region dominates the global automotive carbon fiber composites market, driven by rapidly growing vehicle production, especially electric vehicles (EVs), and strong industrial expansion in countries like China, Japan, and India. Rising demand for lightweight vehicles to improve fuel efficiency and extend EV range is encouraging automakers to adopt carbon fiber composites extensively. China, in particular, has emerged as a hub for EV manufacturing, and major OEMs and component suppliers are increasingly integrating carbon fiber into structural and non-structural automotive parts. The region’s dominance is also supported by a well-established supply chain, competitive manufacturing costs, and government policies promoting energy-efficient and low-emission vehicles.

In addition, Asia-Pacific’s position is strengthened by strategic investments in advanced composite manufacturing technologies, such as resin transfer molding (RTM), automated fiber placement, and thermoplastic composites. Leading regional companies are actively collaborating with global carbon fiber suppliers like Toray, Mitsubishi Chemical, and Teijin to develop lightweight, high-performance materials tailored for EVs and premium vehicles. Rapid industrialization, growing middle-class consumer demand for high-performance vehicles, and supportive regulatory frameworks are expected to sustain Asia-Pacific’s leadership in the market over the coming years, making it the largest and fastest-growing regional segment globally.

Competitive Landscape:

Some of the prominent market players operating in the global automotive carbon fiber composites market are Toray Industries Inc., Teijin Limited, SGL Carbon SE, Hexcel Corporation, and Mitsubishi Chemical Group Corporation. Companies are exploring markets by expansion, new investment, the introduction of new services, and collaboration as their preferred strategies. Players are exploring new geography through expansion and acquisition to gain a competitive advantage through joint synergy.

Key Companies:

• Toray Industries Inc.
• Teijin Limited
• SGL Carbon SE
• Hexcel Corporation
• Mitsubishi Chemical Group Corporation
• BASF SE
• Solvay SA
• DowAksa
• Zoltek
• Sigmatex Ltd.

Key Questions Answered by Automotive Carbon Fiber Composites Market Report

• Global automotive carbon fiber composites market forecasts from 2025-2030
• Regional market forecasts from 2025-2030 covering Asia-Pacific, North America, Europe, Middle East & Africa, and Latin America
• Country-level forecasts from 2025-2030 covering 15 major countries from the regions as mentioned above
• Automotive carbon fiber composites submarket forecasts from 2025-2030 covering the market by type, manufacturing process, application, vehicle type, and geography
• Various industry models such as SWOT analysis, Value Chain Analysis about the market
• Analysis of the key factors driving and restraining the growth of the global, regional, and country-level automotive carbon fiber composites markets from 2025-2030
• Competitive Landscape and market positioning of top 10 players operating in the market