The global graphite market size was USD 13.60 billion in 2020. Based on our research, the global market displayed a massive decline of 1.23% in 2020. The market is projected to grow from USD 14.83 billion in 2021 to USD 25.70 billion in 2028 at a CAGR of 8.2% during the 2021-2028 period. This information is provided by Fortune Business Insights™ in its report titled, “Graphite Market, 2021-2028.” The increasing demand is based on the factors such as it combines metallic and non-metallic, making it perfect for a varied range of industrial applications. It is a great conductor of electricity and heat, incomparable thermal steadiness, and lubricity. This is projected to bolster market growth in the foreseeable future.
By product, the market is divided into synthetic and natural. In terms of region, the market is globally segregated into North America, Europe, Asia Pacific, Latin America, and the Middle East Africa.
Based on application, the market is categorized into refractories, foundries, batteries, friction products, lubricants, and others. The speedy industrial expansion and augmented demand for this native mineral from industries such as automobile, construction, aerospace, and metal production, among others, is responsible for the development of the refractories segment. It held a significant market share of 43.4% in 2020, while the U.S. earned 31.6%.
Drivers and Restraints
Increasing Usage of Lithium-ion in Manufacturing Automobile Batteries to Promote Growth
Lithium-ion batteries utilize graphite in the manufacturing process in the automotive sector, which are further used as alternatives to fuel in the new-generation electric vehicles and to augment energy density while decreasing charging periods. Graphite-carbon black additives in hybrid vehicles upsurge the electrical conductivity, lifecycle, and control approval of modern lead-acid batteries utilized in vehicles with start-stop roles and brake energy retrieval, as well as micro-hybrid cars. It is also used to create thermal conducting polymers that are extensively being used to substitute metal in the manufacturing of automobile parts. It is expected that the demand will rise in the near future as anode content usage of lithium-ion batteries magnifies along with the implementation of electric vehicles and lithium-ion battery uses. This is expected to bolster graphite market growth in the foreseeable future.
Asia Pacific to Ace the Market in Long Run Backed by Supremacy in Automobile Production
The market in Asia Pacific was worth USD 8.24 billion in 2020. Asia Pacific dominated the graphite market share of 60.6% in 2020 and is anticipated to continue its supremacy during the forecast period. Augmented demand for conductors, graphite electrodes, and batteries, along with carbon fibre protected plastic, is projected to stimulate market growth.
Europe holds the second-largest share in the global market. Rising demand for lithium-ion batteries and several other electrical devices that contains graphite from European countries is assessed to reinforce demand. The renowned automotive industry in leading countries such as Germany and the U.K. are now concentrating on producing EVs that are driven by Li-ion batteries that demand this mineral.
North America is expected to showcase decent growth owing to the factor that Canada is one of the major producing regions. Moreover, the increased demand for the product and battery-powered appliances from numerous end-use sectors such as electronics, defense, aerospace, automobile, and others is likely to spike the regional growth.
New Acquisitions by Key Players to Bolster Market Growth
Prominent players in the market are always planning strategies to expand their business successfully and to maintain their leading position in the market. One such strategy is launching products for better reach among end-users.
As every day passed, numerous chief players are establishing collaborations with companies from different as well as the same domain in order to magnify their businesses and develop technologically innovative products for their customers.
For example, in February 2021, a key player, Saint Jean Carbon, announced that the company had signed a letter of intent with vendors to attain all of the issues as well as the outstanding shares of a private firm based in Ontario which is involved in the RD of solid-state batteries, known as Solid Ultrabattery Inc.
May 2019: Gratomic Inc. announced its first Graphene from Gratomic Graphite derivative product. Graphene-triggered conductive inks and pastes are prepared from Gratomic graphenes removed from graphite mined at the Aukum Mine in Namibia.
List of Key Players Covered in the Report
- AMG (Hauzenberg, Germany)
- Asbury Carbons (New Jersey, U.S.)
- Eagle Graphite (Canada)
- EPM Group (Moscow, Russia)
- Grafitbergbau Kaisersberg GmbH (Kaisersberg, Austria)
- Graphite India Limited (GIL) (India)
- Imerys (Paris, France)
- Nacional de Grafite (Brazil)
- SGL Carbon (Wiesbaden, Germany)
- Other Key Players