Carbon black is a type of amorphous carbon produced by the thermal dissolution of heavy petroleum products such as coal tar and ethylene cracking tar. It mostly comprises carbon, with traces of oxygen, hydrogen, sulphur, and nitrogen. Moreover, it serves as a pigment, UV stabilizer, conductor, and insulator. As a result, carbon black is used in a variety of sectors around the world, including rubber, paint and coating, packaging, and plastic.
In 2021, the market for carbon black was worth USD 13.45 billion, and it will be worth USD 21.85 billion, growing at a 5.5% CAGR during the forecast period.
The market is driven by the growing tyre sector, rising applications in the textile and fibre sectors, and expanding market penetration of speciality black.
Market Dynamics
Drivers
Carbon black is widely used in tyres and rubber products, where it helps to strengthen and absorb shock. The product is used in many parts of a tyre, including the carcass, inner liners, tread, and sidewall, and rubber products such as air springs, gaskets, hoses, wiper blades, diaphragm, and bushings. Tires with carbon black have a longer tread life because they resist heat generated by the belt and tread areas. As a result, the explosive growth of the rubber and tyre industries may benefit carbon black production in the coming years.
Increased automotive sales have contributed significantly to the global expansion of the tyre industry. The tyre industry is moving towards establishing units near automobile manufacturing centres and embracing modern production technologies, which could benefit the global carbon black market.
Restraints
Production-Related Hazardous Gas Emissions impede the development of the carbon black market. The production process emits various hazardous gases, including nitrogen oxide, carbon dioxide, carbon monoxide, sulphur dioxide, and particulate matter, which reduces the demand for the product. These pollutants also impact the environment and human health. Inhaling these gases can cause dizziness, headaches, nausea, trouble breathing, and chest tightness.
Opportunity
India, South Korea, and China are among the Asia Pacific’s fastest-growing economies. A booming automobile industry further boosts the need for tyres and rubber in these nations. Growing investment in the region has resulted in industrial advancement, and the development of the construction industry may also present some lucrative opportunities to key players in the global industry.
Market Segmentation
By Type
The black furnace segment was the largest market contributor on the basis of type. The furnace black method for rubber reinforcing is expected to increase market share. This technique is utilized to make colour pigments for cosmetics, and its increased adoption will boost the market growth. The black furnace segment will expand rapidly due to the rising cosmetic industry.
By Grade
In 2021, the standard grade segment ruled the entire market. This is due to the widespread usage of tyres, cables, and other standard-grade rubber-based goods in many industrial applications. The specialised grade segment will expand rapidly due to the rising utilisation in the plastic, inks, and coatings industries.
By Application
The tyre segment will increase at the greatest CAGR due to the fast growth of the automobile sector. The growth of the vehicle industry has increased tyre usage, supporting product demand.
The non-tire rubber market will experience significant growth due to strong product demand as a reinforcing agent and shock absorber in producing various industrial rubber goods. The primary ingredient in industrial rubber products like shoe soles, mats, roofing, conveyor belts, gaskets, seals, hoses, and cables is carbon black.
Regional Overview
In 2021, Asia Pacific contributed for the largest market share of nearly 40%. Factors boosting the growth of the market is an increase in plastic consumption in important end-use industries like automotive, construction, conductive polymers, and packaging. Over the forecast period, an increase in polymer production will be a significant factor in the expansion of the regional market, particularly in China, India, and Southeast Asian nations, including South Korea, Thailand, Malaysia, and Vietnam.
North America’s carbon black market held a sizable portion of around 2.51 billion USD in 2021. Demand for products such as paints and coatings, moulded plastics, wires, and cables will be driven by the United States’ economic recovery and increased commercial and automobile manufacturing activity.
Key Players
- Continental Carbon Company
- Birla Carbon
- Omsk Carbon Group
- Cabot Corporation
- Tokai Carbon Co, Ltd.
- International China Oak Investment Holdings Co., Ltd.
- Philips Carbon Black Limited
- Himadri Speciality Chemical Limited.
- Atlas Organics Private Limited
- Orion Engineered Carbons GmbH
- Ralson
In 2021, the market for carbon black was worth USD 13.45 billion, and it will be worth USD 21.85 billion, growing at a 5.5% CAGR during the forecast period. Increasing plastic use in end-user industries, rising tire demand, and rising demand for mechanical rubber goods are the factors driving market expansion. The market is experiencing growth opportunities due to increased car investment and renovation, as well as an increased industrial building.
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