With a recorded CAGR of 8.5% from 2023 to 2033, the global graphite market, which was valued at US$ 23.9 billion in 2022, is expected to reach a valuation of approximately US$ 58.5 billion by 2033.
.jpg "The Global Graphite Market 2023-2033 (USD Billion)")
Due to its excellent heat resistance, graphite is increasingly being used in refractories, which is propelling the global graphite market ahead. Demand for graphite is also increasing in a variety of end-use computing, including aluminum, aerospace, military, and automotive.
Graphite Market Scope
| Metrics | Details |
| Base Year | 2023 |
| Historic Data | 2018-2022 |
| Forecast Period | 2024-2032 |
| Study Period | 2018-2033 |
| Forecast Unit | Value (USD) |
| Revenue forecast in 2033 | US$ 58.5 billion |
| Growth Rate | CAGR of 8.5 % during 2023-2033 |
| Segment Covered | Type, Application, Regions |
| Regions Covered | North America, Europe, Asia Pacific, South America, Middle East and Africa |
| Key Players Profiled | areAsbury Graphite Mills, Inc., Northern Graphite Corporation, Showa Denko K.K. Graphite India Limited, Energizer Resources Inc. SGL Carbon SE, Mason Graphite, Flinders Resources Ltd. Focus Graphite Inc. and SEC Carbon Limited. |
Market Definition
Graphite is a carbon-based mineral that is soft, black, and shiny. It is a good electrical and heat conductor, as well as chemically inert. These characteristics make graphite suitable for a wide range of applications.
Graphite is a carbon-crystalline form. It is a smooth, black, glossy mineral that conducts heat and electricity well. Graphite is also chemically inert, meaning it does not easily react with other chemicals. Graphite is composed of layers of carbon atoms organized in a hexagonal lattice. The layers can easily slip past one another since they are held together by weak van der Waals forces. As a result, graphite is a fantastic lubricant and conductor of heat.
Key Market Segmentation:
Insights on Type:
The natural graphite is growing at the fastest growth rate.
During the projected period, the natural graphite segment is expected to develop at the fastest CAGR. This is because natural graphite is in high demand in the battery, refractory, and foundry industries. Because of its excellent purity and conductivity, natural graphite is the recommended type of graphite for various purposes.
• Increasing graphite demand in the battery industry; • Increasing graphite demand in the refractories industry; • Increasing graphite demand in the foundry industry; • Increasing graphite demand in the electronics industry; • Graphite is in high demand in other applications such as lubricants and crucibles.
The synthetic graphite segment is predicted to increase at a slower rate than the natural graphite segment throughout the projection period. This is owing to the increased availability of synthetic graphite and its reduced cost compared to natural graphite. Synthetic graphite, on the other hand, is not as pure as natural graphite and does not have the same conductivity.
Insights on Application:
The battery production segment is boosting
This is due to rising graphite demand in lithium-ion batteries. Graphite is used as the anode material in lithium-ion batteries, and the growing demand for electric vehicles is likely to boost the growth of this category even further.
The graphite market's second-largest application sector is refractories. Because it is resistant to high temperatures and corrosion, graphite is used in refractories. The increasing need for refractories in the steel, glass, and cement industries is driving this market forward.
Insights on Region Analysis:
The Asia-Pacific renders ample financing opportunities.
This is due to increased demand for graphite in the region's battery, refractory, and foundry-facing industries.
The country possesses a substantial graphite deposit and is a major producer of graphite products. The rising demand for graphite in China is likely to propel the region's graphite market forward. In the Asia-Pacific area, India is another important producer and user of graphite. The country possesses a substantial graphite deposit and is a major producer of graphite products.
• Increasing graphite demand in the battery industry; • Increasing graphite demand in the refractories industry; • Increasing graphite demand in the foundry industry; • Increasing graphite demand in the electronics industry; • Graphite is in high demand in other applications such as lubricants and crucibles.
Company Profiles:
To obtain a competitive edge in the market, these businesses have been heavily concentrating on techniques including new product development, mergers and acquisitions, collaborations, agreements, and alliances.
Asbury Graphite Mills, Northern Graphite Corporation, Showa Denko K.K. Graphite India Limited, Energizer Resoirces, SGL Corbon SE, Maon Graphite, Flinders Resources, Focus Graphite, SEC Carbon Limited, and others dominate the graphite market.
COVID-19 Impact and Market Status
The slowdown in economic activity
The COVID-19 pandemic has had a severe influence on the graphite market. The epidemic has caused a halt in economic activity, lowering demand for graphite in several end-use industries. For example, the reduction in the automotive industry has reduced demand for graphite, which is used in brake pads and other components.
The epidemic has also impacted the graphite supply chain. Government-enforced restrictions have made it difficult to move graphite from mines to processing plants and end-users around the world. This has resulted in graphite shortages in various markets.
Despite these obstacles, the graphite industry is likely to rebound during the next few years. The rising demand for graphite in the battery industry is projected to propel the market forward. Graphite is used as the anode material in lithium-ion batteries, and the growing demand for electric vehicles is likely to boost the growth of this category even further.
Latest Trends and Innovation:
Shanshan Technology, a renowned Chinese graphite producer, announced a $1.5 billion investment in a new graphite mine in Madagascar in 2022. Beginning in 2024, the mine is planned to produce 100,000 metric tons of graphite per year.
Mitsubishi Chemical, a Japanese chemical corporation, announced plans to establish a new graphite processing factory in China in 2022. The project, which
s set to open in 2023, will generate high-quality graphite for use in lithium-ion batteries.
Nacional de Grafite, a Brazilian graphite company, announced a 50% increase in production capacity in 2022. The expansion, which is anticipated to be finished in 2023, will allow the company to meet the steel industry's expanding need for graphite.
Significant Growth Factors:
The expansion of the lithium-ion battery industry is a significant driver of the graphite market. Graphite is an important component in lithium-ion batteries, and as the demand for these batteries grows, so will graphite use.
• The expansion of the steel industry is another major driver of the graphite market. Because graphite is used in the manufacturing of steel, graphite demand rises in tandem with steel demand. • Increasing demand for synthetic graphite is also stimulating the graphite industry. Synthetic graphite is more consistent and easier to process than natural graphite, and as demand for it rises, so will graphite demand overall. The increasing usage of graphite in various applications, such as refractories and lubricants, is also driving the graphite market forward. The demand for graphite in these applications rises in tandem with the total demand for graphite.
Restraining Factors:
The world's graphite resources are concentrated in a few nations, including China, Brazil, and Madagascar. This concentration of supply may result in future price volatility and supply shortages.
1. Concerns about the environment The mining and processing of graphite can have a detrimental environmental impact. Some of the environmental challenges associated with graphite manufacturing include water pollution, air pollution, and land degradation.
2. Technical difficulties High-quality graphite production can be technically hard. This is especially true for synthetic graphite production, which is more consistent and easier to process than natural graphite.
Overall, the graphite industry is likely to continue to thrive and expand in the future. The market is projected to overcome its challenges by diversifying its supply chain, investing in R&D, and discovering new applications.
Frequently Asked Questions (FAQ) :
The graphite market size is expected to reach an estimated value of US$ 58.5 billion in 2033.
The graphite market is expected to grow at an impressive CAGR of 8.5% during the foreseeable future.
The applications of the graphite market are Lubrication, Refractories, Foundry, Battery Production, and Others
The Global graphite market is segmented on the basis of Type, Application, Regions.
Asbury Graphite Mills, Inc., Northern Graphite Corporation, Showa Denko K.K. Graphite India Limited, Energizer Resources Inc. SGL Carbon SE, Mason Graphite, Flinders Resources Ltd. Focus Graphite Inc. and SEC Carbon Limited are the major companies operating in Graphite Market.
The worldwide graphite market is highly competitive, with the industry's main regional rivals. The graphite market is somewhat concentrated, with the top five natural graphite and synthetic graphite firms controlling a significant portion of the market in their respective areas. Major players in the global industry are Asbury Graphite Mills, Inc., Northern Graphite Corporation, Showa Denko K.K. Graphite India Limited, Energizer Resources Inc. SGL Carbon SE, Mason Graphite, Flinders Resources Ltd. Focus Graphite Inc. and SEC Carbon Limited among others.
Mergers and acquisitions, major investments, collaborations, new product launches, and capacity expansion are all important techniques utilised by large multinational corporations to boost their market share. To fulfil a wide range of consumer requests, the market's leading firms have a large worldwide footprint and a diverse product portfolio. Throughout the forecast period, developing areas are anticipated to become major markets for graphite due to growing demand from end-user industries.
Strategic Acquisitions in Global Graphite Market -
In August 2018, Asbury Carbons completed the acquisition of Process Engineering Corporation (PEC) based in Illinois, thereby expanding its vertical integration into the production of downstream graphite products. Process Engineering Corporation (PEC), is one of the major suppliers of graphite coated canvas in North America. With this, the company aims to expand its business operations into the downstream of the supply chain.
Strategic Expansions in Business Capabilities -
In July 2018, Showa Denko Carbon, Inc. (SDKC), a U.S. based subsidiary of the company, underwent capacity expansion to 30,000 tons/year of high-quality graphite electrodes. The company aims to expand its production so as to cater to a larger customer base in the U.S. and European countries.
In April 2018 Toray Industries, Inc. announced to escalate production capacity of large tow size carbon fiber in their subsidiary of Zoltek Companies, Inc, based in the U.S. With this expansion, the company aims to increase the production capacity at Zoltek’s facility based in Hungary from 10,000 tons to 15,000 tons on annual basis.
In April 2018, Teijin Limited announced to expand its establishments in Shanghai, China, and Taipei, Taiwan. This business expansion was aimed for capitalizing the increasing demand from carbon fiber along with strengthening the business capabilities in these regions.
The need for graphite is projected to rise as steel production using the electric arc furnace method increases. Natural graphite is used in the production of crucibles and mag-carbon bricks in refractories. Steel converters and electric arc furnaces both employ graphite as a liner. The rising demand for graphite is projected to be fueled by the increased use of steel. Graphite is also used to cover foundry facings in order to make the removal of hot metal simpler. All of these reasons are likely to drive up graphite demand in the metallurgical end-user industry.
Type Segment
On the basis of type, the graphite market is categorized as natural graphite and synthetic graphite. Natural graphite is sub-divided into flake, amorphous and vein graphite. Synthetic graphite is additionally sub-segmented as carbon fiber, graphite electrode, graphite blocks, and graphite powder among others.
Graphite is found naturally in various regions of the world and may also be manufactured synthetically. Synthetic graphite is another name for this grade. Flotation, screening, forming, and thermal and chemical purification are all processes in the refinement of natural graphite. Natural graphite comes in three distinct forms, each of which is classified according to its carbon content. China, Brazil, and India are the leading producers of flake, amorphous, and vein graphite.
Powder preparation, shape shaping, baking, graphitization, and the pyrolitic process are some of the methods used to make synthetic graphite. These techniques generate synthetic graphite with extremely high purity levels. Synthetic graphite has become considerably more popular than natural graphite as a result of this feature, and as a result is much more expensive.
Application Segment
Based on the application, the market is segmented into lubrication, refractories, foundry, battery production, and others. Graphite has long been utilised in refractories for the production of steel, furnaces, and other moldable components. Graphite is also frequently utilised as a lubricant in a variety of applications, including automotive and industrial.
However, graphite's most notable application is in lithium ion batteries, which are utilised in electric cars. Electric vehicles are the most recent accomplishment in the automobile industry, producing zero emissions and resulting in a significant increase in sales. This is one of the most important aspects in the graphite industry's future growth.
In the predicted period, the Asia Pacific area is expected to record for the determined market contribution. The Asian countries' massive need for graphite is primarily responsible for this region's dominance. Due to increased expenditures in the development of civil construction and infrastructure, the construction sector in Asia Pacific is seeing a major uptick. Additionally, as per capita income has grown, so has expenditure, resulting in increasing demand in the packaging sector. Demand is expected to be boosted further by investments in the energy and transportation industries.
Rapid developments in these sectors is projected to propel the demand for graphite in the coming years. Graphite consumption is expected to rise steadily in North America and Europe, fueled mostly by the desire for electric cars. Graphite is an important component in electric car batteries. Electric cars are becoming increasingly popular as a result of their compliance with current environmental norms and laws. As a result, hybrid and completely electric vehicles are in high demand in these areas.
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The major players of the global graphite market are Asbury Graphite Mills, Inc., Northern Graphite Corporation, Showa Denko K.K. Graphite India Limited, Energizer Resources Inc. SGL Carbon SE, Mason Graphite, Flinders Resources Ltd. Focus Graphite Inc. and SEC Carbon Limited. Prominent companies are posing new and innovative graphite products. They are also investing in and purchasing small firms in order to boost their profitability. Due to the industry's fierce rivalry, market concentration will be significant as significant enterprises with large market shares focus on increasing their customer base across international markets.