Graphite Market size is poised to reach USD 5.88 Billion by the end of 2036, growing at a CAGR of 7.5% during the forecast period, i.e., 2024-2036. In the year 2023, the industry size of the graphite was USD 2.47 Billion. The reason behind this growth is impelled by the increase in the production of graphite worldwide. According to the World Bank Group report, by 2050, it is anticipated that the production of minerals such as graphite and lithium is expected to increase by nearly 500% to meet the growing demand for clean energy technologies. Moreover, to deploy wind, solar, and geothermal power, more than 3 billion tons of minerals and metals will be required. As per the estimates, more than 1 million metric tons of graphite was produced worldwide in 2022.
The growing demand for graphite in advanced engineering and coating applications. Graphite is used to produce graphene-infused coating materials and graphene-based advanced engineering materials. In engineering, graphite is used for a variety of purposes, including vanes, thrust bearings, journal bearings, and piston rings, and is used to lubricate rubber, plastic, and metallic parts without the need for greases.
Growth Drivers
Challenges
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Base Year |
2023 |
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Forecast Year |
2024-2036 |
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CAGR |
7.5% |
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Base Year Market Size (2023) |
USD 2.47 billion |
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Forecast Year Market Size (2036) |
USD 5.88 billion |
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Regional Scope |
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Application (Refractory, Metallurgy, Metal Fabrication, Lubricants & Crucibles, Foundry Facing, Batteries & Energy Devices)
The refractory segment in the graphite market is estimated to gain a robust revenue share of 30% in the coming years owing to the rising application of graphite as a refractory material is expected to grow during the forecast period owing to its properties, such as heat resistance, stability, and high thermal properties. Furthermore, the growth of this segment can also be attributed to the rapid industrialization and the increased use of graphite in the iron and steel industries. In a study, it was observed that in a steelmaking process, the tip of the electrode is heated up to 3,000 degrees Celsius. Electrodes are made of graphite since only graphite is capable of handling such intensive heat. In addition to that, nearly 4 kilograms (8.8 pounds) of graphite electrodes are used to make a ton of steel.
In addition, graphite is also used as mold wash in several casting processes and facing sand by the foundry industry, which is counted as the second-highest use of this market. Ferrous castings accounts for the highest global share of many casting types, either by non-ferrous castings such as copper, aluminum, lead, and zinc, magnesium, and titanium-based castings. The most popular uses for foundry-cast metals include automotive, pipelines, and machinery.
Product Type (Natural Graphite, Synthetic Graphite)
The synthetic graphite segment is poised to garner a notable share shortly. The purity of natural graphite ranges from around 70.1%-99.0%, while synthetic graphite purity is usually above 99.0%. Synthetic graphite is made of graphitic carbon that has been produced by graphitizing non-graphitic carbon, which is frequently utilized in the production of metals as well as in solar panels, battery systems, sports equipment, and pencils.
In addition, the production cost of naturally occurring graphite is comparatively lower than that of synthetic graphite which increases the demand for natural graphite in the market.
End-Use (Automobile & Aerospace, Power Generation, Electronic)
The automobile & and aerospace segment in the graphite market is set to garner a notable share shortly owing to the increase in the demand for vehicles in which graphite is highly used as the material in carbon fiber-reinforced plastics for these frames. Moreover, the rising demand for electric vehicles and phones, which largely depend on rechargeable batteries, is further expected to propel market growth. In addition to batteries used in mobile phones and electric vehicles, graphite is also a key raw material in these batteries. In tandem with the growth in lithium-ion battery demand, graphite demand is also expected to increase.
Our in-depth analysis of the global market includes the following segments:
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Product Type |
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End-Use |
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Application |
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APAC Market Forecast
The graphite market in Asia Pacific is predicted to account for the largest share of 47% by 2036 impelled by rapid industrialization in countries such as China, India, and Japan, and increasing demand for graphite from steel manufacturers is expected to drive the market in the region. In addition to that, India and China are among the world's largest crude steel producers. Furthermore, China is the world's largest consumer and producer of graphite electrodes. Based on US Geological Survey data, China produced 820,000 tons of graphite in 2021, accounting for 79 percent of the world's graphite production. Around 24% of the graphite produced in China was amorphous, and about 76% was flake graphite. Furthermore, the expansion of the mining industry is expected to drive market growth. According to the India Brand Equity Foundation, the number of reporting mines in India was estimated at 1,229 as of 2021, of which 545 mined metallic minerals and 684 mined non-metallic minerals.
North American Market Statistics
The North America graphite market is estimated to be the second largest, during the forecast timeframe led by the increase in the production of electric vehicles in the United States has increased the demand for lithium-ion batteries, which resulted in more graphite consumption. In addition, the significant investments in the research & and development activities to increase the graphite production areas are also expected to grow in the North American market.
Author Credits: Smruti Ranjan, Rajrani Baghel
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