Recycled Carbon Fiber Market

Recycled Carbon Fiber Market Overview

The global recycled carbon fiber market was valued at USD  13,129.5 million in 2021 and is projected to reach USD  36,733.9 million by 2030 at a CAGR of 12.77%.

Recycled carbon fiber is sourced from waste carbon fiber generated as a result of the processing of thermoset carbon fiber-reinforced composites and various dry fiber and prepreg scrap sources. Around 30% of carbon fiber produced ends up as waste during the production of carbon fiber-based end products. Recycled carbon fibers exhibit similar properties as virgin carbon fiber, including high tensile strength, resistance to chemicals, low thermal expansion, and lightweight.

COVID-19 Impact on the Recycled carbon fiber Market:

The outbreak of COVID-19 has significantly impacted the chemicals & materials supply chains, international trade, and manufacturing operations across the world. The supply chain analysis involves an analysis of the raw materials used to produce the final product, the recycled carbon fiber manufacturers, the distribution channels, and the end users. Amidst the COVID-19 pandemic, economies across the globe are under lockdown. This has impacted the supply chains worldwide and thus severely disrupted trade and major economic activities. As a result of lockdowns across geographies, production facilities have faced major disruptions.

The COVID-19 outbreak has disrupted the supply chains worldwide and thus severely hampered trade and major economic activities. Additionally, closures of borders and export bans have led to fluctuations in raw material supplies. This has severely affected the production of recycled carbon fibers. Thus, the supply disruptions due to trade restrictions have caused a significant impact on the production of recycled carbon fibers.

Recycled Carbon Fiber Market Dynamics

Drivers

• Increasing demand for lightweight material in automotive and aerospace and defense industries: Recycled carbon fiber is being increasingly used in the automotive and aerospace and defense industries owing to its superior benefits such as cost-effectiveness, energy-efficiency, lightweight, and environmental sustainability. These fibers find use in numerous automotive applications, which includes battery boxes, pressure vessels, and lift gate systems. The increasing demand for lightweight and environment-friendly materials as a result of growing environmental regulations by the regulatory agencies such as the European Union (EU) and the US Environmental Protection Agency (EPA) to reduce carbon emissions is fuelling the demand for recycled carbon fibers. Additionally, increasing emission standards in India and China has also resulted in high demand for lightweight automobile materials.

Restraints

• Preference for virgin carbon fibers in high-end applications: Recycled carbon fiber does not offer similar structural strength as virgin carbon fiber. Recycling carbon fibers results in a 10-20% reduction in tensile strength of the fibers due to which the end-product manufacturers’, particularly aerospace product manufacturers, prefer using virgin carbon fiber over recycled carbon fiber. In some aerospace applications, the products that offer higher strength and stiffness are used, which is further fueling the demand for virgin carbon fiber.

Opportunities

• Rising adoption of recyclable and eco-friendly materials in diverse end-use industries: Recycled carbon fiber offers a more sustainable and economical alternative to virgin carbon fibers. Growing demand for recyclable and environment-friendly materials owing to increasing regulations is promoting the use of recyclable materials. This is likely to create lucrative opportunities for the players operating in the global recycled carbon fiber market. For instance, the European Union’s End of Life Vehicles Directive promotes recycling. It provides incentives for environment-friendly vehicles. The end-of-life vehicles generate an estimated eight to nine million tons of waste annually in the European Community.

Challenges

• Technological Challenges: The key challenge faced in the development of the recycling process for carbon fibers is to maintain the mechanical properties of carbon fibers during the recycling process. The commonly used plastic recycling technology cannot be used to recycle carbon fibers as it damages the carbon fibers by first burning and charring them and then chopping them up and, thus, making them unsuitable for building structural components. Carbon fibers cannot be melted or reshaped and converted into a material with the same structural strength using conventional methods.

Segmentation

By Type

• Non-Oven Mats
• Milled carbon fiber
• Chopped carbon fiber

By End-Use Industry

• Automotive
• Consumer goods and elctronics
• Industrial
• Aerospace and Defense
• Sporting Goods
• Wind Energy
• Others

By Region

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

Regional Analysis

The global recycled carbon fiber market is studied across the five key regions, North America, Europe, Asia-Pacific, Latin America, and the Middle East & Africa.

The global recycled carbon fiber market is projected to register a significant growth rate during the review period. This growth is attributed to its growing demand in the automotive and aerospace and defense industries, owing to its superior benefits such as cost-effectiveness, energy efficiency, lightweight, and environmental sustainability. The demand for high performance and cost-efficient carbon fiber is increasing at a considerable rate in the major end-use industries, including automotive, wind energy, industrial, sporting goods, and electronics. Additionally, the growing emphasis on waste management and the hazardous impact associated with carbon-bearing waste has resulted in an increased need for recycling of carbon fiber and thus, driving the market growth.

The recycled carbon fiber market is studied for five regions, namely, North America, Europe, Asia-Pacific, Latin America, and the Middle East & Africa. Among these regions, Asia-Pacific accounted for the largest market share in 2021 and is expected to register a healthy CAGR during the review period. The growth of the regional market can be attributed to the expanding industrialization in the region, particularly in China and India. China accounted for the largest share in the Asia-Pacific recycled carbon fiber market. The market in North America accounted for the second-largest share in 2021. The European region followed the North America region with a healthy market share of in 2021.

Competitive Landscape

The competitive landscape offers an analysis of the key strategies undertaken by the companies operating in the global market. The global market for recycled carbon fiber is projected to witness healthy growth during the forecast period, owing to the rising demand for lightweight materials in the aerospace and defense and automotive industries. The high growth is also attributed to the high performance and cost-effectiveness of carbon fiber.

SGL Carbon (Germany), Sigmatex (UK), Teijin Limited (Japan), ZOLTEK Corporation (US), and ELG Carbon Fibre Ltd (UK) are the prominent players operating in the global recycled carbon fiber market. These players account for most of the global market share owing to their large production capabilities, global revenue base, wide product portfolio, and global distribution & sales network. Additionally, the aggressive adoption of various strategies such as expansions, agreements, product launches, and acquisitions are expected to help these players gain maximum revenue and long-term growth during the review period.

Recent Development

In June 2024, Orion Infrastructure Capital injected USD 25 million into the Carbon Revolution. The company is also looking to use the funding amount to cater to the increasing demand for lightweight carbon fiber automotive wheels.

In May 2024, Jilin Chemical Fiber signed a cooperation agreement with Comac, which is a subsidiary of the Commercial Aircraft Corporation of China, China, on the development of composite material for aircraft.

In May 2024, Intel collaborated with fourteen Japanese organizations, such as Omron, Yamaha Motor, Resonac and Shin-Etsu Polymer, on the development of automated backend processes for carbon fiber production.

In April 2024, Venture capital round raised 34 million USD for Spectral AI, for asset acquisition along with scaling up their operations globally for Hyperion Elite 4 performance running shoe and next-gen carbon fibre bicycle spokes.

In March 2024, Jindal Advanced Materials entered into a partnership with MAE for the establishment of the carbon fibre production plant 3,500 metric ton.

In February 2024, Thermolysis introduced a fully recyclable product at JEC World, which includes the use of recycled carbon fibers. Started the Recycled Carbon Fibres brand for the complete recycling of carbon fibres with the goal of zero waste. This assists in the manufacturing of bicycle parts like fenders, light stands, shoes boards, seats, pads, and bottle cages using recycled carbon fibres. These products have great mechanical strength characteristics and light weight qualities.

In October 2023, McLaren announced the deployment of Oscar Piastri Cars and Lando Norris alongside a trial of the first-ever recycled carbon fiber ahead of the United States Grand Prix. This announcement is meant for the benefit of the environment as well as the reduction of carbon emissions.

In July 2023, the wind turbine materials recycling competition was initiated in the United States by the Energy Department. Almost all of the materials, including fiberglass and carbon fiber, in wind turbines, can be recycled and reused at a reasonable cost.