Synthetic Graphite Market Analysis by Product (Graphite Electrodes, Graphite Anode, and Graphite Block); by Application (Batteries & Energy Devices, Metallurgy, Nuclear, Metal Fabrication, Refractory, Foundry, and Others); and by End-User (Steel, Automotive, Electronics, Aerospace, and Others) – Global Supply & Demand Analysis & Opportunity Outlook 2023-2035
Buy Now Report ID: 2848 | Published Date: Mar 20, 2023
The global synthetic graphite market is estimated to garner a revenue of ~USD 14140 Million by the end of 2035 by growing at a CAGR of ~4% over the forecast period, i.e., 2023 – 2035. Further, the market generated a revenue of ~USD 8830 Million in the year 2022. The growth of the market can be attributed to the higher purity level associated with synthetic graphite which makes it an ideal material to be used in numerous end-use industries and perfect for metallurgical electrodes. For instance, natural graphite purity ranges from around 70.1% to 99.0%, whilst synthetic graphite purity is usually more than 99.0%. Further, worldwide surging demand for electrical vehicles is also estimated to drive the growth of the global synthetic graphite market over the forecast period. In addition to this, the increasing use of synthetic graphite in the production of sports equipment, and pencils is also a major factor that is anticipated to drive market growth in the coming years.
In addition to these, factors that are believed to fuel the market growth of synthetic graphite include the worldwide rise in the demand and adoption of lithium-ion batteries on the back of the surging use of these batteries in EVs. For instance, the worldwide production capacity of lithium-ion batteries was around 765 GWh in 2020, while estimates for 2023 production range from 405 to 1,100 GWh. In addition to this, the expanding use of synthetic graphite electrodes for recycling steel scrap is also projected to spur market growth over the projected time frame. Moreover, synthetic graphite is highly used as a substitute in the manufacturing of calcium carbide which is also a major factor estimated to drive market growth during the forecast period.
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Base Year |
2022 |
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Forecast Year |
2023-2035 |
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CAGR |
~4% |
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Base Year Market Size (2022) |
~ USD 8830 Million |
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Forecast Year Market Size (2035) |
~ USD 14140 Million |
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Regional Scope |
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Growth Drivers
Worldwide Escalating Demand for Electric Vehicles – The demand for electric vehicles is rapidly increasing. People are switching to electric vehicles owing to the advantages of green energy and higher performance. Furthermore, there is a rising need to reduce reliance on imported oil and the exhaustion of fossil fuels. The lithium-ion batteries are gaining more popularity as of the surge in the adoption of electric vehicles. Hence, the upsurge in electric vehicles is projected to spur market growth in the coming years. For instance, the worldwide ratio of on-road electric vehicles surged by more than 10 million in 2021.
Increasing Production of Graphite Electrodes - Graphite electrodes are huge cylindrical structures typically made of petroleum coke, needle coke, and coal bitumen as a binder. Calcination, compounding, kneading, pressing, roasting, graphitization, and machining all techniques are used to make electrodes. The electrical energy from the power source is transferred through graphite electrodes to the steel melt in the EAF solution in the making of steel and other non-ferrous metals. Therefore, the extensive use of these electrodes in steel and metals production is estimated to fuel the market growth during the forecast period. For instance, worldwide production of graphite electrodes surged by around 720,108 metric tons in 2019, and this proportion is estimated to rise to around 799,500 metric tons by 2024.
Rising Demand and Production of Lubricants - A lubricant is a liquid that is used to ease the relative motion of solid structures by reducing wear and friction between surfaces in contact. Synthetic graphite is highly used in the production of lubricants. Since to its distinctive structural properties, graphite can be used in commercial and industrial lubricants. Graphite is made up of different layers that are only loosely adhered together, allowing the layers to easily slip past one another and settle on a contact surface. The growing count of vehicles is fueling the demand for lubricants, and such increased demand is providing a huge market expansion to synthetic graphite. For instance, the net production of lubricants in refineries in the United States reached nearly 167 thousand barrels per day in 2021, a boost of almost 10.8 percent over the previous year.
An Upsurge in the Demand for Consumer Electronic Products – A surge in the demand for numerous consumer electronic products is also estimated to propel the growth of the synthetic graphite market as graphite has been used in the production of long-life rechargeable batteries of the electronic products comprising smartphones, tablets, laptops, and so on. For instance, worldwide shipments of desktops, laptops, and workstations increased by nearly 1% annually in 2021 to approximately 93 million units, up from 91 million in the previous year.
Rising Usage of Graphite in Green Energy Technologies – The adoption of green energy is radically rising throughout the world as of its topmost advantage of net zero emission. Graphite has been utilized in green energy technologies such as wind energy, along with the surge in the installation of solar panels. Hence, this factor is also projected to drive market growth. For instance, in 2021, solar panels were installed on about 65,560 homes in the United Kingdom, an increase of around 72% from 2020. Thus, the total number of homes with solar panel installation has already surpassed around 1.6 million.
Challenges
The global synthetic graphite market is segmented and analyzed for demand and supply by application into batteries & energy devices, metallurgy, nuclear, metal fabrication, refractory, foundry, and others. Out of these segments, the refractory segment is estimated to gain the largest market share of about ~40% in the year 2035. The growth of the segment can be attributed to the dynamically surging industrial development, along with the radical expansion of the steel sector owing to the high rising demand and production of steel and stainless steel products throughout the world. For instance, with approximately 1.4 billion metric tons of estimated demand in 2023, Asia and Oceania are projected to be the leading consumers of finished steel products. Whilst, African steel demand is also predicted to reach around 43 million metric tons in the same year. In addition to this, expanding demand for refractory products from numerous industries including automotive, aerospace, metal manufacturing, building and construction, and so on is estimated to accelerate the segment growth further during the projected time frame.
The global synthetic graphite market is also segmented and analyzed for demand and supply by end-user into steel, automotive, electronics, aerospace, and others. Amongst these five segments, the automotive segment is expected to garner a significant share of around ~50% in the year 2035. The growth of the segment can be credited to the expanding demand and production of vehicles where synthetic graphite is highly used as a material in carbon fiber-reinforced plastics for automobile frames. In addition to this, the rising production of electric vehicle batteries as of the growing traction and demand for electrical vehicles including electric cars, e-bikes, and so on is also estimated to drive the segment growth further in the projected time frame. Based on a report, worldwide approximately 68 million automotive units were sold in the year 2021. On the other hand, the electronics segment is projected to witness a massive CAGR during the forecast period, owing to its being used as an exceptional material for various electronic applications such as electric motors, semiconductors, and the manufacturing of modern-day batteries. Hence, the increasing demand for semiconductors, electric motors along with various electronic products such as smartphones, tablets, and numerous household appliances amongst users worldwide is estimated to spur the segment growth further during the forecast period.
Our in-depth analysis of the global synthetic graphite market includes the following segments:
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By Product |
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By Application |
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By End-User |
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The Asia Pacific synthetic graphite market, amongst the market in all the other regions, is projected to hold the largest market share of about ~45% by the end of 2035. The growth of the market can be attributed majorly to the increasing demand for synthetic graphite for the manufacturing of batteries, and electronics products. For instance, China manufactured almost 80% of all lithium-ion batteries produced globally in 2021. Moreover, expanding demand for semiconductors, graphite electrodes, and carbon fiber-reinforced plastic is also estimated to drive the market growth further throughout the projected time frame in the region. In addition to this, favorable governmental industrial expansion policies, and the expanding residential construction industry, especially in countries such as Japan and China are some of the significant factors anticipated to drive the growth of the synthetic graphite market in the APAC region during the forecast period.
The European synthetic graphite market, amongst the market in all the other regions, is projected to hold the second largest share of about ~25% during the forecast period. The growth of the market can be attributed majorly to the radically increasing demand for batteries, coupled with the significant expansion in the automotive sector in the region. Moreover, surging demand for synthetic graphite in various industries such as the nuclear industry, metallurgy, chemical industry, and so on is another significant factor that is projected to accelerate the market growth during the forecast period in the region.
Further, the market in the Latin American region, amongst the market in all the other regions, is projected to hold a considerable share of about ~15% by the end of 2035. The growth of the market can be attributed majorly to the rising industrial development, coupled with the improvement in the economic condition in the region. Moreover, notable expansion in mining and foundry industries is also projected to spur the growth of the synthetic graphite market in the region over the forecast period.
Shanshan Holdings disclosed additional investments from its four key investors through its wholly-owned subsidiary Shanghai Shanshan Lithium Battery Material Technology Co. Ltd. These four strategic investors include Wending Investment, BYD, Amperex Technology Limited (ATL), and the Kunlun Fund.
GrafTech International Ltd. stated that the interim suspension notice linked to the Company's activities in Monterrey, Mexico, has been canceled conditionally, making it possible to restart operations at the site soon.
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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.
Author Credits: Smruti Ranjan, Rajrani Baghel
Ans: Worldwide escalating demand for electric vehicles, increasing production of graphite electrodes, and rising usage of graphite in green energy technologies are the major factors driving the market growth.
Ans: The market is anticipated to attain a CAGR of ~4% over the forecast period, i.e., 2023 – 2035.
Ans: High cost of production of graphite, and stringent regulations for manufacturing synthetic graphite are estimated to be the growth hindering factors for the market expansion.
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.
Ans: The major players in the market are SGL CARBON SE, AMG Advanced Metallurgical Group N.V., XRD Graphite Manufacturing Co., Ltd., Asbury Carbons Inc., Graphite India Limited, Mason Graphite Inc., GrafTech International Ltd., and others.
Ans: The company profiles are selected based on the revenues generated from segments, 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 product, application, end-user, and by region.
Ans: The refractory segment is anticipated to garner the largest market size by the end of 2035 and display significant growth opportunities.
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