Carbon Nanotubes (CNTs) are carbon allotropes with a nano-cylindrical structure. Their superior mechanical and electrical properties make them excellent components in a wide number of applications such electronics and aerospace. The worldwide production of CNTs currently amounts to more than 500 metric tons, with companies like Hyperion Catalysis, Bayer, CNano Technology, and Arkema leading the production chart. The increasing demand for CNTs has encouraged the major players to plan some of the biggest production units. Bayer for example is expecting to reach a production capacity of 3000 tonnes in less than two years time, while CNano has commissioned a large CNT plant in China with a capacity of over 500 tonnes. The CNT market size is expected to be $252 million in 2009.
PRODUCTION SPLIT BY GEOGRAPHY FOR CNT IN 2008
Asia leads the production capacity for carbon nanotubes. Though the majority of the leading CNT producers are based in U.S. and Europe, the production units of many such companies are based in Asia because of the cheaper labor and infrastructure available in the region; and also because the increasing demand for CNTs by the Asian electronics and consumer goods industry.
There are mainly two types of carbon nanotubes:
- Single-walled Carbon Nanotubes (SWNT)
- Multi-walled Carbon Nanotubes (MWNT)
MARKET SIZE TRENDS FOR CNT MARKET
The CNT market is expected to grow at a CAGR of 34% from 2009 to 2014, catapulted mainly by the increasing markets size for current as well as newer CNT applications. The electronics industry, aerospace and defense, and automotive industries will be the key areas for growth in market size.
Pricing trends for carbon nanotubes
The increase in demand for CNTs has catalyzed a production upswing, which in turn has resulted in price downsizing. Almost all the leading CNT producers have made their expansion plans public. Bayer for example is planning to reach an installed capacity of 3000 tonnes in the next three years.
PRICING TREND FOR CARBON NANOTUBES
The figure above indicates that the prices for both the varieties of CNTs have taken a nosedive of 43% (MWNT) and 33% (SWNT) between 2005 and 2009. Prices are expected to drop further in the next few years. The price for MWNTs is expected to reach $30/kg-$40/kg in next 3-4 years.
Factors affecting CNT market
The CNT market has grown at a rapid pace for the last several years. There are a number of factors affecting the growth of this market.
| Sl No | Factors | Impact | |
| 1 | Excellent electrical conductivity (1000 times more than current carrying capacity than copper) | Can replace copper for use in electrical and electronic components | |
| 2 | 4-10 times higher Y-modulus compared to stainless steel | Excellent for use in high strength materials like bars, aerospace | |
| 3 | Negligible friction between layers | Extremely useful in manufacturing nanoscale rotors and motors | |
| 4 | High thermal conductivity (almost 15 times more than copper) | Enables the use of CNT as heat sinks, aerospace and defense, advanced semiconductors | |
| 5 | Property to stretch under heating | Found suitable for use in modern memory devices and next-generation semiconductors | |
| 6 | Very good photonic properties | Opens up new technologies like nanophotonics | |
| 7 | High manufacturing cost | Restricts the increasing application areas | |
| 8 | Challenges with large scale manufacturing (particularly for SWNT) | Limits the increase in CNT use in electronic and semiconductor applications | |
| 9 | High Toxicity | Restraining the use in consumer products |
Applications of Carbon Nanotubes
The several advantages of carbon nanotubes are widening their range of applications. In 2005, automotive, aerospace, and defense were the only two major areas where CNTs were being used. This picture changed in 2007.
MARKET SPLIT ($ MILLIONS) FOR APPLICATIONS OF CNT
The figure above illustrates the changing patterns for application of CNTs. Earlier, CNTs were used mostly in electronics, automotives, and aerospace and defense. The picture changed a lot in 2009 with the development in the SWNTs, which increased the use of CNTs in electronics applications. The energy sector has also emerged as a major CNT consumer. It is expected that by 2014, CNTs will have a greater share from upcoming applications like special clothing, medical applications, and sporting goods. However, automotive and aerospace and defense are expected to be the leading consumers for CNTs in 2014 owing to their high-investment models and higher priority given to quality over price.
Conclusion
In a nutshell, the CNT market has the potential to grow into a leading mainstream market in the next five years. The physical, electrical, and chemical properties of CNT make it a favored product to conduct research on a number of applications. Research is currently being conducted to marginalize industry issues such as the high pricing of CNT and the challenges in large-scale production.
