Current Status of Carbon Fiber Development in China

According to relevant data, the scale of China's carbon fiber market in 2017 was 3.8 billion yuan. By 2021, it had reached 10.6 billion yuan, with an annual compound growth rate of 29.3%, maintaining a growth trend. It is expected that the scale of China's carbon fiber market will reach 15.3 billion yuan by 2023.

1. The scale effect of the carbon fiber industry is significant, and production costs are expected to decrease in the long term

Carbon fiber production has economies of scale. Carbon fiber production equipment has high value, significant depreciation in each period, and requires high temperature heating power consumption for production.

According to statistics from relevant institutions, if the scale of a single line increases from 1000 tons to 2000 tons, the cost can be reduced by 10%; From 2000 tons to 3000 tons, the cost may be reduced by 15%; If it reaches 10000 tons, it is expected that the cost reduction can reach 30%, which can be reduced to approximately $17.44 per kilogram.

2. Policy Assistance for the Development of China's Carbon Fiber Industry

China attaches great importance to the development and progress of the carbon fiber industry, and has already introduced multiple policies related to carbon fiber. The inclusion of high-performance carbon fiber and product manufacturing in the strategic emerging industry classification also proposes to strengthen the research and application of high-performance fibers and composite materials such as carbon fiber, providing a good policy environment for future technological progress in the carbon fiber industry.

3. Rising demand drives industry development

In recent years, the demand for carbon fiber in China has maintained a steady upward trend, and enterprises and investment institutions have also been optimistic about the development prospects of the carbon fiber industry. The influx of capital from various sources has brought stimulus effects to the carbon fiber industry.

At the same time, the carbon fiber industry has a wide range of applications, benefiting from the development of downstream wind turbine blades, aviation industry, automotive manufacturing and other markets. It is expected that the demand for carbon fiber will rapidly increase.

At present, China's carbon fiber industry is in a period of explosive growth, and the growth rate of the carbon fiber demand market will remain around 17% in the future. With the entry of many capital into the carbon fiber industry, carbon fiber technology is constantly breaking through, and the demand field will be further expanded.