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).
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
|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|
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.
|Restraints & Challenges:||
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.
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:
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.
Frequently Asked Questions