Needle Coke Market | Global Forecast Report 2035

Global Market Size, Forecast, and Trend Highlights Over 2023 - 2035

Needle Coke Market size is expected to reach USD 11 Billion by the end of 2035, growing at a CAGR of 8% during the forecast period, i.e., 2023 – 2035. In the year 2022, the industry size of needle coke was USD 7 Billion. The market is rising since the demand for needle coke is directed at a variety of industries, including aerospace and defense, steelmaking, and semiconductors, amongst others, due to numerous characteristics and benefits that include low porosity, low heat gain coefficient, low sulfur content, high conductivity, low metal content, or simple graphitization.

Furthermore, needle coke market growth is substantially increasing owing to the rising uptake of electric cars for reducing greenhouse gas emissions and air pollution, apart from carbon peak and carbon neutrality. By peaking carbon emissions before 2030 and achieving carbon neutrality by 2060, China provided increased support for developing countries in the green and low-carbon economy.

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Needle Coke Market: Key Insights

Base Year	2022
Forecast Year	2023-2035
CAGR	~ 8%
Base Year Market Size (2022)	~ USD 7 Billion
Forecast Year Market Size (2035)	~ USD 11 Billion
Regional Scope	North America (U.S., and Canada) Latin America (Mexico, Argentina, Rest of Latin America) Asia-Pacific (Japan, China, India, Indonesia, Malaysia, Australia, Rest of Asia-Pacific) Europe (U.K., Germany, France, Italy, Spain, Russia, NORDIC, Rest of Europe) Middle East and Africa (Israel, GCC North Africa, South Africa, Rest of the Middle East and Africa)

Needle Coke Sector: Growth Drivers and Challenges

Growth Drivers

Increasing Demand for Lithium-Ion Batteries –. The rising use of different cars, including electric vehicles (EV) battery and hybrid vehicles, as well as the electrical and electronics industries, are driving up the need for lithium-ion batteries. Since needle coke is one of the primary materials used in the manufacture of lithium-ion batteries, a rise in the demand for these batteries will accelerate the growth of the needle coke market.
Growing Steel Recycling Demand- There is a rising awareness among people to reduce carbon emissions. Needle coke is an essential component for recycling steel, an increase in the demand for recycling will drive the market growth more than paper, aluminum, plastic, and glass combined, about 69% of all steel is recycled in North America each year.
Increased Technological Advancements – Increasing efforts are being made by companies to attain scientific and technological advances in the production of graphite electrodes. In order to limit the dependence on imported raw materials for needle coke, manufacturers in Russia have increased their research and development expenditure. Also, the Russian government spent 37.6 billion in 2022 on R&D operations. Russian stakeholders can thus be encouraged to raise exports of needle coke.

Challenges

Increasing Prices of Raw Material – Due to the volatility in crude oil prices, there is a very strong impact of price fluctuation on the material necessary for the production of needle coke. The market growth is therefore expected to be hindered by fluctuations in the price of materials and products.
Strict Environmental Regulations
Scarcity of Needle coke Derived from Petroleum

Needle Coke Segmentation

Type (Petroleum-Based, Coal-Based)

Needle coke market from the petroleum-based is anticipated to hold the largest share during the forecast period. The heating value of fuel-grade petroleum is high, which does not generate any ash when burned. The demand for the petroleum-based segment is expected to be boosted due to an increase in steel production for the development of railways, road construction, and automobiles. The expanding use of petroleum-based coke in a variety of end industries is due to its low ash content and low toxicity. These factors are propelling the growth of the petroleum-based segment.

Application (Graphite Electrodes, Lithium-Ion Battery, Special Carbon Material)

The graphite electrodes segment in the needle coke market is estimated to hold a share of 54.8% by 2035 and is poised to grow rapidly during the forecast period. The demand for graphite electrodes is increasing because they are highly used in the production of steel and other non-ferrous metals. Also, it is used in different types of batteries, e.g. electroplating or electrolysis, and welding, which is likely to accelerate the graphite electrode segment growth. Moreover, the consumption of graphite electrodes has increased for conducting high current at low voltage, a requirement for various melting and alloying processes.

Our in-depth analysis of the global needle coke market includes the following segments:

Type	Petroleum-Based Coal-Based
Grade	Intermediate Premium Super Premium
Application	Graphite Electrodes Lithium-Ion Battery Special Carbon Material
End-User	Automotive, Semiconductor Aluminum & Steel

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Needle Coke Industry - Regional Synopsis

APAC Market Forecast

The needle coke market in the Asia Pacific to hold a share of 54% by 2035 and is expected to grow during the forecast period. In the global scenario, China accounted for more than 70 % in terms of consumption and capacity to produce graphite electrodes which means that steel production is now feasible within this country. This further shows that in the forecast period there will be an increasing demand for needle coke. Besides this, China's government is also trying to develop eco-friendly production methods for steel. Among the major producers are Japan, as well as an exporter of petroleum and coal tar-based pitch needle coke. Therefore, countries such as China and Japan are bolstering the needle coke market growth in the region.

North American Market Statistics

North America needle coke market is estimated to grow with a CAGR of 7% over the forecast period owing to the increasing development and production of competent and reasonable electric vehicle battery systems. Currently, approximately 7 % of US adults have an electric or hybrid vehicle and 39% are likely to actively consider the purchase of such a vehicle.

Key Questions Answered in the Report

1) What are the major factors driving the growth of the needle coke market?

Ans: Increasing demand for lithium-ion batteries, growing steel recycling market demand, and increased technological advancements.

2) What would be the CAGR of the needle coke market over the forecast period?

Ans: The market size of needle coke is anticipated to attain a CAGR of 8% over the forecast period, i.e., 2023 â€“ 2035.

3) Who are the major players dominating the needle coke market?

Ans: The major players in the market are Phillips 66 Company, Shandong Yida Rongtong Trading Co., Ltd., Shanxi Hongte Coal Chemical Co. Ltd., Mitsubishi Chemical Holding Corporation, Bao Steel Group, PetroChina International Jinzhou Petrochemical Co., Ltd, Petrocokes Japan Ltd., ENEOS Holdings Inc., GrafTech International Holdings Inc.

4) Which segment captures the largest market size in the application segment in the needle coke market?

Ans: The graphite electrodes segment is anticipated to garner the largest market size by the end of 2035 and display significant growth opportunities.

5) Which region will provide more business opportunities for the growth of the needle coke market in the future?

Ans: The market in the Asia pacific region is projected to hold the largest market share by the end of 2035 and provide more business opportunities in the future.