Industry: Chemicals and Materials
Published Date: August-2024
Format: PPT*, PDF, EXCEL
Delivery Timelines: Contact Sales
Number of Pages: 173
Report ID: PMRREP34720
The market for carbon black is expected to increase from US$24.79 Bn in 2024 to US$31.04 Bn by 2031. This market growth is projected to capture a CAGR of 4.8% from 2024 to 2031.
Key Highlights of the Market
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Attributes |
Key Insights |
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Carbon Black Market Size (2024E) |
US$24.79 Bn |
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Projected Market Value (2031F) |
US$31.04 Bn |
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Global Market Growth Rate (CAGR 2024 to 2031) |
4.8% |
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Historical Market Growth Rate (CAGR 2019 to 2023) |
4.6% |
The United States dominates North America carbon black market in both consumption and production. Increasing tire replacement rates drive demand, while the recovery of the construction and automotive industries boosts needs for paints, coatings, and non-tire rubber.
Carbon black plastics are lightweight, aiding in reducing carbon emissions and fuel consumption. Significant demand is expected to continue, fueled by rising needs for tires, rubber, and high-performance coatings across various end-use industries throughout the forecast period.
Europe benefits from supportive regulations promoting plastics in automotive components. Automotive OEMs are increasingly replacing metals with thermoplastics to enhance vehicle performance, fuel efficiency, and reduce curb weight. These trends are anticipated to significantly boost demand for thermal black in automotive applications, as manufacturers seek to leverage the advantages of light materials for improved efficiency.
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Category |
Revenue Share in 2023 |
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Grade - Standard |
60% |
Based on grade, the carbon black market is segmented into two grades such as standard and specialty. In 2023, standard grade dominated with over 60% revenue share driven by growing demand for rubber and plastics, technological advancements, and sustainable solutions.
Broad applications of standard grade in tire manufacturing, non-tire rubber, inks, and coatings contribute to its projected growth. Meanwhile, the specialty grade thermal black also maintains a notable presence in the market, reflecting its importance across various industries.
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Category |
Revenue Share in 2023 |
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Type - Furnace Black |
40% |
Furnace black accounted for over 40% of the carbon black market share in 2023 making it the most widely used production method due to its high capacity. It is created through the combustion of heavy petroleum products like coal tar and FCC tar with vegetable oil.
The United States tire industry is poised for growth, driven by rising automotive sales and new manufacturing units near production centers alongside the rapid adoption of advanced tire production technologies.
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Category |
Revenue Share in 2023 |
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Type - Tires |
68.8% |
Tires type led the market in 2023 capturing 68.8% of total revenue, where thermal black serves as a strengthening agent and filler in various tire components. As the automotive industry continues to evolve, the demand for high-performance tires has surged. It is driven by advancements in vehicle technology, increased safety standards, and consumer preferences for longer-lasting and more fuel-efficient tires. This trend has significantly bolstered the demand for high-quality carbon black.
The carbon black market analysis shows that the industry is growing significantly in the material market due to its extensive applications in various sectors, including automotive, construction, and electronics. Carbon black, furnace black, or thermal black are the fine forms of graphitic carbon, typically produced as soot from the incomplete combustion of petroleum products like diesel and fuel oil.
Primarily used to enhance the strength of rubber in tires, carbon black also serves as a pigment, UV stabilizer, and either a conductive or insulating agent in various applications including rubber, plastics, inks, and coatings.
Market growth trajectory is supported by the increasing demand for carbon black in the production of tires, plastics, and other rubber goods, which are essential for numerous industrial applications. It is also being used in cosmetics. For example, telescopic carbon black Loral Paris Mascara uses this thermal black to make blackest black, fragrance-free, and washable mascara.
The market is witnessing several key industry trends that are shaping its future. The automotive sector remains the largest consumer of thermal black, primarily for tire manufacturing. There is a notable shift towards sustainable practices within the industry. The demand for green tires, which utilize eco-friendly materials, is accelerating the growth of the carbon black.
Further, innovations in production technologies are enhancing the efficiency and quality of thermal black. Stricter environmental regulations also influence production processes and product formulations, which could reshape the competitive landscape of the thermal black.
The carbon black market expansion has experienced steady growth over the past few years. From 2019 to 2023, the market expanded at a CAGR of 4.6%, reflecting a significant demand for thermal black as a reinforcing agent in tires and other rubber applications. The market's resilience during challenging economic conditions highlights its critical importance across multiple sectors.
The carbon black market growth is projected to continue its upward trajectory experiencing a CAGR of 4.8% from 2024 to 2031. As global vehicle production increases, the need for high-quality tires and rubber products will further boost the market.
The shift toward sustainable manufacturing practices is gaining momentum. Further, innovations such as the development of specialty grades of carbon black will cater to specific applications, thereby expanding market opportunities. The diversification is also expected to open new avenues for growth and increase overall market demand.
Surge in Automotive Production
The growing demand for vehicles, particularly electric vehicles (EVs), is significantly driving the need for thermal black, a critical component in tire production. As the automotive industry shifts toward electrification, manufacturers are relying on thermal black for its reinforcing properties, which enhance tire durability and performance. This trend plays a vital role in carbon black market expansion, supporting the evolving automotive landscape and meeting the requirements of modern transportation solutions.
Advancements in Technology
The emergence of battery-grade carbon black and its application in electric vehicles (EVs) are establishing new benchmarks within the industry. These cutting-edge innovations enhance the performance and efficiency of batteries, making them crucial for the growth of the EV market.
Partnerships between carbon black technology and companies are further driving carbon black market demand, fostering the development of new materials and solutions that meet the evolving demands of the automotive sector.
Volatility in Raw Material Prices
The costs of raw materials utilized in the production of thermal black, particularly heavy petroleum products, experience significant fluctuations. These price variations can create challenges for manufacturers, affecting both the overall production costs, profit margins, and carbon black market revenue.
Companies must navigate this volatility by implementing effective pricing strategies and supply chain management practices to maintain competitiveness and ensure sustainable operations in the face of unpredictable market conditions.
Environmental Challenges
The manufacturing process of thermal black is associated with the emission of harmful gases, which raises considerable environmental issues. As awareness of these impacts grows, regulatory bodies are implementing stricter environmental regulations and increasing oversight on production practices. This heightened scrutiny poses challenges for manufacturers, potentially slowing carbon black market sales.
Technological Innovation and Customer-Centric Strategies
Several carbon black market manufacturers are using advanced technologies in production processes. One such company is Cabot Corporation, which is committed to driving technological advancements and promoting sustainability through its “Responsible Care” initiative.
The company invests significantly in research and development, particularly in creating specialty grades of thermal black that meet evolving market demands. Continental Carbon Company emphasizes collaboration with manufacturers to deliver customized solutions, concentrating on high-performance grades.
Sustainability Initiatives
Carbon black market companies are investing in eco-friendly ways to incorporate black carbon in applications to lower the environmental impact. For example, Orion Engineered Carbons has taken a significant step toward promoting sustainability by introducing circular grades specifically designed for coatings systems.
This initiative aligns with the broad goal of advancing a circular economy, where resources are reused and recycled rather than disposed of. These innovative circular grades enhance the performance and environmental impact of its coatings and set sustainable practices that benefit the planet and industry alike.
The carbon black market is rapidly growing, reflecting its dynamic nature. Industry players are launching new products and adopting innovative technologies to create fresh opportunities. Companies are employing key strategies to broaden their product lines, increase market share, invest in research and development, expand globally, and optimize supply chains, all aimed at enhancing market value.
Recent Developments in the
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Attributes |
Details |
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Forecast Period |
2024 to 2031 |
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Historical Data Available for |
2019 to 2023 |
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Market Analysis |
US$ Billion for Value |
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Key Country Covered |
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Key Market Segments Covered |
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Key Companies Profiled |
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Report Coverage |
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Customization & Pricing |
Available upon request |
By Type
By Application
By Grade
By Region
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The market is predicted to rise from US$3.5 Bn in 2024 to US$4.9 Bn by 2031.
Orion Engineered Carbons Holdings GmbH, OMSK Carbon Group, and Sid Richardson Carbon & Energy Co are the leading industry players in the market.
The market is estimated to secure a CAGR of 4.8% during the forecast period from 2024 to 2031.
The tire industry is one of the large consumer of thermal black.
Technological innovation and customer-centric strategies presents a key opportunity for the market players.
