SEGMENTATION OF INDIAN COMPOSITE INDUSTRY

The world is exploring use of fiber reinforced composites in all possible and creative application which includes air, land and water transport, construction industry, toys, instrumentation, medicine and the list is endless. The segments where the large inclusion of fibre reinforced composites can bring a paradigm shift in reducing carbon footprint on the economy are:

1. Automotive segment

Polymer composites are not used much in the Indian automotive industry at present however, Particulate reinforced plastics have been used for some time but fiber reinforced composites have only really been used in high end sports cars but are starting to make their way into traditional vehicles.  Race cars have used carbon fiber materials for many years. The first challenge is to convince the designers to use polymer composites. Secondly, designers in India are not using the full potential of fibre reinforced composites to re-engineer parts. Thirdly, the high cost of polymer composites, manufacturers have a ‘$ per lb mindset’ and composites are more expensive than metals though almost one quarter of the weight per volume. Even if the designer can be convinced to choose composites, benefits such as longer service life and part integration make only a very small impact on a purchase department if the product is more expensive initially. Since, the commitment made by the Indian government during Paris agreement 2015 on climate change to cut down CO₂ emissions and reduce the carbon footprint on the ecosystem. Indian Government has upgraded its vehicle emission norms from B-III to B-VI by end of 2020 is pushing the automotive industry for extensive R&D. Another key initiative taken to drive composites usage in this sector is the government’s National Electric Mobility Mission 2020.”

1. Aerospace Segment

The growing demand for aerospace platforms for all the three Indian Defense Services coupled with huge demand in civil aviation will pave way for considerable opportunities for the Indian aerospace industry for polymer composite in aero structures over the next decade. There are number of procurements from OEMs and DRDO projects in pipeline to bridge the capability gap. Taking in to account the current on-going and future programmes in pipeline the Indian military aviation market size is expected grow in the range of $119-135 billion over the next decade. Aero structures are structural components such as fuselages, propulsion systems, fight control surfaces and wing systems of an aircraft’s airframe of any commercial/military aircraft less engine landing and avionics.  Primarily, the use of composite materials in development of light jets, executive jets, strategic platforms for national security, modification aircrafts, wide body, Very Light Jets (VLJ), Unmanned Aerial Vehicles (UAVs), helicopters and trainers for Civil and Military use. Carbon fiber composites are now quite common in commercial and military aviation especially, helicopter systems, rocket motors, satellite systems, and turbine engines. Polymer composite technologies have infused added strength to the aircraft, ensuring a longer lifespan, in lower fuel consumption. The Boeing 787 and Airbus A350 XWB have roughly 50% of their structure from composite materials. The Indian aerospace composite markets are going to be extremely vigorous with significant growth opportunities in both indigenous as well as export market. It is estimated that the market for aerospace composites in India including export potential is likely to reach a value of US$ 302.5 million in 2023. Some of the key players in the aerospace composites market in India are Tata Group, Hindustan Aeronautics Ltd. (HAL), Kineco Kaman Composites – India Private Ltd., Valeth High Tech Composites Pvt Ltd, Taneja Aerospace and Aviation Limited, and Adani Defense and Aerospace Group. India has started its journey to be a worthy contender for manufacturing operations, but it will take time.  There is no denial that the DPSUs and the government-owned agencies have developed some capabilities, but as far as complete manufacturing of aircrafts or aero-engine design is concerned, it has had a limited success.

• Renewable Energy (Wind & Solar)

The Indian renewable energy sector is the fourth most attractive renewable energy market in the world. The country ranks fourth in the world in terms of total installed wind power capacity. Installed renewable power generation capacity has increased steadily over the years, posting a CAGR of 9.29 per cent over FY08–18. India added record 11,788 MW of renewable energy capacity in 2017-18 and 1,832.26 MW grid interactive and off-grid in April-July 2018. The focus of Government of India has shifted to clean energy after it ratified the Paris Agreement.  Renewable energy installations in India exceeded those by coal power plants for the first time in 2017. Government of India is aiming to achieve 225 GW of renewable energy capacity by 2022, much ahead of its target of 175 GW as per the Paris Agreement. With the increased support of government and improved economics, the sector has become attractive from investors perspective. As India looks to meet its energy demand on its own, which is expected to reach 15,820 TWh by 2040, renewable energy is set to play an important role. It is expected that by the year 2040, around 49 per cent of the total electricity will be generated by the renewable energy, as more efficient batteries will be used to store electricity which will further cut the solar energy cost by 66 per cent as compared to the current cost. Use of Renewables in place of coal will save India Rs 54,000 crore (US$ 8.43 billion) annually. India has become the largest market globally for auction of new renewable energy generation projects and the second-largest destination attracting clean energy investments as stated in the Climatescope 2018 latest report published by Bloomberg NEF.  Wind energy continues to dominate in this segment and remains, frontrunner, and the largest market for glass and carbon fiber-reinforced composites. Wind turbine blades remain a key market segment for composites. Turbine blades account for the highest amount of composite consumption in their manufacturing. The use of composites in wind turbine blades provides long shelf life, less maintenance, resistance to corrosion, and high strength-to-weight ratio. India was the world’s fifth largest clean energy investment market in 2017, jumping up from being the sixth largest in 2016. Clean energy investment totaled $7.4 billion in the first half of 2018, with solar power projects accounting for the majority. India’s solar market almost doubled in size in 2017, making it a record year with annual PV installations touching 9.4 GW. Some of the key players in the wind turbine composite market include Suzlon Energy Limited (India) and AVIC Huiteng Windpower Equipment Co., Ltd. (China) have set up their manufacturing bases in various region of the country.

1. Mass Transportation

Transport is considered lifeline of economy of a country. While at the macroeconomic level, mobility that it confers is linked to a level of output, employment and income within a national economy, at the microeconomic level it is linked to producer, consumer and production costs. An efficient Road Transport Sector, in particular, plays a crucial role in a country’s economic progress and growth. Bringing together both supply and demand sides, road transport sector influences entire gamut of social and economic activities of a country. A robust economy growing at a rate of about 8% has created a huge demand and pressure on the road & Rail transport infrastructure in India accounts for about 6.4% of GDP. Indian rail composites market is forecasted to grow at an impressive rate over the next five years to reach an estimated US$ 122.3 million in 2023. The rail industry is one of the largest consumers of composite materials in India and has efficaciously witnessed a continuous increase in the penetration of composites in the past decade. Rail coaches segment currently dominates the market and is likely to maintain its growth momentum driven by increasing production of rail coaches, advancement in the rail coach design, upcoming rail coach factories in India, and increasing penetration of composites in structural to semi-structural applications. However, Metro railcars, another promising segment, is likely to grow at the highest rate in the market during the forecast period, driven by large ongoing and upcoming metro rail projects in different parts of India including Bengaluru, Hyderabad, Kochi, Lucknow, and Nagpur coupled with a greater composites penetration per railcar. The penetration of composites would not cede here and is likely to increase further with the development of new composite applications as well as to address changing customer demands with evolving trends, rapid transformations in technologies, and intense market competition. Expansion of the existing rail network to support the rising passenger traffic, expansion of existing metro rail projects in Tier 1 cities and ongoing/upcoming metro rail projects in Tier II cities, an incessant shift from traditional heavyweight parts to lightweight composite parts and massive retrofit plans of the Ministry of Indian Railways are some of the major factors driving the Indian rail composites market. The major raw material suppliers to the Indian rail composites industry are Owens Corning India, Goa Glass Fibre Ltd. Reichhold India Private Ltd., Satyen Polymers Pvt. Ltd., and Atul Pvt. Ltd., whereas the major composite part fabricators are Arham Composites, Kineco Private Limited, Tech-Force Composites Pvt. Ltd., Permalli Wallace, and HCL India.