GRAPHITE MARKET ANALYSIS

Graphite Market Size and Trends

The global graphite market is estimated to be valued at USD 18.93 billion in 2025 and is expected to reach USD 29.83 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 6.7% from 2025 to 2032.

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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.