Carbon Graphite Market Expected to Reach $4.5 Billion by 2032—Allied Market Research

According to a new report published by Allied Market Research, titled, “Carbon Graphite Market," The carbon graphite market was valued at $2.6 billion in 2022, and is estimated to reach $4.5 billion by 2032, growing at a CAGR of 5.7% from 2023 to 2032.

Carbon graphite, also known as graphite, is a crystalline form of the chemical element carbon. It is composed of carbon atoms arranged in a hexagonal lattice structure, and it is one of the allotropic forms of carbon, along with diamond and amorphous carbon. Graphite is characterized by its distinct properties, including lubrication, electrical conductivity, and thermal conductivity.

It is a solid material with a layered structure, where individual layers of carbon atoms are weakly bonded together. This unique structure gives graphite its slippery and solid lubricant properties. Graphite has a wide range of industrial and commercial applications, such as in the production of electrodes, lubricants, refractory materials, heat sinks, and various other products in industries such as aerospace, automotive, and electronics.  

Carbon graphite is used in wind turbines and solar panels due to its electrical conductivity and mechanical strength. The expansion of renewable energy sources contributes to the growth of the carbon graphite market. 

Moreover, the development of energy storage systems, such as lithium-ion batteries, relies on carbon graphite materials for their anode components. The growth of electric vehicles and the energy storage sector drives the demand for high-quality carbon graphite materials. 

However, the availability of high-quality graphite feedstock can be limited, and the extraction and processing of such materials can face environmental and sustainability challenges, impacting the supply chain. On the contrary, the development and adoption of green technologies, such as carbon capture and storage (CCS) systems, present opportunities for carbon graphite in CO2 capture and transport.  

The carbon graphite market is segmented on the basis of product, end-user industry, and region. By product, the market is segregated into carbon and graphite electrodes, carbon and graphite fibers, carbon and graphite powder, and others. The carbon and graphite electrodes segment dominated the global market, in terms of revenue in 2022. Carbon electrodes are a critical component in electric arc furnaces (EAFs) used in steel production.

The global demand for steel continues to rise, driven by infrastructure development, construction, and industrial growth in emerging economies. As a result, the demand for carbon electrodes used in EAFs has been increasing. Moreover, carbon electrodes are essential for aluminum smelting in the Hall-Héroult process, where alumina is electrolyzed to produce aluminum. The aluminum industry's growth, particularly in emerging markets, has driven the demand for carbon electrodes.

Additionally, graphite electrodes play a crucial role in electric arc furnaces (EAFs) used for steel production. The global demand for steel continues to rise, primarily due to infrastructure development, construction, and industrial growth in emerging economies. As a result, the demand for graphite electrodes used in EAFs has been increasing. These factors are expected to lead the carbon graphite market for carbon and graphite electrodes to witness a significant growth. 

By end-user industry, the market is divided into industrial, aerospace, and others. The aerospace segment dominated the global market, in terms of revenue in 2022 with 43.9% share in the global market. Carbon graphite offers a high strength-to-weight ratio, making it ideal for applications where reducing weight while maintaining structural integrity is essential, such as in aerospace and automotive industries.

Furthermore, carbon graphite is an excellent conductor of electricity and heat, making it valuable in electrical and thermal management applications. In addition to this, carbon graphite is chemically inert and resistant to many chemicals, making it suitable for use in corrosive environments and chemical processing applications. These factors altogether have surged the demand for carbon graphite among several end-user industries; thus, fueling the market growth.   

Region wise, the carbon graphite market is analyzed across North America, Europe, Asia-Pacific, and LAMEA. The Asia-Pacific carbon graphite market size is projected to grow at the highest CAGR during the forecast period, and accounted for a major market share in 2022, the Asia-Pacific region is a major hub for automotive manufacturing and consumption.

Carbon graphite materials are used in the production of brake components, clutches, and other automotive parts. As the demand for lightweight and high-performance materials in the automotive sector continues to witness growth, the carbon graphite market is expected to benefit from it. Furthermore, the Asia-Pacific region has been rapidly expanding its renewable energy sector, with a strong focus on wind and solar power. Carbon graphite materials are utilized in wind turbine components and solar panels, contributing to the growth of the carbon graphite market.

Additionally, Asia-Pacific is a significant contributor to the global EV market. The demand for carbon graphite materials in lithium-ion batteries for EVs is substantial, and the region's commitment to reducing emissions is driving the adoption of EVs. Moreover, Asia-Pacific is experiencing significant infrastructure development, including construction projects, transportation networks, and energy transmission. This creates opportunities for the use of carbon graphite materials.  .   

Key players operating in the global carbon graphite market include IBIDEN, Entegris, Nippon Carbon, SEC Carbon, GrafTech International Limited, Graphite India Ltd., Schunk, Fangda Carbon New Material Co., Ltd, Datong XinCheng, and Sinosteel Engineering and Technology Co., Ltd. 

COVID-19 Analysis

The novel coronavirus was an incomparable global pandemic that spread to over 180 countries and caused huge losses of lives and the economy around the globe. The pandemic disrupted supply chains worldwide, affecting the availability of raw materials and components to produce carbon graphite products. Lockdowns, travel restrictions, and factory closures led to delays in production and increased costs.

Many industries that are significant consumers of carbon graphite products, such as aerospace, automotive, and industrial manufacturing, experienced a significant decrease in demand due to economic uncertainty and reduced production activity.

Moreover, the automotive sector, a major user of carbon graphite materials, saw a decline in vehicle sales and production during the pandemic, impacting the demand for carbon graphite components in this industry. Additionally, the aerospace industry faced challenges as airlines reduced operations and delayed new aircraft orders. Carbon graphite materials used in aircraft components and structures saw decreased demand.

However, industries such as automotive, aerospace, and industrial manufacturing, which are major consumers of carbon graphite products, are expected to gradually recover as economic activity resumes. This will lead to an increase in demand for carbon graphite components used in these sectors. Furthermore, the push for renewable energy solutions, including wind turbines with carbon graphite blades, is expected to continue. Governments and organizations worldwide are investing in renewable energy projects, presenting opportunities for the carbon graphite market.

Key Findings Of The Study:

• By product, the carbon and graphite electrodes segment is estimated to display the highest growth rate, in terms of revenue, registering a CAGR of 5.7% from 2023 to 2032.
• By end-user industry, the industrial segment is estimated to display the highest growth rate, in terms of revenue, from 2023 to 2032.
• By region, Asia-Pacific garnered the highest share in 2022, in terms of revenue, growing at a CAGR of 6.1%.