Carbon Black Market is projected to be worth USD 17,231.4 Million by 2027, registering a CAGR of 4.5% during the forecast period (2020 - 2027).
Carbon Black Market size is projected to be worth USD 17,231.4 Million by 2027, registering a CAGR of 4.5% during the forecast period (2020 - 2027).As carbon black use explodes in the plastics, paint, and tire industry, and as a consequence, applications in aerospace and automotive are expanding, the growth trajectory is expected to continue.
Taiwan-based Continental Carbon has set up its first greenfield project in India at Gujarat’s Dahej for producing carbon black with an investment of around USD 200 million, the company’s President T M Chen said on Wednesday. 80 per cent of the carbon black is used by the automobile industry, besides the plastics industry, ink coatings and high-end 3-D printing as well as electronic product applications.
The COVID-19 outbreak has heavily impacted the tire industry, one of the key end-use industries in the market. Carbon black usage has also been adversely affected by the pandemic in other industries, such as plastics, inks, paints, and coatings, causing slower growth of the industry. In addition to debts, revenue losses weakened supply chains, and other challenges posed by the novel Coronavirus, the players face several other challenges.
Due to the sudden surge in SARS-CoV-2 cases and the tight lockdown, manufacturers now have to follow strict safety rules and ensure that they communicate effectively with their employees. Even though COVID-19 has raised the challenges facing companies, they are compelled to adopt effective business tactics to remain competitive.
With the recovery since the COVID-19 outbreak, renowned carbon black manufacturer Cabot Corp. has seen substantial growth in demand for rubber carbon black products. It is therefore evaluating numerous solutions, including expansion plans as well as tuck-in acquisitions, to address the rising demand.
The high-grade carbon black market is equipped with a robust competitive landscape characterized by the presence of a large number of global and regional firms. Many of these vendors focus on developing rare carbon black materials that are useful in multiple applications through extensive research and development activities. As part of their efforts to stay competitive, these companies form partnerships, negotiate agreements, and acquire companies. Furthermore, they concentrate on strengthening their production capacity and constructing innovative, sustainable technologies for producing high-quality carbon black.
The Carbon Black Specialists at Orion are among the top manufacturers in the world. Carbon black market is manufactured by various companies which include mechanical rubber goods, tires, adhesives and sealants, inks, and toners, textile fiber, coatings, and paints, polymers, tint and elevate the performance of plastics, several types of carbon blacks that colorize lamp blacks, thermal blacks furnace blacks, high-performance specialty gas blacks, and acetylene blacks.
The Global Carbon Black Market is Driven by Carbon Black in Tire and Rubber Industries
A large proportion of carbon black's use is in tires and rubber products, helping to strengthen and absorb shock. Numerous parts of a tire incorporate the product, including the carcass, inner liners, tread, sidewall, plus rubber products like air springs, gaskets, hoses, wiper blades, diaphragm and bushings. Tires with carbon black improve the longevity of their treads since it resists heat formed from the belt areas and tread areas. So, the phenomenal growth of the rubber and tire industries may be beneficial for carbon black production in the coming years.
Increasing automotive sales have contributed significantly to the growth of the tire industry worldwide. The tire industry is moving toward setting up units close to manufacturing centers for automobiles, as well as moving toward embracing modern production technologies, which could benefit the global industry.
Automotive Manufacturing in Asia-Pacific is on the Rise, Creating Opportunities
India, South Korea, and China are among the fastest-growing nations in the Asia Pacific. A soaring automotive industry also fosters demand for tires and rubber in these countries. Growing investment in the region has caused industrial advancement in the area, and the development of the construction business could also present some lucrative opportunities to key companies in the global industry.
Origin Materials Inc., the world’s leading carbon-negative materials company with a mission to enable the world’s transition to sustainable materials, and Intertex World Resources, Inc. (“Intertex”), a leading value-added distributor of synthetic rubber, carbon black, process oils and rubber chemicals, today announced a strategic partnership to bring sustainable carbon-negative carbon black made using Origin Materials’ patented technology platform to the rubber compounding and plastic masterbatch industries.
Restraints Price Volatility of Raw Materials will be a Limiting Factor
Since carbon black's price is almost exclusively determined by raw materials, fluctuations in the prices of these products can have a major impact on global demand. A fluctuation in the price of crude oil could impact the pricing of the target product in the upcoming years.
Challenges The Growth of the Market is Being Challenged by Unfavorable Regulations
Regulations are changing, causing carbon black to be replaced with silica in tire manufacturing as a reinforcing agent. Carbon black production releases large amounts of CO2.
This report, from MRFR Inc., estimates that the carbon black market is forecast to grow by 4.5% between 2020 and 2027 (analysis period), with increased usage in plastics production considered to be among the key growth factors.
Moreover, they strive to improve their production capabilities and embrace sustainable technological innovations while producing carbon black effectively. The tire industry is working to set up new plants near automotive manufacturing centers. They are also embracing modern production technologies, which would be beneficial to the industry shortly.
A variety of black pigments have been evaluated, including furnace black, acetylene black, and thermal black. Its high production capacity makes furnace black one of the market's top segments.
Pigments and reinforcements fall under the function-based segment. Globally, the pigment industry dominates, given the increasing use of pigments in different types of paints, toners, resin colorings, printing inks, etc.
In this report, the carbon black market is explored from both an end-user and manufacturer perspective, including non-tire, paints, coatings, tires, plastics, inks, and many more. Its use both as a filler and as a strengthening agent makes tire manufacturing the most common application of carbon black. The carbon back can also be used on both the inside of the liner and the treads.
As per the process type, the carbon black market is segmented into acetylene black, channel black, furnace black, thermal black, and others.
Reinforcement and pigments are the two segments that the carbon black market categorizes according to function.
The end-users are segmented into tire, inks, plastics, paints & coatings, non-tire, and others.
Demand for carbon black is projected to soar in the rubber reinforcement process, electrical and electronics, and other sectors, with the Asia Pacific region leading the way. In addition to the economic growth in China and India, the developing economies of those countries have also contributed to an increase in demand for conductive carbon black. Additionally, the APAC market benefits from increased foreign investments as well as improved regulatory environments. Additionally, multinational corporations have also relocated manufacturing to India, Vietnam, and China to take advantage of the lower labor costs and the government's support. There is also a rapid expansion of the automobile industry in this region, which creates additional value for the market.
SCG Chemicals Public Company Limited (SCGC) has inked a joint venture (JV) agreement with Denka Company Limited (Denka), Japan. The JV was established to operate an acetylene black manufacturing business in the province of Rayong. The production capacity will be approximately 11,000 tonnes annually and is expected to commence by early 2025.
Denka's acetylene black is a unique type of carbon black with high purity and electrical conductivity. It is primarily used as a component in the production of lithium-ion rechargeable batteries for electric vehicles (EVs), in addition to being employed in applications for high-voltage transmission cables to generate electricity from offshore wind power, for which market demand is rising.
Carbon back used in inks & paints has displayed phenomenal growth on the European market, because of its increasing demand. Researchers and developers of advanced carbon black products in the region are heavily involved in acquisition and merger strategies to maintain a dominant market share.
Due to the huge number of tires that need to be replaced, MRFR believes that North America, specifically the carbon black market in the United States, will perform exceptionally well. As a result of the automotive and construction industries thriving in the region, there is a huge demand for coatings, paints, and non-tire rubber, which serves the carbon black market well.
Cancarb has launched Thermax N990CG, a low PAH grade of medium thermal carbon black that gives customers the ability to minimize the amount of polycyclic aromatic hydrocarbons (PAH) in their products without sacrificing quality and performance. Cancarb is the first manufacturer of thermal carbon black to purposefully create a low-PAH-grade product.
Cancarb has confirmed that Thermax N990CG is a drop-in replacement for Thermax® N990, a thermal carbon black with applications in rubber products such as belts, diaphragms, expansion joints, seals, gaskets, tubing, and hoses. Thermax® N990CG can also be used in plastics, metallurgy, refractories, and adhesives.
By Process Type
|CAGR||(2022-2030) : Substantial Value|
|Forecast Period||2022 to 2030|
|Historical Data||2019 & 2020|
|Forecast Units||Value (USD Billion)|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, and Trends|
|Segments Covered||Process Type, Function and End-User|
|Geographies Covered||North America, Europe, Asia-Pacific, and Rest of the World (RoW)|
|Key Vendors||Kremenchug Carbon Black Plant, Hebei Daguangming Juwuba Carbon Black Co. Ltd., Shijiazhuang Xinxing Chemical Carbon Co. Ltd., Cabot Corporation, Orion Engineered Carbons, Tokai Carbon Co. Ltd., Mitsubishi Chemical Corporation, JINNENG, Himadri Speciality Chemical Ltd., ChemChina, Jiangxi Black Cat Carbon Black Inc. Ltd., Phillips Carbon Black Ltd., NIPPON STEEL & SUMIKIN CHEMICAL CO. LTD., Sid Richardson Carbon and Energy Co. Ltd., OCI COMPANY Ltd., Suzhou Baohua Carbon Black Co. Ltd., Longxing Chemical, Shandong Huadong Rubber Materials Co. Ltd.|
|Key Market Opportunities||Surge in Automotive Production in Asia Pacific to Offer Opportunities|
|Key Market Drivers||Carbon black in tire and rubber industries drives the global carbon black market|
The carbon black market is predicted to grow at a 4.5% CAGR between 2020-2027.
The global carbon black market is predicted to touch USD 17,231.4 Million by 2027.
The carbon black market industry is dominated by ChemChina, JINNENG, Orion Engineered Carbons, Sid Richardson Carbon and Energy Co. Ltd., Cabot Corporation, Tokai Carbon Co., Ltd., OCI Company Ltd., Mitsubishi Chemical Corporation, Shandong Huadong Rubber Materials Co., Ltd., Longxing Chemical, and Phillips Carbon Black Ltd.
Carbon black is being increasingly used in aerospace and automotive applications, which is driving the market growth.
In the forecast period, carbon black market activity will be dominated by Asia Pacific nations.