The global recycled carbon fiber market accounted for US$ 122 Mn in 2020 and is expected to reach US$ 291 Mn by 2028 with a considerable CAGR of 11.9% during the forecast period of 2021 to 2028.

Carbon fiber is five-times stronger and twice-as-stiff polymer as steel. Carbon fiber is also lighter, making it an ideal production material for a variety of items. Carbon fibers are increasingly being employed in automotive, industrial, sporting goods, and other applications due to their high strength and lightweight. Also, it is believed that roughly 30% of carbon fiber generated is wasted. As a result, carbon fiber recycling took place to meet the increased demand for carbon fiber while also saving around 1/3 of the carbon fiber trash. Many companies around the world have already begun recycling carbon fiber using a method known as pyrolysis.

Market Growth Drivers:

• Globally imposed strict government rules for the use of eco-friendly products
• Increasing demand for high-performance materials
• Cost-effectiveness of recycled carbon fiber

Market Restraints

• Lack of technical knowledge
• Lower demand as a result of the Covid-19 epidemic

Market Opportunities:

• Increasing applications of recyclable materials in automotive and transportation industries
• Increased investments and technological advancements in the industry

Report Coverage: 

Market	Recycled Carbon Fiber Market
Market Size 2020	US$ 122 Mn
Market Forecast 2028	US$ 291 Mn
CAGR	11.9% During 2021 - 2028
Analysis Period	2017 - 2028
Base Year	2020
Forecast Data	2021 - 2028
Segments Covered	By Type, By Source, By End-Use Industry and By Geography
Regional Scope	North America, Europe, Asia Pacific, Latin America, and Middle East & Africa
Key Companies Profiled	Alpha Recyclage Composites, Carbon Fiber Recycling, Inc., Carbon Conversions Inc, ELG Carbon Fibre Ltd, Karborek Recycling Carbon Fibers, Procotex Corporation SA, Toray Industries, Inc., SGL Carbon SE, Shocker Composites LLC, and Vartega Inc.
Report Coverage	Market Trends, Drivers, Restraints, Competitive Analysis, Player Profiling, Regulation Analysis
Customization Scope	10 hrs of free customization and expert consultation

Covid-19 Impact on the Global Recycled Carbon Fiber Industry

The recycled carbon fiber industry has a significant negative impact in 2020 and climbed slowly in 2021 due to the COVID-19 pandemic. Because of a lack of workforce and transportation access, the global pandemic has had an impact on production, demand, suppliers, and a variety of other factors. This has resulted in a decline in recycled carbon fiber production capacity. Aerospace, automotive, and many other end-use industries have all ceased production. Overall, the growth rate of the recycled carbon fiber market has slowed. However, the ongoing efforts of key players have aided the global market in gradually recovering from the pandemic situation.

Market Dynamics

Growing government regulations for material reuse and recyclability are the primary drivers of the global recycled carbon fiber market. Numerous countries such as the US, China, Japan, and India have moved towards the use of recycled carbon fiber in their automotive and aerospace industries. In addition, regulations imposed by regulatory agencies such as the US Environmental Protection Agency (EPA) and the European Union (EU) to reduce carbon emissions have increased demand for environmentally friendly and lightweight materials. Moreover, the EU legislation establishes required emission cutback goal for new cars in order to increase fuel economy and CO2 emissions. Therefore, the market is experiencing a huge demand on account of strict environmental guidelines. Besides, growing partnerships between companies to supply of carbon fiber reinforced plastic (CFRP) products is expected to boost the demand of recycled carbon fiber market. For instance, Teijin Limited has announced to form incorporation with Fuji Design Co., Ltd., a Japanese recycler of carbon fibers, to create a business structure for the production, supply, and commercialization of carbon fiber reinforced plastic (CFRP) products produced from recycled carbon fibers using a low-impact process on environment.

Recycling carbon-fiber composites has two key advantages: it minimizes the quantity of material that ends up in landfills and saves manufacturers 30 percent on new carbon fiber. Automotive parts made of recycled carbon fiber are more cost-effective. Recycled carbon polymers are increasingly being used in the automotive and transportation industries owing to their lightweight and rigid character, which is driving up the industry demand. Developed countries such as the United States, Germany, and Japan are emphasizing the use of environmentally friendly products in a variety of end-use industries. For example, the European Union has directed that 85 percent of automobile vehicles be composed of recyclable materials.

However, the absence of technological know-how in the manufacture of recycled carbon fiber is a big roadblock in the market. There isn't enough information to compare the quality of recycled carbon fiber to virgin carbon fiber. On the other hand, design consistency, process standardization, and maintenance are some of the significant difficulties that the industry encounters when producing recycled carbon fiber. Furthermore, for a brief period of time, the COVID-19 pandemic has also hampered the market's growth. Conversely, rising technological up-gradation and investments in the industry is likely to create numerous growth prospects for the market in the coming years. Hexcel Corporation, for example, recently announced a strategic investment in Carbon Conversions Incorporated (CCI). Hexcel, a renowned leader in carbon fiber recycling and repurposing, have formed collaboration as a result of the investment. The investment expands Hexcel's range of next-generation, advanced composite technologies for aerospace and industrial applications, resulting in increased material performance and light weighting.

Market Segmentation

The global recycled carbon fiber industry is segmented on the basis of type, source, end-use industry, and geography.

Market By Type

• Chopped Recycled Carbon Fiber
• Milled Recycled Carbon Fiber

Among types, the chopped recycled carbon fiber accumulated a maximum market share in 2020 and is likely to continue its trend throughout the forecast period 2021 – 2028. The segment has seen rapid growth due to its high-performance qualities, including high strength and modulus, superior electrical conductivity, reduced thermal expansion, low density, and dimensional stability. It's suitable for high and low temperature applications, as well as the production of electrically conductive supplies. Furthermore, milled recycled carbon fiber is expected to grow at a significant rate throughout the projected period of 2021–2028.

Market By Source

• Aerospace Scrap
• Automotive Scrap
• Others

The aerospace scrap segment generated the largest revenue in 2020. Other sources of recovered carbon fiber include manufacturing trash, tennis racket scrap, and trail bike scrap; however, the majority of the recycled carbon fiber market is accounted for by the aerospace scrap segment. Carbon fibers from aircraft composite trash can be recycled for environmental and economic reasons. By 2030, an estimated 6000 to 8000 commercial jets would have reached the end of their useful lives, with the high-grade carbon fiber components onboard being recycled. Meanwhile, the automotive scrap segment is expected to grow with a significant growth rate during the forecast period 2021 – 2028.

Market By End-Use Industry

• Automotive & Transportation
• Aerospace & Defense
• Industrial
• Consumer Goods
• Sporting Goods
• Marine
• Others

Based on the end-use industry, the automotive & transportation industry segment is expected to lead the market with the majority of the share during the forecast period 2021 – 2028. Recycled carbon fiber from the automotive and transportation industries is widely used in the industrial, aerospace and defense, sporting goods, consumer goods, marine, and other end-use industries. Toray Industries Inc., Carbon Conversions Inc., ELG Carbon Fibre Ltd., Vartega Inc., and Shocker Composites LLC., are just a few of the companies that source fibers from the transportation and automotive industries.

Recycled Carbon Fiber Market Regional Overview