In 2023, market players might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain.
Controlling Inflation has become the first priority for global economies from last quarter of 2022 and to be followed in 2023. With skewed economic situations, rise in interest rate by governments to control spending and inflation, spiked oil and gas prices, high inflation, geo-political issues including U.S. & China trade war, Russia-Ukraine conflict to intensify the global economic issues.
The interest rates in the U.S. may be less sensitive in 2023 as compared to 2022; sigh of relief for businesses. Positive business sentiments, healthy business balance sheets, growth in construction spending (private construction value in 2022 stood at $1,429.2 billion, 11.7 percent (±1.0 percent) above the $1,279.5 billion spent in 2021, Residential construction in 2022 was $899.1 billion, up by 13.3 percent (±2.1 percent) from $793.7 billion in 2021, non-residential construction touched $530.1 billion, 9.1 percent (±1.0 percent) above the $485.8 billion in 2021.) showcases minimal impact of recession in the country.
Similarly, spiked spending in the European and major Asia economics including, India, China & Japan to showcase less impact on the global demand.
The needle coke market is estimated to grow at a CAGR of ~7% over the forecast period, i.e., 2021 – 2030. The growth of the market can be attributed to the rapid recovery in the steel production industry and battery industry post-coronavirus pandemic, as needle coke is extensively used in the production of steel and lithium-ion batteries. Moreover, needle coke is used as raw material in graphite electrodes in an electric furnace, which is estimated to heighten its demand in the upcoming years. Increasing adoption of electric vehicles has resulted in high demand for lithium-ion batteries, which is a major growth factor for the market. According to the data by the International Energy Agency (IEA), sales of electric cars crossed 2.1 million globally in 2019, witnessing a growth of 2.6% from previous year.
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The market is segmented by application into graphite electrodes, lithium-ion battery, and special carbon material, out of which, the lithium-ion batteries segment is anticipated to grow with the highest CAGR of around 7.5% over the forecast period on account of increasing production of lithium-ion batteries, backed by their long life, environment friendly nature, and extensive use in electric vehicles. According to the data by the EIA, the demand for lithium-ion batteries is estimated to increase from 17kt to 185 kt per year by 2030. In the Sustainable Development Scenario, this demand can even double-up by 2030.
In 2018, the world’s total energy supply was 14282 Mtoe, wherein the highest share in terms of source was captured by oil, accounting for 31.6%, followed by coal (26.9%), natural gas (22.8%), biofuels and waste (9.3%), nuclear (4.9%), hydro (2.5%), and other (2.0%). Where there was an increase in energy demand in 2018, the year 2019 witnessed slow growth as the energy efficiency improved owing to decline in the demand for cooling and heating. However, in 2020, the electricity demand decreased by 2.5% in the first quarter of 2020 due to the outbreak of Coronavirus resulting in government imposed shutdowns in order to limit the spread of the virus, which was further followed by shutdown of numerous business operations impacting their growth. This also resulted in decline of 5.8% in the worldwide CO2 emissions which was recorded to be five times larger than the one recorded during the global financial crisis in 2009. However, in 2021, the demand for oil, gas and coal is estimated to witness growth, which is further projected to create opportunities for market growth. Moreover, rising environment degradation and awareness related to climate change is motivating many key players to employ sustainable energy strategies and invest significantly in environment-friendly power generation technologies with an aim to promote sustainable development among various nations around the world. Such factors are anticipated to promote the growth of the market in upcoming years.
On the basis of geographical analysis, the global needle coke market is segmented into five major regions including North America, Europe, Asia Pacific, Latin America and Middle East & Africa region. The market in the Asia Pacific is predicted to garner the largest revenue of close to USD 1800 Million by the end of 2030 owing to the rising adoption of electric vehicles in the developing countries in the APAC region, backed by the presence of major automotive manufactures in countries, such as, Japan, and India. On the other hand, the market in North America region is predicted to grow with the highest CAGR of about 7.30% over the forecast period owing to the rising focus on developing and manufacturing efficient and affordable electric vehicle battery systems in the countries, such as, United States. Around 7.5% of U.S. adults currently own an electric or hybrid vehicle, while 39% are likely to seriously consider buying an electric vehicle.
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The global needle coke market is further classified on the basis of region as follows:
Our in-depth analysis of the global needle coke market includes the following segments:
Increasing Demand for Lithium-ion Batteries
Recovery in the Steel Production Industry
Ans: Increasing application of needle coke in steel plants, graphite electrodes, and others, is estimated to boost the market growth
Ans: The market is anticipated to attain a CAGR of ~7% over the forecast period, i.e., 2021 – 2030.
Ans: Competition from honeycomb coke, and negative impact of COVID-19 are estimated to hamper the market growth.
Ans: The market in Asia Pacific region is estimated to provide major growth opportunities over the forecast period, on the back of presence of major needle coke producing companies in the region.
Ans: The major players in the market are Phillips 66 Company, Shandong Yida Rongtong Trading Co., Ltd., Mitsubishi Chemical Holding Corporation, Bao-steel Group, Petrocokes Japan Ltd., and others.
Ans: The company profiles are selected based on the revenues generated from the product segment, geographical presence of the company which determine the revenue generating capacity as well as the new products being launched into the market by the company.
Ans: The market is segmented by type, grade, application, end-user industry, and by region.
Ans: The lithium-ion battery segment is anticipated to grow with the highest CAGR of around 7.5% over the forecast period.