Polyacrylonitrile (PAN)-Based Carbon Fibers and Composite Materials

Carbon fiber manufacturers

The global carbon fiber market has long been led by Japanese carbon fiber manufacturers, which developed T300 (by Toray), now a global standard, in the 1970s as an alternative to glass fiber in FRP (reinforced plastics). The market for this lightweight, high-strength (tensile strength, high rigidity, etc.) material has steadily expanded through its use in aircraft and other mobility applications, as well as in sports and leisure activities and pressure tanks, which require lightweight flexion and strength.
In recent years, the use of carbon fiber in wind power generation blades and hydrogen pressure tanks for new energy applications has been increasing. Thus, while the carbon fiber market is growing, led by Japanese manufacturers, there are concerns about the rise of Chinese manufacturers (especially for large tows) and the cost and demand for carbon fiber from carbon fiber-reinforced plastic (CFRP) manufacturers, who are the users of carbon fiber. In other words, although the carbon fiber market is expected to grow steadily, there is a gap between carbon fiber manufacturers and carbon fiber users in terms of the speed of growth and other factors. It is necessary for carbon fiber manufacturers, CFRP manufacturers, and end-users to establish an environment and supply chain that enables CFRP manufacturers to use carbon fiber in large quantities, and it is extremely important for yarn manufacturers and CFRP manufacturers to look in the same direction.

I   Prospects and Strategies in Polyacrylonitrile (PAN) Carbon Fiber and Composite Materials Market

• "Vertical Integration" Value Chain is Critical to Accelerate Market Growth
• Aligning the targets through the collaboration of carbon fiber (CF)/carbon fiber-reinforced plastic (CFRP) manufacturers by leveraging each other’s strengths
• The Chinese government has positioned carbon fiber as high-end material and is promoting "Carbon Valley" Project
• Japanese CF manufacturers should build solid expansion in Europe, US, and Asian markets to be further ahead of rising Chinese manufacturers.
• Further expansion of existing applications is a short-term target for Japanese manufacturers
• Consideration of reducing CO2 emissions throughout the value chain as a set

II   Polyacrylonitrile (PAN) Carbon Fiber Market Trends

• Japanese manufacturers have driven the market for polyacrylonitrile (PAN) carbon fibers ever since they generated the market.
• Three companies, Toray, TEIJIN and Mitsubishi Chemical, occupy the majority of the market.
• The PAN-based carbon fiber market size by volume is forecast to reach 104,400 tons in 2024. By application, drones and industrial equipment are growing steadily. In the US, demand for drones is rapidly increasing, due to the drone policy by the department of Defense and to logistics applications.
• Demand for carbon fiber is likely to increase as Airbus builds new aircraft.
• Increase in demand for carbon fiber to respond to longer wind turbine blades in Europe is likely to take time
• The pressure tank application is expected to grow in Asia, as South Korea has been focusing on hydrogen and Hydrogen City Projects are underway in Asian countries.
• In Southeast Asia, sports and leisure activities such as fishing and bicycling are more active than ever.

• Trend in Japanese Manufacturers:
  - Demand for drones for logistics and observation     
    applications is increasing in Japan as well.
  - Use of carbon fibers expected in the medical equipment
    field with aging society as the keyword.
  - Toray announced an increase in production volume toward
    2025 in its AP-G 2025 Mid-term Business Plan
  - Toray positions UAM and pressure vessels as growth
    drivers, driving the market as the largest global player
  - Teijin to expand business in sports and leisure
    applications, which it has cultivated, mainly in
    collaboration with Mizuno Corp.
  - Teijin will also focus on aircraft applications, aiming for
    adoption in primary structural components.
  - Mitsubishi Chemical G is seeking to leverage its long track
    record in aircraft applications to cultivate demand for
    mobility applications.
• Trend in Manufacturers Overseas:
  - In June 2023, the carbon fiber business will be spun off
    from Solvay of Belgium and relaunched as Syensqo of the
    U.S.
  - Hyosung from South Korea has also announced plans for a
    significant increase in the number of its products, starting
    with the launch of a hydrogen society.

III   Carbon Fiber Composite Materials Market Trends

• Global CFRP market size is expected to be 189,818 tons in 2024
• Recovery from the decline in the CF market from 2023, with increased applications in sports, leisure, and drone applications
• Although autoclave molding method has been the mainstream for many years, CFRP manufacturers have developed their own processes with emphasis on time reduction and high efficiency in recent years.
• CFRP market players are divided into two types: “CF manufacturer-affiliated” and “independent/stand-alone”.
• The “CF manufacturer-affiliated type” positions aircraft, air mobility, and automobiles as its core development business.
• Manufacturers that do not specialize in CFRP will promote their own R&D and develop the CF market to further expand their domestic business.
• A wide range of Tier 2 suppliers, synthetic fiber, housing and construction, and specialty steel manufacturers are focusing on CF
• CF manufacturers are working closely with independent companies to further expand the CFRP market.
• It is important to listen to users' opinions and convey them to upstream to meet the needs unique to Japan.

IV   Environmental Responses in Carbon Fibers and Composites

• Proactive efforts to reduce CO2 emissions throughout the entire supply chain, not just with lightweight, high-strength, “environmentally friendly” materials
  1) Thermal decomposition method
  2) Chemical decomposition method

V   Prospects and Strategies of Carbon Fiber and Carbon Fiber Composite Related Companies

• Toray Industries, Inc.
• TEIJIN LIMITED
• Mitsubishi Chemical Group Corporation
• SGL CARBON Japan Ltd.
• Formosa Plastics Group
• Mitsui Chemicals, Inc.
•  CHALLENGE CO., LTD.
• TIP composite Co., Ltd.
• Fudow Company Limited
• Sakuma Special Steel Co., Ltd.
• Super Resin, Inc.
• KOMATSU MATERE Co.,Ltd.
• LIXIL Corporation
• Shinryo Corporation.
• FUJI DESIGN co., ltd.

VI     Carbon Fiber Market Trends in China (Reference)

1. Market Trends
   1) Market Size
   2) Demand by Application
   3) Status of Initiatives by Province
   4) Production Capacity

• Newtech Group Co., Ltd.
• SINOPEC Shanghai Petrochemical Company Limited
• Xinjiang Longju New Matrerials Co., Ltd
• Shandong Guotai Dacheng Technology Co., Ltd
• Jiangsu Hengshen Co., Ltd.
• Weihai Guangwei Composites Co., Ltd.
• Lanzhou Bluestar Fiber Co., Ltd.
• Sinofibers Technoiogy Co., Ltd.
• Chang Sheng Science and Technology Co., Ltd.