Needle Coke Market 2024 – Market Size & Segments Analysis, Industry Trends, Manufacturers Analysis, Opportunities and Forecast 2030

The global Needle Coke market was valued at USD 2.3 billion in 2022, and a CAGR of 10.1% is expected during the forecast period. It is used in the production of electrodes. There is an increasing demand for high-quality petroleum coke, used primarily in the production of graphite electrodes, which are widely used in the electrolysis of various salt solutions. Graphite electrodes are widely used in lithium-ion batteries. Factors influencing the needle coke market include steel production trends, demand for electric vehicles, and advancements in battery technologies.

Increasing demand for electric vehicles and steel production is driving the demand in the needle coke market significantly. With the growing infrastructural development and urbanization, these are the key factors behind the significant growth in the market. Ongoing research and development efforts are leading to the development of more efficient and high-performance graphite electrodes.

Impact of Covid-19

COVID-19 has had a negative impact on the market. Unavailability of raw materials, supply chain disruptions, stringent lockdown, and social distancing are the factors driving significant growth in the market. Many steel production industries were temporarily shut down during COVID-19. This led to a decreased demand for needle coke, as it is an essential component in steel manufacturing. The pandemic led to fluctuations in energy demand and consumption patterns. There were some industries that noticed a slowdown in energy demand, while others felt an increase due to changes in work-from-home arrangements, travel restrictions, and shifts in economic activities. These changes influenced the demand for needle coke. The uncertainty surrounding the duration and severity of the pandemic, coupled with fluctuating market conditions, led to volatility in commodity prices, including needle coke. It affected investment decisions and market dynamics.

Growth Drivers

Increasing demand for needle coke in the production of steel is driving the demand for needle coke in the in the market significantly. Needle coke is used in the production of graphite. The global transition towards electric vehicles to reduce greenhouse gas emissions is driving market growth. It is a crucial component in the production of lithium-ion batteries, which are used in electric vehicles.

Continuous innovations in manufacturing processes and materials led to the development of more efficient and high-performance graphite electrodes. Beyond electric vehicles, it is also used in energy storage solutions. As the world transitions towards renewable energy sources, the need for needle coke is increasing significantly. It is also used in the manufacturing of synthetic graphite, which is extensively used in the production of smartphones and consumer electronics.

Stricter environmental regulations and initiatives aimed at reducing carbon emissions are driving the adoption of electric vehicles and renewable energy solutions. Continuous innovations in manufacturing processes and materials are driving growth in the market significantly. Increasing awareness among people about the need to reduce greenhouse gases is driving the growth of the market significantly. Petroleum derived needle coke is the leading segment in the market.

Segmentation

Component

·         Petroleum Derived

·         Coal-Tar Pitch Derived

Grade

·         Intermediate

·         Premium

·         Super-Premium

Application

·         Graphite Electrode

·         Special Carbon Material

·         Lithium Ion Battery

Regional Outlook

·         Asia Pacific

·         North America

·         Latin America

·         Europe

·         Middle East and Africa

Needle Coke Market Type Segmentation

On the basis of type, the needle coke market is segmented into petroleum-derived and coal-tar-pitch-derived needle coke. Petroleum-derived needle coke is the leading segment and is expected to dominate the market during the forecast period. It is typically produced in specialized refineries through the delayed coking process. It involves heating heavy residual oil feedstocks to a high temperature in the absence of air, causing the molecules to decompose and form a needle-like carbon structure. It is known for its high purity and exceptional properties, including low electrical resistance, high thermal conductivity, and high mechanical strength.

 Needle Coke Market Application Segmentation

On the basis of the application, the needle coke market is segmented into graphite electrodes, special carbon materials, and lithium-ion batteries. The graphite electrode is the leading segment and is expected to dominate during the forecast period. Increasing demand for graphite for manufacturing steel is driving growth in the needle coke market. The unique properties of needle coke, such as high purity, low electrical resistance, and high crystallinity, make it particularly suitable for producing synthetic graphite with the required performance characteristics for lithium-ion batteries.

As demand for higher energy density and improved performance in lithium-ion batteries continues to grow, research and development efforts are going on to optimize the use of needle coke and other materials in battery manufacturing processes to meet these evolving requirements. The quality of the graphite anode material, influenced by the properties of needle coke used in its production, does impact the performance and efficiency of lithium-ion batteries.

Regional Outlook

On the basis of the regions, the needle coke market is segmented into 5 parts: Asia Pacific, North America, Latin America, the Middle East and Africa, and Europe. Asia Pacific is the leading region due to the high demand for needle coke for the production of graphite and its usage in electric vehicles, which is highly demanding due to the reduction of greenhouse gas emissions. Increasing demand for needle coke is used in the manufacturing of nuclear graphite used in the production of nuclear furnaces.

North America is one of the leading segments in the Needle Coke Market due to the increasing awareness of people about reducing the greenhouse gas effect on the environment. Continuous innovations in manufacturing processes are driving growth in the market. The United States of America is the hub for steel manufacturing, and needle coke is essential for the production of graphite electrodes used in electric arc furnace steel making.

The region is witnessing the gradual adoption of electric vehicles, driven by government incentives, environmental concerns, and technological advancements. North America is also investing in renewable energy sources such as wind and solar power. North America is home to several companies at the forefront of technological innovations.

Key Players

·         BAOSTEEL GROUP

·         PETROLEUM COKE INDUSTRY

·         ESSAR OIL LIMITED

·         Graftech International Ltd.

·         Phillips 66

·         Mott Corporation

·         Reliance Industries Limited

·         Mitsubishi Chemical Corporation

·         Indian Oil Corporation Ltd

·         Nippon Steel Corporation

·         ASBURY CARBONS INC

·         Other Players