
Study Period | 2019 - 2030 |
Base Year For Estimation | 2024 |
Forecast Data Period | 2025 - 2030 |
CAGR | 6.00 % |
Fastest Growing Market | Asia-Pacific |
Largest Market | Asia-Pacific |
Market Concentration | High |
Major Players![]() *Disclaimer: Major Players sorted in no particular order |
Graphite Felt Market Analysis
The Graphite Felt Market is expected to register a CAGR of less than 6% during the forecast period.
The graphite felt industry is experiencing significant transformation driven by the global push towards energy efficiency and sustainable manufacturing practices. Industrial furnaces and high-temperature applications remain core markets, with manufacturers increasingly focusing on developing advanced industrial thermal insulation solutions that can withstand extreme temperatures while minimizing energy losses. The International Energy Agency estimates potential energy savings of 3.7 exajoules annually by 2030 through the adoption of energy-efficient equipment, highlighting the significant opportunity for graphite felt applications in industrial processes.
The energy storage sector has emerged as a pivotal growth driver for graphite felt manufacturers, particularly in flow battery applications. The material's unique properties, including high conductivity, chemical stability, and temperature resistance, make it ideal for use in vanadium redox flow batteries (VRFBs). According to industry projections, the United States alone is expected to expand its energy storage deployment from 523 MW to 7.3 GW by 2025, representing substantial growth potential for graphite materials in battery applications.
The semiconductor industry continues to drive innovation in industrial graphite applications, particularly in high-temperature processing and insulation requirements. The material's role in semiconductor manufacturing has become increasingly critical as chip manufacturers push the boundaries of processing capabilities and energy efficiency. The industry's economic impact remains substantial, with the semiconductor sector contributing significantly to global industrial output and technological advancement.
Global manufacturing trends are reshaping the graphite felt supply chain, with increasing emphasis on supply security and localization of production capabilities. Manufacturers are diversifying their raw material sources and production facilities to ensure stable supply chains, while simultaneously investing in research and development to improve product performance and sustainability. The industry is witnessing a shift towards more sustainable manufacturing processes and materials, with increasing focus on recyclability and environmental impact reduction in response to stringent environmental regulations and customer demands. The integration of thermal management materials and carbon composite technologies is becoming increasingly prevalent to meet these demands.
Graphite Felt Market Trends
Increasing Demand from Industrial Applications and Energy Efficiency
The growing emphasis on energy efficiency across industrial applications has become a significant driver for the graphite felt market, particularly in high-temperature manufacturing processes. Graphite felt's exceptional properties as a soft, flexible high-temperature refractory insulation material make it an ideal thermal insulator, capable of operating in vacuum and protected atmosphere environments at temperatures up to 3,000°C. These characteristics are particularly valuable in furnace insulation, where the material's low thermal conductivity, chemical inertness, and high thermal stability contribute to significant energy savings and improved operational efficiency. The material's versatility is demonstrated by its widespread adoption across multiple industries, including crude steel production, aluminum manufacturing, petrochemical processing, and ceramic manufacturing.
The continuous pursuit of yield performance optimization in industrial processes has led to operations at increasingly extreme temperatures, creating sustained demand for high-performance insulating materials like graphite felt. This trend is particularly evident in the global steel industry, where production reached 1,950.5 million tons in 2021, marking a 3.7% increase from the previous year. Graphite felt's role in furnace applications is crucial, serving as a thermal insulator in vacuum furnaces and inert gas furnaces that are permanently installed to provide heat through intermediary fluid movement. The material's ability to maintain its structural integrity and insulating properties at extreme temperatures, while simultaneously reducing energy consumption, makes it an increasingly essential component in modern industrial operations focused on energy efficiency and sustainable manufacturing practices. Additionally, the use of technical felt in industrial heat treatment processes further underscores its importance in achieving operational efficiency.
Growing Industrialization in the Asia-Pacific Region
The rapid industrialization of the Asia-Pacific region has emerged as a major driver for the graphite felt market, with China leading the region's industrial expansion. China's remarkable industrial growth is evidenced by its value-added industrial output increase of 9.6% year-on-year in 2021, demonstrating the region's robust manufacturing sector development. The country's dominance in the graphite industry, controlling 64% of global graphite production and 80% of the world's cobalt refining industry, has created a strong foundation for the graphite felt market. This industrial strength is further reinforced by China's significant presence in the electronics sector, with the industry projected to maintain strong growth momentum and create sustained demand for high-temperature graphite insulation materials.
The industrialization trend extends beyond China, with other Asian countries making significant investments in industrial infrastructure. South Korea's petrochemical industry exemplifies this regional growth, with major investments such as the joint venture between GS Energy and Lotte Chemical to construct a USD 677 million petrochemical plant by 2023. The electronics manufacturing sector across the region has also shown remarkable growth, with China's electronics industry alone valued at USD 2,430 million in 2020 and semiconductor sales reaching USD 182.93 billion in 2021. These developments, coupled with the increasing focus on advanced manufacturing capabilities and industrial automation, continue to drive the demand for high-performance materials like graphite felt, which are essential for maintaining operational efficiency in high-temperature industrial processes. The integration of carbon insulation and industrial felt into these processes highlights the ongoing advancements in industrial technology.
Segment Analysis: Raw Material Type
Polyacrylonitrile (PAN) Segment in Graphite Felt Market
The Polyacrylonitrile (PAN) segment dominates the global graphite felt market, commanding approximately 52% of the total market share in 2024. PAN-based carbon felt has emerged as the preferred choice due to its versatility and superior performance characteristics, including larger, coarser fibers resulting in lower surface area and better oxidation resistance. The material offers excellent flexibility while maintaining stiffness and delivers great performance at a competitive price point. In the Asia-Pacific region, particularly China, PAN-based graphite felts account for about 80% of total production, highlighting its widespread adoption. The segment's growth is driven by its extensive applications in high-temperature insulation in vacuum furnaces and inert gas furnaces, heat shields, sinks, cathodes in flow battery applications, and various electrochemical processes.

Remaining Segments in Raw Material Type
The Rayon and Petroleum Pitch segments complete the raw material landscape in the carbon fiber felt market. Rayon-based graphite felts are particularly favored in Europe and the United States, offering advantages such as lower ash content, superior thermal conductivity, and enhanced energy efficiency compared to PAN-based alternatives. These felts are especially suitable for vacuum furnaces operating at temperatures above 2000°C due to their low shrinkage and minimal gas evolution properties. Meanwhile, Petroleum Pitch-based graphite felts, predominantly manufactured in countries like Japan, offer unique benefits including higher stiffness and thermal conductivity, making them ideal for satellite structures and thermal management systems. These materials can be easily customized for specific applications and demonstrate superior electrochemical purity with higher ionic intercalation capabilities.
Segment Analysis: Application
Heat Insulation Segment in Graphite Felt Market
Heat insulation applications dominate the graphite felt market, commanding approximately 88% of the total market share in 2024. This segment's prominence is primarily driven by its extensive use in vacuum and protective atmosphere furnaces, where graphite felts serve as crucial thermal insulation materials. The material's exceptional properties, including low thermal conductivity, flexibility, and ability to withstand temperatures up to 3,000°C, make it indispensable for high-temperature industrial applications. The segment's dominance is further strengthened by its widespread adoption in single-crystal furnaces, drying furnaces, annealing furnaces, oxidation furnaces, growth furnaces, ingot furnaces, diffusion furnaces, deposition furnaces, carbonization furnaces, quartz furnaces, vacuum furnaces, induction furnaces, heat treatment furnaces, sintering furnaces, and welding furnaces.
Batteries Segment in Graphite Felt Market
The batteries segment is emerging as the fastest-growing application area in the carbon felt market, with a projected growth rate of approximately 6.2% during 2024-2029. This accelerated growth is primarily attributed to the increasing adoption of vanadium redox flow batteries (VRB) and other energy storage solutions. The segment's expansion is driven by the rising demand for renewable energy storage solutions, where graphite felts serve as essential electrode materials. The material's high conductivity, high purity, and superior chemical resistance make it particularly suitable for battery applications. The growth is further supported by global initiatives promoting clean energy adoption and the increasing focus on grid-scale energy storage solutions, where graphite felt-based batteries offer advantages such as longer lifecycle, better reliability, and improved performance characteristics.
Remaining Segments in Application Segmentation
The semiconductors and other applications segments complete the graphite felt market landscape, each serving specific industrial needs. The semiconductor segment utilizes graphite felt in various processes during the production of semiconductors, LEDs, and solar industry components, benefiting from the material's high purity and thermal management capabilities. The other applications segment encompasses diverse uses such as glass blowing pads, plumber pads, automotive exhaust linings, and backing strips for soldering and welding. These segments, while smaller in market share, play crucial roles in their respective industries by leveraging graphite felt's unique combination of thermal, chemical, and physical properties. Additionally, the use of carbon composite materials in these applications enhances their performance and durability.
Graphite Felt Market Geography Segment Analysis
Graphite Felt Market in Asia-Pacific
The Asia-Pacific region represents a dominant force in the global graphite felt market, driven by rapid industrialization and technological advancement. Countries like China, India, Japan, and South Korea are key contributors to market growth, with significant investments in high-temperature industrial applications and energy storage solutions. The region's manufacturing sector, particularly in semiconductors, batteries, and thermal insulation applications, continues to expand, creating substantial demand for graphite materials. The presence of major manufacturers and ongoing industrial developments across these nations has established Asia-Pacific as a crucial hub for industrial graphite production and consumption.

Graphite Felt Market in China
China stands as the largest market for graphite felt in the Asia-Pacific region, commanding approximately 61% of the regional market share. The country's dominance is supported by its robust manufacturing sector, particularly in steel production, chemical processing, and semiconductor manufacturing. China's leadership in the electric vehicle battery market and significant investments in renewable energy storage solutions have further strengthened its position. The country's focus on energy efficiency and industrial upgrades, coupled with its vast industrial base, continues to drive substantial demand for carbon felt across various applications.
Growth Prospects in China
China also leads the region in terms of growth potential, with a projected growth rate of approximately 7% from 2024-2029. The country's aggressive push towards renewable energy storage solutions, particularly in flow batteries, is creating new opportunities for graphite felt applications. China's ongoing investments in semiconductor manufacturing, coupled with its expanding high-temperature industrial processes, are expected to fuel this growth. The government's focus on energy efficiency and environmental protection measures is further accelerating the adoption of advanced insulation materials like graphite felt across various industries.
Graphite Felt Market in North America
North America represents a significant market for graphite felt, characterized by advanced industrial applications and technological innovation. The United States, Canada, and Mexico form the key markets in this region, with strong demand driven by the chemical processing industry, semiconductor manufacturing, and energy storage applications. The region's focus on renewable energy solutions and industrial efficiency has created sustained demand for graphite felt products. The presence of major manufacturers and ongoing research and development activities further strengthens the market landscape in North America.
Graphite Felt Market in United States
The United States dominates the North American graphite felt market, holding approximately 83% of the regional market share. The country's leadership position is supported by its advanced manufacturing sector, particularly in aerospace, semiconductor production, and energy storage applications. The presence of major chemical manufacturing companies and ongoing investments in industrial infrastructure contribute to the steady demand for graphite felt products. The country's focus on energy efficiency and technological advancement continues to drive market growth across various applications.
Growth Prospects in United States
The United States leads the region's growth trajectory with a projected growth rate of approximately 6% from 2024-2029. The country's increasing focus on renewable energy storage solutions and advanced manufacturing processes is driving this growth. Significant investments in semiconductor manufacturing and the expansion of high-temperature industrial applications are creating new opportunities for graphite felt usage. The government's support for clean energy initiatives and industrial modernization is expected to further boost market growth in the coming years.
Graphite Felt Market in Europe
Europe maintains a strong position in the global graphite felt market, with a sophisticated industrial base and stringent energy efficiency requirements. The region encompasses key markets including Germany, the United Kingdom, France, and Italy, each contributing significantly to the overall market dynamics. The European market is characterized by its focus on high-quality applications in the automotive, chemical processing, and renewable energy sectors. The region's commitment to environmental sustainability and industrial efficiency continues to drive innovation in graphite materials applications.
Graphite Felt Market in Germany
Germany emerges as the largest market for graphite felt in Europe, driven by its robust industrial sector and technological advancement. The country's leadership in automotive manufacturing, chemical processing, and renewable energy applications has established it as a key consumer of graphite felt products. Germany's strong focus on energy efficiency and industrial modernization continues to create sustained demand for high-quality insulation materials and advanced battery technologies.
Growth Prospects in Germany
Germany leads the European market in terms of growth potential, supported by its ongoing industrial transformation and commitment to renewable energy solutions. The country's investments in energy storage technologies, particularly in flow batteries, are creating new opportunities for graphite felt applications. The expansion of high-temperature industrial processes and the growing focus on sustainable manufacturing practices are expected to drive continued market growth.
Graphite Felt Market in South America
The South American graphite felt market is characterized by growing industrial applications and an increasing focus on energy efficiency. Brazil and Argentina represent the key markets in this region, with applications primarily in steel production, chemical processing, and thermal insulation. Brazil emerges as both the largest and fastest-growing market in the region, driven by its expanding industrial base and investments in energy-efficient technologies. The region's ongoing industrial development and increasing adoption of advanced manufacturing processes continue to create opportunities for graphite felt applications.
Graphite Felt Market in Middle East and Africa
The Middle East and Africa region presents an emerging market for graphite felt, with growing applications in industrial processing and energy efficiency solutions. Saudi Arabia and South Africa represent the key markets in this region, with applications spanning across petrochemical processing, metal production, and thermal insulation. Saudi Arabia stands as the largest market in the region, while also showing the fastest growth potential, supported by its extensive petrochemical industry and ongoing industrial diversification efforts. The region's focus on industrial development and energy efficiency continues to drive the adoption of advanced insulation materials like graphite felt.
Graphite Felt Industry Overview
Top Companies in Graphite Felt Market
The global graphite felt market is characterized by the strong presence of established players like SGL Carbon, Morgan Advanced Materials, Nippon Carbon Co., and Mersen Graphite, leading the industry through continuous innovation and strategic developments. Companies are focusing on developing advanced graphite materials with enhanced thermal and electrical properties while simultaneously expanding their manufacturing capabilities across key regions. The industry witnesses ongoing investments in research and development to improve product performance for applications in batteries, semiconductors, and high-temperature insulation. Market leaders are strengthening their positions through backward integration of raw material production, particularly in carbon fiber manufacturing, while also establishing strategic partnerships across the value chain. Additionally, companies are expanding their distribution networks and technical service capabilities to better serve diverse end-user industries across global markets.
Consolidated Market with Strong Regional Players
The carbon felt market exhibits a partially consolidated structure with a mix of global conglomerates and specialized manufacturers competing for market share. Leading players maintain their dominance through vertically integrated operations, established brand value, and extensive distribution networks, while regional players focus on serving specific geographic markets with customized solutions. The competitive landscape is particularly intense in Europe and China, where medium-sized players are working to penetrate the market with high-quality products at competitive prices.
The market demonstrates active merger and acquisition activity as companies seek to strengthen their market positions and expand their technological capabilities. Notable transactions include Mersen's acquisition of Americarb's felt insulation business and CGT Carbon's partial acquisition of Thermic Edge Coatings, indicating a trend toward strategic consolidation. Global players are increasingly establishing joint ventures and partnerships to enhance their regional presence and access new market segments, while also investing in manufacturing facilities across key growth markets.
Innovation and Customer Focus Drive Success
Success in the industrial graphite market increasingly depends on companies' ability to develop innovative products while maintaining cost competitiveness through operational efficiency. Market leaders are focusing on building distinctive capabilities in materials science, application engineering, and customer-focused solutions to maintain their competitive edge. Companies are investing in lean production techniques, implementing advanced customer relationship management systems, and optimizing their procurement processes to improve operational performance and reduce costs.
For new entrants and smaller players, the path to success lies in developing specialized products for specific applications or regional markets while building strong technical expertise and customer relationships. The market presents opportunities for companies that can offer innovative solutions for emerging applications in clean energy and advanced manufacturing, though high capital requirements and established player dominance pose significant entry barriers. The increasing focus on sustainable products and clean energy applications, particularly in batteries and semiconductor manufacturing, is creating new opportunities for market participants, while regulatory requirements for energy efficiency in industrial applications continue to drive demand for high-performance insulation solutions.
Graphite Felt Market Leaders
-
Morgan Advanced Materials
-
Nippon Carbon Co. Ltd
-
MERSEN GRAPHITE
-
Schunk Carbon Technology
-
SGL Carbon
- *Disclaimer: Major Players sorted in no particular order

Graphite Felt Market News
- In 2021, CGT Carbon GmbH partially acquired the company Thermic Edge Coatings Ltd. and laid the foundation of Thermic Edge Europe GmbH as a joint venture.
Graphite Felt Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Assumptions
- 1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
-
4.1 Drivers
- 4.1.1 Increasing Demand from Industrial Applications and Energy Efficiency
- 4.1.2 Growing Industrialization in the Asia-Pacific Region
-
4.2 Restraints
- 4.2.1 High Cost Associated With Carbon Felt Manufacturing
- 4.2.2 Other Restraints
- 4.3 Industry Value-Chain Analysis
-
4.4 Porter's Five Forces Analysis
- 4.4.1 Bargaining Power of Suppliers
- 4.4.2 Bargaining Power of Consumers
- 4.4.3 Threat of New Entrants
- 4.4.4 Threat of Substitute Products
- 4.4.5 Degree of Competition
5. MARKET SEGMENTATION
-
5.1 Raw Material Type
- 5.1.1 Polyacrylonitrile (PAN)
- 5.1.2 Rayon
- 5.1.3 Petroleum Pitch
-
5.2 Application
- 5.2.1 Heat Insulation
- 5.2.2 Batteries
- 5.2.3 Semiconductors
- 5.2.4 Other Applications (absorptive materials, automotive exhaust linings)
-
5.3 Geography
- 5.3.1 Asia-Pacific
- 5.3.1.1 China
- 5.3.1.2 India
- 5.3.1.3 Japan
- 5.3.1.4 South Korea
- 5.3.1.5 Rest of Asia-Pacific
- 5.3.2 North America
- 5.3.2.1 United States
- 5.3.2.2 Canada
- 5.3.2.3 Mexico
- 5.3.3 Europe
- 5.3.3.1 Germany
- 5.3.3.2 United Kingdom
- 5.3.3.3 France
- 5.3.3.4 Italy
- 5.3.3.5 Rest of Europe
- 5.3.4 South America
- 5.3.4.1 Brazil
- 5.3.4.2 Argentina
- 5.3.4.3 Rest of South America
- 5.3.5 Middle-East and Africa
- 5.3.5.1 Saudi Arabia
- 5.3.5.2 South Africa
- 5.3.5.3 Rest of Middle-East and Africa
6. COMPETITIVE LANDSCAPE
- 6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
- 6.2 Market Share Analysis**/Ranking Analysis
- 6.3 Strategies Adopted by Leading Players
-
6.4 Company Profiles
- 6.4.1 Anssen Metallurgy Group Co. Ltd
- 6.4.2 Av Carb LLC
- 6.4.3 Beijing Great Wall Co. Ltd
- 6.4.4 Carbon Composites Inc.
- 6.4.5 CeraMaterials
- 6.4.6 CFCCARBON Co. Ltd
- 6.4.7 CGT Carbon GmbH
- 6.4.8 Chemshine Carbon Co. Ltd
- 6.4.9 CM Carbon.
- 6.4.10 HPMS Graphite
- 6.4.11 Liaoning Jingu carbon material Co. Ltd
- 6.4.12 Mersen Graphite
- 6.4.13 Morgan Advanced Materials
- 6.4.14 Nippon Carbon Co. Ltd
- 6.4.15 Schunk Carbon Technology
- 6.4.16 SGL Carbon
- 6.4.17 Sinotek Materials Co. Ltd
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
- 7.1 Increasing Demand for Renewable Energy
Graphite Felt Industry Segmentation
Graphite felt is a soft, flexible high-temperature refractory insulation material that is typically used in vacuum and protected atmosphere environments up to 5432 (3000). Apart from heat insulation application, graphite felts, particularly PAN-based, are used as electrode backings in a variety of battery designs, including vanadium redox flow batteries (VRB) which include permeable electrodes made from graphite felts, owing to their high conductivity, high purity, and high chemical resistance. Moreover, graphite felts, and components are used in processes during the production of semiconductor, LED, and solar industries. Additionally, graphite is a crucial component in the manufacture of semiconductors. The graphite felt market is segmented by raw material type, application, and geography. By raw material type, the market is segmented into Polyacrylonitrile (PAN), Rayon, and Petroleum Pitch. By application, the market is segmented into Heat Insulation, Batteries, Semiconductors, and Other Applications. The report also covers the market size and forecasts for the graphite felt market in 15 countries across major regions. For each segment, the market sizing and forecasts have been done on the basis of revenue (USD million).
Raw Material Type | Polyacrylonitrile (PAN) | ||
Rayon | |||
Petroleum Pitch | |||
Application | Heat Insulation | ||
Batteries | |||
Semiconductors | |||
Other Applications (absorptive materials, automotive exhaust linings) | |||
Geography | Asia-Pacific | China | |
India | |||
Japan | |||
South Korea | |||
Rest of Asia-Pacific | |||
North America | United States | ||
Canada | |||
Mexico | |||
Europe | Germany | ||
United Kingdom | |||
France | |||
Italy | |||
Rest of Europe | |||
South America | Brazil | ||
Argentina | |||
Rest of South America | |||
Middle-East and Africa | Saudi Arabia | ||
South Africa | |||
Rest of Middle-East and Africa |
Graphite Felt Market Research FAQs
What is the current Graphite Felt Market size?
The Graphite Felt Market is projected to register a CAGR of less than 6% during the forecast period (2025-2030)
Who are the key players in Graphite Felt Market?
Morgan Advanced Materials, Nippon Carbon Co. Ltd, MERSEN GRAPHITE, Schunk Carbon Technology and SGL Carbon are the major companies operating in the Graphite Felt Market.
Which is the fastest growing region in Graphite Felt Market?
Asia-Pacific is estimated to grow at the highest CAGR over the forecast period (2025-2030).
Which region has the biggest share in Graphite Felt Market?
In 2025, the Asia-Pacific accounts for the largest market share in Graphite Felt Market.
What years does this Graphite Felt Market cover?
The report covers the Graphite Felt Market historical market size for years: 2019, 2020, 2021, 2022, 2023 and 2024. The report also forecasts the Graphite Felt Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.
Our Best Selling Reports
Graphite Felt Market Research
Mordor Intelligence offers a comprehensive analysis of the graphite felt industry. We leverage our extensive experience in researching technical felt and industrial felt. Our expert analysts provide detailed insights into graphite materials and carbon composite applications. These include uses in furnace insulation and industrial heat treatment processes. The report, available as an easy-to-download PDF, thoroughly examines carbon felt and carbon fiber felt technologies. It also explores emerging trends in graphite insulation solutions.
The analysis covers crucial applications in thermal management materials and industrial thermal insulation. There is a special focus on PEM fuel cell materials and carbon insulation developments. Stakeholders across the industrial graphite sector will benefit from our detailed examination of market dynamics, growth drivers, and technological innovations. Our research methodology ensures comprehensive coverage of both established and emerging applications. This provides actionable insights for decision-makers in the thermal management materials market and related industries.