India Carbon Black Market - Forecasts from 2024 to 2029

India Carbon Black Market - Forecasts from 2024 to 2029

The Indian carbon black is valued at US$84.179 billion in 2024 and is projected to grow at a CAGR of 6.57% over the forecast period.

India is a major automobile market globally, with its production capacity and overall economic growth. The major drivers for the carbon black market are increased demand for the production of rubber tires, rising application of specialty carbon, and expanding application in multiple industries. They are used for general coloring for resins and films. Resins are used in automobile bumpers, wire coverings, and steel pipe linings. This application requires weather resistance in particular. Carbon black provides stable resistance for electronic equipment-related material, thus used in many equipment manufacturing.
According to the Automotive Tyre Manufacturers Association, the production trend of tires in India increased from FY2021 to FY2022 by 22% and by 6% from FY2022 to FY2023. The total production was 2051.31 (lakhs) and 2173.52 (lakhs) in 2022 and 2023 respectively. This increased production was due to the overall economic development of the country and increased demand for automobiles.
According to the OICA (International Organization of Motor Vehicle Manufacturers), the total number of automobiles produced in India was 5,851,507. Out of these, 4,783,628 were cars in 2023, and 1,067,879 were produced commercial cars. The total increase in production from the previous year was 7%.
The ban on synthetic rubber and carbon black supplies from Russia is likely to benefit India. Europe is a net importer of carbon black. The Russia-Ukraine war and subsequent sanctions imposed on Russia have led to supply disruptions from Russia, with the European Union passing a resolution in February 2023. European sanctions on Russian carbon black opened an opportunity for Chinese and Indian manufacturers. India has become a net exporter of carbon black since FY2022.
The installed capacity of carbon black in India was 696,000 (million tonnes) in 2022-23, according to the Government of India.
According to the Automotive Tyre Manufacturers Association, the production of commercial vehicle tires increased by 2% and 11% in FY 2022 and FY 2023 from the previous year. The total tires produced were 314.02 (lakhs) in 2022-23. The growth is likely due to the country's increased transport and logistics.

INDIA CARBON BLACK MARKET DRIVERS:

Increasing demand for automotive tires is likely to be the fastest-growing segment during the forecast period

The country's major demand for carbon black has been from the production of tires. The carbon black is used to manufacture improves the abrasion resistance and strength of tires. Carbon black rubber mixtures have become standard industry practice for tire manufacturers. According to the Automotive Tyre Manufacturers Association, the production of 2/3 Wheeler Tyres (motorcycle and scooter) has been 1076.68 (lakhs) and 1146.28 (lakhs) in 2022 and 2023; this was an increase of 15% and 6%, respectively, from the previous year. The 2/3 Wheeler is a commonly used vehicle from every section of society in the country. These tires are produced domestically. The demand would likely increase due to increased consumption of new vehicles in the market.
Increasing market penetration of specialty black

Specialty black solutions provide black pigment for exceptional color and properties, including UV protection, viscosity, and conductivity. These are applied in plastics, coatings, inks, and niche applications. The specialty black gives rise to a higher surface area and tinting strength. Specialty carbon blacks are used in many applications and products, such as printing inks, coatings, plastics, fibers, paper, metal carbides, construction, insulation, and fireproofing. With the increased economic activities and demand for different products increasing, so does the need for specialty black products in the market.

Growing applications in different industries-

Carbon black is used in different industries and will grow in the future. The use of carbon black will also increase. It is used as newspaper inks, printing inks, Indian inks, and paints. It has been used as the black pigment for inkjet ink/toners. Carbon black is also used to color resins and films. Further, using carbon black in coatings and paints protects against ultraviolet rays and the de-coloring effect.

Carbon black has electric conductivity and is used as conductive filler, mixed in plastics, elastomers, paints, adhesives, films, and pastes. These are required to prevent electric conductivity for static electricity. The corresponding use of consumer products would increase the country's carbon black demand.

India carbon black market key developments:

In June 2024, Klean Industries Inc. announced the signing of a non-binding Letter of Intent to supply Klean’s industry-leading equipment and proven patented technologies for upgrading char derived from the thermal processing of end-of-life tires into recovered carbon black. This project includes 4 new plants, 2 of which will be located in India. These are expected to process up to 50,000 metric tons of pyrolysis char annually. Klean's specialized carbon upgrading systems could convert low-value tire chars into high-value rCB. It can replace up to volumes of 10% to 100%, depending on the application.
In May 2024, Birla Carbon, the leading manufacturer and supplier of high-quality carbon-based solutions, announced that its three plants in India secured the ISCC PLUS Certification with zero non-conformities. These plants are located in Renukoot, Gummidipoondi, and Patalganga. They have been certified as traders with storage and conversion units for blending carbon black.
In January 2024, Birla Carbon announced the establishment of two new carbon black manufacturing sites in Naidupet, Andhra Pradesh, India, and Rayong, Thailand. Birla Carbon would expand its carbon black capacity by more than 240 kMT to support market growth. The expansion is aligned to provide sustainable, secure, and innovative solutions.
In October 2023, Birla Carbon announced the acquisition of Nanocyl SA, a manufacturer of multi-wall carbon nanotubes based in Sambreville, Belgium. The acquisition expanded Birla Carbon’s presence in the Energy Systems market. This acquisition is critical in sourcing materials critical to Lithium-Ion battery performance and other conductive applications.

The Indian carbon black market is segmented and analyzed as follows:

By Process Type

Furnace Black
Thermal Black
Acetylene Black
Lamp Black
Others

By Grade

Standard Grade
Specialty Grade

By Application

Tires and Industrial Rubber Products
Plastic
Toners and Printing Inks
Coatings
Textile Fiber
Others

By Geography

North America
USA
Canada
Mexico
South America
Brazil
Argentina
Rest of South America
Europe
United Kingdom
Germany
France
Italy
Spain
Rest of Europe
Middle East and Africa
Saudi Arabia
UAE
Rest of the Middle East and Africa
Asia Pacific
China
India
Japan
South Korea
Taiwan
Thailand
Indonesia
Rest of Asia-Pacific