Needle Coke Market size is forecast to grow by USD 14.89 billion between 2025 and 2037, driven by 8.3% CAGR. The industry size of needle coke in 2025 is predicted to reach USD 8.78 billion.
The market is growing due to rising demand in a variety of industries, including aerospace and defense, steelmaking, and semiconductors. Its numerous characteristics and benefits such as low porosity and heat gain coefficient make it suitable for various industrial uses. Both petroleum-based needle coke and coal-based needle coke can be used to produce graphite electrodes. The advent of the fourth Industrial Revolution is also fueling the demand for the needle coke in the coming years.
Furthermore, rising production of electric vehicles globally will drive the needle coke market revenue. According to data published by the International Energy Agency, 1 in 5 cars sold in 2023 was electric and the number of cars sold reached 14 million. Needle coke, an up-scale carbonaceous material, is utilized in manufacturing electrodes for EDLC (Electric Double-Layer Capacitors) as an auxiliary source of power in electric vehicles. Lithium-ion batteries get higher energy density and charge faster with the use of needle coke.
Growth Drivers
Challenges:
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Base Year |
2024 |
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Forecast Year |
2025-2037 |
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CAGR |
8.2% |
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Base Year Market Size (2024) |
USD 8.23 billion |
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Forecast Year Market Size (2037) |
USD 23.12 billion |
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Regional Scope |
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Type (Petroleum-Based, Coal-Based)
The needle coke market from the petroleum-based is anticipated to hold the largest share during the forecast period. The heating value of fuel-grade petroleum is high, which does not generate any ash while burning. This makes petroleum-based needle coke favorable for the environment, making it preferable over coal-based needle coke. Also, the demand for the petroleum-based segment is expected to increase due to a rise in steel production for the development of railways, road construction, and automobiles.
Application (Graphite Electrodes, Lithium-Ion Battery, Special Carbon Material)
The graphite electrodes segment is estimated to dominate more than 55% needle coke market share by 2037. Graphite electrodes are used in manufacturing steel in electric arc furnaces. For instance, graphite electrodes are the primary raw material for the production of molten glass as they facilitate high-temperature generation. In 2023, the European Union’s glass value chain confirmed collection that the glass collection rate was 80.1% and they are aiming to collect 90% by 2030 for recycling. Also, graphite electrodes hold applications in ceramic manufacturing.
Our in-depth analysis of the global needle coke market includes the following segments:
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Asia Pacific Market Analysis
The needle coke market in the Asia Pacific to hold a share of 54% by 2037. The growth of the market in the region can be attributed to the rising demand for steel from railways and road development. According to the Economic and Social Commission for Asia and the Pacific, the Asian Highway Network consists of over 145,000 kilometers of roads covering 32 countries. The region is developing at a higher rate and a significant amount of needle coke is employed in making lithium-ion batteries for various industrial purposes.
The China needle coke market is expected to flourish significantly due to the rising production of steel in the country. According to the World Steel Association, China is the top steel-producing country in the world and produced 67.4 Mt of steel in 2023. The country is demanding a lot of needle coke as the primary material for electrodes in electric steel furnace that refines and melts the steel scrap.
Additionally, in India, the needle coke market is witnessing substantial growth on the back of rising production of lithium-ion batteries. According to the India Brand Equity Foundation, the lithium-ion battery market in India is projected to thrive at a CAGR of 50% from 20 GWh in 2022 to 220 GWh by 2030. Needle coke is proven to be a valuable commodity to reduce the environmental impact by providing needle coke as raw material.
Japan is also projected to garner remarkable growth in the market due to major advancements in battery technology and growth in the steel sector. According to World Integrated Trade Solution, in 2022, 47,188 kilograms of graphite electrodes were exported by Korea to Japan.
North American Market Statistics
North America needle coke market is estimated to grow at a lucrative CAGR through 2037, owing to the rising production of electric vehicles. Also, the region is witnessing development in production of hydrocarbon. In U.S. there is rising demand for the electric vehicles due to their environment friendliness. For instance, according to Argonne National Laboratory, in 2024, over 6.1 million plug-ins in electric vehicles sold in the country. On the back of this, the market in the region is expected to garner remarkable share.
The competitive landscape of the needle coke market is rapidly evolving as established key players, automotive giants and new entrants are investing in steel production and battery technology. Key players in the market are focused on developing new technologies and products catering to the stringent regulatory norms and consumer demand. These key players are adopting several strategies such as mergers and acquisitions, joint ventures, partnerships, and novel product launches to enhance their product base and strengthen their market position. Here are some key players operating in the global market:
Author Credits: Dhruv Bhatia
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