Potential for Growth in North America

• An industry analysis from Mordor Intelligence reports that the North American carbon fiber reinforced polymer market is in a period of "significant growth" with a CAGR of 12 percent from 2016-2025.
•  Factors driving growth include increasing demand for more fuel-efficient, lighter weight vehicles, higher demand from the aerospace and defense sector, and increasing demand in the renewable energy sector.
• The sectors with high demand are the aerospace, defense, automobile, construction, sports, and leisure sectors.
•  40 percent of demand in 2016 came from the automobile sector.

Raw Materials, Manufacturing Process, and Composite Preferences

•  90 percent of carbon fiber on the market today is itself made using polyacrylonitrile (PAN), with the remaining made from rayon or petroleum pitch.
• Carbon fiber made from PAN typically undergoes a five-part process during manufacturing:
•  Mechanical spinning forms the internal atomic structure of the fiber.
•  Chemicals are added to stabilize the fiber, which is then heated to bond with oxygen.
•  The fiber is carbonized under high heat with no oxygen present.
•  A surface treatment in various gases or liquids reoxidizes the fiber to help it bond with other materials to make composites.
• The fibers are then coated to protect them from damage.
•  A report from Allied Market Research identifies polyester resin as the first composite preference for market players due to low cost and its ability to be molded to the needs of the end-user product. Polyurethane is the second preference, followed by polyether ether ketone.
• A report from Persistence Market Research identifies thermosetting carbon fiber plastic (including epoxy resin, polyester resin, and vinyl resin) as the largest product segment, accounting for 75 percent of total sales.
• The high cost of raw material is the key restraint in the carbon fiber reinforced polymer market.

Competitors in the Field

•  Leading manufacturers of raw carbon fiber with reinforced polymer composites with U.S. facilities include Hexcel, Grafil (a subsidiary of Mitsubishi Rayon), Solvay, Teijin Carbon America, Toray, and Zoltek (a subsidiary of Toray).
• Zoltek has made the claim that it manufactures the lowest-cost carbon fiber on the market (Panex and Pyron being the trade names).
• The market appears to be competitive to companies at all sizes with Tier 1 Companies taking 35 percent of the market share, Tier 2 Companies taking 25 percent, and Tier 3 companies taking 40 percent, though it isn't clear what designates each type of company based on the information made public in a report from Markets and Markets.

Summary of Early Findings in Relation to Goals