A Feb. 2, 2015 Persistence Market Research (PMR) news release about the worldwide graphite market found its way into my mailbox (on Mar. 2, 2015). Not being familiar with the business investment end of things or with Persistence Market Research I am cautiously interested in their market projections.
Here’s more from the news release,
According to a new market report published by Persistence Market Research “Global Market Study on Graphite: Battery Segment To Witness Highest Growth by 2020”, the global graphite market was valued at USD 13.62 billion in 2013 and is expected to grow at a CAGR [compound annual growth rate] of 3.7% from 2014 to 2020, to reach USD 17.56 billion in 2020.
Browse the full report with TOC at:
Increasing the use of graphite in the automotive and battery industries is the major factor driving the demand for graphite. Graphite is an important material used in gaskets, clutch materials, motors, exhaust systems, and cylinder heads. In the past, asbestos was the main component of linings and disk brake pads. Graphite, with benefits such as low-noise braking, makes a good replacement for asbestos in brake pads. Moreover, it is an important element in the manufacture of ultra-lightweight carbon-fiber reinforced plastic (CFRP). Traditionally, CFRP was mainly used in the aerospace and Formula One car industries. However, CFRP is now gaining popularity in the passenger car industry due to its lightweight. This, in turn, helps reduce fuel consumption and CO2 emissions.
Asia-Pacific is the largest market for graphite globally. Rise of technologically advanced applications of graphite in pebble-bed nuclear reactors, fuel cells, solar power systems, and automotive and aerospace industries is driving the graphite market in the Asia Pacific region. China and India are the major markets for graphite in the region. Rising demand for steel and other metals has increased the demand for graphite electrodes in Asia Pacific. This, in turn, is driving the growth of the graphite market. China accounts for over 70% share of total graphite production in the world. According to China’s Twelfth Five-Year Plan, the government plans to have around 5.0 million battery-electric vehicles plying on the roads by 2020. This is expected to increase demand for graphite in the Asia Pacific market during the forecast period.
According to a research report, the sale of plug-in electric vehicles in North America is expected to rise at a CAGR of 30.0% from 2012 to 2020. The total sales of tablets in the U.S. market grew from 9.7 million in 2010 to 40.6 million in 2013. This growth in sales is expected to drive demand for lithium-ion batteries. Rising demand for electric vehicles and other electronic devices such as mobiles, tablets, laptops, and cameras offers huge potential for the growth of the lithium-ion battery industry. This, in turn, is further expected to boost demand for graphite in North America. Europe is the second-largest graphite market in the world. Growing use of carbon fiber instead of steel in the automotive and aerospace industries in Europe is leading to increasing demand for graphite. Graphite is considered as a key material for green technology. Due to this fact, it is widely used in many applications for energy storage, photovoltaics, and in various electronic products.
The graphite market is bifurcated on the basis of form (natural graphite and synthetic graphite). Synthetic graphite is further sub-segmented on the basis of form (graphite electrode, carbon fiber, graphite blocks, graphite powder, and others). Graphite market is also segmented on the basis of end-use (electrode, refractory, lubricant, foundry, battery, and others). All the segments provide market size and forecast by volume and by value. The synthetic graphite segment holds the largest share of USD 12.49 billion in the graphite market in 2013 and is expected to reach USD 16.06 billion by 2020 at a CAGR of 3.7% from 2014 to 2020.
In terms of revenue, the global graphite market grew from USD 12.30 billion in 2010 to USD 13.62 billion in 2013 at a CAGR of 3.4%. In terms of volume, the global graphite market grew from 2.19 million tons in 2010 to 2.68 million tons in 2013 at a CAGR of 7.1%. Under regional segment, the Asia Pacific graphite market (the largest market in 2013) increased by 3.8% CAGR during 2010–2013 to reach USD 9.17 billion in 2013.
Request Sample Report of Graphite Market:
I was intrigued to note Canadian businesses included in a list of the major companies in this field,
Some of the major companies operating in the global graphite market are 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. [emphases mine]
The highlighted companies are Canadian and have been mentioned on this blog at least once in relation to graphite and/or graphene. One observation, Lomiko Metals (a British Columbia-based company mentioned here a few times) didn’t make the list.
Getting back to the PMR news release,
Related Published Report:
Global Market Study on Paints and Coatings: Industrial Paints and Coatings to Witness Highest Growth by 2020: http://www.persistencemarketresearch.com/market-research/paints-coatings-market.asp
Graphite Market, by Form
- Natural graphite
- Synthetic graphite
Synthetic Graphite Market, by Form
- Graphite electrode
- Carbon fiber
- Graphite blocks
- Graphite powder
Graphite Market, by End Use
Graphite Market, by Region
- North America
- Asia Pacific
- Rest of the World
Browse PMR Chemicals and Materials Market Research Reports @
Persistence Market Research (PMR) is a U.S.-based full-service market intelligence firm specializing in syndicated research, custom research, and consulting services. PMR boasts market research expertise across the Healthcare, Chemicals and Materials, Technology and Media, Energy and Mining, Food and Beverages, Semiconductor and Electronics, Consumer Goods, and Shipping and Transportation industries. The company draws from its multi-disciplinary capabilities and high pedigree team of analysts to share data that precisely corresponds to clients’ business needs.
Again, I cannot attest to the quality of the analysis but it’s safe to say it’s interesting.
For anyone as ignorant about business and investing terminology as I am, here’s a definition for CAGR (compound annual growth rate) from the Investopedia website,
CAGR isn’t the actual return in reality. It’s an imaginary number that describes the rate at which an investment would have grown if it grew at a steady rate. You can think of CAGR as a way to smooth out the returns.
Don’t worry if this concept is still fuzzy to you – CAGR is one of those terms best defined by example. Suppose you invested $10,000 in a portfolio on Jan 1, 2005. Let’s say by Jan 1, 2006, your portfolio had grown to $13,000, then $14,000 by 2007, and finally ended up at $19,500 by 2008.
Your CAGR would be the ratio of your ending value to beginning value ($19,500 / $10,000 = 1.95) raised to the power of 1/3 (since 1/# of years = 1/3), then subtracting 1 from the resulting number:
1.95 raised to 1/3 power = 1.2493. (This could be written as 1.95^0.3333).1.2493 – 1 = 0.2493Another way of writing 0.2493 is 24.93%. [sic]
Thus, your CAGR for your three-year investment is equal to 24.93%, representing the smoothed annualized gain you earned over your investment time horizon.