Recycled Carbon Fiber Market Boom: Opportunities for Entrepreneurs

The global recycled carbon fiber market was valued at USD 33.31 billion in 2024 and is projected to reach USD 55.11 billion by 2030, registering a CAGR of 8.9% from 2025 to 2030. Market growth is primarily driven by the rising global focus on sustainability and the circular economy, which is encouraging industries to reduce waste generation and lower their carbon footprints.

Recycled carbon fiber is increasingly viewed as a viable alternative to virgin carbon fiber, as it delivers comparable performance characteristics at a significantly lower cost. Major end-use industries such as automotive, aerospace, wind energy, and sporting goods are progressively adopting recycled carbon fiber, largely due to its lightweight nature and favorable strength-to-weight ratio.

For example, in April 2024, UBE Corporation introduced new composite materials incorporating recycled carbon fiber. These products were developed by integrating recycled carbon fiber into various nylon formulations and enhancing their functional properties. The composites are intended for use in industries including automotive and sports, with the goal of reducing component weight, improving performance, lowering energy consumption, and decreasing greenhouse gas emissions associated with conventional carbon fiber production.

Ongoing technological advancements are improving recycling methods and enhancing the quality and efficiency of reclaimed carbon fibers. Pyrolysis, which involves heating carbon composites in an oxygen-free environment to remove resin, remains a widely used technique. Recent innovations, such as microwave-assisted recycling, have significantly reduced energy consumption. In March 2025, the Fraunhofer Institute for High-Speed Dynamics developed an advanced pyrolysis process designed to recycle carbon fibers from thermosetting composites. This process efficiently recovers fibers—particularly continuous carbon fiber rovings used in high-pressure hydrogen tanks—while preserving their mechanical properties.

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Key Market Trends & Insights

• Asia Pacific accounted for the largest revenue share of 28.6% in 2024, supported by a strong industrial base and extensive consumer goods manufacturing. Growing demand for lightweight, high-performance materials across multiple sectors is driving adoption, as recycled carbon fiber offers both economic and environmental advantages. In the aerospace sector, although virgin carbon fiber continues to dominate critical applications, increasing emphasis on sustainability and cost reduction is encouraging the use of recycled carbon fiber in non-critical components.
• By Source, the aerospace scrap segment led the market with a revenue share of 43.3% in 2024. This segment includes pre-consumer manufacturing waste such as offcuts from fuselage sections, wing spars, and structural components, as well as end-of-life aircraft parts. Due to stringent aerospace performance standards, these materials are made from high-quality carbon fiber composites, which retain strong mechanical properties even after recycling.
• By Type, the chopped fiber segment dominated the market in 2024. Chopped recycled carbon fiber is highly versatile and widely used in injection molding, compounding, and non-woven mat applications. Its ease of integration into thermoplastic and thermoset matrices enables the production of lightweight and high-strength composite materials, making it a preferred option for manufacturers seeking sustainable alternatives without sacrificing performance.
• By End Use, the automotive and transportation segment held the dominant market position in 2024. Rising demand for lightweight, fuel-efficient, and environmentally sustainable materials is accelerating the use of recycled carbon fiber in this sector. With a strength-to-weight ratio comparable to virgin fiber and a significantly lower cost and environmental impact, recycled carbon fiber presents a strong value proposition. Notably, Asahi Kasei, in collaboration with the National Institute of Technology, Kitakyushu College, and Tokyo University of Science, achieved a major advancement in continuous carbon fiber recycling technology under a project supported by NEDO.

Market Size & Forecast

• 2024 Market Size: USD 33.31 Billion
• 2030 Projected Market Size: USD 55.11 Billion
• CAGR (2025-2030): 8.9%
• Asia Pacific: Largest market in 2024
• Middle East & Africa: Fastest growing market

Key Companies & Market Share Insights

Key players operating in the recycled carbon fiber market include Toray Industries, Inc., Mitsubishi Chemical Holdings Corporation, Procotex Corporation SA, among others. Companies are focusing on expanding their customer base to strengthen their competitive positioning. Strategic initiatives such as mergers and acquisitions, capacity expansions, and product innovations are being undertaken to align with evolving regulations and sustainability goals.

• Toray Industries, Inc. is a leading player in advanced materials with extensive expertise in carbon fiber and composites. The company is actively developing and commercializing recycled carbon fiber solutions, including products derived from aerospace manufacturing waste.
• Procotex Corporation SA, a Belgium-based sustainable fiber supplier, specializes in recycling and processing various textile waste streams, including carbon fibers. Through its subsidiary ELG CARBON FIBER LTD., the company offers a wide range of recycled carbon fiber products under brands such as CARBISO C, CARBISO MLD, and CARBISO P.

Key Players

• TORAY INDUSTRIES, INC.
• Mitsubishi Chemical Group Corporation.
• Procotex
• Carbon Fiber Remanufacturing
• Sigmatex
• Gen 2 Carbon Limited
• SGL Carbon
• TEIJIN LIMITED
• Carbon Conversions
• Alpha Recyclage Composites

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Conclusion

The recycled carbon fiber market is set to experience robust growth through 2030, driven by increasing sustainability initiatives, cost advantages over virgin materials, and continuous advancements in recycling and manufacturing technologies. Strong demand from automotive, aerospace, and industrial applications, combined with improving fiber quality and broader applicability, is accelerating market adoption. With Asia Pacific leading the market and the Middle East & Africa emerging as the fastest-growing region, recycled carbon fiber is expected to play a critical role in supporting lightweight, high-performance, and environmentally responsible material solutions across global industries.