Indian Carbon Fiber Market 2022-2028

Indian Carbon Fiber Market 2022-2028

Indian Carbon Fiber Market Size, Share, & Analysis by Raw Material (Polyacrylonitrile (PAN) and Petroleum Pitch & Rayon), by Type (Virgin Carbon Fiber (VCF) and Recycled Carbon Fiber (RCF)), and by Verticals (Aerospace and Defense, Automotive and Transportation, Construction Infrastructure, And Others) Forecast Period (2022-2028)

The Indian carbon fiber market is anticipated to grow at a CAGR of 9.5% during the forecast period (2022-2028). The market value was $118 million in 2021 and is estimated to reach $222 million in 2028. Carbon fiber is a material made of thin and strong crystalline filaments of carbon, especially used as a strengthening material in specialized, high-performance products such as aircraft, racecars, and sporting equipment. It offers several advantages, such as high chemical resistance, tensile strength, stiffness, temperature tolerance, low thermal expansion, and low weight. The factors that are positively driving the market’s growth include the rising demand for clean energy and the growing production of aircraft in India. The Indian government and the aircraft manufacturing companies are continuously focusing and investing in increasing the production capability of the country. For instance, in July 2022, Airbus collaborated with Tata Aircraft to establish India’s first private aircraft manufacturing facility in Gujrat. It will be located at Dholera as a prominent node on the Delhi-Mumbai industrial corridor, southwest of Ahmedabad.

Market Segment Outlook

Based on the raw material, the market is divided into polyacrylonitrile (PAN) and petroleum pitch & rayon. Among these, the PAN sub-segment held the highest market share of 90% accounting for around $106.2 million in 2021 and is estimated to reach $203.7 million in 2028. The segment is projected to grow at a CAGR of 9.8% during the forecast period. The carbon fiber of PAN is extensively used for structural material composites in sectors such as aerospace and defense, industrial, and sporting goods, due to its cost-effectiveness and improved quality. Additionally, it provides more than 85% yield of carbon fiber, as a result of which 90% of the manufacturers utilize PAN-based carbon fiber due to its benefits and several applications.

Based on type, the market is bifurcated into virgin carbon fiber (VCF) and recycled carbon fiber (RCF). The recycled carbon fiber sub-segment held the largest market share of 73% in 2021, accounting for a market value of $86.1 million in 2021. This number is further estimated to reach $167.7 million in 2028, growing at a CAGR of 10% during the forecast period.

Based on the industry verticals, the market is segmented into aerospace and defense, automotive and transportation, construction infrastructure, and others. Among these, the automotive and transportation segment held the largest market share of 39.5% in 2021, accounting for a market value of $46.6 million. The number is further estimated to reach $93.9 million in 2028, growing at a CAGR of 10.5% during the forecast period.

Key Players Outlook

Prominent players in the Indian carbon fiber market include Toray Industries, Inc., Mitsubishi Corp., SGL Carbon SE, Formosa M Co., Ltd., Hexcel Corp., and Zhongfu Shenying Carbon Fiber Co., Ltd., among others. These market players are adopting various strategies to sustain themselves in the competitive market. These companies are embarking on aggressive strategies such as partnerships and product launches in the Indian carbon fiber market to gain a leading position across the globe. For instance, in July 2021, Toray Industries, Inc. launched Toray 2700. The new product is an epoxy-based 2700 and offers high-performance and patented resin technology geared specifically for the aerospace industry. It also provides enhanced aerospace structural design drivers and enables the manufacturer to develop high-quality, high-volume, cost-effective composite parts.