Carbon Black Market Research Report- Forecast to 2027

Carbon Black Market Information By Process Type (Furnace Black, Channel Black, Thermal Black, Acetylene Black), Function (Reinforcement, Pigments), End-Use (Tire, Non-tire, Paints & Coatings, Inks, Plastics and others) - Forecast to 2027

ID: MRFR/CnM/3280-CR | February 2021 | Region: Global | 134 pages

Carbon Black Market- Overview


Market research Future (MRFR) report confirms that the Carbon Black Market size can touch USD 17.23 Billion by 2023.

The growth trajectory is expected to be bolstered by the surging use of carbon black in plastics, paints & coatings and tire manufacturing, along with the widening application scope in aerospace and automotive.


COVID-19 Analysis


Many of the key end-use industries in the market such as the tire sector have been deeply impacted by the COVID-19 outbreak. The pandemic has also negative affected other application sectors including plastics and ink toners, paints & coatings and more, leading to slower growth of the carbon black industry. The novel coronavirus poses a number of challenges to the players, in the form of debts, revenue losses, weakened supply chains, to name a few.


The uncontrollable surge in SARS-CoV-2 cases and the strict lockdown have forced manufacturers to follow rigid safety norms and effective communication, with employees’ health being the prime focus. Firms are compelled to take up competitive tactics to remain competitive in the global market, despite the rising challenges brought on by the COVID-19 pandemic.


Competitive Landscape


Extensive R&D Activities to be the Top Strategy Adopted by Firms


The competitive landscape of the high grade carbon black market is robust, characterized by the presence of a colossal pool of global and regional firms. Many of these vendors focus on conducting extensive research and development activities to come up with different types of carbon black material that have multiple applications. Partnerships, agreements and acquisitions are some more strategies that are adopted by these players to remain competitive. They also concentrate on bolstering their production capacities and sustainable technological innovations for effective carbon black production.


Orion Engineered Carbons is one of the top carbon black manufacturers in the world. The company produces an extensive range of carbon blacks such as acetylene blacks, high-performance specialty gas blacks, lamp blacks, thermal blacks furnace blacks, and several types of carbon blacks that colorize, tint and elevate the performance of plastics, polymers, coatings and paints, textile fibers, inks and toners, tires, adhesives and sealants, as well as mechanical rubber goods.


List of Key Companies Covered in this Report



  • 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.


Market Dynamics


Drivers


Carbon black in tire and rubber industries drives the global carbon black market


Carbon black’s most extensive use is in tire as well as non-tire rubber products, acting as a shock absorbent and reinforcing agent. The product is added in various parts of the tire including carcasses, inner-liners, treads, sidewalls, and rubber products like belts, air springs, gaskets, hoses, wiper blades, diaphragm and bushings. Carbon black helps elevate the lifespan of the tire as it resists heat from the belt and tread area. As a result, the stellar growth of the rubber and tire industries can be favorable for the carbon black industry in the coming years.


The tire industry has been expanding at a significant pace worldwide owing to the escalating automotive sales. A number of tire manufacturers are striving to set up new units close to automobile manufacturing centers, while also adopting modern technologies in production, which can benefit the global industry over the next few years.


Opportunities


Surge in Automotive Production in Asia Pacific to Offer Opportunities


Some of the fastest emerging nations in Asia Pacific like India, South Korea and China are witnessing a rapid surge in automotive production, which also fosters the demand for tires and rubber. The industrial growth in the region is the result of rising investments, while the expansion of the construction industry could also present a number of lucrative opportunities to the key firms in the global industry.


Restraints


Volatility in raw material prices to be a notable restraint


Since carbon black’s price is primarily dependent on certain raw materials, the fluctuating costs of the latter can be a major deterrent in the global market. Price fluctuation of crude oil could also affect the pricing of the target product in the coming years.


Challenges


Increase in Unfavorable Regulations to Challenge Market Growth


the market is challenged by changing regulations resulting in replacement of carbon black with silica as a reinforcing agent in tire manufacturing. Emission of CO2 in carbon black production


Cumulative Growth Analysis


Global Market Share to Expand at a Decent Rate


MRFR asserts that the carbon black market can expand at a rate of 4.59% between 2017 and 2023 (analysis period), with surging product use in the production of plastics considered to be one of the key growth rendering factors.


Segment Overview


Furnace Carbon Black takes the Lead


The market, with respect to the process type, has been considered for channel black, furnace black, acetylene black, thermal black, and more. Furnace black has emerged as the top segment in the market, since it is the most preferred process type due to its high production capacity.


Pigment-Based Function Segment Dominates the Market


Function-based segments are pigments and reinforcement. The pigment segment dominates the global industry, in view of the rising use of the same in paints, toners, resin coloring, printing inks, and more.


Tires Industry to be the Top end-User


The market end users highlighted in carbon black analysis are non-tire, paints & coatings, tire, plastics, inks, and more. Tires will remain the leading end-user throughout the given period, since carbon black is largely deployed in tire manufacturing as a strengthening agent as well as a filler. Carbon back in the tire industry is also used in inner liners, carcasses, sidewalls and treads.


Regional Analysis


The APAC Market Stands as the Top Performer


Asia Pacific is set to be the market leader, considering the rapidly escalating carbon black demand in rubber reinforcement process, electrical & electronics, and others. Surge in economic conditions coupled with rising industrialization as well as urbanization in China and India have been fostering the demand for conductive carbon black. The APAC market is also favored the increasing foreign investments along with the improving regulatory scenario. It has also been observed that several international firms are shifting their production units to India, Vietnam and China, since these countries have cheap labor costs and have strong government support as well. The increasing automotive production in the region also adds to the market value.


Europe Carbon Black Market to Exhibit Considerable Growth


The European market has been demonstrating phenomenal growth, thanks to the heightened demand for carbon back in inks & paints, among others. Carbon black manufacturers in the region are highly focused on research and development of advanced products, while also getting involved in acquisitions and mergers to capture a bigger market share in the region.


North America to be a Significant Contender


MRFR believes that North America, especially the carbon black supply market United States, will perform spectacularly owing to the soaring number of tires requiring replacement. The thriving automobile and construction industries are creating massive demand for coatings, paints and non-tire rubber, which works in favor of the carbon black market in the region.


Recent Developments



  • November 2020 – Continental Carbon Company, one of the leading global developers of furnace-grade carbon blacks for rubber and tire industry has entered into an agreement with the Bolder Industries, a firm specializing in conversion of tires into renewable industrial products. The agreement entails commercialization of sustainable items for the worldwide plastics and rubber industries.



  • December 2020 – Safic-Alcan has entered into a distribution agreement contract with Orion Engineered Carbons (South Africa), which will be effective from January 1st, 2021. This agreement covers rubber carbon blacks and specialty carbon blacks, for applications in coating and ink systems, polymers mechanical rubber goods, and various special use-cases. This move is expected to catapult the companies’ positions in the worldwide specialty carbon black industry.

  • Cabot Corp. is launching a major extensive program that will expand or upgrade its production facilities in order to meaningfully increase the company's global carbon black capacity by an additional 300,000 metric tons. A bulk of the increased capacity is directed at the tire, industrial rubber, and specialty products segments.

  • Himadri Speciality Chemical Ltd which is regarded as a major vertically integrated specialty carbon company in India with a market capitalization exceeding $ 1 Bn, will be devoting Rs 1000 crore to increase its carbon black business. The company will be establishing a new carbon black line in its existing integrated plant in West Bengal for making specialty carbon black.


Report Overview


Scope of the Report


The scope of the report extensively covers the carbon black market, with respect to process type, function, end-user and regions, coupled with predictions of the growth rate as well as the latest trends in terms of every submarket.


Segmentation Table


By Process Type



  • Furnace Black

  • Channel Black

  • Thermal Black

  • Acetylene Black

  • Others


By Function



  • Reinforcement

  • Pigments


By End-User



  • Tire

  • Non-Tire

  • Paints & Coatings

  • Inks

  • Plastics

  • Others



Report Scope:
Report Attribute/Metric Details
  Market Size

  • 2023: USD 17.23 Billion
  • 2027: Significant Value
  •   CAGR   Substantial Value
      Base Year   2019
      Forecast Period   2020-2027
      Historical Data   2018
      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


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    Frequently Asked Questions (FAQ) :


    The carbon black market is predicted to grow at a 4.59% CAGR between 2017-2023.

    The global carbon black market is predicted to touch USD 17.23 billion by 2023.

    Asia Pacific is predicted to lead the carbon black market during the forecast period.

    Increasing use of carbon black in aerospace and automotive sectors is boosting market growth.

    Key competitors in the carbon black market include Sid Richardson Carbon and Energy Co. Ltd., ChemChina, JINNENG, Tokai Carbon Co., Ltd., Longxing Chemical, Shandong Huadong Rubber Materials Co., Ltd., Phillips Carbon Black Ltd., Mitsubishi Chemical Corporation, Orion Engineered Carbons, OCI Company Ltd., and Cabot Corporation.

    Global Carbon Black Market: Report Summary


    The global carbon black market is set to grow from USD 13,164.6 million in 2017 to USD 17,230.4 million in 2023. This projects that the market is expanding at a moderate CAGR of 4.59% during the review period. The healthy growth of the transportation and infrastructure sector in emerging economies such as India, China, and Brazil among others is favoring the demand for the carbon black. Major players in this market are expanding and locating their manufacturing facilities in countries such as China and India, as the construction sectors in these countries are flourishing. Some of the factors driving the market are rising usage of carbon black for tire manufacturing, widening application scope of carbon black in plastics and paints & coatings, and increased demand from various end-use industries such as automotive and aerospace.


    The global carbon black market has been segmented based on process type, function, application, and region. On the basis of the process type, the furnace black accounted for the largest market share in 2017 and is projected to expand at the highest CAGR to register a market size of USD 10.42 billion by 2023. Channel black is another important process type segment, which is holding the second largest share of the global market.


    On the basis of function, the reinforcement segment is estimated to hold 81.14% share of the market in 2017. This is mainly attributed to the benefits offered by carbon black reinforcement to the substrate material, especially rubber. The main benefits offered by the carbon black reinforcement are improved resilience of the material, greater wear & tear resistance, better conductivity wherever required, and other important physical properties. Additionally, carbon black is the most commonly used, efficient, and cost-effective reinforcing agent than silica. Yet, the pigment segment is projected to witness the highest CAGR over the forecast period, 2017-2023.


    On the basis of application, the tire segment is dominating the market with the largest share of the global carbon black market and is projected to grow at healthy CAGR during the review period. The robust growth of the overall transportation sector across the globe on the backdrop of reviving global trade is expected to favor the growth of this segment.


    Regional Market Summary


    Among other major regions in the global carbon black market, Asia Pacific is holding the largest share of the market. This region is estimated to reach USD 9,242.0 million by the end of 2023. The major contributors to this regional market are India, China, South Korea, and Japan. The growth trajectory of this region is mainly attributed to the rapid urbanization and continuous industrialization, high penetration of the product in various end-use industries, and robust growth of major end users in this market. Moreover, the policymakers of major economies such as India, China, South Korea, and ASEAN countries in this region are making huge investments to improve their residential and commercial infrastructure. North America is following the Asia Pacific, in terms of market size, wherein the U.S is holding a major share of the market. Europe is another substantial region in this market in which Germany is dominating the market share due to huge automotive production. The Middle East & Africa and Latin America are estimated to grow at a moderate CAGR during the forecast period.


    Competitive Analysis


    The key players operating in the global carbon black market include Mitsubishi Chemical Corporation, Cabot Corporation, OCI COMPANY Ltd., Orion Engineered Carbons, Phillips Carbon Black Ltd., Tokai Carbon Co., Ltd., Longxing Chemical, JINNENG, Himadri Speciality Chemical Ltd., ChemChina, Sid Richardson Carbon and Energy Co. Ltd., Kremenchug Carbon Black Plant, Shandong Huadong Rubber Materials Co., Ltd., NIPPON STEEL & SUMIKIN CHEMICAL CO., LTD., Shijiazhuang Xinxing Chemical Carbon Co. Ltd., Hebei Daguangming Juwuba Carbon Black Co. Ltd., Suzhou Baohua Carbon Black Co., Ltd., and Jiangxi Black Cat Carbon Black Inc., Ltd., among others.


    During 2016-March 2018, the key growth strategies adopted by the market players were product launch, agreements, expansion and mergers & acquisitions. The extensive growth in carbon black market is highlighting the heavy investments into expanding across borders by the companies.

    Global Carbon black Market: Competitive Landscape


    The prominent players in the global carbon black market are Mitsubishi Chemical Corporation, Cabot Corporation, OCI COMPANY Ltd., Orion Engineered Carbons, Phillips Carbon Black Ltd., Tokai Carbon Co., Ltd., Longxing Chemical, JINNENG, Himadri Speciality Chemical Ltd., ChemChina, Sid Richardson Carbon and Energy Co. Ltd., Kremenchug Carbon Black Plant, Shandong Huadong Rubber Materials Co., Ltd., NIPPON STEEL & SUMIKIN CHEMICAL CO., LTD., Shijiazhuang Xinxing Chemical Carbon Co. Ltd., Hebei Daguangming Juwuba Carbon Black Co. Ltd., Suzhou Baohua Carbon Black Co., Ltd., and Jiangxi Black Cat Carbon Black Inc., Ltd., among others.


    Among the aforementioned companies the top nine players namely Mitsubishi Chemical Corporation, Cabot Corporation, OCI COMPANY Ltd., Orion Engineered Carbons, Phillips Carbon Black Ltd., Tokai Carbon Co., Ltd., Longxing Chemical, JINNENG, Himadri Speciality Chemical Ltd., are collectively dominating major share of the market. The global carbon black market is fragmented and is lacking the substantial presence of the established Tier-1 companies. Therefore, in order to go with market momentum, industry players are adopting collective approaches to exploit the modulating growth of this market. Most of the companies have adopted acquisition, product launch, capacity expansion, and patent filing as their major business tactics.


    Cabot Corporation is one of the leading players in this market. It is a global chemical company engaged in manufacturing of specialty chemicals and performance materials. The company operates into the market through five major business segments: reinforcement materials, performance chemicals, purification solutions, and specialty fluids. Under the reinforcement materials segment, the company provides rubber blacks and elastomer composites product lines. In February 2018, Cabot Corporation announced an expansion of their range of premium carbon black products called PROPEL X carbon black series. This new series is mainly dedicated to the racing and ultra-high-performance tires. Cabot showcased these new products at Tire Technology Expo 2018, held from February 20 to 22 in 2018, at Hannover, Germany. The product offers a range of reinforcement solutions to optimize performance for specific formulations and tread geometries.


    OCI COMPANY Ltd. is engaged in the manufacturing and distribution of various chemical products. The company has started commercial production of carbon black at their new plant located in Zaozhuang, Shandong province in Eastern China, in October 2016. This plant has a capacity to produce 80,000 tons of carbon black per annum in China. This move comes into effect to accelerate foray into the world’s largest tire market, i.e., China. OCI started to jointly build the factory with an annual output capacity of 80,000 tons with China’s Shandong Energy Zaozhuang Mining Group in 2014.


    Mitsubishi Chemical Corporation, a subsidiary of Mitsubishi Chemical Holdings Corporation, engages in the manufacturing, distribution, and marketing of various chemical products in Japan and across the globe. The company has long perused strategy to realize KAITEKI by providing solutions to environment and social issues and contributing to the sustainable development of people, society and the Earth. The company has strong presence in almost all the major regions in this market. Additionally, they exhibit strong and integrated R&D that formulates & develops the products to meet complex needs of various end users.


    Jinneng Science & Technology Co., Ltd., also known as JINNENG, is energy focused high-tech industrial enterprise, which engages in the production and distribution of fine and coal chemical products. On 2nd March 2018, JINNENG announced that they had entered into an investment cooperation agreement with the administration committee of Qingdao West Coast New Area in Shandong province. According to the agreement, JINNENG had plans to invest nearly USD 3.15 billion in constructing a new material and hydrogen energy comprehensive utilization program under their new “Carbon Black Program”. The first phase includes investments of nearly USD 1.4 billion, which is likely to be completed by June 2020. The second phase is scheduled to be started thereafter.


    Phillips Carbon Black Ltd. owns one of the world's renowned and reputed brands and grades of the carbon black through product customization. Moreover, some of the world's leading tire manufacturers namely Bridgestone, Goodyear, Michelin, Continental, Loadstar, Yokohama, and TVS are their clients. The company has adopted a strategic path to locate their manufacturing units strategically near the customer location to tap the expected growth in the demand for the carbon black in India. Moreover, to establish an efficient supply chain distribution network to ensure timely delivery, service to their customers and thus widen the presence in the international market.