Indian Carbon Fiber Market - Forecast(2023 - 2028)

Indian Carbon Fiber Market Overview

The Indian carbon fiber market size is forecasted to grow at a CAGR of 8.3% during the forecast period 2022-2027 and reach US$715.2 million by 2027. Carbon fibers can be categorized into multiple types based on the fiber materials which include polyacrylonitrile based carbon fibers, pitch-based carbon fibers, rayon-based carbon fibers, and more. The primary resins used in its production include thermoset resin such as epoxy, polyester, vinyl ester, or plastic resin such as acrylic, nylon, polyethylene oxide, and more. In 2020, the COVID-19 lockdown had significantly reduced production activities as a result of the country-wise shutdown of manufacturing sites, shortage of labor, and the decline of the supply and demand chain in India, thus, affecting the market. However, a steady recovery in automobile production has been witnessed in India since 2021. Carbon fiber is primarily used in automobile body components, wheels, rims, and interior finishes, owing to its unique properties and sleek appearance. According to the International Organization of Motor Vehicle Manufacturers (OICA), the total automobile production in India reached 43,99,112 units in 2021, an incline of 30% from 33,94,446 units in 2020. An increase in automobile production along with the surging demand from the construction industry acts as the major driver for the market. On the other hand, volatility in raw material prices may confine the growth of the market.

Report Coverage

The report: “Indian Carbon Fiber Market Report– Forecast (2022-2027)”, by IndustryARC covers an in-depth analysis of the following segments of the Indian Carbon Fiber Industry.

By Fiber Material: Polyacrylonitrile Based Carbon Fibers, Pitch-Based Carbon Fibers, Mesophase Pitch-Based Carbon Fibers, Isotropic Pitch-Based Carbon Fibers, Rayon-Based Carbon Fibers,  Gas-Phase-Grown Carbon Fibers.
By Property Type: Ultra-High Elastic Modulus, High Elastic Modulus, Intermediate Elastic Modulus, Standard Elastic Modulus, Low Elastic Modulus.
By Resin Type: Thermoset (Epoxy, Polyester, Vinyl Ester, Phenolic, Urethane, Others), Thermoplastic (Acrylic, Nylon, Polyethylene, Polypropylene, Polystyrene, Others).
By End-Use Industry: Construction (Residential, Commercial, Industrial, Infrastructure), Aerospace (Commercial, Military, Others), Automotive (Passenger Cars, Light Commercial Vehicles, Heavy Commercial Vehicles), Sports and Leisure (Rackets, Golf ball, Skis, Fishing Rods, Others), Wind Energy, Medical, Others.

Key Takeaways

Figure: Indian Carbon Fiber Market Revenue, 2021-2027 (US$ Million)

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Indian Carbon Fiber Market Segment Analysis – By Fiber Material

Polyacrylonitrile based carbon fibers held the largest share in the Indian carbon fiber market in 2021 and it is expected to grow at a CAGR of 9.1% between 2022 and 2027, owing to its increasing demand due to the characteristics and benefits it offers over other types of fiber materials. For instance, polyacrylonitrile based carbon fibers offer a wide range of characteristics such as low density, better thermal stability, high strength, and modulus of elasticity as compared to other fiber materials. Moreover, polyacrylonitrile based carbon fibers offer better heat resistance, along with excellent abrasion resistance and fungal resistance in comparison to other fiber materials. Furthermore, polyacrylonitrile based carbon fibers are chemically inert in nature and offer better resistance to sunlight and UV rays, along with higher resistance to most organic solvents and acids. They are also more resistant to breakage and provide better thermal insulation in comparison to other fiber materials. Hence, all of these benefits are driving its demand over other types of fiber materials, which in turn, is expected to boost the market growth in India during the forecast period.

Indian Carbon Fiber Market Segment Analysis – By End-Use Industry

The aerospace industry held the largest share in the Indian carbon fiber market in 2021 and is expected to grow at a CAGR of 8.6% between 2022 and 2027, owing to the increasing demand for carbon fiber from the aerospace sector in India. For instance, in November 2021, the Indian government announced its plan to launch its military aviation project that aims at building a fifth-generation fighter or medium combat aircraft incorporated with advanced stealth features and capabilities. The aircraft is scheduled for launch by the end of 2022. Moreover, the Indian Air Force (IAF) announced its plans to deliver 73 Tejas Mark-1A fighter jets which are scheduled to be delivered from 2024 to 2028.

Carbon fiber is primarily used in the aerospace industry as it allows the aircraft bodies to be built with fewer and lighter parts while making them more fuel-efficient, and aerodynamic. Thus, an increase in aircraft production in India is expected to increase the demand for carbon fiber for use in aircraft bodies, owing to its range of properties such as high tensile strength, low weight, smooth finish along with high-temperature tolerance, and high chemical resistance. This is expected to accelerate the growth of the carbon fiber market in India during the forecast period.

Indian Carbon Fiber Market Drivers

An increase in automobile production is most likely to increase demand for the product

Carbon fiber is primarily used in automobile body components, wheels, rims, and interior finishes, owing to its sleek appearance and unique properties such as lightweight, durability, high strength, high UV resistance, and more. For instance, according to the International Organization of Motor Vehicle Manufacturers (OICA), the total light commercial vehicle production in India reached 4,86,911 units in 2021, an incline of 26.2% from 3,85,691 units in 2020. Similarly, the total passenger car production in India reached 36,31,095 units in 2021, representing a growth of 28% in comparison to 2020. It further states that the production of heavy trucks in India increased significantly in 2021 and reached 2,46,407 units from 1,22,576 units in 2020. Furthermore, in October 2021, Godawari E-mobility Ltd. commenced the development of an electric vehicle plant in Raipur with the aim of increasing the production of electric vehicles in the country. The development of the new facility is scheduled to be completed by 2023. Hence, such surging automobile production in India is expected to increase the demand for carbon fiber for use in automobile components, owing to its above-mentioned benefits. This is expected to drive the growth of the market in India in the upcoming years.

Surging demand from the construction industry is most likely to increase demand for the product

Carbon fiber is used in the construction industry, primarily in panel faces as an alternative to steel mesh reinforcement. It is also used as a mechanical link to the inner and outer sections of a concrete wall. The non-corrosive property of the carbon fiber helps in strengthening the wall panel face which results in less consumption of concrete during any construction activity. For instance, in August 2021, the construction of the airport terminal commenced in Rajkot, India. The airport will cover an area of 1,032 hectares, while its new terminals will be capable of handling 1,300 passengers at a time. The new airport is scheduled to be operational in 2023. Furthermore, recent insights from Invest India state that there are around 115 future construction projects that are currently under the planning phase in India in 2022. The total investment in these construction projects is around US$ 11.63 million. It includes the construction of hotels, shopping complexes, office buildings, and more. Thus, such surging developments in the construction sector in India are expected to increase the demand for carbon fiber, owing to its high strength, excellent flexural moment capacity, and corrosion-resistant properties. This is expected to propel the market growth in India in the upcoming years.

Indian Carbon Fiber Market Challenges

Volatility in raw material prices can cause an obstruction to the market growth

Some of the raw materials for carbon fibers are obtained from crude oil. As a result, fluctuations in the prices of crude oil in India may hinder the growth of the market. For instance, in April 2020, India’s Crude Oil Basket (COB) reached US$ 19.90 per barrel, which was the lowest record since February 2002. During the first 11 months of the year 2020-21, the average annual price of India’s COB was around US$ 42.72 per barrel, which decreased by 30% from the average COB price in 2019-20. Furthermore, as per revised estimates for 2020-21, India’s COB has increased by around 35% from its initial budget estimate. In this way, such fluctuating prices of crude oil in India may affect the prices of raw materials that are used in the production of carbon fiber. This, in turn, may confine the growth of the market in India.

Indian Carbon Fiber Industry Outlook

Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the Indian Carbon Fiber Market. Indian Carbon Fiber top 10 companies are:

1. Solvay
2. Hexcel Corporation
3. Mitsubishi Chemical Corporation
4. SABIC
5. Teijin Limited
6. Toray Industries Inc.
7. Rochling Group
8. Nikkiso Co. Ltd
9. Carbon Light Pvt Ltd
10. SGL Carbon India Pvt Ltd

Recent Development

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