Graphite Market Analysis

Definition of Market/Industry:

Graphite is a product of carbon that is widely used across refractories, lubricating agents, and construction applications. It offers excellent thermal shock resistant and high removal rate of metal. Graphite is non-metal material that exhibits high strength, stiffness, excellent good conductor of heat and electricity. They are available in two forms of synthetic graphite and natural graphite.

The global graphite market is estimated to be valued at US$ 23,279.3 million in 2021 and is expected to exhibit a CAGR of 13.2% over the forecast period (2021-2028).

Recent Developments:

• On 12 January 2021 AMG Advanced Metallurgical Group N.V. announced that AMG Brasil S.A. (“AMG Brazil”) has entered into an Exclusive Cooperation Agreement (“ECA”) with one of its major customers for lithium concentrates.  The ECA provides for AMG Brazil to supply 200,000 DMT over a 5-year supply term, which will be obtained from an expansion (targeting 40,000 DMT per annum) of AMG Brazil’s existing lithium concentrate plant.

• On 19 July 2021, Toyo Tanso at participated FC EXPO 2021 September (1st Int'l Hydrogen & Fuel Cell Expo). FC EXPO is world's largest show for hydrogen & fuel cell. Toyo Tanso showcased various technologies, components, materials, devices and finished fuel cells for hydrogen and fuel cell R&D and manufacturing.

• On 09 July 2021, SGL Carbon puts additional state-of-the-art soft felt line into operation. SGL Carbon is expanded and modernizing its soft felt production. The company invested a single digit million euros in the last two years into an additional carbonization facility at its Meitingen site near Augsburg, Germany, which has now been put into regular operations.

Figure 1. Global Graphite Market Value (US$ Mn), by Region, 2020

Asia Pacific held dominant position in the global graphite market in 2020, accounting for 40.00 % share in terms of revenue, followed by Europe and North America, respectively. Asia-Pacific dominates the graphite market due to rise in the use of graphite in the manufacturing of structural composite parts used in the aircrafts and rise in the adoption of graphite in refractories due to its high thermal property in this region.

Global Graphite Market: Drivers

The growing adoption of a nuclear pebble bed reactor is propelling the market growth of the graphite. According to researchers at West Virginia University, 500 new pebble reactors, each of 100 GW capacity, are expected to be installed in the U.S. by 2020. Nuclear pebble bed reactor is an advanced version of a high-temperature gas reactor in which a large amount of flake graphite is used as a moderator. According to the Coherent Market Insights analysis, on an average, a pebble bed reactor uses around 3000 tons of graphite.

Robust growth in the automotive industry is predominantly propelling the market growth of the graphite. Graphite is widely used in the manufacturing of automobiles parts such as brake lining, clutch materials, gaskets due to its lightweight, high mechanical strength, and lubrication property. Moreover, it also acts as an excellent conductor of electricity and is an ideal substitute for asbestos. Thus, the growing demand for graphite from the automotive industry is propelling market growth. 

Graphite Market Report Coverage

Report Coverage	Details
Base Year:	2020	Market Size in 2021:	US$ 23279.3 Mn
Historical Data for:	2017 to 2020	Forecast Period:	2021 to 2028
Forecast Period 2021 to 2028 CAGR:	13.2%	2028 Value Projection:	US$ 48970.0 Mn
Geographies covered:	North America: U.S. and Canada Latin America: Brazil, Argentina, Mexico, and Rest of Latin America Europe: U.K., Germany, France, Italy, Spain, Russia, and Rest of Europe Asia Pacific: China, India, Japan, ASEAN, South Korea, Australia, and Rest of Asia Pacific Middle East & Africa: GGC, South Africa, Rest of MEA
Segments covered:	By Product Type: Natural(Flake, Amorphous, Vein), Synthetic(Graphite Electrode, Carbon Fibre, Graphite Blocks, Graphite Powder, Others) By Application: Refractories, Lubricants & Crucible, Foundry Facing, Batteries, Others
Companies covered:	AMG Advanced Metallurgical Group N.V., SHOWA DENKO K.K., Toyo Tanso Co., Ltd., SGL Carbon SE, Tokai Carbon Co., Ltd., Graphite India Limited, Nippon Carbon Co Ltd., SEC CARBON LIMITED, HEG Limited, and GrafTech International Ltd.
Growth Drivers:	Growing adoption of nuclear pebble bed reactors  Robust growth in the automotive industry
Restraints & Challenges:	Decline in demand for steel across countries such as China, India, and Japan  Health issues associated with the exposure to graphite

Global Graphite Market: Opportunities

Robust growth in the manufacturing industries due to rapid urbanization around the globe is projected to offer potential opportunities over the forecast period. Asia Pacific region is contributing to the fastest growth in the market due to strong growth in the end-user industries coupled with the increase in the population. Also, increasing use of graphite in the solar power system and rise in the installation of the solar power system around the globe will favor market growth.

The growing use of the graphite in the green technologies is expected to provide profitable opportunities in the near future. An emerging application of graphite such as fuel cell is also contributing to the market growth of the graphite. Moreover, the market of graphite is also gaining tremendous demand from the wind energy industry which is one of the popular green technologies. Thus, the growing use of the graphite in the green technologies is expected to foster the market growth in the near future.

Market Trends

The increasing use of graphite in the chemical industry for various reactions is one of the growing trends. It is used in the reaction tank, absorption tower, heat exchanger, and chemical filler. Moreover, the booming electronic market due to the growing use of electronic products such as laptops, smartphones, tablets, etc. are again expected to propel the market growth of the graphite. Graphite is used in the production of rechargeable and long-life batteries for electronic products.

Continuous product innovation by key players due to the growing demand for innovative graphite products is one of the key trends in the market. For instance, in February 2019, Focus Graphite Inc. has announce launch of an innovative suite of Oxidized Graphene products – GNOX. Graphene oxide is a single-atomic layered material, made by the powerful oxidation of graphite. Relatively low cost and abundant, it is an oxidized form of graphene, laced with oxygen-containing groups that are easy to process.

Figure 2. Global Graphite Market Share, By Product Type, 2020

Key Takeaways of the Graph:

• By product type, synthetic segment, held dominant position in the market and accounted for 84.00% share in the global graphite market in 2020. The segment is expected to reach US$ 41243.78 million in 2028. Synthetic is widely used in the aerospace industry, as it facilitates the development of lightweight structural parts that help improve fuel efficiency. Synthetic graphite has high strength-to-weight capability as compared to traditional aerospace materials, such as metals, and plastics, among others.

Global Graphite Market: Restraints

The decline in demand for steel across countries such as China, India, and Japan has reduced the consumption of graphite electrodes. Steel and refectory are the major consumers of flake graphite. Thus, a downturn in the steel industry is expected to hinder the market growth of the graphite over the forecast period.

Health issues associated with the exposure to graphite is expected to restrict market growth. It can cause shortness of breath, chest pain, coughing, etc. These health-related issues are expected to inhibit the market growth of the graphite over the forecast timeframe.

Global Graphite Market: Competitive Landscape

Major players operating in the global graphite market include, AMG Advanced Metallurgical Group N.V., SHOWA DENKO K.K., Toyo Tanso Co., Ltd., SGL Carbon SE, Tokai Carbon Co., Ltd., Graphite India Limited, Nippon Carbon Co Ltd., SEC CARBON LIMITED, HEG Limited, and GrafTech International Ltd.