Graphite Electrode Market Size, Share, Industry, Forecast and outlook (2023-2030)

Global Graphite Electrode Market is segmented By Type (Regular Power (RP), High Power (HP), Ultra-High Power (UHP)), By Application (Electric Arc Furnace (EAF), Ladle Furnace (LF)), and By Region (North America, Latin America, Europe, Asia Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2023 - 2030

Graphite Electrode Market Overview

The Global Graphite Electrode Market reached USD 8.1 billion in 2022 and is expected to reach USD 13.0 billion by 2030 growing with a CAGR of 6.2% during the forecast period 2023-2030. The demand for steel is a primary driver for graphite electrodes, as they are an essential component of EAFs used in steelmaking. Growing industrialization, urbanization and infrastructure development in emerging economies have fueled the demand for steel and subsequently graphite electrodes.

China is a major exporter of graphite electrodes to various regions worldwide. Chinese graphite electrodes are competitively priced, making them attractive to steel manufacturers globally. For example, in 2019, China accounted for a significant share of the graphite electrode exports to the U.S. and Europe. Its export dominance has played a crucial role in meeting the global demand for graphite electrodes and fueling the growth of the market. Therefore, China was accounting for more than half of the regional share in 2022.

Graphite Electrode Market Scope

To know more Insights  Download Sample 

Graphite Electrode Market Dynamics

Shift Towards Electric Arc Furnaces

EAFs have gained popularity as an alternative to traditional blast furnaces due to their energy efficiency, flexibility and lower environmental impact. EAFs are particularly suitable for producing specialty steels and recycling scrap metal. As a result, the adoption of EAFs has increased significantly worldwide. This growth in EAF steel production has directly fueled the demand for graphite electrodes, as these electrodes are crucial for the steelmaking process in EAFs. 

For example, India has been focusing on enhancing its steel production capacity and has set an ambitious target to reach 300 million tons by 2030. To achieve this goal, the country is actively adopting EAF technology and as a result, the demand for graphite electrodes in India has increased substantially.

Growing Demand for Materials to Enhance the Battery Performance

The graphite electrode market is driven by the demand for graphite in various applications, with one of the significant applications being lithium-ion batteries. Lithium-ion batteries are widely used in electric vehicles (EVs), portable electronics and renewable energy storage systems. Therefore, any advancement or improvement in lithium-ion battery technology can have a significant impact on the graphite electrode market.

In this context, by substituting 15% of graphite with Ionisil in a water-based CMC/SBR binder system, the resulting electrodes exhibit a stable capacity of 740 mAh/g, which is more than three times the capacity of a pure graphite anode. This increased capacity is a significant improvement in lithium-ion battery performance, as it allows for longer battery life and greater energy storage capabilities. Therefore, above stated development drives the growth of the global graphite electrode market. 

Volatility in Raw Material Prices

Volatility in raw material prices can have a significant impact on the growth of the global graphite electrode market. Graphite electrodes are primarily made from petroleum needle coke, which is a form of carbon material. The prices of needle coke and other raw materials used in graphite electrode production, such as coal tar pitch, can fluctuate based on various factors including supply and demand dynamics, geopolitical events, changes in government regulations and global economic conditions.

Fluctuations in raw material prices can lead to significant cost pressures for graphite electrode manufacturers. If the prices of needle coke and other key raw materials increase abruptly, it can result in higher production costs. This, in turn, may lead to reduced profit margins for manufacturers. To compensate for the increased costs, manufacturers might raise the prices of graphite electrodes, making them less competitive in the market.

Graphite Electrode Market Segment Analysis

The global graphite electrode market is segmented based on type, application and region.

Owing to their Superior and High-Quality Characteristics, the Ultra-High Power (UHP) segment Dominates the Global Graphite Electrode Market

The Ultra-High Power (UHP) segment currently dominates the global graphite electrode market. UHP graphite electrodes are known for their superior performance and high-quality characteristics, making them highly desirable in various industries. UHP electrodes possess excellent thermal conductivity, high resistance to oxidation and thermal shock and low electrical resistance. These features make them ideal for demanding applications, particularly in electric arc furnaces (EAFs) used for steel production. Hence, the ultra-high power (UHP) type segment holds the largest global segmental share and is expected to dominate during the forecast period.

Source: DataM Intelligence Analysis (2023)

Graphite Electrode Market Geographical Penetration

North America's Natural Graphite Reserves and Established Manufacturing Infrastructure 

Natural graphite reserves and established manufacturing infrastructure also play significant roles in supplementing the growth of the graphite electrode market specifically in North America. North America is rich in natural graphite reserves, with notable deposits found in Canada and the U.S. The availability of these reserves ensures a local and reliable source of raw materials for graphite electrode production. It reduces dependence on imports and minimizes the risk of supply disruptions. Access to abundant natural graphite reserves in North America contributes to the competitiveness of the region's graphite electrode manufacturers, as they can secure a stable supply of raw materials at competitive prices. 

This availability supports the growth of the graphite electrode market by providing a consistent and sustainable resource base. Therefore, North America is expected to hold the largest market share in the global graphite electrode market during the forecast period.

Source: DataM Intelligence Analysis (2023)

Graphite Electrode Companies 

The major global players include GrafTech International, Graphite India Limited, Nippon Carbon Co., Ltd, TOKAI CARBON, HEG LIMITED, Kaifeng Carbon Co., Ltd, JILIN CARBON, SHOWA DENKO K.K., SANGRAF International and Misano Group.

COVID-19 Impact on Graphite Electrode Market

COVID Impact

The pandemic led to disruptions across various industries, including steel, aluminum and electric vehicles, which are major consumers of graphite electrodes. Lockdown measures, production shutdowns, and reduced economic activity resulted in a decline in demand for these industries. As a result, graphite electrode experienced a decrease in demand during the initial stages of the pandemic. However, as the global economy gradually recovered, demand started to rebound, particularly in industries related to infrastructure development and renewable energy. 

AI Impact

Artificial intelligence (AI) has had a significant impact on various industries worldwide, including the graphite electrodes market. AI technologies, such as machine learning algorithms, can analyze vast amounts of historical data, market trends and other relevant factors to forecast the demand for graphite electrodes accurately. This enables companies to optimize their production levels, inventory management and pricing strategies. 

AI-powered systems can enhance production processes by analyzing real-time data from sensors and production lines. This helps in identifying patterns, optimizing operating parameters, minimizing downtime and improving overall efficiency in graphite electrode manufacturing. 

Russia-Ukraine War Impact

Both Russia and Ukraine have graphite electrode manufacturing facilities. A war or conflict could disrupt the production and supply of graphite electrodes from these countries. This could result in supply shortages, affecting the availability of graphite electrodes in the global market. 

Graphite electrode production requires raw materials such as needle coke. Disruptions in the supply chain due to a conflict could affect the availability of these raw materials, further impacting the production of graphite electrodes globally.

Key Developments

• On April 18, 2023, the inauguration of a new sales office in Dubai, United Arab Emirates, was announced by GrafTech International Ltd., a major producer of high-quality graphite electrode components used for the production of electric arc furnace steel.
• On October 26, 2022, Volt Resources, a producer of graphite listed on the ASX and 24M entered into a collaborative development agreement. The collaboration will concentrate on nonspherical and coated spheronized pure graphite materials to improve lithium-ion battery performance.
• On June 24, 2019, A123 Systems LLC, a developer and producer of innovative lithium-ion batteries and systems and Ionic Materials, a manufacturer of new materials, announced their significant strides in the development of solid-state batteries. The next-generation NMC/graphite lithium-ion chemistry from A123 and an advanced ionically conductive polymer from Ionic Materials have been combined to create a battery with a high energy density that is exceedingly safe and doesn't utilize flammable liquid electrolyte.

Why Purchase the Report?

• To visualize the global graphite electrode market segmentation based on type, application and region, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development. 
• Excel data sheet with numerous data points of graphite electrode market level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as Excel consisting of key products of all the major players.

The global graphite electrode market report would provide approximately 53 tables, 47 figures and 189 Pages.

Target Audience 2023

• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies