A new report highlights the global carbon fibre and yarn market growing and how. The report by Thryve Research projects the market will be worth $4.7 billion by 2033. The market, was at $2.5 billion in 2024, and is set to grow at a Compound Annual Growth Rate (CAGR) of 7.5 per cent from 2026 to 2033. This increase is largely due to a global push for lightweight, high-strength materials across critical sectors like aerospace, automotive, and wind energy. While Asia-Pacific leads this growth, a new narrative is emerging: India's ambitious stride to become a key player in the production and application of this material of the future.

The global growth picture

The global carbon fibre yarn market, currently at approximately $2.3 billion in 2025, is a testament to the material's versatility. Its applications range from enhancing the structural integrity of aircraft and automobiles to fortifying wind turbine blades and sporting goods. The market is segmented by application, with each sector driven by unique factors:

Aerospace: The primary driver is the demand for fuel efficiency and reduced emissions, making the high strength-to-weight ratio of carbon fibre indispensable for structural components.

Automotive: The shift towards Electric Vehicles (EVs) is a major catalyst. Carbon fibre-reinforced plastics (CFRP) help extend EV range by reducing vehicle weight, and are increasingly used in premium cars for body panels and crash structures.

Wind energy: As wind turbine blades grow longer to capture more energy, they require materials that are both strong and light to withstand immense forces. Carbon fibre is the ideal solution, improving durability and reducing overall weight.

Sporting goods: The market thrives on consumer interest in high-performance gear. Carbon fibre's lightness and strength are prized in products like tennis rackets, bicycle frames, and golf shafts.

Construction: The use of carbon fibre in seismic reinforcement and retrofitting aging bridges and buildings is a growing application, driven by the need for durable and corrosion-resistant materials.

Table: Global carbon fibre market and growth drivers

Region Market size ($ bn) Growth drivers Asia-Pacific 1.1 Robust manufacturing, industrialization, cost competitiveness Europe 0.6 Strong aerospace & wind energy industries, stringent regulations North America 0.5 Aerospace, defense, and premium automotive segments Latin America 0.07 Rising infrastructure investment, niche sporting goods demand Middle East & Africa 0.03 Emerging construction and energy sectors

Source: Thryve Research, Verified Market Reports)

India's changing market from importer to producer

Historically, India has been a net importer of carbon fibre, relying on countries like the US, France, Japan, and Germany for its supply. However, the tides are turning. In a significant policy shift, the Indian government has announced plans to achieve indigenous production of niche carbon fibre by 2025-26. This initiative is a cornerstone of the broader Make in India campaigns.

The Indian Carbon Fiber Market is projected to reach approximately $908.5 million by 2030, with a CAGR of 8.3 per cent from 2024 to 2030, as per IndustryARC. Growth is heavily influenced by domestic demand and the government's push for local manufacturing.

Factors driving growth

Wind energy sector: India's ambitious target of achieving 140 GW of wind capacity by 2030 is a primary driver. The country's growing wind energy sector requires large quantities of carbon fibre for the production of lightweight and durable turbine blades.

Technical textiles & defence: Carbon fibre is a critical material in the technical textiles sector, with applications in aerospace, civil engineering, and defense. The National Technical Textiles Mission is supporting research and development in this area, including projects for indigenizing carbon fibre production.

Automotive sector: India's Automotive Mission Plan (AMP) 2047 aims for significant growth in auto and auto component exports. The increasing adoption of lightweight materials to meet fuel efficiency norms and support the burgeoning EV market will fuel demand for carbon fibre.

Table: India’s carbon fibre industry Outlook (2025-30)

Metric Value Source Market Size (2030) $908.5 million IndustryARC CAGR (2024–2030) 8.30% IndustryARC Major Domestic Producers Reliance Industries, Jindal Advanced Materials, Silcarb Recrystallized Multiple sources Government Missions National Technical Textiles Mission, Automotive Mission Plan 2047 MoT / MoHI Major Demand Sectors Wind Energy, EVs, Aerospace, Defence, Technical Textiles (Not specified)

However, the move towards self-reliance is not just a government mandate but a tangible reality, with several companies leading the charge. For example, Reliance Industries Ltd (RIL) has announced plans to establish India's first world-class carbon fibre manufacturing facility in Hazira, Gujarat. This move is poised to transform the domestic landscape and make carbon fibre more accessible to Indian industries.

Jindal Advanced Materials (JAM) in a strategic partnership with Italy's MAE S.p.A., is setting up a carbon fibre plant with an annual capacity of 3,500 metric tonnes. This collaboration is a significant step towards local production and will position JAM as a key supplier in the industry. Similarly, Silcarb Recrystallized is a pioneer in manufacturing the equipment necessary for carbon fibre production, having successfully installed the country's first-ever carbon fibre production line. This is a crucial development in building the foundational technology for indigenous manufacturing.

What lies ahead…

Despite the promising outlook, the carbon fibre market in India faces challenges. High production costs, a reliance on imported precursor materials, and the need for a robust supply chain are key hurdles. Furthermore, concerns about the environmental impact of the manufacturing process and the difficulty of recycling carbon fibre composites need to be addressed.

However, the opportunities far outweigh the challenges. The government's Production-Linked Incentive (PLI) scheme and initiatives under the National Technical Textiles Mission are creating a supportive ecosystem for manufacturing. The growth of startups in sectors like drones and advanced manufacturing is also creating a new wave of domestic demand.

By focusing on R&D, fostering public-private partnerships, and addressing sustainability concerns, India is well-positioned to not only meet its domestic demand but also to carve out a significant share in the global carbon fibre and yarn market. The vision is clear: to weave a future where this high-performance material is no longer an import, but a symbol of India's self-reliance and technological prowess.