Carbon Black Market Size, Share and Growth Forecast for 2024-2031

Carbon Black Market Size and Share Analysis

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

• Carbon black is widely used in the production of tires, hoses, belts, and other rubber components.
• Technological innovations and collaborations with technology firms are setting new industry standards.
• The tire manufacturing segment holds the significant share of 70% of the market.
• Rising automotive production and technological innovations are driving market growth.
• Based on grade, standard grade dominated with over 60% revenue share in 2023.
• Companies are shifting toward natural gas-based production to reduce greenhouse gas emissions.
• The United States leads North America carbon black market with the increasing tire replacement rates.
• Tires take the lead accounting for 68.8% of market share.

Attributes	Key Insights
Carbon Black Market Size (2024E)	US$24.79 Bn
Projected Market Value (2031F)	US$31.04 Bn
Global Market Growth Rate (CAGR 2024 to 2031)	4.8%
Historical Market Growth Rate (CAGR 2019 to 2023)	4.6%

North America Carbon Black Market Poised to Obtain Notable Share

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 Carbon Black Market Emerges Lucrative with Focus of Automotive Manufacturers on Producing High-Performance Vehicles

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.

Standard Grade Rules the Industry with 60% of Revenue Share

Category	Revenue Share in 2023
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.

Furnace Black Continues to Stand Out in the Industry

Category	Revenue Share in 2023
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.

Tires Take the Lead Accounting for 68.8% of Market Share

Category	Revenue Share in 2023
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.

Market Introduction and Trend Analysis

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.

Historical Growth and Course Ahead

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.

Market Growth Drivers

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.

Factors Impeding the Market Growth

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.

Future Opportunities for the Carbon Black Market Players

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.  

Competitive Landscape for the Carbon Black Market

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

• April 2024, Nature Coatings has developed BioBlack, a 100% bio-based, high-performing, and carbon-negative alternative to traditional petroleum-derived carbon black pigment. Made from FSC-certified, recycled wood waste, BioBlack has the highest light-fastness ratings and is used in various coating applications. It comes in four products: two water-borne dispersions and two dry pigments. BioBlack is certified by the Forest Stewardship Council and USDA BioPreferred for sustainability and responsible sourcing.
• Aug 2024, Mr. Sanjiv Goenka, founder and chairman of RPSG Group, plans to increase the chemicals and thermal black business's expansion and target a group market capitalization of Rs 2 lakh crore over the next 30 months. The group plans to spend around Rs 35,000 crore in the next 12-18 months, scaling up to Rs 50,000 crore in the next three years.

Carbon Black Market Scope

Attributes	Details
Forecast Period	2024 to 2031
Historical Data Available for	2019 to 2023
Market Analysis	US$ Billion for Value
Key Country Covered	North America Latin America Europe East Asia South Asia Oceania The Middle East & Africa
Key Market Segments Covered	By Type By Application By Grade By Region
Key Companies Profiled	Orion Engineered Carbons Holdings GmbH OMSK Carbon Group Sid Richardson Carbon & Energy Co. Tokai Carbon Co. Ltd. Asahi Carbon Co. Ltd. Ralson Goodluck Carbon Atlas Organic Pvt. Ltd. Continental Carbon Co. OCI Company Ltd. Birla Carbon Bridgestone Corp.
Report Coverage	Market Forecast Company Share Analysis Competition Intelligence DROT Analysis Market Dynamics and Challenges Strategic Growth Initiatives
Customization & Pricing	Available upon request

Carbon Black Market Segmentation

By Type

• Furnace Black
• Channel Black
• Thermal Black
• Acetylene Black
• Others

By Application

• Tire
• Non- tire Rubber
• Plastics
• Inks & Coatings
• Others

By Grade

• Standard Grade
• Specialty Grade

By Region

• North America
• Latin America
• Europe
• East Asia
• South Asia
• Oceania
• The Middle East & Africa

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