Graphite felt refers to the rayon-based material which is considered as an ideal choice for vacuum furnaces that require process temperatures that are above 2000° C. The Chemical, physical and electrical characteristics of graphite felt enable diverse uses. The texture of graphite felt can act as a turbulent promoter to enhance the mass transport.
The global graphite felt market was valued at US$ 256.7 Mn in 2019 and is expected to reach US$ 451.7 Mn by 2026 expanding at a CAGR of 8.4% during the forecast period. Graphite felt refers to the rayon, Polyacrylonitrile (PAN), and pitch-based material which is considered as an ideal choice for vacuum furnaces or process temperatures that are above 2000° C. Chemical, physical and electrical characteristics of graphite felt enable diverse applications such as the furnace, filter, batteries, and others. Graphite felt have applications in vanadium redox flow battery (VRB) that are used to store energy generated from renewable energy sources. VRB is a cost-effective solution for energy storage which is driving the demand for graphite felts globally. The renewable energy sector is growing at a significant rate as the cost of producing renewable energy is reducing owing to growing economies of scale, technological advancement, and a more competitive supply chain. Moreover, wind energy and solar energy are the major consumers of vanadium redox flow batteries, which is propelling market growth. However, competition from alternative refractive materials is a major factor that poses a challenge for the global graphite felt market.
The report provides market estimates both in terms of volume and revenues. In terms of volume, the global graphite market stood at 2,488.7 Tons in 2019 and is expected to reach 4,158.3 Tons by 2026 expanding at a CAGR of 7.6% during the forecast period
The global graphite felt market is segmented on the basis of type as soft felt and rigid felt. The rigid graphite felt segment dominated the market in 2019 and accounted for a market share of 76.8%. The major application of rigid graphite felt in applications such as batteries and furnace is supporting market growth. On the basis of application, the global graphite felt market is segmented as furnace, batteries, filters, and others. The batteries application segment was valued at US$ 71.8 Mn in 2019 and growing at a CAGR of 8.9% during the forecast period. The boost in the renewable energy sector coupled with increasing government initiatives and promotions and rising concerns regarding environmental impact is accelerating the demand for graphite felt in batteries for energy storage in the renewable energy sector.
The refractory segment is the biggest application for the graphite felt market. The vacuum or inert gas furnace are increasingly being used in industrial applications such as power generation, aerospace, steel industry, automotive, and heat treatment industry among others. These furnaces make use of graphite felt for insulation which drives the market demand. The presence of competition from alternative refractive materials is a major factor that possesses a challenge for the global graphite felt market. For instance, carbon felt is a low-cost alternative to graphite felt where chemical purity is not critical.
Based on the region the graphite felt market is segmented as North America, Europe, Asia Pacific, and the Rest of the World. In 2019, Europe dominated the market of global graphite felt and was valued at US$ 89.4 Mn in the same year. The growing renewable energy sector and increased sales of consumer electronics has resulted in the rise in the demand for high-performance batteries which in turn is driving the market growth of graphite felt. Asia Pacific region is witnessing a significant growth rate of 9.4% during the forecast period. Countries such as India, China, and Japan are the major countries contributing to the rise in demand for graphite felt in the Asia Pacific region.
The report also analyses the value chain of graphite and identifies the companies operating in different nodes of the value chain such as raw material providers, distributors, manufacturers, and end-users.
The graphite felt manufacturing companies are practicing business strategies such as joint ventures, new product development, partnerships, geographic expansion, and investments in research and development to stay competitive edge over others. For instance, in July 2020, Mersen Group signed an agreement for the acquisition of assets of Americarb’s insulation business for an amount of approximately US$ 6 Mn. The acquisition will allow Mersen to locate production of insulating felt in the Americas that will strengthen the company’s position in felt insulation solutions markets in the region along with a strong foothold in the semiconductor and energy efficiency market.
Priyanka has been writing chemicals & material market research reports for the last 12 years. A post-graduate, her specialization is in the chemicals sector. Preparing end-to-end reports covering minute details for market insights, competitive intelligence and trend analysis in the CMFE sector.