The Global Recycled Carbon Fiber Market is projected to register a CAGR of over 5% during the forecast period (2022-2027).
The market was negatively impacted by COVID-19 in 2020. The COVID-19 pandemic is affecting the Recycled Carbon Fiber market because of disruption in the supply chain. As the pandemic spread, many auto companies across the country shut down their manufacturing activities due to the nationwide shutdown. In contrast, the market is expected to expand further in 2022.
The growing demand for recycled carbon fiber obtained from aerospace and automotive scrap is used in the production of cost-effective and lightweight materials in various end-use industries.
High costs of production implementation are hindering the market’s growth.
Shifting focus towards the development of low-cost products and technologies is likely to act as an opportunity in the future.
North America region is expected to dominate the market and is also likely to witness the highest CAGR during the forecast period.
Key Market Trends
Rising Demand for Light- weight materials in Aerospace Industry
The increasing use of carbon fibers in aerospace industries, as well as the increased production of scrap materials containing carbon fibers, generally requires the development of new safe, and sustainable methods for recovering similar materials.
Recycled Carbon-fiber has replaced aluminum in aircraft to improve fuel economy. Lightweight materials and structures allow military aircraft to carry more fuel and payload while in commercial aircraft, these advancements would primarily benefit lower operating costs through improved fuel efficiency.
Lightweight materials are used to reduce greenhouse gas emissions, and the amount of waste sent to landfills. For example, The Boeing 787 was made 20% lighter and increased the fuel economy by 10-12%. In the case of the Boeing 787-9, which consumes approximately 5,400 liters of fuel per hour, and a 10% improvement in fuel economy.
Furthermore, in June 2021, United Airlines ordered 270 narrow-body aircraft from Airbus and Boeing. The order includes 200 Boeing 737 MAX and 70 Airbus A321neo aircraft to increase domestic capacity by approximately 30%. According to Boeing, 32,270 single-aisle (narrow-body) aircraft will be delivered globally over the next 20 years.
Airbus has set a target of recycling 95%of its carbon fiber waste by 2020-2025, with 5% recycled back into the aerospace sector.
The fiber price is typically 40% less than the price of industrial grades of virgin fiber. Recycled fiber can thus provide comparable weight-saving benefits to virgin fiber at significantly lower part cost, making it appealing for automotive light weighting applications.
Owing to all these factors, the market for Recycled Carbon Fiber is likely to grow globally during the forecast period.
North America Region to Dominate the Market
The North American region is expected to dominate the market. In the region, the United States is the largest economy, in terms of GDP. The United States and Canada are among the fastest emerging economies in the world.
The fast-growing automotive and aerospace industries are driving the growth of the North American recycled carbon fiber market. Strategic developments, the presence of established car manufacturers, leading recycled carbon fiber manufacturers, and technological advancements related to recycled carbon fiber products all contribute to the market’s growth in this region.
The United States is the region’s leader in the consumption of recycled carbon fiber, which is used by major corporations. Due to the growing demand for lightweight materials to reduce vehicle weight, the use of recycled carbon fiber in the automotive and aerospace end-use industries has increased in the region.
In the fiscal year 2021, the United states’ automobile industry contributed around 3- 3.5% to the United States’ GDP. Since carbon fiber waste can be recovered and transformed into new products, recycled carbon fiber is an ideal material for use in a variety of industries.
The use of recycled carbon fiber in automotive parts reduces their cost. In FY21, the total passenger vehicles production reached 9,167,214 units vehicles.
In terms of infrastructure and manufacturing activities, the US aerospace sector is one of the largest in the world. The market is primarily driven by investments in the aerospace sector, which is supported by rising demand for aerospace sector products from both commercial and military end-users. The presence of leading industry incumbents in the US, whose manufacturing and R&D capabilities support the industry’s growth, also helps the market.
With opportunities in transportation, aerospace, industrial, and sporting goods, the future of the recycled carbon fiber market in Canada will grow significantly. The major factors driving the market are material reuse and recycling regulations, as well as the cost advantage of recycled carbon fiber over virgin carbon fiber.
Due to all such factors, the market for Recycled Carbon Fiber in the region is expected to have a steady growth during the forecast period.
The Recycled Carbon Fiber market is partially consolidated in nature. Some of the major players in the market include KARBOREK RCF., Procotex Corporation SA, Vartega Inc., ELG Carbon Fiber Ltd., and Shocker Composites LLC among others (not in any particular order).
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