Indian Composites Industry Eyes To Touch the US$ 2.01 Billion Mark in 2027; To Cross The Global Average Growth in the Next Five Years
Pune (Voice News Service): The $ 1.26 billion Indian Composites Materials Industry, better known as reinforced plastics, is eying growth at a CAGR of 6.9% over the next five years to reach US$ 2.01 billion in 2027. With a volume growth globally, it is set to cross the global average of 4.7% by volume and touch the mark of 6.1% in the next five years, says a Report ‘Indian Composite Materials Market – Current Status & Forecast – 2027’ launched by the FRP Institute, an apex trade body of the Indian CompositesIndustry.
According to the Report, the Indian Composites Material Industry is taking the consumption from 511900 tons of composites materials in 2021 to 768200 tons in 2027.
The FRP Institute released this Report on the sidelines of The International Conference and Exhibition on Reinforced Plastics (ICERP 2023), which will bring together all stakeholders of Indian Composites Industry on one platform. ICERP 2023 will be conducted from 18th to 20thJanuary, 2023in Mumbai.
Current Consumption Status:
The Report further observes that India still has a lower per capita consumption of compositesat merely 0.37 kg in 2021 ascompared to matured markets such as the USA with 11.5 kg, which has the highest per capita consumption and Germany with 7.7 kg. Even countries like the United Kingdom, France, Italy, Spain and Asian countries like Taiwan, Japan have per capita consumption of composites ranging between 4 to 9 kg. As per this, India has the highest opportunities in terms of composites consumption.
Out of the total Composites Materials Market in India (which is 511900 tons in 2021 by material type) Matrices and Reinforcements together represented 86.7% share in 2021 while fillers and other composites occupied the rest of the share. Glass Fiber, Polyesters, and Epoxies remained as dominant materials and collectively represented 77.7% share in 2021.With further push on infrastructure and logistics by the Government, the sectors like ground transportation, building and construction, infrastructure development collectively accounted for approximately 50.8% share in 2021, in terms of volume.
Forecast – 2022 to 2027:
Ground Transportation, Construction and Infrastructure are likely to remain the key markets for Composites Materials by 2027. From 2022 to 2027, in terms of volume, the sectors such as Renewable Energy will see the highest CAGR of 8.6%, Aerospace and Defense will clock a CAGR of 8.2%, Construction and Infrastructure will witness a CAGR of 6.5% and CAGRs in others such as Telecom (5.8%), Electrical and Electronics (5.5%), Ground Transportation (5.4%), Pipe and Tanks (5%) and other sectors at 4.7%.
The future of Indian composites market looks attractive in the wake of increasing consumption opportunities for composites material in the industries like electrical and electronic, particularly due to emergence of electrical vehicles, wind energy, mass transportation and construction industries.
The major drivers for growth would be the rise in demand for electrical and electronic, wind energy, and pipe and tank applications due to increase in the number of Government projects like smart cities development, eco-friendly energy generation, hydrocarbon opportunities, freshwater transportation, sewage treatment system, rehabilitation of water and sewage pipelines. The Atmanirbhar Bharat initiative will further augment the prospects on a global level.
The industry overcame the COVID pandemic, revived operations faster and is hoping to accelerate the pace to cross the global average and exploit the untapped potential. With lower consumption levels compared to matured markets, the industry participants seek more impetus from the Government to bolster growth and bridge the gap. The increased cost of freight from China has turned the focus to India as a sourcing destination. The Russia – Ukraine War has caused an increase in manufacturing costs in Europe thereby making India an attractive alternative for manufacturing. The war has also caused a momentum growth in the defense sector
