Graphene Market – Analysis and Opportunity Assessment up to 2023
Graphenea S.A., Applied Graphene Materials plc, and XG Sciences, Inc., held a leading share of 26.7% in the global graphene market in 2014, states Transparency Market Research in a new report. The market is fragmented with the presence of a large number of players defining its vendor landscape. Companies are investing significantly in research and development of graphene. Keeping in line with this trend, Graphenea S.A. recently invested in a plant in CIC nanoGUNE nanotechnology research center in San Sebastian to boost its technological capacity.
“Companies are likely to opt for mergers and acquisitions to alter their market shares, increase their brand presence, and add to their product portfolios” says a lead analyst at TMR. Since graphene is a fairly new product, with its discovery dating back to 2004, manufacturers have a huge scope of entering the business to make lucrative business in the near future.
“Though the discovery of graphene is just about 10 years old, its usage has been phenomenal. Known for its characteristics such as being light-weight and strong, graphene is considered to tougher than a diamond as well,” says TMR analyst. These properties have made graphene popular among electronics companies that are using it for manufacturing smartphones. The demand for this wonder material is also expected to pick up as electronics, automotive, telecom, and aerospace and defense industries flourish.
Increasing investments in research and development of graphene are also likely to boost the market in the near future. For instance, the European Commission announced a whopping investment of US$1.3 bn in research and development of graphene that will be used for the next 10 years. Furthermore usage of graphene in manufacturing various automotive parts to make vehicles lighter and fuel-efficient is also likely to augment this market.
High Research and Development Costs Act as Major Barriers
The biggest restraint in the global graphene market is the high cost of manufacturing. To begin with, development of graphene requires extensive research and development and vendors are still trying to devise cost-efficient technologies. Thus, the related and the actual cost of manufacturing is restraining the growth of this market. This factor is also dissuading end-user industries from using graphene to make their products as it raises the eventual output cost. As of 2015, the market price of graphene stood at US$100 per gram, which is an exorbitant cost to bear for manufacturers.
The increasingly wide usage, application, and adoption of graphene showing this market a new ray of hope. Known to have excellent thermal conductivity, low optical absorption, and high electron mobility, graphene is being considered an important material for manufacturing electrical components that make low noise and have high power bandwidth.
The research report states that the opportunity in the graphene market is likely to be worth US$159.2 mn by 2023 as compared to US$12.2 mn in 2014. During the forecast period of 2015-2023, the global graphene market is anticipated to surge at a CAGR of 33.5%. The leading region in this market will be North America, which held a share of 40.2% in 2014. Furthermore, the key end-user contributor in the global graphene market will be the electronics segment that will grab a share of 34.7% by the end of the forecast period.