Europe Carbon Fiber Market

Europe Carbon Fiber Market Size

The carbon fiber market size in Europe was valued at USD 1.02 billion in 2024. The European market is estimated to be worth USD 1.84 billion by 2033 from USD 1.09 billion in 2025, growing at a CAGR of 6.75% from 2025 to 2033.

Carbon fiber is composed primarily of carbon atoms arranged in a crystalline structure and is widely utilized in industries such as aerospace, automotive, wind energy, sports equipment, and construction. The focus on Europe on lightweight materials to achieve sustainability and energy efficiency goals is primarily promoting the demand for carbon fiber across the European region. Germany, France, and the UK are the active players in the European market currently and the market in these countries is supported by their robust manufacturing sectors and investments in research and development. The European Union’s stringent emission reduction targets under the European Green Deal have further accelerated demand for carbon fiber, particularly in electric vehicles (EVs) and renewable energy applications. For instance, the International Energy Agency highlights that carbon fiber-reinforced composites reduce vehicle weight by up to 30%, significantly improving fuel efficiency and battery performance. Similarly, the Global Wind Energy Council reports that Europe accounts for over 40% of global wind turbine installations, with carbon fiber playing a pivotal role in manufacturing larger and more efficient turbine blades.

MARKET DRIVERS

Growing Demand for Lightweight Materials in the Automotive Sector 

The increasing demand for lightweight materials to enhance fuel efficiency and reduce emissions is a major driver of the European carbon fiber market. The European Environment Agency emphasizes that transportation accounts for approximately 25% of the EU’s total greenhouse gas emissions, prompting automakers to adopt carbon fiber-reinforced composites. These materials reduce vehicle weight by up to 30%, significantly improving fuel economy and battery performance in electric vehicles (EVs), as highlighted by the International Energy Agency. In 2022, EV sales in Europe surged by 63%, with Germany, France, and the UK leading the charge. Carbon fiber’s role in manufacturing lightweight yet durable components aligns with the EU’s stringent CO2 emission targets, which mandate a 55% reduction by 2030. This regulatory push, coupled with consumer demand for sustainable mobility solutions, ensures robust growth in carbon fiber adoption across the automotive industry.

Expansion of Renewable Energy Applications, Particularly Wind Energy 

The expansion of renewable energy applications, particularly wind energy, serves as another key driver for the European carbon fiber market. The Global Wind Energy Council reports that Europe accounted for over 40% of global wind turbine installations in 2022, with countries like Germany, Spain, and Denmark leading the way. Carbon fiber’s superior strength-to-weight ratio makes it indispensable for manufacturing larger and more efficient turbine blades, enabling higher energy output. According to the European Commission, wind energy contributes approximately 18% of the EU’s electricity generation, and this share is expected to grow under the European Green Deal’s renewable energy targets. Additionally, investments in offshore wind projects, such as the UK’s Hornsea Project, further boost demand for carbon fiber. These developments underscore its critical role in advancing Europe’s transition toward clean energy while driving innovation and scalability in the carbon fiber industry.

MARKET RESTRAINTS

High Production Costs and Economic Viability Challenges 

One of the primary restraints in the European carbon fiber market is the high production cost, which limits its widespread adoption across industries. The European Chemical Industry Council highlights that producing carbon fiber costs approximately €20-30 per kilogram, significantly higher than traditional materials like steel or aluminum. This cost disparity is attributed to energy-intensive manufacturing processes and the use of expensive precursor materials such as polyacrylonitrile (PAN). According to Eurostat, industrial energy prices in Europe surged by 40% in 2022, further straining manufacturers. While carbon fiber offers exceptional performance benefits, its economic viability remains a concern for small and medium-sized enterprises (SMEs) operating under tight budgets. Additionally, the lack of economies of scale in recycling technologies exacerbates the issue, making it challenging to achieve cost competitiveness despite growing demand for sustainable materials.

Limited Recyclability and Environmental Concerns 

Another significant restraint is the limited recyclability of carbon fiber, raising environmental concerns and hindering its long-term sustainability. The European Environment Agency notes that less than 15% of carbon fiber waste is currently recycled, with most ending up in landfills due to the complexity of separating fibers from composite matrices. Current recycling methods, such as pyrolysis, are both energy-intensive and costly, limiting their scalability. A report by the International Energy Agency highlights that the carbon fiber industry must address these challenges to align with the EU’s circular economy goals, which mandate a 50% reduction in landfill waste by 2030. Furthermore, the environmental impact of producing virgin carbon fiber, which emits approximately 20-30 kg of CO2 per kilogram, undermines its green credentials. These factors highlight the urgent need for advancements in recycling technologies to enhance the material’s sustainability and market acceptance.

MARKET OPPORTUNITIES

Advancements in Recycling Technologies and Circular Economy Initiatives 

A significant opportunity for the European carbon fiber market lies in advancements in recycling technologies, which align with the EU’s circular economy goals. The European Environment Agency emphasizes that achieving a 50% reduction in landfill waste by 2030 requires innovative solutions to recycle carbon fiber composites. Emerging methods like solvolysis and chemical recycling are gaining traction, with pilot projects demonstrating the potential to recover up to 90% of fiber properties compared to virgin materials, as reported by the European Chemical Industry Council. These advancements not only reduce environmental impact but also lower production costs by reintroducing recycled fibers into the supply chain. Furthermore, the growing demand for sustainable materials in industries such as automotive and aerospace creates a lucrative market for recycled carbon fiber, estimated to grow at a CAGR of 10.5% (2023-2028), according to the International Energy Agency.

Increasing Adoption in Aerospace and Defense Applications 

The increasing adoption of carbon fiber in aerospace and defense applications presents another major opportunity for the European market. The European Commission highlights that the aerospace sector contributes approximately €110 billion annually to the EU economy, with carbon fiber playing a pivotal role in manufacturing lightweight aircraft components. Boeing and Airbus, two leading manufacturers based in Europe, utilize carbon fiber extensively, reducing aircraft weight by up to 20% and improving fuel efficiency, as per the Global Aviation Industry Report. Additionally, defense applications, including drones and military aircraft, are driving demand due to the material’s durability and stealth properties. The European Defence Agency forecasts a 15% increase in defense spending by 2025, further boosting investments in advanced materials. This trend positions carbon fiber as a critical enabler of innovation and competitiveness in high-performance industries.

MARKET CHALLENGES

Intense Competition from Alternative Materials 

One of the major challenges for the European carbon fiber market is the intense competition from alternative materials such as aluminum, steel, and glass fiber, which are often more cost-effective. The European Composites Industry Association highlights that aluminum and steel remain dominant in industries like automotive and construction due to their lower costs, with prices ranging from €2-5 per kilogram, compared to carbon fiber’s €20-30 per kilogram. Glass fiber, a cheaper alternative, accounts for over 60% of the global composites market, as reported by Eurostat. While carbon fiber offers superior performance, its high cost limits its adoption in price-sensitive applications. Additionally, advancements in hybrid materials, which combine glass fiber with other composites, further intensify competition. This challenge is compounded by fluctuating raw material prices, making it difficult for carbon fiber to compete on affordability despite its technical advantages.

Dependence on Imports for Key Raw Materials 

Another significant challenge is Europe’s dependence on imports for key raw materials, particularly polyacrylonitrile (PAN), the primary precursor for carbon fiber production. The European Commission reports that over 80% of PAN used in Europe is imported, primarily from Asia and the United States, exposing the market to supply chain vulnerabilities. Geopolitical tensions and trade restrictions have led to price volatility, with PAN prices increasing by 15-20% in 2022, as noted by the International Energy Agency. This dependency undermines Europe’s efforts to achieve self-sufficiency in advanced materials production. Furthermore, limited domestic production capacity for precursors hampers scalability and innovation. Addressing this challenge requires strategic investments in local supply chains and partnerships to secure raw material availability, ensuring long-term competitiveness in the global carbon fiber market.

REPORT COVERAGE

SEGMENTAL ANALYSIS

By Raw Material Insights

The PAN-based segment ruled the market by holding 90.3% of the European market share in 2024. The domination of the PAN-based segment is majorly attributed to its superior tensile strength and versatility, making it ideal for aerospace, automotive, and wind energy applications. According to the Eurostat, PAN-based fiber demand grew by 8% annually (2020-2022) due to its use in lightweight materials for electric vehicles and renewable energy projects. Despite reliance on imported precursors, with over 80% of PAN sourced externally, its importance lies in meeting EU sustainability goals, such as reducing vehicle weight by 30% to enhance fuel efficiency, ensuring its pivotal role in decarbonization efforts.

The pitch-based segment is estimated to witness a CAGR of 7.5% during the forecast period owing to the increasing demand in specialized industries like aerospace, defense, and electronics, where its high thermal conductivity and modulus are critical. The European Chemical Industry Council notes advancements in precursor development are enhancing scalability and competitiveness. Pitch-based fibers are indispensable for niche applications requiring extreme performance, such as heat management systems. Their importance lies in addressing unique industrial needs, ensuring steady growth despite higher costs compared to PAN-based alternatives.

By Tow Size Insights

The large tow segment occupied for 65.4% of the European market share in 2024 due to its cost-effectiveness and suitability for industrial applications like wind energy, automotive, and construction. Eurostat highlights that large tow fibers are critical in manufacturing wind turbine blades, with Europe installing over 17 GW of wind capacity in 2022, as noted by the Global Wind Energy Council. These fibers balance strength, weight, and affordability, making them indispensable for scaling renewable energy projects. Their importance lies in supporting the EU’s decarbonization goals, including the target of achieving 40% renewable energy by 2030, ensuring sustained demand and market dominance.

The small tow segment is expected to register a promising CAGR of 9.1% during the forecast period. The growth of the small tow segment is majorly driven by high-performance applications in aerospace, defense, and sports equipment, where precision and durability are critical. The European Composites Industry Association reports that small tow fibers are essential for lightweight components, such as aircraft panels, which reduce vehicle weight by up to 20%, enhancing fuel efficiency. Their importance lies in enabling innovation in high-value industries, particularly as Europe invests heavily in advanced aerospace technologies and sustainable mobility solutions, ensuring steady expansion in niche but lucrative markets.

By Application Insights

The aerospace & defense represented the largest application segment for carbon fiber in Europe and had 30.7% of the European market share in 2024. The dominance of aerospace & defense segment is driven by the material’s exceptional strength-to-weight ratio and resistance to extreme conditions, making it indispensable for aircraft components, satellites, and military equipment. The International Energy Agency highlights that carbon fiber reduces aircraft weight by up to 20%, significantly improving fuel efficiency and lowering emissions. In 2022, Europe’s aerospace sector contributed approximately €110 billion to the economy, with Airbus alone utilizing over 50% of its structural materials as composites, as reported by the Global Aviation Industry Report. Its importance lies in enabling innovation and compliance with stringent environmental regulations, ensuring sustained demand.

The wind turbines segment is projected to progress at a CAGR of 9.8% during the forecast period. Carbon fiber’s role in manufacturing larger, more efficient turbine blades has fueled its adoption, particularly in Europe, which installed over 17 GW of wind capacity in 2022. Eurostat notes that carbon fiber enhances blade durability and performance, enabling turbines to generate higher energy output while reducing maintenance costs. The European Commission emphasizes that wind energy accounts for 18% of the EU’s electricity generation, with goals to increase this share under the European Green Deal. This growth underscores its importance in advancing renewable energy targets and achieving carbon neutrality by 2050.

REGIONAL ANALYSIS

Germany held the largest share of the European carbon fiber market by accounting for 35.4% of the European market share in 2024. The German Federal Ministry for Economic Affairs highlights that Germany’s leadership stems from its robust automotive and aerospace industries, with companies like BMW and Airbus driving demand for lightweight materials. Carbon fiber’s role in reducing vehicle weight by up to 30%, as noted by Eurostat, aligns with EU emission reduction targets, further boosting adoption in electric vehicles (EVs). Germany accounts for over 40% of Europe’s EV production, making it a hub for innovation in sustainable mobility solutions. Additionally, the country’s strong focus on R&D and advanced manufacturing ensures its dominance in high-performance applications.

France is a key player in both renewable energy and aerospace sectors. The French Ministry of Ecological Transition reports that France’s wind energy capacity exceeded 18 GW in 2022, with carbon fiber being critical for manufacturing larger and more efficient turbine blades. Furthermore, France’s aerospace industry, supported by global leaders like Airbus, drives demand for advanced composites. According to the International Energy Agency, carbon fiber reduces aircraft weight significantly, enhancing fuel efficiency and aligning with sustainability goals. France’s commitment to reducing greenhouse gas emissions through lightweight materials in transportation and renewable energy applications reinforces its position as a leading market for carbon fiber

The UK is likely to account for a prominent share of the European market over the forecast period due to its prominence in the aerospace sector. The UK Department for Business, Energy & Industrial Strategy reports that the country contributes 17% of global aerospace production, with companies like Rolls-Royce utilizing carbon fiber for high-performance components. The UK’s focus on innovation and R&D has positioned it as a leader in advanced materials, particularly for aerospace and defense applications. Additionally, the UK’s commitment to achieving net-zero emissions by 2050 has spurred investments in lightweight materials for transportation and renewable energy. This strategic alignment with sustainability goals ensures sustained growth and cements the UK’s role as a key contributor to the European carbon fiber market.

KEY MARKET PLAYERS

The major key players in Europe carbon fiber market are DowAksa, Formosa Plastics Group, Hexcel Corp, Jiangsu Hengli Hydraulic, Mitsubishi Chemical Group Corp, SGL Group, Solvay SA, Teijin Ltd, Toray Industries Inc, A & P Technology, ENF Solar, Hyosung Advanced Materials, Nippon Graphite Fiber, and others.

MARKET SEGMENTATION

This research report on the Europe carbon fiber market is segmented and sub-segmented into the following categories.

By Raw Material

• PAN Based
• Pitch Based

By Tow Size

• Small Tow
• Large Tow

By Application

• Automotive
• Aerospace & Defense
• Wind Turbines
• Sports/Leisure
• Molding & Compound
• Construction
• Pressure Vessel
• Others

By Country

• UK
• France
• Spain
• Germany
• Italy
• Russia
• Sweden
• Denmark
• Switzerland
• Netherlands
• Turkey
• Czech Republic
• Rest of Europe