Carbon Felt and Graphite Felt Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023-2028)

Key Highlights

• Over the short term, the rising investments in research and development by manufacturers of carbon felt and graphite felt are expected to drive the market.
• On the other hand, the high cost of making carbon felt fiber is likely to slow the growth of the market.
• The Asia-Pacific region was the biggest market in the world, with countries like India and China buying the most.
• In the coming years, rising demand for electric vehicles will create potential market opportunities.

Carbon Felt & Graphite Felt Market Trends

Growing Demand from Heat Insulation Segment

• The carbon and graphite felts are used in high-temperature refractory insulations because of their flexible properties. These felts are primarily used in vacuum and protected atmospheric environments with temperatures reaching approximately C.Carbon and graphite felt are easy to cut and install; they have low densities and thermal masses and low ash and sulfur contents, making them good insulation materials for heat insulation purposes.
• Several industrial activities, like heating fluids, vacuum distillation, or the manufacturing of gases such as ethylene, vinyl chloride monomer, and synthetic gas, have employed process furnaces. Other than these, steel manufacturing is the major industry where a furnace is used.
• Over the past few years, the market for furnaces has experienced lots of changes, primarily driven by energy efficiency and cost reductions. For this purpose, carbon and graphite felts are being applied. The furnaces’ inner chamber is lined with carbon or graphite felt to insulate it, thereby saving a lot of capital expenditure in temperature maintenance and energy efficiency.
• Global steel production has witnessed significant growth in the past decade, especially in countries like China, India, Japan, and the United States. The World Steel Association predicts that by 2023, there will be a 1.0% increase in global steel demand, bringing it to 1,814.7 million tons. In 2022, there will be 1,796.7 million tons of steel demand.
• In 2022, global crude steel production reached 1,878.5 million tons; it declined 4.2% as compared to 2021 production. However, it is expected to offer a positive outlook in the near future.
• So, the market for carbon felt and graphite felt is likely to be led by the heat insulation segment over the next few years.

Asia-Pacific Region to Dominate the Market

• The Asia-Pacific region is expected to dominate the market during the forecast period. Growing demand for batteries and heat insulation in India, China, and Japan, followed by rising semiconductor demand, opened new avenues for the market. Increasing steel production coupled with rising electronic component manufacturing will further drive the carbon felt and graphite felt markets.
• China has one of the largest markets for the semiconductor industry and has registered huge growth over the years. According to Semiconductor Equipment and Materials International, China's spending on semiconductor equipment reached USD 40.82 billion in 2022. The market should be good during the forecast period because there is more demand for semiconductor chips and more money is being spent on manufacturing facilities and equipment.
• According to the India Electronics and Semiconductor Association (IESA), electronics production contributed 3.4% to the economy in 2021 and is expected to contribute more than 6% in the next few years. The Indian electronics industry is increasing due to the expansion of the electronics manufacturing base in the country. During the next few years, these industries are expected to grow even more, which should make the market for carbon and graphite felt bigger.
• Furthermore, PAN-based carbon and graphite felts are used as electrode backings in various battery designs, including vanadium redox flow batteries (VRB). The high conductivity, high purity, and chemical resistance of felts make them ideal for the demanding design criteria of flow battery developers.
• The manufacturing of electronics, batteries, and semiconductors in the Asia-Pacific region is expected to grow at a steady rate over the next few years, thanks to supportive government programs and a large consumer base.

Carbon Felt & Graphite Felt Market Competitor Analysis

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