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The synthetic graphite market size is projected to increase by USD 6.46 billion at a CAGR of 5.25% between 2023 and 2028. Market growth in the synthetic graphite sector is driven by several key factors, including the increasing demand for high-purity synthetic graphite and its expanding usage in metallurgical applications. Additionally, the high cost associated with synthetic graphite plays a crucial role in shaping market dynamics. These elements collectively influence the market landscape, underscoring the significance of synthetic graphite across various industries. As demand for high-purity synthetic graphite continues to rise and its applications expand, the market is poised for sustained growth despite the cost considerations associated with this versatile material.
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The direct sales segment is estimated to witness significant growth during the forecast period. Direct sales channels facilitate the conveyance of detailed technical information and product knowledge, particularly beneficial in industries where understanding product specifications is vital. Manufacturers can better comprehend customer needs through direct sales, offering tailored solutions, especially in specialized applications like anodes for lithium-ion batteries.
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The direct sales segment was the largest segment and was valued at USD 14.93 billion in 2018. Furthermore, direct sales also provide buyers with negotiation flexibility on pricing and terms, crucial for industries with project-specific requirements. Moreover, direct interaction aids in brand-building by showcasing manufacturers' expertise, reliability, and commitment to quality. Additionally, it enables effective communication of regulatory compliance information, ensuring transparency in adhering to industry standards. Thus, the direct sales segment is poised to drive growth in the market by facilitating personalized interactions, customized solutions, and transparent compliance communication.
Synthetic graphite finds extensive use in electrodes across various industries due to its exceptional electrical conductivity, thermal stability, and mechanical strength. Synthetic graphite electrodes are crucial components in electric arc furnaces for steel production, electrolytic cells for chemical production, and plasma cutting systems for material cutting. Additionally, they play a significant role in fuel cells and certain types of solar cells. The demand for synthetic graphite electrodes is poised to increase in industries where high temperatures, electrical conductivity, and stability are essential. Hence, the electrodes segment of the market is anticipated to witness growth in the forecast period.
APAC is estimated to contribute 54% to the growth of the global market during the forecast period. Technavio's analysts have provided extensive insight into the market forecasting, detailing the regional trends and drivers influencing the market's trajectory throughout the forecast period.
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The APAC regional market experiences significant growth due to heightened demand across various sectors such as foundries, electrical carbon, fuel cells, coatings, and lithium-ion batteries for electric vehicles (EVs) and hybrid electric vehicles (HEVs). Countries like China, India, and Japan witness increased consumption of synthetic graphite in battery production for EVs and HEVs. Moreover, China's dominance in synthetic graphite production, coupled with rising steel demand from industrialization in China, India, and Brazil, propels growth in the market through applications in steel refractories and other industries.
The market plays a pivotal role in various industries, including the iron & steel production sector and the construction sector, where it's utilized in metal fabrication and solar infrastructure. Known for its high energy density and fast charging times, synthetic graphite contributes significantly to battery technology advancement, aligning with global climate change goals and reducing greenhouse gas emissions. Governments incentivize its use due to growing environmental awareness, especially in countries like China, which is a key player in the supply chain. Stringent environmental regulations drive demand for high purity levels, essential in metallurgy and chemical sector applications, particularly in the electric arc furnace (EAF) method and ferroalloys production.
Key Driver
Demand for high-purity synthetic graphite is the key factor driving the market. The surging demand for electric vehicles (EVs) and renewable energy storage systems propels the need for high-purity synthetic graphite, essential in lithium-ion battery anodes. Semiconductor and electronics sectors rely on its unique properties, like high thermal and electrical conductivity, for diverse applications such as thermal management and production of electronic components. In metallurgical processes, high-purity synthetic graphite's resilience to extreme temperatures and low impurity levels are valued, especially in specialty steel and iron alloy production. Chemical and petrochemical industries utilize it in corrosion-resistant equipment and for manufacturing gaskets, seals, and heat exchangers. High-purity synthetic graphite's suitability for emerging technologies like quantum computing further drives its demand across industries, fostering market growth during the forecast period.
Increasing use in metallurgical applications is the primary trend shaping the market. Synthetic graphite electrodes are integral components in electric arc furnaces (EAFs) utilized for steel production, facilitating the melting and refining of scrap metal by generating requisite high temperatures. The growing demand for steel, fueled by infrastructure projects and industrial expansion, drives the increased utilization of such electrodes. Additionally, synthetic graphite serves as a carbon additive in specialty steel and iron alloy production, enhancing final product properties like hardness and strength. Its application extends to aluminum production and various metallurgical furnaces, benefiting from its thermal stability and conductivity. Synthetic graphite's versatility aligns with evolving metallurgical industry needs, fostering market growth during the forecast period.
High cost is a major challenge that affects market expansion. Natural graphite, although it may have purity and property limitations, generally offers better cost-effectiveness compared to synthetic graphite. The significant expense renders it less competitive in industries where cost considerations are paramount. This is particularly evident in sectors like steel manufacturing, where the high cost poses a challenge. Additionally, the adoption of synthetic graphite in applications like lithium-ion batteries and aerospace could also be hindered by its high production costs. As energy storage systems become more prevalent, the cost of synthetic graphite becomes a crucial factor, potentially limiting its adoption. Thus, the expensive nature presents a barrier to its widespread use across various industries, impacting market growth during the forecast period.
Companies are implementing various market trends and analysis strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market and resulting in market growth analysis.
The market growth and forecasting report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Asbury Carbons Inc., Brookfield Business Partners LP, BTR New Material Group Co. Ltd., Graphite India Ltd., Imerys S.A., Kaiyu Industrial HK Ltd., Lianyungang Jinli Carbon Co., Ltd., Mersen Corporate Services SAS, Mitsubishi Chemical Group Corp., Morgan Advanced Materials Plc, Nippon Carbon Co. Ltd., Resonac Holdings Corp., Schunk GmbH, SGL Carbon SE, Shamokin Carbons, Tokai Carbon Co. Ltd., and Toyo Tanso Co. Ltd.
The market analysis and report of qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the market research and growth report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth and forecasting strategies.
Global Market Customer Landscape
The synthetic graphite industry plays a pivotal role in various sectors, such as metal furnaces and Li-Ion batteries, contributing significantly to global steel production and finished steel consumption. With a focus on emerging economies and infrastructural investment, the industry seeks to meet global demand while addressing environmental concerns like greenhouse gas emissions. Government incentives and initiatives like China's National Blueprint for Lithium Batteries drive lithium cell production and promote clean energy sources. Utilizing synthetic carbon in applications ranging from bricks to chemical manufacturing, the industry relies on electric furnaces and process energy sources for high-temperature operations, supporting the production of crude steel and calcium carbide.
Furthermore, the market intersects with diverse sectors such as steel production and battery manufacturing, as indicated by entities like the World Steel Association and China's Supply Chain. It addresses environmental concerns by contributing to the reduction of global greenhouse gas emissions through applications like the negative electrode in Li-Ion batteries, which require vast amounts of terawatt-hours and resources. Human expertise, reflected in the industry's human resources, is crucial for refining processes, including melting scrap iron and manufacturing chemicals. Additionally, it plays a role in other industries, such as aluminum production, supported by organizations like the International Aluminum Institute, enhancing the market's impact on major metals worldwide.
Market Scope |
|
Report Coverage |
Details |
Page number |
163 |
Base year |
2023 |
Historic period |
2018-2028 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 5.25% |
Market Growth 2024-2028 |
USD 6.46 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
4.85 |
Regional analysis |
APAC, Europe, North America, South America, and Middle East and Africa |
Performing market contribution |
APAC at 54% |
Key countries |
US, China, Japan, Germany, and France |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
AMG Advanced Metallurgical Group NV, Asbury Carbons Inc., Brookfield Business Partners LP, BTR New Material Group Co. Ltd., Graphite India Ltd., Imerys S.A., Kaiyu Industrial HK Ltd., Lianyungang Jinli Carbon Co., Ltd., Mersen Corporate Services SAS, Mitsubishi Chemical Group Corp., Morgan Advanced Materials Plc, Nippon Carbon Co. Ltd., Resonac Holdings Corp., Schunk GmbH, SGL Carbon SE, Shamokin Carbons, Tokai Carbon Co. Ltd., and Toyo Tanso Co. Ltd. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Distribution Channel
7 Market Segmentation by Application
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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