Graphite Market - Industry Analysis, Market Size, Share, Trends, Application Analysis, Growth And Forecast 2022 - 2027

Report Code: CMR 82486 Report Format: PDF + Excel

Graphite Market Overview

Graphite market size is estimated to reach US$22.4 billion by 2027 after growing at a CAGR of 5.5% from 2022-2027. Graphite is a carbon-based mineral found in crystalline form and it is of two types i.e., natural type consisting of flakes like amorphous graphite and synthetic type which consist of graphite made from coke & pitch. Hence rich properties like self-lubrication, high tolerance to heat and unchangeability, etc., makes graphite of high usage in various application. For instance, in automotive vehicles especially electric vehicles it is used in lithium-ion batteries, as heat resistant in refractories, as an additive in lubricant, as concrete material in construction building and a combination of graphite fibre with carbon nanotubes makes carbon fibre reinforced plastics which have high usage in the aerospace sector. The drivers for the graphite market are growing demand for new energy vehicles like electric vehicles, increase in the volume of steel production, construction activities and rising demand for fuel-efficient aircraft through graphite-made materials. However, the grinding particles and chemicals of graphite make it a harmful pollutant as it can cause pollution and damage to the respiratory system. Hence stringent regulation imposed by the government on graphite usage will hamper the growth of the graphite industry.

COVID-19 Impact

The unfavorable effect left by COVID-19 harmed the functionality of industrial sectors such as mining, construction, metallurgy, chemical, automobiles etc. as the measures taken by governments of countries such as lockdown, quarantining, social distancing led to a shutdown of mining plants, construction sites, service stations and automotive factories. Graphite is used in such sectors as lithium-ion batteries in electric vehicles in the automotive sector, as lubricant and grease in mining machinery, and cement material in construction. For instance, as per the Society of Electric Vehicles Manufacturers, the registration of all-electric vehicles during 2021 declined 20% to 236,802 units against 295,683 units sold in 2020. Also, as per the 2021 report of the European Union on Impact of COVID-19 on European Union industries, the output of chemical industry between January and June reduced to 5.2% with the lowest point reaching in April with major countries like France and Italy showing a reduction in chemical output of 11.7% and 6.7%. Hence as the production of output in such sectors reduces, so led to a decrease in demand for graphite in them, thereby harming the growth of the graphite industry.

Graphite Report Coverage

The report: “Graphite Market – Forecast (2022 – 2027)”, by IndustryARC, covers an in-depth analysis of the following segments of the Graphite Industry.

By Product Type – Natural Graphite (Amorphous Graphite, Flak Graphite, Vein Graphite), Synthetic Graphite (Carbon Fibre, Graphite Black, Graphite Powder, Graphite Electrode, Others), Others.
By Purity Type – High Purity Graphite, Low Purity Graphite.
By Application – Lubrication, Electrodes, Friction Products, Refractories, Foundries, Batteries, Others.
By End User – Automobile Tyre, Construction, Metallurgy, Electronic, Mining, Textiles, Others.
By Geography - North America (USA, Canada, Mexico), Europe (UK, Germany, France, Italy, Netherland, Spain, Russia, Belgium, Rest of Europe), Asia-Pacific (China, India, Japan, South Korea, Australia, and New Zealand, Indonesia, Taiwan, Malaysia, Rest of APAC), South America (Brazil, Argentina, Colombia, Chile, Rest of South America), Rest of the World (Middle East, Africa).

Key Takeaways

  • Asia-Pacific dominates the graphite market, as the region is a hub for major steel, construction and automotive industries in countries like India, Japan, South Korea and China being the largest producer of graphite
  • The rich properties of graphite such as self-lubrication and friction resistance make it an efficient lubricant. Hence such lubricant is mainly used for heavy mining machinery such as conveyors.
  • Growing demand for electric vehicles will create more demand for lithium-ion batteries to be used in these vehicles as fuel, thereby increasing the usage of graphite in such batteries.


Figure: Asia-Pacific Graphite Market Revenue, 2021-2027

Asia-Pacific Graphite Market Revenue

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Graphite Market Segment – By Product

Natural graphite held the largest share in the graphite market in 2021, with a share of over 40%. This owns to factors like having high cost-competitiveness, friction resistance and optimal performance. Hence such rich properties make natural graphite have high industrial applications like in refractories, batteries, steel making, brake lining and lubricants etc. For instance, as per the 2021 report of the National Automobile Dealers Association, the vehicles sales in Q2 totaled up to 17 million units in the US, of which 76.9% was light trucks. Also, as per the 2021 report of the National Bureau of Statistics of China, the manufacturing of electrical equipment such as computers, laptops, mobiles etc. and other electrical equipment increased by 13.5%. Hence as natural graphite is used as a battery in electrical instruments and as brake lining in heavy trucks, so increase in production of such segments will lead to an increase in demand for natural graphite to be used in them, thereby positively impacting the graphite market.

Graphite Market Segment – By Purity

High purity graphite held the largest share in the graphite market in 2021, with a share of over 35%. This owns to factors such as high purity graphite has excellent conductivity, lubrication and high-temperature resistance. Hence due to such rich properties, it has various industrial applications such as lubrication, metallurgy, automotive, aerospace etc. The rapid development in some sectors such as the growing demand for the electric vehicle segment in the automotive industry has created more demand for high purity graphite since it is mainly used in lithium-ion batteries for electric vehicles. For instance, as per the European Environment Agency of European Union, the electric registration of electric cars and vans increased from 550,000 units in 2019 to 1,325,000 units in 2020, hence showing an increase of 11%. Hence as the demand for electric vehicles increases, this will increase the usage of lithium-ion batteries in them thereby increasing the demand for high purity graphite in the automotive sector for the electric vehicles segment

Graphite Market Segment – By Application Type

Refractories held the largest share in the graphite market in 2021, with a share of over 30%. This owns to factor like graphite blocks made in refractories is used in various industries such as metal manufacturing, electronics, chemical, steel and other fields etc. but the main user is metallurgical sector as such blocks are used for graphitization furnace, metallurgical furnace, resistance furnace etc. The rapid development and increase in production of sectors such metal manufacturing sector have led to more usage of graphite-based refractories. For instance, as per the July 2021 report of the World Steel Association the World crude steel production for the 64 countries was 161.7 million tones (Mt) in July, a 3.3% increase compared to July 2020, and the steel demand will further increase to 2.2% in next one year. The increase in production of steel will increase the demand for graphite blocks in them as it is majorly used in a metallurgical furnace. Hence such an increase in graphite usage will positively impact the demand for graphite in refractories thereby impacting the growth of the graphite industry in refractories.

Graphite Market Segment – By End User

Metallurgical held the largest share in the graphite market in 2021, with a share of over 30%. The metallurgical segment consists of electrodes, refractories, casting, and foundries. Hence as graphite electrodes are used in electric and ladle furnaces for steel production and with the rising production in steel, the demand for graphite will also increase. For instance, as per the 2021 report of the World Steel Association, the world crude steel production in May for 64 countries was 174.4 million tones (Mt), showing an increase of 16.5% when compared to 149.6 million tones produced in the same month. Such an increase in the production of steel will also increase the demand for graphite electrodes. Hence the increasing demand for electrodes will create more usage of graphite in them, which would positively impact the demand for graphite in the metallurgical sector thereby providing more growth opportunities for the graphite industry. 

Graphite Market Segment – By Geography

Asia-pacific held the largest share in the graphite market in 2021, with a share of over 40%. This owns to factor like the region consisting countries like China, India, Japan, South Korea have major end-users of graphite across automotive sector, construction sector, metallurgical sectors, and others. For instance, National Investment Promotion & Facilitation Agency, the construction sector in India will grow as the third largest globally by 2025, and construction output will grow on an average of 7.1% each year, and infrastructure activities stood at $24.72 between April 2000 and March 2021. Also, as per World Steel Association, the production of crude steel stood at 1878 million tones of which China accounted up to 56.6%, showing an increase of 3.4% from 2019. Hence the rapid development in the construction and metallurgical sector in such countries has positively impacted the demand for graphite in them, thereby positively impacting the growth of the graphite industry in the Asia-Pacific region.

Graphite Market Drivers

Increase in Demand for Electric vehicles

With the growing technological advancements, consumers have started shifting their demand from manual vehicles to electric hybrid vehicles. Various automotive plants for e-vehicles are being set up in countries. For instance, as per European Automobile Manufacturing Association, the production for e-vehicles increased up to 11% in 2020 from 3% in 2019 in the EU, and as per the International Energy Agency, electric car registration increased by 41% in 2020 globally, with China and Europe being the largest electric vehicle market. Graphite is used in the manufacturing of lithium-ion based batteries which are used as fuel in new generation vehicles like electric and autonomous vehicles. Hence with the increase in the production of electric vehicles, the demand for graphite to be used in lithium-ion batteries will also increase, thereby having a positive impact on the growth of the graphite industry.

Increase in volume of construction activities

Emerging economies, rapid urbanization and various infrastructural developments undertaken by countries have increased the scale of construction activity. For instance, as per the National Bureau of Statistics, China construction industry grew by 22.8% in Q1 of 2021 preceded by 6.6% in Q4 and 8.1% in Q3 and 7.8% in 2020 and as per the State Council for the People’s Republic of China, in July 2021 China approved projects related to the development of affordable rental homes for better access to housing in China’s big cities Also, as per U.S Census Bureau, the total construction spending in November 2021 was $1,625 billion which was 0.4% more than from October same year and 9.3% more compared to November 2020 spending of $1,463.3 billion. Hence the increase in the scale of construction activities will lead to increase in demand for graphite to be used in construction material, thereby providing more growth opportunities for graphite industry in the construction sector

Graphite Market Challenges

Stringent government regulations

Graphite mining and production can create environmental problems. The harmful chemicals used during its processing when discharged in surrounding land and water can pollute the area, whereas the dust emission caused during graphite mining has harmful air pollutants. Hence to prevent such wastage certain regulation has been laid by the government organizations. For instance, the U.S Environment Protection Agency’s Mineral Mining and Processing effluent guidelines 40CFR Part 436 applies to wastewater discharge from processing of 21 categories of mineral including graphite. Hence meeting such regulations relating to mining wastes has become mandatory for miners.

Graphite Industry Outlook

The companies to develop a strong regional presence and strengthen their market position, continuously engage in mergers and acquisitions. Graphite top 10 companies include:

  1. Showa Denko Materials Co., Ltd
  2. BTR New Materials Group Co. Ltd
  3. GrafTech International Holding Inc.
  4. Mason Graphite Inc.
  5. SGL Group
  6. Triton Mineral Ltd.
  7. Nippon Graphite Industries Co. Ltd
  8. Northern Graphite Corporation
  9. Syrah Resource Limited
  10. Graphite India Ltd.

Recent Developments

  • In 2021, Mason Graphite Inc. formed a joint venture with Thomas Swan Co & Limited called Black Swan Graphene. Hence the venture will enable Mason Graphite to use the graphene processing technology of Thomas Swan, thereby creating a meaningful graphite demand for the company.
  • In 2021, Northern Graphite Corporation signed a binding purchase and sale agreement to acquire 100% ownership of Lac des Iles graphite mine in Quebec and Okanjande graphite mine in Namibia. Hence such purchase will make the company the only North American and third-largest non-Chinese graphite producing company.

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1. Graphite Market- Market Overview
    1.1 Definitions and Scope
2. Graphite Market - Executive Summary
    2.1 Key Trends by Product Type
    2.2 Key Trends by Purity Type
    2.3 Key Trends by Application
    2.4 Key Trends by End User
    2.5 Key Trends by Geography
3. Graphite Market – Comparative analysis
    3.1 Market Share Analysis- Major Companies
    3.2 Product Benchmarking- Major Companies
    3.3 Top 5 Financials Analysis
    3.4 Patent Analysis- Major Companies
    3.5 Pricing Analysis (ASPs will be provided)
4. Graphite Market - Startup companies Scenario Premium Premium 
    4.1 Major startup company analysis:
        4.1.1 Investment
        4.1.2 Revenue
        4.1.3 Product portfolio
        4.1.4 Venture Capital and Funding Scenario
5. Graphite Market – Industry Market Entry Scenario Premium Premium 
    5.1 Regulatory Framework Overview
    5.2 New Business and Ease of Doing Business Index
    5.3 Successful Venture Profiles
    5.4 Customer Analysis – Major companies
6. Graphite Market - Market Forces
    6.1 Market Drivers
    6.2 Market Constraints
    6.3 Porters Five Force Model
        6.3.1 Bargaining Power of Suppliers
        6.3.2 Bargaining Powers of Buyers
        6.3.3 Threat of New Entrants
        6.3.4 Competitive Rivalry
        6.3.5 Threat of Substitutes
7. Graphite Market – Strategic Analysis
    7.1 Value/Supply Chain Analysis
    7.2 Opportunity Analysis
    7.3 Product/Market Life Cycle
    7.4 Distributor Analysis – Major Companies
8. Graphite Market – By Product (Market Size -$Million/Billion)
    8.1 Natural Graphite
        8.1.1 Amorphous Graphite
        8.1.2 Flake Graphite
        8.1.3 Vein Graphite
    8.2 Synthetic Graphite
        8.2.1 Carbon Fiber
        8.2.2 Graphite Black
        8.2.3 Graphite Powder
        8.2.4 Graphite Electrode
        8.2.5 Others
    8.3 Others
9. Graphite Market – By Purity Type (Market Size - $Million/Billion)
    9.1 High Purity Graphite
    9.2 Low Purity Graphite
10. Graphite Market – By Application (Market Size -$Million/Billion)
    10.1 Lubrications
    10.2 Electrodes
    10.3 Steelmaking
    10.4 Refractories, Casting & Foundries
    10.5 Batteries
    10.6 Others
11. Graphite Market - By End-User (Market Size -$Million/Billion)
    11.1 Automotive
    11.2 Construction
    11.3 Metallurgy
    11.4 Electronic
    11.5 Mining
    11.6 textile
    11.7 Others
12. Graphite Market - By Geography (Market Size -$Million/Billion)
    12.1 North America
        12.1.1 USA
        12.1.2 Canada
        12.1.3 Mexico
    12.2 Europe
        12.2.1 UK
        12.2.2 Germany
        12.2.3 France
        12.2.4 Italy
        12.2.5 Netherlands
        12.2.6 Spain
        12.2.7 Russia
        12.2.8 Belgium
        12.2.9 Rest of Europe
    12.3 Asia-Pacific
        12.3.1 China
        12.3.2 Japan
        12.3.3 India
        12.3.4 South Korea
        12.3.5 Australia and New Zeeland
        12.3.6 Indonesia
        12.3.7 Taiwan
        12.3.8 Malaysia
        12.3.9 Rest of APAC
    12.4 South America
        12.4.1 Brazil
        12.4.2 Argentina
        12.4.3 Colombia
        12.4.4 Chile
        12.4.5 Rest of South America
    12.5 Rest of the World
        12.5.1 Middle East
            12.5.1.1 Saudi Arabia
            12.5.1.2 UAE
            12.5.1.3 Israel
            12.5.1.4 Rest of the Middle East
        12.5.2 Africa
            12.5.2.1 South Africa
            12.5.2.2 Nigeria
            12.5.2.3 Rest of Africa
13. Graphite Market – Entropy
    13.1 New Product Launches
    13.2 M&As, Collaborations, JVs and Partnerships
14. Graphite Market – Industry/Competition Segment Analysis Premium 
    14.1 Company Benchmarking Matrix – Major Companies
    14.2 Market Share at Global Level - Major companies
    14.3 Market Share by Key Region - Major companies
    14.4 Market Share by Key Country - Major companies
    14.5 Market Share by Key Application - Major companies
    14.6 Market Share by Key Product Type/Product category - Major companies
15. Graphite Market – Key Company List by Country Premium Premium 
16. Graphite Market Company Analysis - Business Overview, Product Portfolio, Financials, and Developments
    16.1 Company 1
    16.2 Company 2
    16.3 Company 3
    16.4 Company 4
    16.5 Company 5
    16.6 Company 6
    16.7 Company 7
    16.8 Company 8
    16.9 Company 9
    16.10 Company 10 and more
"*Financials would be provided on a best effort basis for private companies" 

LIST OF TABLES

LIST OF FIGURES

1.US Graphite Market Revenue, 2019-2024 ($M)
2.Canada Graphite Market Revenue, 2019-2024 ($M)
3.Mexico Graphite Market Revenue, 2019-2024 ($M)
4.Brazil Graphite Market Revenue, 2019-2024 ($M)
5.Argentina Graphite Market Revenue, 2019-2024 ($M)
6.Peru Graphite Market Revenue, 2019-2024 ($M)
7.Colombia Graphite Market Revenue, 2019-2024 ($M)
8.Chile Graphite Market Revenue, 2019-2024 ($M)
9.Rest of South America Graphite Market Revenue, 2019-2024 ($M)
10.UK Graphite Market Revenue, 2019-2024 ($M)
11.Germany Graphite Market Revenue, 2019-2024 ($M)
12.France Graphite Market Revenue, 2019-2024 ($M)
13.Italy Graphite Market Revenue, 2019-2024 ($M)
14.Spain Graphite Market Revenue, 2019-2024 ($M)
15.Rest of Europe Graphite Market Revenue, 2019-2024 ($M)
16.China Graphite Market Revenue, 2019-2024 ($M)
17.India Graphite Market Revenue, 2019-2024 ($M)
18.Japan Graphite Market Revenue, 2019-2024 ($M)
19.South Korea Graphite Market Revenue, 2019-2024 ($M)
20.South Africa Graphite Market Revenue, 2019-2024 ($M)
21.North America Africa Graphite By Application
22.South America Africa Graphite By Application
23.Europe Africa Graphite By Application
24.APAC Africa Graphite By Application
25.MENA Africa Graphite By Application