Carbon fiber is a strong and lightweight polymer. Carbon fiber material is readily available in a variety of "raw" building blocks, such as yarns, uni-directional weaves, braids, and others, which are then utilized to make composite components. It is made of different materials, such as polyacrylonitrile (PAN) and petroleum pitch and rayon and comes in different fiber types, including virgin carbon fiber and recycled carbon fiber.
Market Drivers and Forecast
According to OMR Research, the Indian carbon fiber market is projected to grow at a CAGR of 11.6% during the forecast period (2023–2029). The key factor supporting the growth is the characteristics of carbon fiber. It is high in stiffness, has high tensile strength, can tolerate excessive heat, and has a low weight-to-strength ratio. This increases the applications of carbon fiber, such as the fact that it can be used in automotive drive shafts, tubing, aircraft wings, bike frames, containers, car components, propeller blades, and others. Carbon fiber is also used to manufacture lighter vehicles that improve their fuel efficiency. Additionally, since electric vehicles, which are increasingly in demand at present, weigh more than conventional gas vehicles, this increases the demand for carbon fiber among EV manufacturers to reduce the vehicle’s weight.
Moreover, another factor that is positively affecting the growth of the market is the rising demand for clean energy, since carbon fiber is an efficient and reliable material for clean energy technologies. For instance, manufacturers use carbon fiber to build larger turbines for land-based wind energy systems. According to a study led by researchers at Sandia National Laboratories in 2021, wind turbine blades constructed of carbon fiber weigh 25% less than those produced from standard fiberglass materials. That implies carbon fiber blades might be longer than fiberglass blades, capturing more energy in low-wind areas. Since carbon fiber components have a high fatigue resistance, switching to carbon fiber might also prolong blade lifetime.
Recent Developments
The key companies in the Indian carbon fiber market include Reliance Industries, Formosa Plastics Corp., Hyosung Corp., Jiangsu Hengshen Co., Ltd., Kureha Corp., Nippon Carbon Co., Ltd., Osaka Gas Chemicals Co., Ltd., Teijin Ltd., Taekwang Industrial Co., Ltd., and others. These companies are contributing to the market’s growth through various mergers, investments, market expansions, and collaboration activities. Some of the recent developments in the market include-
• In February 2023, Mahindra, an Indian multinational automaker, showcased India’s most expensive car, the Pininfarina Battista, which costs INR 20 crore ($2.4 million). The carmaker displayed the ultra-high-performance EV hypercar at the 2023 Hyderabad E-Motor Show. To keep the weight down, the automobile is based on a carbon fiber monocoque chassis and carbon fiber body panels.
• In December 2022, TSF Group, a division of the former TVS Group, announced the opening of a Leggaro Composites manufacturing plant in Chennai in collaboration with MIND S.r.l. of Italy. The newly established unit has begun the serial manufacture of carbon fiber components for worldwide mobility. The company stated that it will subsequently cater to the demands of the health care area.
• In August 2022, Reliance Industries announced the construction of India's first and one of the world's largest carbon fiber plants at Hazira, Gujarat. The plants will have a capacity of 20,000 MTPA depending on Acrylonitrile feedstock. To develop carbon fiber composites, the company will further combine its composites business with carbon fiber. Carbon fiber composites are also employed to address the constantly increasing light-weight needs of mobility and renewable energy.