Carbon fibre reinforced plastics market to reach $27.98 bn by 2024

The global carbon fibre reinforced plastic (CFRP) market is expected to reach $ 27.98 billion by 2024 from $ 11.6 billion in 2015, according to a new report by Grand View Research Inc (GVR). Increasing composites demand in the automotive industry is expected to remain a key driving factor for global CFRP market. Automotive is the fastest growing segment of carbon fibre reinforced plastic market with a market share of 19.7 percent of the total volume in 2015.

Aerospace & defence was the leading application segment for CFRP in 2015, accounting for 30.4 percent of the total volume. Growing commercial aviation sector is expected to influence polymer composite demand from aerospace application segment.

Stringent government regulations regarding vehicular emission has forced automotive manufacturers to curb weight. Polymer composite usage in automotive production is the most desirable way to reduce the overall weight. Reduced weight also results in improved fuel efficiency. Automotive application segment is anticipated to emerge as the fastest growing application segment in upcoming years.

“Aerospace & defence application segment contributed significantly to shape the overall revenue owing to the high cost of aerospace grade CFRP. Research and development in the aviation industry for manufacturing components capable of withstanding high environmental stresses is anticipated to fuel CFRP market growth over the next eight years,” said GVR in a press statement. 

As per GVR report, the global carbon fibre reinforced plastic market demand, which was 92.9 kilo tonnes (KT) in 2015, is estimated to reach 269.5 KT by 2024, growing at a CAGR of 12.5 percent from 2016 to 2024.

Extensive R&D activities particularly in Japan and Europe have led to the emergence of numerous market players, which in turn is expected to drive the regional market demand. Escalating CFRP demand in sports applications, specifically in the Asia Pacific region, is anticipated to impel CFRP consumption.

Although CFRP offers excellent benefits due to its superior strength and lesser weight, its expensive nature has restricted its use to certain high performance applications only. 

Polyacrylonitrile (PAN) precursor is expected to gain some of the market shares over the forecast period and is projected to account for around 97 percent of the total demand in 2024. PAN has gained popularity on account of its superior properties over pitch precursor. Lower cost of PAN as compared to pitch-based CFRP is also anticipated to foster the industry growth.

Advantages offered by thermoplastic carbon fibre plastic over thermosetting composites such as short processing time, high impact resistance, easy storage, and recyclability are expected to fuel thermoplastic CFRP demand.

North America has emerged as the most dominant regional market accounted for 36.9 percent in 2015 of the market volume because of the growing demand in automotive and aviation industry.

Most of the key market players such as Cytec Industries, Toray, Zoltek, Toho, Mitsubishi Rayon Corporation, Hexcel, and Hyosung have integrated along the major part of the value chain ranging from production and raw material supply to CFRP distribution. High level of integration enables companies to cut down the cost associated with raw material procurement and strengthens their market share with the development of specialty products.