Carbon fiber composite market experienced rapid and even explosive growth before the global economic slump of 2008-09. However there is strong confidence that the medium- and long-term trend of the market remains upward. Robust growth is expected when the global economy revives. As the carbon fiber composite industry is still in the development phase, the market continues to see new business opportunities in major and novel applications. Technological advances in composite materials in turn massively boost their applications in downstream markets. As per Acmite Market Intelligence, global demand on carbon fiber composites was estimated at roughly US$10.8 bln in 2009, an 8-10% decline from the previous year. Positive growth is projected thanks to the strong signals of recovery in both the US and Germany. The market will reach US$13.2 bln by 2012 and to increase to US$18.6 bln by 2015 in the forecast, following the annual growth rate of 7% or more. Strongest demand is expected in aircraft / aerospace and wind energy. Several of the largest carbon fiber producers had weak lower sale in 2009 due to slower economic recovery. The major producers of carbon fiber devoted more efforts on developing newer applications as well as improving the performance of the existing grades. Weight saving by replacement of metal with CFRP is the key driver for the market segments like aerospace and sports, in addition to the automotive segment. All the markets are interested in replacing heavier metal parts to make them more energy efficient. Automotive is expected to be the largest market for CFRP. Abundant availability at a reasonable price level of US$8-9/kg can trigger a large-scale use of carbon fiber based composites. SGL Group has entered into a joint venture with Mitsubishi Rayon to produce PAN based precursors for production of carbon fibers for automotive application. SGL Group has established another joint venture with BMW for the production of carbon fibers and fabrics. BMW will contribute its knowledge of industrial manufacturing of continuous fiber reinforced plastics (CFRP) with knowledge of carbon manufacturing of SGL Group. BMW plants to use significant amount of CFRP in the structure of its vehicles. Mitsubishi Rayon, the Japanese Government and University of Tokyo has purchased Fiber forge RELAY equipment to develop thermoplastic carbon fiber composites for automotive applications. CFRP material is being used in significant quantity in race cars but now the passenger vehicles are planning to use CFRP material to replace metal body parts. Carbon fiber industry has proven itself on the basis of high performance, low weight and excellent strength characteristics. The demand for carbon fiber has been steadily growing since the launch of fiber in the market around 40 years ago and emerging and future applications is likely to drive the carbon fiber applications market. As per a study Lucintel, the new market for carbon fiber is consumer durables industry and the major market movers are mobile phones and laptop cases. High specific strength and resistance to chemical attack has lead to carbon fiber use in diverse applications. Carbon fiber components are cost effective, as weight savings lead to cost reduction and durability leads to longer life. The carbon fiber market is growing with good rate. According to Lucintel Analyst, “The key success factors for carbon fiber are joint development of new applications and entry in new markets like India and China”. Carbon fiber cost, availability and component manufacturing technology are the greatest challenges in the industry. The carbon fiber component/structure processing technology is patented by few companies. It hampers the proliferation of carbon fiber applications. Long term supply agreements are also a threat to the industry as they lock the opportunity for other players. One of the major threats is entry of new players. The expected carbon fiber production capacity is more than 3000 MTPA in 2010. There are some applications which are at the verge of commercialization. These applications will require a good amount of carbon fiber. There are few applications which are at prototype stage. They will require the joint development with the users or certain government organizations to make them commercialize. Despite the global economic downturn, significant opportunities continue to exist for composites in the global aerospace market. According to a market study conducted by Lucintel, aircraft production is expected to decline in 2009. However, composites demand is expected to grow during next 10 years due to the need for high fuel efficient, durable and low maintenance aircraft. The report claims that the total demand for composites in commercial aerospace, regional jets, defense, general aviation, helicopter and other segments of aerospace market is expected to be worth US$35.8 bln during 2009-2018. In the aerospace market, commercial aerospace market will drive the growth of composites demand due to new programs such as Boeing 787, Airbus 380 and Airbus 350, which has significant usage of composites. In the defense and general aviation market as well there is increase in penetration of composite materials but still the demand for composites is less in these markets as compared to commercial aerospace market. This study also reveals that while composite materials currently represent a relatively small segment of the aerospace industry, enormous potential exists for composite materials to become a more integral component within the industry in the future. Although aluminum is currently the predominant material used in the overall aerospace industry, aerospace companies are showing increased interest in composite materials because of a desire for more fuel-efficient and corrosive-resistant aircraft.