Global Carbon Black Market Overview, 2024-29

Global Carbon Black Market Overview, 2024-29

The thermal degradation of heavy petroleum raw materials such as ethylene cracking tar, coal tar, or FCC tar yields carbon black. It is widely used due to its advantageous properties such as UV light absorption and conversion to heat, better thermal conductivity, and increased tire tread wear and rolling resistance. Oil furnaces and heat processes are commonly employed in product manufacture. The expanding use of the product in tire manufacturing, as well as rising plastic demand in the consumer goods, electronics, and automotive industries, will drive market expansion. Carbon black is used in a variety of end-use industries, including consumer items, autos, appliances, electronics, and others. Because carbon black is a petroleum-derived product, businesses rely on obtaining critical raw materials at reasonable prices with no supply constraints. Manufacturers carefully select raw materials based on product quality, providing price, product portfolio holding, and market accessibility. Growing automobile sales, together with the deployment of cutting-edge technology in tire manufacturing, are expected to boost market growth in the region. Rising demand for high-performance coatings in the aerospace and military industries is expected to be a key growth driver. Carbon blacks are carefully designed to change the electrical properties of goods such as safety applications, electronic packaging, and automobile parts from insulating to conducting. Carbon black is used as a coloring agent to produce synthetic textiles. For instance, since these materials need robust color performance, carbon black is used to color clothing and fabrics made from denier polyester and nylon fibers. Manufacturing of athletic and military apparel makes extensive use of carbon black. Additionally, carbon black is employed in producing coarse staple fibers, mainly used to make woven blankets, floor coverings, and other textiles. The expanding applications in the fiber and textile sectors and the growing market penetration of specialty black are the main drivers of the market's growth.

According to the research report, “Global Carbon Black Market Overview, 2023-28” published by Bonafide Research, the market is anticipated to cross USD 28 Billion by 2029, increasing from USD 19.93 Billion in 2023. The market is expected to grow with 5.99% CAGR by 2024-29. The rise in demand for carbon black in various applications such as rubber reinforcement, paints & coatings, plastics, battery electrodes, and inks & toners is driving the carbon black market. Increasing applications of carbon black in the tire industry is a major driver for the carbon black market. Carbon black is widely used as reinforcement filler in tire and non-tire rubber formulations. Growing sales and production of vehicles across the globe is contributing to market growth. Carbon black can be popularly used in reinforcing rubber in tires. It can make up about 30% of the weight of a tire. Carbon black is an important component of automotive rubber parts in vehicles such as sealing systems, hoses, anti-vibration parts, and engine mounts. Urbanization, industrial growth, and increase in the number of construction & manufacturing industries across the globe are driving the carbon black market. Carbon black is also used as a performance enhancer in various end-use industries such as paints & coatings, and inks & pigments, and plastic industry. There is a surging demand for carbon black in the rubber industry as it makes rubber stronger and resistant to wear and tear. Carbon black used in rubber also prevents rubber tires against UV light and oxidation. Hence, applications of carbon black as filler in rubber compounds are increasing. It offers strength to rubber, increase its volume, and improve physical properties. Carbon black is specifically used in mechanical rubber goods such as industrial rubber goods, membrane roofing, and automotive rubber parts such as sealing systems, hoses and anti-vibration parts, etc.

Market Drivers
• Expansion of Renewable Energy Sector:The increasing focus on renewable energy sources, such as wind and solar power, contributes to the demand for carbon black in the production of high-performance materials for renewable energy applications. Carbon black is utilized in the manufacturing of components for wind turbine blades, solar panel encapsulation, and energy storage systems. As the renewable energy sector continues to grow, so does the demand for carbon black.
• Growth in Construction and Infrastructure Development: The construction industry, particularly in developing economies, is a significant driver for the carbon black market. Carbon black is used in construction materials such as concrete, enhancing durability and providing UV resistance. Increasing urbanization and infrastructure development projects worldwide contribute to the demand for construction materials incorporating carbon black. This trend is expected to persist with ongoing global urban expansion.

Market Challenges
• Intense Market Competition: The carbon black industry faces intense competition globally, leading to pricing pressures and the need for continuous innovation to stay competitive. Companies must invest in research and development to differentiate their products, improve manufacturing efficiency, and maintain a competitive edge in the market.
• Supply Chain Disruptions: Global events, such as natural disasters, geopolitical tensions, or pandemics, can disrupt the carbon black supply chain, affecting the availability of raw materials and transportation logistics. Supply chain disruptions can lead to production delays, increased costs, and challenges in meeting customer demand. Developing resilient supply chain strategies becomes crucial for industry players.

Market Trends
• Digitalization and Industry 4.0 Integration: The carbon black industry is witnessing the adoption of digital technologies and Industry 4.0 practices to optimize production processes, enhance efficiency, and improve overall operational performance. Automation, data analytics, and real-time monitoring contribute to better decision-making, reduced energy consumption, and improved resource utilization in carbon black manufacturing.
• Focus on Recycled Carbon Black (rCB): There is a growing emphasis on sustainable practices through the use of recycled carbon black derived from end-of-life tires and other sources. Companies adopting recycled carbon black contribute to the circular economy, reduce waste, and address environmental concerns. This trend aligns with the broader sustainability goals of the industry.

Covid-19 Impacts

The carbon black industry relies on a complex global supply chain for raw materials, especially feedstocks like crude oil. The pandemic led to disruptions in the availability and transportation of these materials, affecting production capacities. With lockdowns, travel restrictions, and economic uncertainties, the automotive industry experienced a slowdown. As a major consumer of carbon black, particularly in tire manufacturing, reduced vehicle production and lower demand for replacement tires directly impacted the carbon black market. The construction and manufacturing sectors, which also contribute significantly to carbon black demand, were affected by pandemic-related restrictions. Reduced construction activities and disruptions in manufacturing processes led to a decline in the need for carbon black in various applications. The pandemic-induced disruptions in transportation and logistics resulted in delays in the delivery of raw materials and finished products. This, coupled with uncertainty in the market, led to price volatility and challenges in cost management for carbon black manufacturers. Many carbon black manufacturing facilities faced operational challenges due to workforce shortages, lockdown measures, and health and safety protocols. Some plants experienced temporary shutdowns, impacting production capacities. Furthermore, the pandemic underscored the importance of sustainability, leading to increased interest in eco-friendly practices. Some companies in the carbon black industry intensified efforts to adopt sustainable production methods, recycling initiatives, and circular economy practices.

Lamp black is experiencing growth in the activated carbon market due to an increasing demand for sustainable and renewable alternatives to traditional carbon black. Industries are seeking eco-friendly solutions, and lamp black, derived from natural combustion processes, aligns with the growing emphasis on environmental sustainability.

The upsurge in the prominence of lamp black in the activated carbon market is intricately linked to a broader shift toward sustainability in various industries. With a heightened awareness of environmental issues and a commitment to reducing the carbon footprint, there is a growing demand for sustainable alternatives to conventional carbon black. Lamp black, produced through the incomplete combustion of natural materials such as oils, resins, or fats, stands out as a renewable and eco-friendly option. Unlike some other forms of carbon black derived from fossil fuels, lamp black offers a more sustainable choice, and its production is often associated with lower environmental impact. Industries seeking to align with green initiatives and reduce their reliance on non-renewable resources are increasingly incorporating lamp black into various applications. Its compatibility with different materials and ability to provide coloration, UV stabilization, and conductivity make lamp black a versatile and sustainable option in the evolving landscape of the activated carbon market. As the demand for environmentally conscious alternatives continues to rise, lamp black is poised to play a significant role in meeting these sustainability objectives across diverse industries.

Specialty carbon black is experiencing growth in the activated carbon market due to a rising demand for high-performance and tailor-made carbon black solutions that cater to specific and advanced applications across industries, including electronics, coatings, and energy storage.

The surge in the growth of specialty carbon black within the activated carbon market can be attributed to an escalating demand for customized and high-performance solutions that address the evolving needs of diverse industries. Unlike standard carbon blacks, specialty carbon blacks are engineered to possess unique properties, making them particularly suitable for advanced applications. Industries such as electronics, coatings, and energy storage require carbon black formulations with specific characteristics, including controlled particle size, surface area, and conductivity. Specialty carbon blacks offer a level of precision and customization that meets these requirements, enabling manufacturers to enhance the performance and functionality of their end products. The electronics sector, in particular, benefits from specialty carbon blacks in the development of conductive polymers and materials for electronic devices. Additionally, the coatings industry utilizes specialty carbon blacks to achieve desired coloration, UV resistance, and conductivity. As industries continue to advance technologically, the demand for specialty carbon blacks is expected to grow, propelling their significance in the broader landscape of the activated carbon market. The ability of specialty carbon blacks to provide tailored solutions for specific applications positions them as key contributors to innovation and performance enhancement across various sectors.

The plastic application of carbon black is growing in the activated carbon market due to the increasing global demand for plastics in various industries, coupled with the essential roles that carbon black plays in enhancing UV stability, coloration, and conductivity in plastic products.

The burgeoning growth of carbon black applications in the plastic industry within the activated carbon market is closely tied to the escalating global demand for plastics across multiple sectors. Carbon black serves as a crucial additive in the plastic industry, contributing to the enhancement of various properties vital for end-product performance. One of the primary reasons for the growing prominence of carbon black in plastics is its ability to provide UV stability. Plastics are susceptible to degradation when exposed to ultraviolet (UV) radiation from sunlight. Carbon black acts as a UV stabilizer, absorbing and dissipating UV rays, thus preventing the degradation of plastic materials. This UV-resistant quality is particularly critical in applications such as outdoor construction, automotive components, and packaging. Additionally, carbon black imparts coloration to plastics, allowing manufacturers to achieve desired shades and appearances in their products. Another significant factor driving the plastic application of carbon black is its role in enhancing the conductivity of polymers. This is particularly relevant in the production of conductive plastics used in various electronic devices, automotive components, and industrial applications. As the demand for plastics continues to rise globally, fueled by population growth, urbanization, and advancements in manufacturing, carbon black's contribution to enhancing UV stability, coloration, and conductivity positions it as an integral component in meeting the evolving needs of the plastic industry. The synergy between carbon black and plastics exemplifies a key growth area in the activated carbon market, as industries seek to optimize the performance, durability, and aesthetics of plastic-based products.

The robust growth of the activated carbon market in Europe is primarily driven by stringent environmental regulations and a strong emphasis on sustainability, compelling industries to adopt advanced purification technologies to meet compliance standards and address environmental concerns.

The activated carbon market in Europe is experiencing significant growth due to the region's commitment to environmental sustainability and the implementation of strict regulations governing air and water quality. European countries have been at the forefront of adopting comprehensive environmental policies, aiming to reduce emissions, minimize pollution, and enhance overall environmental quality. In response to these regulations, industries across Europe are increasingly turning to activated carbon solutions for air and water purification. Activated carbon's exceptional adsorption capabilities make it a preferred choice for removing pollutants, organic contaminants, and hazardous substances from industrial processes and effluents. Moreover, the emphasis on sustainability aligns with the use of activated carbon, which can be derived from renewable sources and is often a recyclable and regenerable material. As European industries continue to prioritize eco-friendly practices and comply with stringent environmental standards, the demand for activated carbon is expected to further escalate, driving the market's growth in the region.

Some of the key manufacturers and suppliers in the market focus on increasing production capacities and the development of new and sustainable technologies to produce carbon black. For instance, Cabot Corp. has set up manufacturing units in developing countries of Asia for faster and cheaper production. Collaborations with raw material suppliers and end-use manufacturers will help industry participants to gain significant market share over the forecast period. The presence of competitive market players who are focusing on increasing the production of carbon black, owing to the rising demand from various industries, is contributing to the carbon black market growth. Market players are focusing on staying ahead of the competition. Increasing research & development activities to explore innovative and cost-efficient ways to manufacture carbon black is driving market growth. Advancement in the technology is augmenting the carbon black market.
• In June 2023, Bridgestone Corporation announced the commencement of the development of tire-derived oil and recovered carbon black via pyrolysis of worn tires with the help of test units established at the Bridgestone Innovation Park in Tokyo. This is aimed at encouraging the social deployment of chemical recycling technologies that allow the efficient pyrolysis of worn tires.
• In April 2023, Orion Engineered Carbons announced the implementation of its new cogeneration technology producing renewable energy in its Ivanhoe plant (Louisiana, U.S.). The system comprises a steam turbine generator, which ingests the waste steam from the production process of the carbon black plant and alters it to electricity.
• In April 2023, Tokai Carbon Co., Ltd. entered into a strategic partnership with Sekisui Chemical Co., Ltd., for the real-world application of the Carbon Capture and Utilization (CCU) technology. This deal was aimed at manufacturing varied carbon products and materials for the capture and storage of carbon dioxide (CO2) as solid carbon.
• In March 2023, Cabot Corporation announced the launch of EVOLVE SUSTAINABLE SOLUTIONS, an innovative platform for boosting the deployment of sustainable reinforcing carbons. Under this initiative, the company unveiled two new products– STERLING SO-RC110 circular reinforcing carbon and VULCAN 7H-C circular reinforcing carbon aligned with the mass balance approach of ISCC PLUS certification.

Considered in this report
• Historic year: 2018
• Base year: 2023
• Estimated year: 2024
• Forecast year: 2029

Aspects covered in this report
• Carbon Black market Outlook with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Type
• Furnace Black
• Channel Black
• Thermal Black
• Acetylene Black
• Lamp Black

By Grade
• Standard
• Specialty

By Application
• Tire
• Non-Tire Rubber
• Inks & Toners
• Plastics
• Others (lithium-ion batteries, graphite manufacturing, construction industry, and metallurgy)

The approach of the report:

This report consists of a combined approach of primary and secondary research. Initially, secondary research was used to get an understanding of the market and list the companies that are present in it. The secondary research consists of third-party sources such as press releases, annual reports of companies, and government-generated reports and databases. After gathering the data from secondary sources, primary research was conducted by conducting telephone interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this; we have started making primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once we have primary data with us, we can start verifying the details obtained from secondary sources.

Intended audience

This report can be useful to industry consultants, manufacturers, suppliers, associations, and organizations related to the Carbon Black industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry.

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