India Carbon Fiber Market –By Resin , By Raw Material , By Tow Type , By Application , By End Use Industry Opportunity Analysis & Industry Forecast, 2024-2030

India Carbon Fiber Market Overview:

India Carbon Fiber Market size is estimated to reach US$908.5 million by 2030, growing at a CAGR of 8.3% during the forecast period 2024-2030. Carbon fiber is a high strength, low weight, high stiffness, electrically conductive and is one of the most corrosion and heat-resistant material. This makes them the most sought-after material in the aerospace, automotive, marine, energy, sporting and other sectors. The shift towards clean energy is a major driving factor for the Carbon Fiber Market in India. Furthermore, increasing demand for carbon fiber composite in consumer electronics resulting in lighter and thinner products is expected to drive the market growth.

A trend in the carbon fiber market is the increasing focus on sustainable production methods. With rising environmental concerns and a need for eco-friendly materials, carbon fiber manufacturers are exploring ways to minimize the environmental impact of their production processes. Innovations include the use of bio-based precursors, recycling of carbon fiber waste and energy-efficient manufacturing techniques. This trend aligns with efforts to achieve net zero and reduce the overall carbon footprint of industries. Sustainable carbon fiber production addresses environmental concerns as well as addresses the growing demand for green products in various sectors such as aerospace, automotive and energy. Another trend in the market is lightweighting. Every automotive OEM is focusing on reducing the weight of the vehicle. If a vehicle is light-weight it can accelerate more with optimal utilization of fuel. In electric vehicles, this is of more importance. According to the U.S. Department of Energy Vehicle Technologies Office, using lightweight materials in these electric vehicles can offset the weight of power systems such as batteries and electric motors, improving the efficiency and increasing their all-electric range.

Market Snapshot: 

India Carbon Fiber Market - Report Coverage:

The “India Carbon Fiber Market Report - Forecast (2024-2030)” by IndustryARC, covers an in-depth analysis of the following segments in the India Carbon Fiber Market.

COVID-19 / Ukraine Crisis - Impact Analysis:  

The COVID-19 pandemic significantly affected the carbon fiber market. The lockdowns reduced production as a result of the country-wise shutdown of manufacturing sites, shortage of labor, supply chain disruptions and the declining demand from end users in India, thus, affecting the market.
The Russia Ukraine war added further challenges in the Carbon fiber market in India due to a disruption in global supply chains and increase in energy prices. Fluctuations in raw material costs further exacerbated the issues.

Key Takeaways

Thermoset is the Largest Segment

The primary role of the thermoset resin matrix is to act as an adhesive, bonding and fixing the fibers together. Thermoset resins do not melt under heat but instead disintegrate. The short molecular chains that make up this group of polymers have low viscosity that is ideal for the impregnation of fibers. The main thermoset resins are epoxy, phenolic, bismaleimide (polyimide) and cyanate ester. Out of these, epoxy holds the largest share as epoxy-based carbon fiber provide good strength, durability and environmental resistance and are commonly used in the aerospace and defense, automotive, sport, wind energy and other industries. The Indian Ministry of Heavy Industries announced plans to develop the third Automotive Mission Plan (AMP) from 2024 to 2047. The AMP 2047 will guide the growth of the automotive industry in India over three phases. The plan's goals include a 30% increase in auto and auto component exports by 2030 and a 50% increase by 2047. Such developments boost the demand for carbon fiber and thereby thermoset resins. 

Continuous Tow Dominates the Market

Continuous tow is the most widely used tow due to its weight, compatibility with resins and various range of sizing available for optimal processing. These are heavy tows with 50,000 filaments each of these tows have heavy mechanical properties which can be transferred to the finished products and components to enhance their properties such as strength, durability and structural properties. Furthermore, Continuous tows provide cost advantage, especially when used in a high-volume process, increases the reliability of the end product, enhance production efficiency and can be merged with all thermoset and thermoplastic resin systems. Continuous tow also makes carbon fiber far superior to glass and aramid fibers because of their added strength & stiffness and are used in manufacturing wind turbines, industrial, and automotive manufacturing. Therefore, these properties & advantages of continuous tow will further drive its demand in the market.

Aerospace & Defense is the Largest Segment

The aerospace and defense industry is the largest consumer of carbon fiber for civil aircraft, military jets, helicopters, satellites and space launchers. The applications are based on the resin types. Epoxy is for highly loaded parts and supreme toughness, bismaleimide is for high temperature performance, phenolic for fire, smoke and toxicity performance in aircraft interiors and cyanate ester for space structures and satellite applications. Owing to the superior structural performance of carbon fiber such as long fatigue life, high stiffness and strength they are used in the production of aerospace structures. They are around 25% to 30% lighter than metal equivalents and lighter aircraft use less fuel. According to Boeing, using carbon-based materials allows for less maintenance since they do not corrode or fatigue like metals do. In October 2024, India's first private military aircraft manufacturing facility was inaugurated. The facility aligns with the Make in India initiative and aims towards self-reliance in defense. The facility will assemble Airbus C-295 Aircraft which will enhance the Indian Air Force’s capabilities and is expected to become operational by November 2024. Such developments will increase the demand for carbon fiber. 

Increasing Usage in Automotives Drives the Market

The demand for carbon fiber in the automotive industry is surging due to its lightweight and high-strength properties which help enhance fuel efficiency and performance. Manufacturers are increasingly integrating carbon fiber into vehicle frames, body panels and interiors to meet stricter emission regulations and improve safety standards. The material’s ability to reduce vehicle weight without compromising structural integrity makes it a preferred choice in electric vehicles (EVs) and sports cars. As per the Society of Indian Automobile Manufactures, total passenger vehicle sales increased from 3.07 million to 3.89 million units in FY-2022-23, compared to the previous year. As the number of vehicles increase, so does the demand for lightweight materials such as carbon fiber also increase.

High Cost to Hamper the Market

The high cost of carbon fiber remains a significant challenge for its widespread adoption. Carbon fiber is made from high-quality precursor materials like polyacrylonitrile (PAN). As per the Royal Society of Chemistry, high cost of PAN-based Carbon fiber production greatly limits the application of it worldwide markets as more than 50 % of the cost is related to the production of precursor fibers. As per the U.S. Department of Energy, 2.1 lbs of PAN Precursor are required to make 1 lb of carbon fiber. Majority of Carbon Fibers are PAN Based. Complex manufacturing processes adds up production costs. This limits its application to high end industries like aerospace, luxury automotive and defense. For cost-sensitive industries, alternatives like aluminum and steel are more viable.  This price factor restricts carbon fiber's penetration into broader markets. 

For more details on this report - Request for Sample

Key Market Players: 

Product/Service launches, approvals, patents and events, acquisitions, partnerships and collaborations are key strategies adopted by players in the India Carbon Fiber Market. The top 10 companies in the India Carbon Fiber Market 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

Scope of Report: 

For more Chemicals and Materials Market reports, please click here