PUBLISHER: Stratistics Market Research Consulting | PRODUCT CODE: 1617215
PUBLISHER: Stratistics Market Research Consulting | PRODUCT CODE: 1617215
According to Stratistics MRC, the Global Carbon and Graphite Felt Market is accounted for $585.29 million in 2024 and is expected to reach $1106.63 million by 2030 growing at a CAGR of 11.2% during the forecast period. Carbon and graphite felt are advanced materials widely used in high-temperature insulation and energy storage applications. These materials are generally made from pitch fibers, rayon, or polyacrylonitrile (PAN), which are processed to create felts that are strong, lightweight, and thermally stable. Carbon felt is mainly used in vacuum and inert gas furnaces as a thermal insulator, whereas graphite felt is used in energy-intensive industries like fuel cells and batteries because of its superior conductivity and resistance to chemicals.
Increase in the use of renewable energy
Graphite and carbon felts play a key role in renewable energy technologies, especially in flow batteries, which store energy on a large scale. Because of their superior electrochemical activity, conductivity, and stability, these felts are used as electrodes. Governments and organizations are investing in grid storage solutions to handle energy fluctuations as the use of renewable energy expands globally. For effective electron transfer, redox flow batteries, like vanadium flow batteries, depend on carbon and graphite felts. Additionally, these materials are more in demand in energy systems as a result of the global transition to net-zero emissions.
Expensive production costs
Complex procedures are used to produce carbon and graphite felts, such as high-temperature treatment and the use of specialized raw materials like petroleum pitch and precursors for polyacrylonitrile (PAN). A major factor in the high cost of production is the price of these raw materials and the manufacturing procedures. Furthermore, these materials affordability and scalability in some applications may be constrained by their high production costs, especially in price-sensitive industries like consumer electronics and the automotive sector.
Growth in energy storage technologies and electric vehicles (EVs)
The need for sophisticated energy storage solutions is increasing as a result of the quick uptake of electric vehicles (EVs). Graphite and carbon felts, which provide excellent conductivity and stability, are essential parts of EV batteries. The demand for materials like graphite felts, which are utilized in battery electrodes and thermal management systems, has directly increased in tandem with the growth in EVs. Moreover, the growing popularity of stationary energy storage systems in residences and commercial buildings is increasing demand for these materials and providing manufacturers with plenty of room to grow their output.
Competition from other substances
The market for carbon and graphite felt is seriously threatened by the increasing creation and use of substitute materials that can perform comparable tasks. For instance, similar qualities like high heat resistance and lightweight features are provided by metals, ceramic fibers, and polymer composites, among other high-performance materials. The market share of carbon and graphite felts may be threatened by these materials, which may provide similar or better qualities at cheaper prices. Furthermore, the growing use of composite materials in the construction and automotive industries is broadening the range of competition and decreasing the demand for goods based on graphite.
The market for carbon and graphite felt was greatly affected by the COVID-19 pandemic, which caused supply chain interruptions as well as a brief drop in demand. Factory closures and a lack of workers hindered production in the early stages of the pandemic, especially in nations like China, a major producer of graphite materials. This caused delays in the production and delivery of graphite felts, which had an impact on the energy storage, automotive, and aerospace sectors. Moreover, the pandemic's economic uncertainty resulted in lower investments in high-tech sectors, which further slowed demand. The need for cutting-edge materials like carbon and graphite felts, however, steadily increased as industries adjusted and the recovery got underway.
The Soft Felt segment is expected to be the largest during the forecast period
The Soft Felt segment is expected to hold the largest share in the Carbon and Graphite Felt Market. Favored for its adaptability, superior thermal insulation qualities, and capacity to tolerate high temperatures, this segment is crucial for applications in the automotive, aerospace, and energy storage sectors. Soft felt is frequently used for batteries, fuel cells, and thermal insulation in a variety of industrial processes, among other applications that call for flexible and long-lasting materials. Additionally, the growing need for energy-efficient technologies, especially in industries like electric vehicles and renewable energy, is driving the demand for soft graphite felt.
The Polyacrylonitrile (PAN) segment is expected to have the highest CAGR during the forecast period
Over the course of the forecast period, the Polyacrylonitrile (PAN) segment is anticipated to have the highest CAGR. Because of their exceptional mechanical qualities and thermal stability, PAN-based carbon fibers are frequently used to produce carbon and graphite felts, which are perfect for high-performance applications like energy storage systems, automobiles, and airplanes. Furthermore, the need for PAN-based graphite felts is being further fuelled by the quick expansion of sectors like advanced manufacturing, renewable energy, and electric vehicles, which place a premium on high-performance, lightweight, and energy-efficient materials.
In the carbon and graphite felt market, the Asia-Pacific (APAC) region is expected to hold the largest share due to the growing automotive industry, rapid industrialization, and rising demand for energy-efficient technologies in nations like South Korea, Japan, and China. APAC is a major center for manufacturing and innovation in industries like energy, electronics, and aerospace, all of which need high-performance materials like graphite and carbon felts for insulation and thermal control. Moreover, graphite-based energy storage solutions are a key component of renewable energy projects and the increasing use of electric vehicles (EVs), both of which contribute to the region's dominance.
In the carbon and graphite felt market, the Middle East and Africa (MEA) region is anticipated to have the highest CAGR. In particular, solar and wind energy projects, which need cutting-edge materials like graphite felts for thermal insulation and energy storage, are the main drivers of this growth. The demand for high-performance materials that promote energy efficiency and heat management is also being fueled by the expanding automotive industry, particularly in electric vehicles (EVs). Additionally, the region's growing industrial base and transition to sustainable energy sources are major factors in the rapid growth rate predicted for the upcoming years.
Key players in the market
Some of the key players in Carbon and Graphite Felt market include Nippon Carbon Co., Ltd., Beijing Great Wall Co., Ltd. , SGL Group, Morgan Advanced Material Plc, CFC Carbon Co, Allied Metallurgy Resources LLC., Kureha Corporation, CM Carbon Co., Ltd, Toray Industries, Inc, Olmec Advance Materials Ltd., Chemshine Carbon Co., Ltd., Anssen Metallurgy Group Co., Ltd., Nanoshell LLC, Texpack S.r.l. and Sinotek Materials Co. Ltd.
In May 2024, Morgan Advanced Materials and Penn State University have signed a new five-year Memorandum of Understanding, to further enhance their partnership. The agreement is focused on research and development in silicon carbide (SiC) crystal growth, for the wide band gap semiconductors fast growing sector.
In April 2024, Toray Industries Inc. and Hyundai Motor Group have signed an agreement for strategic cooperation to develop advanced materials for vehicle lightweighting and certain components of electric cars. CFPR parts are particularly highlighted for their importance in engines and electric batteries.
In December 2023, Nippon Steel Corporation announced that they have entered into a definitive agreement pursuant to which NSC will acquire U. S. Steel in an all-cash transaction at $55.00 per share, representing an equity value of approximately $14.1 billion plus the assumption of debt, for a total enterprise value of $14.9 billion.