The Global Market for Carbon and Graphite is Projected to Reach US$20.1 Billion by 2024

Novel Applications Including Use in Li-Ion Batteries in the Emerging Electric Vehicle Market to Drive the Global Carbon  & Graphite Market, According to a New Report by Global Industry Analysts, Inc.

GIA launches comprehensive analysis of industry segments, trends, growth drivers, market share, size and demand forecasts on the global Carbon and Graphite market. The global market for Carbon and Graphite is projected to reach US$20.1 billion by 2024, driven by their indispensability in the production of a wide range of products in end-use sectors such as steel, automotive, energy, and aerospace; and emerging new uses in Lithium ion batteries, electric vehicles, graphene electronics, and carbon nanostructures.  

The thriving end-use industries such as steel, transportation, electronics, semiconductor, solar, and petrochemical, among others, drive demand for carbon and graphite. Industrial manufacturing applications of graphite range from the humble pencil to the moderate battery coating application, and ultimately to the highly complex hot forging lubricants and electric arc furnace steel production. Graphite electrodes are extensively used in the production of steel. The state of the steel industry therefore is a major factor deciding the pace of market growth for graphite. Furthermore, metallurgy operations create sustained demand for graphite.

Many technological advancements of the world created newer markets for graphite as well. Lithium ion battery manufacture is one such major and rapidly growing application for graphite. Synthetic graphite and natural flake graphite represent one of the core raw materials used in Lithium ion batteries, which find increased usage in electric vehicles (EV). The booming EV market worldwide is anticipated to emerge as a key growth driver for the global market for graphite in the coming years. Other end uses include graphene, fuel cells, solar panels and pebble-bed nuclear reactors. The evolving demand from batteries used in electric vehicles and base-load battery storage, and the advent of smaller nuclear reactors are expected to stimulate graphite demand in the coming years. Owing to its use in many energy-related applications, graphite has also been identified as a critical and strategic mineral by several governments.

However, China’s dominance in graphite started declining in 2017 with the country’s government imposing closures on plants, in a move to minimize pollution and inefficiencies. China also shifted to the EAF steelmaking method and started consuming more graphite electrodes domestically. This negatively impacted Chinese exports to the world and prices of graphite electrodes shot up worldwide. The same trend is expected for 2018 and beyond. Because of supply uncertainty from the Chinese market and graphite electrode prices shooting up globally, steel production is likely to take off from other countries. Supply constraints are also leading to lesser demand of steel overall. The emergence of other strategic end-use markets such as batteries for graphite electrodes also would support this shift.  Further, with carbon emerging into a key ingredient in the field of nanotechnology, the growing production of fullerenes, buckyballs and carbon nanotubes (CNTs) will spur growth in the market.

Sales of EVs have been rapidly increasing globally since 2014, which hints at a market with very high growth potential for graphite. EVs are expected to make up for about 5% of the global light vehicles demand by the year 2020. However, currently only a small percentage of graphite that is produced worldwide actually goes into the manufacturing of Lithium ion batteries for EVs. Though fast growing, it is a miniscule application currently. In addition, enough global supply capacity is lacking for flake graphite, which is used in batteries. This highlights the urgent need for existing as well as new miners to expand capacities and be ready to tackle a potentially robust Li-ion battery market, which would demand large amounts of the mineral.

As stated by the new market research report on Carbon and Graphite, Asia-Pacific represents the largest market worldwide, led by steady economic growth, sustained demand from developing aerospace and automotive sectors, and increasing investments in nanotechnology and fuel cells research. Steady growth in demand for steel and other metals is also contributing to the sustained demand for graphite electrodes in the region. Rest of World represents the fastest growing market, however, on account of newer graphite mines being discovered in the East African region, coupled with graphite supply constraints from Asia-Pacific.

Major players in the market include Cabot Corporation, Solvay S.A., GrafTech International Holdings Inc., HEG Ltd., Hexcel Corporation, Mersen S.A., Mitsubishi Chemical Holdings Corporation, Mitsubishi Chemical Carbon Fiber and Composites, Morgan Advanced Materials plc, Nippon Carbon Co. Ltd., Orion Engineered Carbons LLC, SGL Group – The Carbon Company, Showa Denko K.K, Showa Denko Carbon Inc., Superior Graphite, Teijin Ltd., Tokai Carbon Co. Ltd., Toray Industries Inc., and ZOLTEK™ Carbon Fiber, among others.

The research report titled “Carbon and Graphite: A Global Strategic Business Report” announced by Global Industry Analysts Inc., provides a comprehensive review of market trends, issues, drivers, mergers, acquisitions and other strategic industry activities of global companies. The report provides market estimates and projections for all major geographic markets such as the US, Canada, Japan, Europe (France, Germany, Italy, UK, Spain, Russia and Rest of Europe), Asia-Pacific (China, India, and Rest of Asia Pacific), Latin America (Brazil, Mexico, and Rest of Latin America) and Rest of World. The Carbon and Graphite market is analyzed by the following Product Categories/Segments – Carbon & Graphite Electrodes (Carbon Electrodes and Graphite Electrodes), Carbon & Graphite Fibers, Carbon & Graphite Powder and Others. The Carbon & Graphite Fibers market is additionally analyzed by the end-use sectors of Industrial, Aerospace, and Others (Including Automotive, Sporting Goods, and Wind Energy Sector among Others).

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