Introduction
Graphite is an allotropic form of carbon that can be derived naturally through mines as well as produced by processing of hydrocarbons, such as coke, petroleum and coal tar. Thus, graphite is available in two forms known as natural and synthetic graphite. Owing to its molecular composition, graphite exhibits properties such as high thermal conductivity, high temperature resistance and anti-corrosive properties, which has made graphite a highly desirable additive in many end-use industries.
Graphite finds prominent applications in refractories, automotive applications, foundry facing and many more. Applications such as those in electric vehicles, nuclear energy and fuel cells are expected to further drive market growth during the forecast period. Global consumption of graphite was estimated to be approximately 2.8 Mn Tons in 2016. Sales revenue from graphite is expected to register a CAGR of 6.7% over the forecast period (2017–2027).
Factors influencing global graphite market growth
Refractories has been one of the major application segments for synthetic and natural graphite. It is used in linings of bricks and furnaces owing to its properties of high thermal resistance. Furthermore, properties of graphite such as lubricity, high thermal and electrical conductivity, high chemical resistance makes it suitable for various end use applications.
Graphite is used as a lubricant in the automotive industry where it is applied in gaskets and seals, brake linings etc. Graphite finds applications in insulation, paints, and electronic gadgets among other applications. Increasing demand for electric vehicles across the globe, especially in developed economies is further expected to boost the demand for graphite.
It also finds application in the manufacture of anodes for electric vehicles batteries. Anticipated robust growth in the demand for batteries is expected to make the batteries segment the most attractive application segment during the forecast period.
Owing to high demand for graphite in end use industries, mining companies are channelising efforts towards exploration and development of potential graphite mines in certain parts of the globe, especially in Africa. Furthermore, slowdown of production in China due to the imposition of various environmental regulations has led to a shift in focus on mining and production of graphite out of China.
Global Graphite Market: Segmentation and Forecast
Global graphite market is segmented on the basis of product type, application and region. On the basis of product type, global graphite market is segmented as natural and synthetic graphite. Natural graphite is further segmented as flake graphite, amorphous graphite and vein graphite. Synthetic graphite is further segmented as graphite electrode, carbon fibre, graphite block, graphite powder and others.
On the basis of application, global graphite market is segmented as refractories, lubricants and crucible, foundry facing, batteries and others. Key regions covered in the report include North America, Latin America, Western Europe, Eastern Europe, Asia pacific excluding Japan (APEJ), Middle East and Africa (MEA) and Japan.
Global Graphite Market Analysis, by Product Type
Global graphite market is expected to be dominated by synthetic graphite in terms of value. Synthetic graphite is projected to grow at a CAGR of 6.8% over the forecast period with a value share of 92%. Synthetic graphite is costlier than natural graphite owing to complex production process. Demand for natural graphite is also growing as it is finding increasing application in batteries and other segments. Natural graphite is anticipated to register a volume share of 41% by the end of 2027.
Global Graphite Market Analysis, by Application
The Batteries segment is expected to dominate the global graphite market among applications. The segment is anticipated to record a CAGR of 10.9% over the forecast period. Batteries used in electric and hybrid electric vehicles require a large amount of graphite. Furthermore, high global demand for electric vehicles has further made the batteries segment as the most promising segment for an increase in demand for graphite globally.
Global Graphite Market Analysis, by Region
Asia Pacific is anticipated to dominate the global graphite market with a record CAGR of 8.0% over the forecast period. In terms of revenue share, APEJ is estimated to hold 35.8% of the global graphite market share in 2017 while North America and Western Europe accounted for 16.1% and 12.3% of the global revenue share of the graphite market. Steady growth in steel production in Middle East & Africa is expected to drive the growth in consumption of graphite in the region during the forecast period.
Market Segmentation
Product Type
- Natural Graphite
- Flake
- Amorphous
- Vein
- Synthetic Graphite
- Graphite Electrode
- Carbon Fibre
- Graphite Blocks
- Graphite Powder
- Others
Application
- Refractories
- Lubricants & Crucible
- Foundry facing
- Batteries
- Others
Region
- North America
- Latin America
- Western Europe
- Eastern Europe
- Asia Pacific excluding Japan (APEJ)
- Middle East and Africa
- Japan
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by - Sudip Saha, Managing Director and Co-Founder of Future Market Insights
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