Global Needle Coke Market Size USD 7.52 Billion By 2030 | CAGR of 6.83%

Introduction

The global market for needle coke was valued at USD 4.15 billion in 2021, and it is anticipated to reach USD 7.52 billion by 2030 at a CAGR of 6.83%.

Needle coke is the primary raw material used in the steel and aluminium industries' arc furnaces to create graphite electrodes. Needle coke is a speciality-grade carbon raw material made from low-sulfur vacuum leftovers, petroleum fluidized catalytic cracking (FCC) decant oil, solvent-refined coal, coal tar pitch, or ethylene tar pitch. It's a unique coke with exceptional structural qualities, high-temperature resistance, high electrical resistance, oxidizability, and thermal expansion coefficient (CTE). The cost of raw materials for producing graphite electrodes is estimated by needle coke to be over 40%.

Acicular cocaine is another name for needle cocaine. It refers to a very crystalline form of petroleum coke that is used to make electrodes for the steel and aluminium industries. Since electrodes must be replaced frequently, needle coke is valued.

Market Dynamics

Increased Use of Electric Vehicles Will Increase Needle Coke Consumption in Batteries

Demand for lithium-ion (Li-ion) batteries is rising as the market for electric and hybrid vehicles expands. A quick transition to more environmentally friendly fuels and energy sources is anticipated to follow the rapid adoption of hybrid-electric vehicles due to the implementation of measures to reduce carbon emissions by various regulatory bodies, such as the U.S. Environmental Protection Agency (EPA). It will fuel market revenue growth. On December 8, the United States signed an executive order requiring the federal government to purchase 100% zero-emission light-duty vehicles by 2027 and 100% zero-emission heavy-duty vehicles by 2035. Similarly, the Indian government announced plans to increase the use of electric vehicles (EVs) on October 8, 2021. By 2030, it aims to have 30% of private cars, 80% of two- and three-wheelers, and 70% of commercial vehicles be EVs.

The growing demand for graphite electrodes is driving the market growth.

The market is anticipated to expand as a result of rising demand for graphite electrodes and the expansion of trade in the commodity, which will be followed by rising demand for needle coke among the steel and aluminium manufacturing industries, supported by the surge in demand for steel and aluminium. Global crude steel production climbed from 189 million tons in 1950 to 1878 million tons in 2020, according to data provided by the World Steel Association. Along with this, it is anticipated that there will be a wealth of prospects for market expansion in the upcoming years due to the growing emphasis on sustainable steel manufacturing and the spike in demand for recycled steel scraps.

Growth opportunities for the global needle coke market

Strategic Collaborations and Investments in Research and Development

Rapid technological improvements will alter the corporate environment, which will drive the expansion of the needle coke market. R&D activities will increase, which would also slow the market's expansion.

The sector's growth rate will also be accelerated by an increase in strategic alliances and the emergence of new markets.

Regional analysis of the global needle coke market

The market is broken down into Asia-Pacific, Europe, North America, Latin America & the Middle East & Africa.

Asia-Pacific dominated the market in 2021. The region's growing automotive and steel industries have raised the demand for aluminium vehicle components and parts. Due to its durability, ductility, strength, and resilience, steel is widely utilized in building and construction. The Asia Pacific is growing output to meet rising demand. China's high needle coke consumption might boost the market.

Rapid economic expansion, industrialization, and urbanization have boosted China's steel production. High investments in infrastructure, machinery, and building should boost market expansion. Steel industry graphite electrode is made from needle coke. The Asia Pacific consumes approximately 50% of the world's semiconductors due to its electronics centre and developing automotive sector. These variables will drive needle coke market revenue throughout the projected year.

North America's market was healthy in 2021 due to the rise of several end-use industries. In building and construction, electric vehicles, steel, and metals should boost market revenue. The hunt for consistent quality, high purity needle cokes may widen the scope of viable precursors in keeping with the move towards cleaner fuel technology. These factors will boost North America's needle coke market revenue growth throughout the forecast period.

Key Highlights

• The global market for needle coke was valued at USD 4.15 billion in 2021, and it is anticipated to reach USD 7.52 billion by 2030 at a CAGR of 6.83%.
• The global market for needle coke is divided into five parts based on product type, grades, application, end-use and region. Further, the market is divided into two types based on the type of product: coal-based and petroleum-based. In 2021, the petroleum-based segment made up a higher portion of the total sales.
• According to grades, the market is broken down into premium, intermediate, and super-premium. In 2021, the super-premium grade segment accounted for the most revenue share.
• The market is segmented on applications: silicon metal and ferroalloys, rubber compounds, lithium-ion anode, graphite electrodes, carbon black, and others. In 2021, the graphite electrodes category accounted for the industry's most significant revenue share.
• The market is broken down into semiconductors, aerospace & defence, aluminium and steel industry, automotive, and others according to end-use. In 2021, the semiconductors segment owned the most significant proportion of the market.
• The market is broken down into Asia-Pacific, Europe, North America, Latin America & the Middle East & Africa. The Asia-Pacific segment accounted for the largest market share in 2021.

Competitive Players

1. Phillips 66 Company
2. ENEOS Holdings Inc.
3. GrafTech International Ltd.
4. Tokai Carbon Co. Ltd.
5. Graphite India Limited
6. HEG Limited
7. Asbury Carbons Inc.
8. C-Chem CO. Ltd (Nippon Steel Corporation)
9. Mott Corporation
10. Sojitz Corporation
11. Sumitomo Corporation
12. Mitsubishi Chemical Holdings Corporation

Recent Developments

• February 2024 - The world leader in cutting-edge battery technology, Panasonic Energy (Panasonic Group), announced that it finalized an offtake contract with Australia-based NOVONIX Ltd. for the supply of synthetic graphite used in electric vehicle technology.
• February 2024 - HEG's Executive Director, Manish Gulati, predicted that volume increase will reach 75,000 tonnes in FY25 and roughly 70,000 tonnes this year. Manufacturer HEG of graphite electrodes in Noida anticipates margin pressure to last for the next two to three quarters at the latest. The third quarter of the current fiscal year (Q3FY24) saw the lowest margins for the corporation since March 2021, at 15.6%.

Segmentation

1. By Product Type
   1. Petroleum-Based Needle Coke
   2. Shaft Calciner
   3. Coal-based Needle Coke
   4. Rotary Kiln
2. By Grade
   1. Premium Grade
   2. Intermediate Grade
   3. Super-Premium Grade
3. By Application
   1. Rubber Compounds
   2. Silicon Metal and Ferroalloys
   3. Lithium-ion Anode
   4. Graphite Electrodes
   5. Carbon Black
   6. Others
4. By End-Use
   1. Aerospace & defence
   2. Automotive
   3. Aluminium and steel industry
   4. Semiconductor
   5. Others