The global graphite market was valued at $15.06 billion in 2014 and it is expected to grow at a CAGR of 4.0% during the period 2015 – 2020. Based on form, the synthetic graphite segment hold the larger share, with $13.64 billion value, of the total market in 2014; and it is expected to reach $17.14 billion in 2020, at a CAGR of 3.9% for the period 2015-2020. By geography, the Asia-Pacific graphite market (largest market in 2014) increased by 4% CAGR during 2011-2014 to reach $10.19 billion in 2014 in terms of value. Based on application, the electrode industry holds the largest share of overall market in 2014. Some of the major drivers behind the growing demand for graphite electrode in the Asia-Pacific market include increasing demand for steel.
In recent years, the demand for lithium-ion battery has increased significantly due to the increasing use of electronic gadgets such as cameras, laptops, mobile phones, and tablets globally. Additionally, increase in electric vehicles ownership is anticipated to propel the lithium-ion market. This, in turn is anticipated to propel the demand for graphite.
Some of the major drivers behind the growth of the graphite market include increasing use of graphite in batteries, growing demand of graphite in steel industry, and increasing use of graphite in automotive industry. High demand of graphite in battery industry is anticipated to propel the global graphite market. Tesla Motors, Inc. has announced plans to construct a new $5 billion lithium-ion battery factory (gigafactory at Nevada, U.S.). Due to this, the demand for natural graphite is anticipated to increase by a by 2020. Commercial acceptance of graphene is anticipated to provide further opportunities for the graphite market in near future. Graphene is expected to play an important role in near future by creating a positive impact on various industries such as power generation, conductor, battery, and electronics industries.
The major restraint associated with the global graphite market is increasing demand-supply gap. The increasing use of graphite in automotive, steel, and photovoltaic (PV) industries may create a huge gap in the demand and supply balance in near future. In 2013, the China PV industry witnessed rapid development. Due to this, the global supply and demand gap for the isostatic form of graphite broadened to 1,500 tons.
The key companies operating in the global graphite market include Triton Minerals Ltd., Lamboo Resources Limited, Mason Graphite, Focus Graphite Inc., Energizer Resources Inc., Northern Graphite Corporation, Alabama Graphite Corp., Flinders Resources Ltd., Syrah Resources Limited, SGL Carbon SE, GrafTech International Holdings Inc, Graphite India Limited, Nippon Graphite Industries Co. Ltd., Asbury Graphite Mills Inc, Showa Denko K.K., and Tokai Carbon Co. Ltd.
News Courtesy: P&S Market Research