This study employed a correlation and regression analysis to forecast the quantity demand for carbon fiber. The results from the statistical methodology produce a correlation coefficient of 0.995, which represents the presence of a highly positive correlation for the global demand for carbon fiber. This study also predicts that the quantity demand for carbon fiber for the year 2015 and 2020 will increase to 60,760 and 80940 metric ton respectively, which represents a growth rate of 67.4 percent and 75.0 percent respectively from the year 2010. In addition, the correlation coefficient for Taiwan's carbon fiber production is 0.791, suggesting a highly positive correlation. Finally, this study predicts that the production of carbon fiber for Taiwan will increase to 68,355 and 88,195 metric ton for the year 2015 and 2020 respectively, suggesting a growth rate of 66.6 percent and 77.5 percent respectively. This study concludes that there is a great potential for the development and application of carbon fiber globally and in Taiwan. Particularly, the development of the applications of carbon fiber in general industries as well as leisure and sport related products are best suited for development to Taiwan.