The intricate failure modes and the yet unclear rate dependency of carbon fiber reinforced plain weave composite materials pose a challenge to mechanics researchers. This study establishes an energy-based evolution mechanism for the compressive failure modes of plain weave composite materials as the strain rate varies. This mechanism illustrates how the rate dependency of failure modes arises from the competitive relationship between strain potential energy and deformation kinetic energy. At low loading rates, the specimen exhibits a progressive crushing failure mode characterized by low peak stress and significant geometric deformation. As the loading strain rate increases, the energy required for this geometric deformation also increases. When the energy expenditure surpasses that needed to elevate the stress level of the specimen, it transitions to an instantaneous failure mode with high peak stress. In this mode, the specimen fractures into multiple small fragments immediately upon failure, lacking the large geometric deformations observed at lower rates. Through calculating this energy mechanism, a transition strain rate of 180 s−1 was determined for both failure modes. The accuracy of this mechanism was further verified by tests conducted near the critical strain rate. The energy-based evolution mechanism for failure modes provides a simplified and concise framework for simplifying complex models of composite material failures.