In the dynamic and evolving global market, the carbon felt and graphite felt industry is poised to experience significant growth. These materials, which play pivotal roles in diverse end-user industries like iron and steel, batteries, electronics, and semiconductors, are highly sought after for their unique characteristics. Particularly, their utilisation as superior heat insulation in high-temperature environments has sparked high demand - a trend that promises to drive the industry's growth trajectory.
Despite some initial challenges, the market has rebounded and now presents a compelling investment opportunity. Rising demand in the growing sectors of batteries and semiconductors, coupled with increased investments made in research and development by manufacturers, contribute to a favourable market outlook. Equally significant is the increasing demand for electric vehicles, which opens up yet more potential growth opportunities for the industry. In essence, the carbon felt and graphite felt market is delivering a spectrum of opportunities that ambitious businesses cannot afford to miss.
The COVID-19 pandemic negatively affected the industry. The carbon felt and graphite felt market also witnessed its repercussions in terms of both production and demand from the end-user industries, such as iron and steel, batteries, electronics, semiconductors, etc. However, after the COVID-19 pandemic, increased demand from batteries and semiconductors helped revive the market.
- Over the short term, the rising investments in research and development by manufacturers of carbon felt and graphite felt are expected to drive the market.
- On the other hand, the high cost of making carbon felt fiber is likely to slow the growth of the market.
- The Asia-Pacific region was the biggest market in the world, with countries like India and China buying the most.
- In the coming years, rising demand for electric vehicles will create potential market opportunities.
Carbon Felt & Graphite Felt Market Trends
Growing Demand from Heat Insulation Segment
- The carbon and graphite felts are used in high-temperature refractory insulations because of their flexible properties. These felts are primarily used in vacuum and protected atmospheric environments with temperatures reaching approximately C.Carbon and graphite felt are easy to cut and install; they have low densities and thermal masses and low ash and sulfur contents, making them good insulation materials for heat insulation purposes.
- Several industrial activities, like heating fluids, vacuum distillation, or the manufacturing of gases such as ethylene, vinyl chloride monomer, and synthetic gas, have employed process furnaces. Other than these, steel manufacturing is the major industry where a furnace is used.
- Over the past few years, the market for furnaces has experienced lots of changes, primarily driven by energy efficiency and cost reductions. For this purpose, carbon and graphite felts are being applied. The furnaces’ inner chamber is lined with carbon or graphite felt to insulate it, thereby saving a lot of capital expenditure in temperature maintenance and energy efficiency.
- Global steel production has witnessed significant growth in the past decade, especially in countries like China, India, Japan, and the United States. The World Steel Association predicts that by 2023, there will be a 1.0% increase in global steel demand, bringing it to 1,814.7 million tons. In 2022, there will be 1,796.7 million tons of steel demand.
- In 2022, global crude steel production reached 1,878.5 million tons; it declined 4.2% as compared to 2021 production. However, it is expected to offer a positive outlook in the near future.
- So, the market for carbon felt and graphite felt is likely to be led by the heat insulation segment over the next few years.
Asia-Pacific Region to Dominate the Market
- The Asia-Pacific region is expected to dominate the market during the forecast period. Growing demand for batteries and heat insulation in India, China, and Japan, followed by rising semiconductor demand, opened new avenues for the market. Increasing steel production coupled with rising electronic component manufacturing will further drive the carbon felt and graphite felt markets.
- China has one of the largest markets for the semiconductor industry and has registered huge growth over the years. According to Semiconductor Equipment and Materials International, China's spending on semiconductor equipment reached USD 40.82 billion in 2022. The market should be good during the forecast period because there is more demand for semiconductor chips and more money is being spent on manufacturing facilities and equipment.
- According to the India Electronics and Semiconductor Association (IESA), electronics production contributed 3.4% to the economy in 2021 and is expected to contribute more than 6% in the next few years. The Indian electronics industry is increasing due to the expansion of the electronics manufacturing base in the country. During the next few years, these industries are expected to grow even more, which should make the market for carbon and graphite felt bigger.
- Furthermore, PAN-based carbon and graphite felts are used as electrode backings in various battery designs, including vanadium redox flow batteries (VRB). The high conductivity, high purity, and chemical resistance of felts make them ideal for the demanding design criteria of flow battery developers.
- The manufacturing of electronics, batteries, and semiconductors in the Asia-Pacific region is expected to grow at a steady rate over the next few years, thanks to supportive government programs and a large consumer base.
Carbon Felt & Graphite Felt Market Competitor AnalysisThe carbon felt and graphite felt market is fragmented by nature. The major players in this market include SGL Carbon, TORAY INDUSTRIES, INC., Kureha Corporation, Nippon Carbon Co., Ltd., and Beijing Great Wall Co., Ltd.
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Table of Contents1 INTRODUCTION
1.1 Study Assumptions
1.2 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET DYNAMICS
4.1.1 Improved Performance of Carbon Fiber in High Temperature Applications
4.1.2 The Rising Investments in Research and Development by Manufacturers in Carbon Felt and Graphite Felt
4.2.1 High Cost Associated With Carbon Felt Manufacturing
4.3 Industry Value Chain Analysis
4.4 Porter's Five Forces Analysis
4.4.1 Bargaining Power of Suppliers
4.4.2 Bargaining Power of Buyers
4.4.3 Threat of New Entrants
4.4.4 Threat of Substitute Products and Services
4.4.5 Degree of Competition
5 MARKET SEGMENTATION (Market Size in Value)
5.1 Raw Material Type
5.1.1 Polyacrylonitrile (PAN)
5.1.3 Other Raw Material Types
5.2.1 Carbon Felt
5.2.2 Graphite Felt
5.3.1 Heat Insulation
5.3.4 Absorptive Materials
5.3.5 Other Applications
126.96.36.199 South Korea
188.8.131.52 Rest of Asia-Pacific
5.4.2 North America
184.108.40.206 United States
220.127.116.11 United Kingdom
18.104.22.168 Rest of Europe
5.4.4 South America
22.214.171.124 Rest of South America
5.4.5 Middle-East and Africa
126.96.36.199 Saudi Arabia
188.8.131.52 South Africa
184.108.40.206 Rest of Middle-East and Africa
6 COMPETITIVE LANDSCAPE
6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Market Share(%)**/Ranking Analysis
6.3 Strategies Adopted by Leading Players
6.4 Company Profiles
6.4.1 Advanced Graphite Materials LLC
6.4.2 Beijing Great Wall Co. Ltd.
6.4.4 CeTech Co. Ltd
6.4.5 CFCCARBON CO,. LTD.
6.4.6 CGT Carbon GmbH
6.4.7 Chemshine Carbon Co. Ltd.
6.4.8 Fiber Materials Inc.
6.4.9 Gansu Hao's Carbon Fiber Co. Ltd.
6.4.10 KUREHA CORPORATION
6.4.11 Morgan Advanced Materials plc
6.4.12 Nippon Carbon Co Ltd.
6.4.13 SGL Carbon
6.4.14 Sinotek Materials Co. Ltd.
6.4.15 TORAY INDUSTRIES, INC.
7 MARKET OPPORTUNITIES AND FUTURE TRENDS
7.1 The Rising Demand for the Electric Vehicles
A selection of companies mentioned in this report includes:
- Advanced Graphite Materials LLC
- Beijing Great Wall Co.,Ltd.
- CeTech Co. Ltd
- CFCCARBON CO,. LTD.
- CGT Carbon GmbH
- Chemshine Carbon Co.,Ltd.
- Fiber Materials Inc.
- Gansu Hao's Carbon Fiber Co., Ltd.
- KUREHA CORPORATION
- Morgan Advanced Materials plc
- Nippon Carbon Co Ltd.
- SGL Carbon
- Sinotek Materials Co., Ltd.
- TORAY INDUSTRIES, INC.