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New York, Aug. 04, 2022 (GLOBE NEWSWIRE) -- Reportlinker.com announces the release of the report 'Carbon Fiber Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)' -
, decreased. The global automotive supply industry has been heavily impacted by the COVID-19 pandemic. The production and sales of motor vehicles have come to a sudden halt in most parts of the world. Also, the aerospace and defense industry, which is a major end-user of the carbon fiber market, took a major hit in 2020, owing to COVID-19.
In the medium term, the major factors driving the growth of the market studied are recent advancements in the aerospace and defense sector and increasing applications in the wind energy sector.
On the flip side, supply chain security for recycled carbon fiber, and the availability of substitutes have been acting as a roadblock to the growth of the market studied.
The increasing popularity of recycled carbon fiber and the emphasis on the usage of lignin as raw material for carbon fiber is likely to act as opportunities for the market studied over the forecast period.
In terms of volume and value, Asia-Pacific dominated the market across the world, with China accounting for most of the demand.
Key Market Trends
Aerospace and Defense Industry to Dominate the Market
In the defense industry, the use of carbon fiber-reinforced plastics (CFRP) is present in missile defense, ground defense, and military marine.
In North America, higher consumer spending and the constant aging of commercial aircraft are among the primary factors influencing the overall product penetration of carbon fibers in the aerospace industry.
In Asia, the market for carbon fibers in aerospace technology is likely to witness the highest growth rate over the forecast period due to the rising demand for commercial aircraft across the region, especially in emerging economies, including China.
COVID-19 has accelerated several pre-existing trends in aviation and aerospace, with market participants identifying sustainable technologies, industry consolidation, and environmental, social, and corporate governance (ESG) as the three biggest themes in the post-COVID-19 space.
The global defense spending crossed USD 2 trillion for the first time in 2021. Global spending was 0.7% higher in 2021 compared to 2020. The top five countries with the highest defense spending were the United States, China, India, the United Kingdom, and Russia in 2021. They accounted for 62% of the total spending. This is likely to increase the demand for carbon fiber used in defense applications.
Such trends in the aerospace and defense industries are expected to drive the carbon fiber market.
Asia-Pacific to Dominate the Market
Asia Pacific region is expected to dominate the global market due to the growth of various end-user industries in countries like China and India.
Chinese airline companies are planning to purchase about 7,690 new aircraft in the next 20 years, which were valued at approximately USD 1.2 trillion, which is further expected to raise the market demand for carbon fiber.
According to the Boeing Commercial Outlook 2021-2040, in China, around 8,700 new deliveries will be made by 2040, with a market service value of USD 1,800 billion. Owing to such new deliveries in the country, the demand for carbon fiber is likely to rise.
According to the Stockholm International Peace Research Institute (SIPRI), India's military spending of USD 76.6 billion ranked third highest in the world. This was up by 0.9% from 2020. In a push to strengthen the indigenous arms industry, 64% of capital outlays in the military budget of 2021 were earmarked for acquisitions of domestically produced arms.
India currently has the fourth-highest wind installed capacity in the world with a total installed capacity of 39.25 GW (as of 31st March 2021) and generated around 60.149 billion units during 2020-21. The expansion of the wind industry resulted in a strong ecosystem, project operation capabilities, and manufacturing base of about 10,000 MW per annum.
All the aforementioned factors are expected to show significant impact on the demand for carbon fiber market in the region over the forecast period.
The carbon fiber market is a consolidated market, where the top five players account for more than 67% of the total global production capacity. The major companies in the carbon fiber market include Toray Industries Inc., Hexcel Corporation, Mitsubishi Chemical Corporation, SGL Carbon, and Teijin Limited, among others.
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