Europe Automotive Carbon Fiber Market to Reach $2.0 Billion by 2035

Europe automotive carbon fiber market was valued at $1.2 billion in 2025 and is projected to reach $2.0 billion by 2035, expanding at a CAGR of 4.6% from 2026 to 2035. The market is supported by the increasing adoption of electrified vehicles and demand for lightweight automotive materials. According to the European Automobile Manufacturers’ Association (ACEA), 1,880,370 new battery-electric cars were registered in the EU in 2025, representing 17.4% of total new-car registrations, while hybrid-electric vehicles accounted for 34.5%.

Browse the full report description of “Europe Automotive Carbon Fiber Market Size, Share & Trends Analysis Report, By Raw Material Type (PAN, Pitch), By Fiber Type (Virgin, Recycled), By Modulus (Standard, Intermediate, High), By Product Type (Continuous Carbon Fiber, Long Carbon Fiber, Short Carbon Fiber), By Application (Composites, Non-Composites), By End-user (Aerospace & Defense, Automotive, Wind Energy, Pipe, Pressure Vessels, Sporting Goods, Construction & Infrastructure, Medical & Healthcare, Marine), Forecast Period (2026-2035)” at https://www.omrglobal.com/industry-reports/european-automotive-carbon-fiber-market

The transition toward electrified mobility is increasing requirements for weight-efficient vehicle components and structures in Europe. In H1 2026, battery-electric vehicles accounted for 20.7% of EU new-car registrations, with 1,220,890 units registered, while hybrid-electric vehicles represented 37.3% of the market. The increasing share of electrified vehicles is supporting automotive manufacturers' focus on lightweighting to improve vehicle efficiency and accommodate changing powertrain requirements, creating demand for carbon-fiber-reinforced materials in automotive applications.

Recycled Carbon Fiber Gains Importance as Europe Strengthens Automotive Circularity

Recycled carbon fiber is gaining relevance in the European automotive sector as regulations increase the focus on vehicle dismantling, material recovery, reuse, and recycling. The European Commission reports that 10–12 million vehicles reach the end of their lifespan in Europe each year, creating a requirement for efficient recovery of materials from end-of-life vehicles. The EU’s new End-of-Life Vehicles Regulation, which entered into force in August 2026, introduces stronger circularity requirements and measures to increase the recovery and reuse of valuable materials.

The regulation also promotes the use of recycled materials in new vehicles and is intended to strengthen the supply of secondary raw materials within Europe. The European Commission estimates that by 2035, the regulation could result in 5.4 million tonnes of materials being recycled at higher quality or reused. These requirements are relevant to carbon-fiber composite manufacturers as automotive producers increase attention to material recovery and circular vehicle design.

Recent Developments

• In February 2025, SGL Carbon announced the restructuring of its Carbon Fibers business unit, including measures to reduce activities and focus on profitable operations across its European and North American sites. The decision followed weak carbon-fiber demand, including lower-than-expected automotive demand, and aims to reduce operating losses and align production capacity with market conditions.

• In January 2024, SGL Carbon introduced a climate-friendly carbon-fiber production approach at its Lavradio, Portugal site, combining renewable energy with a new CO?-neutral biomass system. The biomass plant, commissioned at the beginning of 2024, is designed to replace part of the site's natural-gas-based energy supply and can save more than 90,000 tonnes of CO? annually at full capacity, supporting lower-carbon carbon-fiber production in Europe.

Market Coverage

• The market numbers available for 2025-2035
• Base year- 2025
• Forecast period- 2026-2035
• Segment Covered-
• By Raw Material Type
• By Fiber Type
• By Modulus
• By Product Type
• By Application
• By End-user
• Competitive Landscape – Toray Industries, Inc., Teijin Limited, Hexcel Corporation, SGL Carbon SE, and Syensqo SA, among others.

Key questions addressed by the report.

• What is the market growth rate?
• Which segment and region dominate the market in the base year?
• Which segment and region will project the fastest growth in the market?
• Who is the leader in the market?
• How are players addressing challenges to sustain growth?
• Where is the investment opportunity?

Europe Automotive Carbon Fiber Market Report Segment

By Raw Material Type

• PAN
• Pitch

By Fiber Type

• Virgin
• Recycled

By Modulus

• Standard
• Intermediate
• High

By Product Type

• Continuous Carbon Fiber
• Long Carbon Fiber
• Short Carbon Fiber

By Application

• Composites
• Non-Composites

By End-user

• Aerospace & Defense
• Automotive
• Wind Energy
• Pipe
• Pressure Vessels
• Sporting Goods
• Construction & Infrastructure
• Medical & Healthcare
• Marine

Europe Automotive Carbon Fiber Market Report Segment by Country

• UK
• Germany
• Italy
• Spain
• France
• Russia
• Rest of Europe

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