World’s No.1 Carbon Fiber Market-Prospects & Investment Analysis

In the global carbon fiber industry, technological innovation and shifting market demands are redefining the competitive landscape. Toray Industries, the current market leader, continues to set the pace, while Chinese enterprises are rapidly catching up, each with distinct strategies for growth and innovation.

 

Ⅰ. Toray’s Strategies: Sustaining Leadership Through Technology and Diversification​
Technological Prowess in High – end Segments

1.Toray maintains its edge in high – performance carbon fibers, crucial for aerospace and high – end industrial applications. In 2025, its carbon fiber and composites business reported robust growth, with revenues reaching 300 billion yen (approx. $2.1 billion) and a 70.7% surge in profits. Their T1000 – grade carbon fibers, with a tensile strength of 7.0GPa, are the gold standard in the global high – end market, featured in over 60% of carbon fiber composites in aircraft like the Boeing 787 and Airbus A350. Toray’s continuous R&D efforts, such as advancements in high – modulus carbon fibers like M60J, keep them 2 – 3 years ahead of Chinese counterparts in this area.

2. Strategic Diversification and Global Reach​

To expand its market footprint, Toray has been actively involved in strategic acquisitions and expansions. The acquisition of parts of Germany’s SGL Group enhanced its position in the European wind power market. This move not only broadened its customer base but also allowed for the integration of complementary technologies and manufacturing capabilities. Additionally, Toray’s long – term contracts with major aerospace players like Boeing and Airbus ensure a stable revenue stream, with order visibility stretching to 2030. This strategic foresight, combined with technological leadership, forms the backbone of Toray’s global dominance.​

Ⅱ. Chinese Enterprises: Navigating Growth and Innovation​

1. Domestic Sbstitution and Scale – driven Growth​

China has emerged as the world’s largest carbon fiber producer, accounting for 47.7% of global capacity in 2025. Companies like Jilin Chemical Fiber and Zhongfu Shenying are leading the charge in the mid – to – low – end market. Jilin Chemical Fiber, the world’s largest raw silk supplier with a 160,000 – ton capacity, has capitalized on large – tow carbon fiber production. Their 50K/75K products, priced 25% lower than Toray’s in the wind power sector, have enabled them to capture a significant share of the wind power blade market, with full orders and a 95% – 100% operating rate in 2025.​

2.Technological Breakthroughs and Niche Market Penetration​

Despite lagging in high – end products, Chinese enterprises are making rapid progress. Zhongfu Shenying’s breakthrough in dry – jet wet – spinning technology is a prime example. Their T700 – grade products have passed COMAC’s certification, marking their entry into the large – aircraft supply chain. Zhongjian Technology, on the other hand, has cornered over 80% of the domestic military aircraft carbon fiber market with its ZT7 series (above T700 – grade). Moreover, with the burgeoning low – altitude economy, Chinese firms are well – positioned. Zhongjian Technology and Guangwei Composites have entered the supply chains of eVTOL manufacturers like Xpeng and EHang, capitalizing on the high carbon fiber content (over 75%) in these aircraft.

III. Future – facing Strategies for Chinese Enterprises​

1. Investing in R&D for High – end Product Development​

To break into the high – end market dominated by Toray, Chinese enterprises must ramp up R&D efforts. Focusing on developing T1100 – grade and higher – modulus carbon fibers, similar to Toray’s M65J, is crucial. This requires substantial investment in research facilities, talent recruitment, and collaboration with research institutions. For instance, increased investment in basic research related to carbon fiber materials can lead to innovative manufacturing processes and product improvements, helping Chinese firms close the technology gap.

2. Strengthening Industry – University – Research Collaboration​

Enhancing collaboration between industry, universities, and research institutions can accelerate technological innovation. Universities and research institutes can provide fundamental research support, while enterprises can offer practical insights and resources for commercialization. This synergy can lead to the development of new carbon fiber applications and manufacturing techniques. For example, joint research projects on carbon fiber recycling can not only address environmental concerns but also open up new business opportunities in the circular economy.​

3. Expanding into Emerging Markets​

The growth of emerging markets, such as the hydrogen energy storage and transportation sector, presents significant opportunities. The demand for T700 – grade carbon fiber in Type IV hydrogen storage bottles is expected to reach 15,000 tons in 2025. Chinese enterprises should actively invest in this area, leveraging their existing manufacturing capabilities and cost advantages. By entering these emerging markets early, they can establish a competitive foothold and drive future growth.

Conclusion​

The global carbon fiber market is at a crossroads, with Toray’s continued technological leadership challenged by the rapid rise of Chinese enterprises. Toray’s strategies of technological innovation and global diversification have sustained its position, while Chinese firms are leveraging domestic substitution, scale, and niche market penetration. Looking ahead, Chinese enterprises can enhance their competitiveness by focusing on high – end R&D, strengthening industry – university – research collaboration, and exploring emerging markets. This dynamic interplay between the market leader and emerging players will likely redefine the carbon fiber industry in the coming years, presenting both challenges and opportunities for investors and industry stakeholders alike.