The global graphite market is estimated to be valued at USD 17.74 billion in 2024 and is expected to reach USD 27.57 billion by 2031, exhibiting a compound annual growth rate (CAGR) of 6.5% from 2024 to 2031.
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Factors such as increasing use of graphite in lithium-ion batteries due to rapid growth of electric vehicles and expansion of the renewable energy industry are driving the demand. Rising applications of graphite in refractories, lubricants, friction products, and other industrial applications has also contributed to the growth of the market. However, volatility in the prices of graphite might hamper the market growth during the forecast period.
Market Driver - Growth in steel industry
The global steel industry has been expanding rapidly over the past few years which has fueled the demand for graphite globally. Steel production requires graphite in the production process as well as for the coating of steel parts. Graphite is used as a refractory material and coating agent in steel plants. It has high thermal conductivity which allows uniform heat transfer during critical steps like smelting of iron ore and continuous casting of steel slabs. This ensures consistent quality and minimizes wastage from uneven heating.
Rising investment in infrastructure development across major developing economies has increased the consumption of steel significantly. Countries like China, India, Brazil, and various African nations have poured billions of dollars towards expanding roads, rail networks, power projects, ports etc. This infrastructure push demands huge amounts of steel for construction of bridges, high rises, manufacturing plants. According to the World Steel Association, global crude steel output witnessed a growth of over 5% in 2019 led by China whose steel production alone accounts for over 50% of total global supply.
While steel demand may fluctuate in short term due to economic cycles, the long-term outlook for the industry and correlated graphite consumption appears positive considering the developmental priorities of global emerging markets and governmental support for infrastructure led economic growth. Overall, the pace of steel industry expansion especially in developing parts of world bodes well for consistent requirement of graphite from this downstream market.
Market Driver - Development of aluminum-graphite composites
Research on developing advanced composite materials has opened new applications for graphite in the aluminum and aerospace domains. Aluminum-graphite composites exhibit properties that surpass pure aluminum such as higher strength, stiffness, fatigue resistance, and thermal shock resistance. They also provide weight savings compared to steel and cast iron and are gaining utility in the transportation and defense segments.
In the automobile space, automobile manufacturers are increasingly utilizing aluminum-graphite composites to produce lightweight body panels, driveshafts, wheels, and suspension parts. The material allows significant weight reduction which, in turn, enhances fuel economy and performance metrics. Leading carmakers like BMW and Mercedes have ramped up their composite usage to meet rigorous emission standards. As aluminum becomes more widely used in powertrains and safety structures, this will augment demand for graphite-based composites from automotive OEMs and their assemblers.
Another major adopter is the aviation business where low weight is a top design prerequisite to achieve maximum fuel efficiency. Aluminum airframes along with composites that strengthen internal structures are indispensable for modern commercial and military aircrafts. Graphite's crack-resistant properties make it an suitable reinforce in plane wings, fuselages, and engine nacelles. Spacecrafts equally leverage the lightweight yet robust nature of graphite composites for their vehicles, missiles, and satellites.
Even general industrial sectors have leveraged the cost-benefit of aluminum-graphite composites. Piping, heat exchanger equipment, and valves in the oil & gas industry make extensive consumption. Renewable energy parts like wind turbine blades take advantage of the excellent corrosion resistance and conductivity.
Graphite Market Report Snapshots
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