PUBLISHER: Fortune Business Insights Pvt. Ltd. | PRODUCT CODE: 1884033
PUBLISHER: Fortune Business Insights Pvt. Ltd. | PRODUCT CODE: 1884033
The global needle coke market is experiencing strong growth due to rising steel production, rapid industrialization, and the accelerating demand for electric vehicles. According to the latest industry report, the global needle coke market was valued at USD 5.65 billion in 2024, is projected to reach USD 6.00 billion in 2025, and is expected to climb to USD 9.39 billion by 2032. This expansion reflects a healthy CAGR of 6.62% during 2025-2032, supported by structural changes in steel manufacturing and surging lithium-ion battery demand. The Asia Pacific region dominated the global market with a 53.98% share in 2024, making it the world's largest revenue contributor.
Market Insights and Key Growth Drivers
Needle coke plays a vital role in electric arc furnace (EAF) steelmaking, especially in the production of graphite electrodes, which are essential in the steel recycling process. As steel remains the most widely used material across automotive, construction, and industrial sectors, the demand for needle coke continues to rise. The shift toward EAF-based steel production, known for its lower emissions and energy efficiency, has accelerated consumption in 2024 and 2025.
Government initiatives are further reinforcing market expansion. In April 2025, the Government of India announced a steel production target of 300 million tons by 2030, up from 179 MT in 2024, which is expected to significantly increase demand for graphite electrodes and needle coke. Alongside India, China remains a dominant player, driven by large-scale steel output and rapid EV adoption.
Market Dynamics
Drivers
The expanding steel industry and growing need for graphite electrodes represent the core demand drivers. EAF-based steelmaking is gaining global traction due to environmental regulations, especially in Asia, Europe, and North America. Additionally, needle coke's role in lithium-ion battery anodes is becoming increasingly important as EVs and renewable energy storage systems expand. According to the International Energy Agency, global EV battery demand is expected to grow 4.5 times by 2030 and up to 12 times by 2035, creating substantial growth opportunities for needle coke manufacturers.
Restraints
High production costs, limited petroleum-based feedstock availability, and rising environmental regulations pose notable challenges. Needle coke production is energy-intensive, contributing to high carbon emissions, which increases compliance costs. Price volatility in raw materials and geopolitical uncertainties further complicate supply chain stability.
Opportunities
Rising lithium-ion battery consumption, green energy initiatives, and expanding urban infrastructure projects across Asia Pacific and Africa present long-term opportunities. Technological advancements in synthetic needle coke production may also reduce environmental impact and enhance product performance, strengthening demand across the forecast period.
Challenges
Trade restrictions and geopolitical instability-particularly U.S.-China tariff conflicts-continue to affect supply flows and pricing. Tariffs on petroleum coke imports have increased costs for Chinese manufacturers, leading to disruptions in global supply chains and adding uncertainty to market conditions.
Segmental Analysis
By Type
The oil-based needle coke segment dominated the market in 2024 and is expected to maintain leadership through 2032 due to its superior conductivity and suitability for UHP graphite electrodes used in EAF steelmaking. Meanwhile, coal-based synthetic needle coke is gaining momentum in the lithium-ion battery sector for its high purity and structural consistency.
By Application
The graphite electrodes segment accounted for the largest market share in 2024, driven by global growth in steel production. The lithium-ion battery segment is poised for significant expansion through 2032 as EV adoption accelerates worldwide.
Asia Pacific, valued at USD 3.05 billion in 2024, remains the most dominant regional market due to large-scale steel manufacturing in China, India, Japan, and South Korea. North America and Europe also show steady growth supported by technological advancements and rising EV penetration. Latin America and the Middle East & Africa are emerging markets driven by infrastructure development and expanding industrial capacities.
Competitive Landscape
Key players include GrafTech International Ltd., Mitsubishi Chemical Corporation, Phillips 66, Graphite India Ltd., Sumitomo Corporation, Indian Oil Corporation, CNPC, and POSCO Chemical. These companies focus on capacity expansion, partnerships, and vertical integration to strengthen competitive positions.
Segmentation By Type
By Application
By Region