Graphene Market Analysis

Graphene Market Deep Dive – PESTLE, Porter, SWOT

Graphene is a crystalline two-dimensional material. Graphene has a high degree of elasticity and a good memory. It is a substance that can be used in the manufacture of a variety of products. Known for its excellent properties, namely its extreme strength, conductivity and elasticity, graphene is increasingly being used in the manufacture of products for the electrical, chemical and medical industries. In the future, as these industries will seek to develop and enhance the performance and sustainability of their products, graphene will be increasingly in demand. Its ability to improve the efficiency and the eco-friendliness of products will increase its demand. Furthermore, the ongoing research and development efforts will probably lead to new production methods and cost-effective production, which will further increase the availability of graphene-based products. This dynamic landscape will present both challenges and opportunities for the various market participants. Among these challenges and opportunities are: the need for regulatory clarity, the need for a more efficient and more sustainable use of resources, and the need for a more sustainable economy.

PESTLE Analysis

• Political:
  In 2024, graphene will be influenced by various government policies aimed at promoting the use of advanced materials. For example, the European Union has set aside €15 billion for the development of nanotechnology, which includes graphene applications. The budget is part of the Horizon Europe programme, which places a particular emphasis on developing sustainable materials to strengthen the EU’s technological leadership. Also, several countries have imposed import duties on graphene products, which will affect the market and encourage local production.
• Economic:
  The demand for new materials is increasing in all industries. By 2023, graphene production is expected to reach 10,000 tons a year, mainly thanks to the investments of companies like Haydale Graphene Industries, which has a turnover of £5,200,000 in 2023. The cost of graphene production has fallen by about 30% in the last two years, which makes it more accessible to producers of electronics, batteries and composite materials.
• Social:
  In the areas of health and electronics, public awareness of graphene technology is growing. Surveys show that 68% of consumers are willing to buy products containing graphene, which they see as offering superior performance in terms of strength and conductivity. And the number of students specialising in nanotechnology is rising, with an expected 15,000 graduates in 2024, to provide a skilled workforce for the graphene industry.
• Technological:
  In 2024, the development of graphene production methods is the most important factor driving the growth of the market. Graphene is now mainly produced by chemical vapor deposition and liquid exfoliation. For example, a new method of CVD developed by MIT can produce 1 kg of graphene per hour, which greatly improves the feasibility of industrialization. Also, with the improvement of the production process, the penetration rate of graphene in flexible electronics is expected to increase by 25%.
• Legal:
  The legal framework relating to graphene is evolving, with new regulations being formulated to ensure safety and environmental compliance. In 2024, the EPA proposed new guidelines for the safe handling and disposal of graphene, which were expected to be finalized by mid-year. These regulations will require manufacturers to adhere to strict safety procedures and to carry out risk assessment studies before entering the market.
• Environmental:
  During the year 2024, the graphene industry is undergoing scrutiny. Production of a ton of graphene generates the equivalent of half a ton of CO2 emissions. This has led to the industry adopting more sustainable methods. For example, one of the world's largest graphene producers has recently achieved a 40 per cent reduction in water usage during its production process. Also, graphene products are now being recycled. By 2024, an estimated 20 per cent of all graphene products are being recycled, contributing to a more sustainable life cycle for these advanced materials.

Porters Five Forces

• Threat of New Entrants:
  The graphene market is characterized by significant entry barriers, including high costs for research and development, and the need for sophisticated technology and skills. The graphene market is a nascent market, but as the applications of graphene grow, the interest of various industries in the technology is likely to draw new entrants, resulting in a moderate threat of new entrants.
• Bargaining Power of Suppliers:
  The supply of graphene is currently dominated by a few established suppliers. As production technology improves and more suppliers enter the market, the bargaining power of the suppliers is expected to decrease, which means the threat to buyers is low.
• Bargaining Power of Buyers:
  The buyers in the graphene market are in a position of great bargaining power, owing to the growing availability of alternative materials and the growing number of suppliers. Competition is intensifying, resulting in lower prices and better terms for the buyers.
• Threat of Substitutes:
  Graphene offers unique properties that make it particularly desirable for many applications. But there are other materials that can perform similar tasks. The threat of substitution is moderate. Progress in other materials may result in viable alternatives. However, graphene’s unique properties still give it an advantage.
• Competitive Rivalry:
  Graphene market is experiencing intense competition from its players, which is driven by the rapid technological advancements and the increasing demand from the various industries. The competition has reached a high level, mainly due to the pursuit of innovation and market share, resulting in the emergence of aggressive marketing strategies and price wars.

SWOT Analysis

• Strengths:
  • Exceptional electrical and thermal conductivity properties.
  • Lightweight and strong material, enhancing product durability.
  • Versatile applications across various industries including electronics, energy, and healthcare.
• Weaknesses:
  • High production costs and scalability challenges.
  • Limited awareness and understanding among potential end-users.
  • Regulatory hurdles and safety concerns regarding graphene materials.
• Opportunities:
  • Growing demand for advanced materials in electronics and renewable energy sectors.
  • Potential for innovative applications in medical devices and drug delivery systems.
  • Increased investment in research and development for graphene-based technologies.
• Threats:
  • Intense competition from alternative materials and technologies.
  • Economic fluctuations affecting investment in new materials.
  • Potential environmental concerns and regulations related to graphene production.

In 2024, the graphene market will be characterized by its remarkable strengths, such as excellent conductivity and versatility, which make it a promising material for many industries. However, there are also challenges such as high production costs and regulatory issues that will limit the development of this market. Opportunities are mainly in the fields of electronics and medicine, where the demand for advanced materials is increasing. Competition and economic uncertainties will be a major challenge for the graphene market in the future.