Market Trends of Graphene Industry
Electronics and Telecommunication Segment to Dominate the Market
- Graphene and its derivatives are extensively used in the electronics and telecommunications industry. This sector harnesses graphene for a myriad of applications, such as unbreakable touchscreens, transistors, enhanced lithium-ion batteries, optical electronics, printed electronics, and conductive inks.
- Graphene has several useful properties, including high mechanical strength, electron mobility, and superior thermal conductivity.
- The electronics industry stands as one of the largest and fastest-growing sectors globally. In the digital age, electronic devices play a pivotal role. The demand for these gadgets is set to surge, solidifying their status as a key economic driver globally. As per the data from the Japan Electronics and Information Technology Industries Association (JEITA), the global electronics and IT sectors are poised for 9% growth in 2024, rebounding from a projected 3% decline in 2023.
- Asia-Pacific dominates global electronics production, accounting for over 70%. Countries like Japan, China, and India play pivotal roles in manufacturing diverse electronic components and supplying them to industries worldwide.
- As reported by the Japan Electronics and Information Technology Industries Association (JEITA), Japan's electronics industry boasted a production value of approximately JPY 10.7 trillion (~USD 0.074 trillion) in 2023. This industry spans consumer electronics, industrial electronic equipment, and various electronic components. Notably, JEITA highlighted a production growth of over 1% in discrete semiconductors by Japanese manufacturers in 2023 than 2022.
- Germany boasts the largest electronics industry in Europe and ranks as the world's fifth-largest market, as reported by the Germany Electrical and Electronics Association (ZVEI). The electronics sector in Germany contributes 10% to the country's industrial output and accounts for 3% of its GDP. Furthermore, it employs roughly 14% of the industry's total workforce. Notably, Germany allocates about 24% of its total R&D expenditure to the electronics and microtechnology sectors, which encompass semiconductor fabrication.
- In the United States, swift technological advancements and robust R&D activities are propelling the demand for cutting-edge electronic products. The industry is witnessing continuous and significant progress. According to the Consumer Technology Association, retail revenue from consumer electronics and technology sales in the United States reached an impressive USD 485 billion in 2023.
- Given these dynamics, the demand for electronics and telecommunications is poised to rise in the coming years, subsequently boosting the demand for graphene.
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Asia Pacific to Dominate the Market
- Asia-Pacific leads the graphene market, driven by swift industrialization and a surge in graphene-based application patents. As a result, graphene oxide is set for significant growth.
- China, boasting one of the world's largest electronics production bases, poses a formidable challenge to upstream producers in South Korea, Singapore, and Taiwan. In the consumer electronics segment, products like smartphones, OLED TVs, and tablets are witnessing the highest demand growth.
- As per data from China's National Bureau of Statistics, in April 2023, retail sales for household appliances and consumer electronics reached nearly CNY 61 billion (USD 8.52 billion).
- Furthermore, China's prowess in the global aerospace arena is evident, with strengths in aircraft manufacturing and a booming domestic air travel sector. The nation's aircraft parts and assembly industry is expanding swiftly with the presence of over 200 small parts manufacturers.
- According to the International Trade Administration (ITA), China is the second-largest civil aerospace market globally. As of January 2024, the National Bureau of Statistics of China and the Civil Aviation Administration of China reported 7,351 civil aircraft, an increase of over 550 airplanes from 2022.
- India, as reported by the International Air Transport Association (IATA) in May 2023, is on track to become the world's third-largest aviation industry by 2030, with a projected demand for 2,100 aircraft over the next two decades, translating to sales exceeding USD 290 billion.
- China's influence extends to the global medical devices market, bolstered by government policies fostering domestic innovation. Notable players in the country include Mindray Medical, Intco Medical, Lepu Medical, Zhejiang Orient Gene, and Shinva. Projections indicate China could capture 25% of the global medical device industry revenue by 2030.
- Given these trends, Asia-Pacific is poised to maintain its dominance in the graphene market during the forecast period.
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