TAGS: Polymer Reinforcement
The global carbon black market size is projected to grow from USD 13.22 billion in 2022 to USD 18.09 billion by 2029, exhibiting a CAGR of 4.6% during the forecast period. The increasing product consumption in tire manufacturing and the rising plastic demand for electronics, consumer goods, and automotive industries will fuel the market growth.
The global COVID-19 pandemic has been unprecedented and staggering, with carbon black experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels.
Filler to Reinforce & Enhance Physical Characteristics
The rubber industry is growing rapidly, owing to the increasing demand from the automotive, electronics, consumer goods, and construction industries. Nearly each rubber compound consists of carbon black as a filler to reinforce and enhance its physical characteristics. Additionally, it aids in strengthening the volume and vulcanization of rubber.
The harmful release of various gases, such as nitrogen oxide, carbon dioxide, carbon monoxide, sulfur dioxide, and particulate matter, during the production process is restricting the product demand. The automotive industry was severely affected by the COVID-19 pandemic. The movement of man and material alike had been affected, and this caused disruptions in the supply chain. Also, the pandemic led to the closure of assembly plants in the U.S., along with large-scale manufacturing interruptions across Europe and Chinese exports.
The rising concerns about the dumping of old tires have surged the need for tire recycling using the pyrolysis process. This has eventually helped recover the energy in the form of heat and various materials that might have been lost as waste. Therefore, the growing focus on recycling processes is expected to favor market growth in the near future.
Market Segmentation by Type, Grade & Applications
On the basis of type, the market is segmented into furnace black, channel black, thermal black, acetylene black, and others. Furnace black is the leading segment and is expected to grow fastest during the forecast period. This type is produced by unfinished petroleum oil or coal oil combustion using an oil furnace. This process allows the mass production of carbon black with different particle structures and sizes. Also, this type is greatly utilized as a strengthening agent in rubber production.
The thermal black segment is the second largest segment in the global market. The growth is attributed to its UV absorbent properties, which surge demand in the plastic industry. Acetylene black is produced from acetylene gas using a thermal decomposition process. The product’s high purity and extreme conductivity aid its usage in producing silicon products, electric power cables, and dry cells.
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Based on grade, the market is bifurcated into standard grade and specialty grade. Standard grade accounted for the dominant carbon black market share in 2021. This dominance is due to the surging adoption of standard grade rubber-based products, such as tires, wires, and cables, for several industrial applications. The specialty grade segment is anticipated to have a significant growth rate due to its rising use in the inks & coatings and plastic industries.
Based on application, the market is segmented into tire, non-tire rubber, inks & coatings, plastics, and others. The tire segment is likely to dominate the market in the forthcoming years. The product accounts for about 30% of the overall weight of a tire produced. Moreover, rapid growth in the automotive industry has fueled the consumption of tires, helping in product demand.
The non-tire rubber segment is anticipated to showcase significant growth, owing to high product demand as a
reinforcing agent and shock absorbent in the production of various industrial rubber products. Industrial rubber products, such as soles of shoes, rubber mats, rubber roofing, conveyor belts, gaskets, seals, hoses, and cables, primarily consist of carbon black. The demand for black pigment from the producers of plastics, inks, paints, and coatings is expected to increase due to consumer preference for black-colored products. This will increase the consumption of carbon black as a pigment in plastics and inks & coatings applications.
Regional Insights
Asia Pacific stood at USD 7.15 billion in 2021 and is likely to dominate the global market during the forecast period. China is the largest producer and consumer of this product. The carbon black market growth in China is attributed to the increasing use of the product in tire and plastic goods production. Furthermore, rising research & development activities, coupled with advancements in the product, will boost the consumption of the product in the region.
In North America, the market growth is due to the rising adoption of specialty grades in inks & coatings application. Further, the rising use of furnace black in hoses, air springs, vibration isolation devices, and belts will fuel the market growth in this region.
Birla Carbon Thailand Public Co. Ltd. (Thailand), Cabot Corporation (U.S.), Orion Engineered Carbons SA (Germany), Phillips Carbon Black Limited (India), CSRC Group (Taiwan), Omsk Carbon Group (Germany), OCI COMPANY Ltd. (South Korea), Himadri Speciality Chemicals Ltd. (India), Longxing Chemical Industry Co., Ltd. (China), Mitsubishi Chemical Holdings Corporation (Japan).
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Source: Fortune Business Insights