TAGS: Automotive Coatings Plastic Coatings Architectural Coatings Inks
The global carbon black market size was valued at USD 12.61 billion in 2021. The market 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 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. Based on our analysis, the global market exhibited a decline of -11.5% in 2020 as compared to 2019.
Beneficial Characteristics Boosts Market Growth
Carbon black is obtained from the thermal decomposition of heavy petroleum raw material such as ethylene cracking tar, coal tar, or FCC tar. It is highly adopted, owing to its beneficial characteristics such as efficiently absorbing ultraviolet (UV) light and converting it into heat, increased tire tread wear and rolling resistance, improved thermal conductivity, and superior UV protection.
Processes, such as oil furnaces and thermal, are mainly used in product manufacturing. 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 automotive industry was severely affected by the COVID-19 pandemic. It has suffered a demand shock due to disruptions in manufacturing and supply of raw materials and finished products.
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.
Growing Product Demand for Plastic Goods
The product is mainly used in plastics as a conductive filler material, pigment, and particulate reinforcing agent. As a filler, it is used in manufacturing a variety of plastic products such as pipes, films, stretch wrap, photographic containers, and industrial bags.
The demand is attributed to its high strength, thermal conductivity, and antistatic properties. Furthermore, they act as a UV light absorber that aids in protecting plastic from discoloration, chalking, fading, and cracking.
Black is the preferred color for most of the electronics produced across the globe. This makes
carbon black a preferred choice for most electronics products, including computers, laptops, televisions, and smartphones.
This further increases the product demand from the electronic industry. These are some of the factors boosting the product consumption in the manufacturing of plastic goods and are anticipated to fuel market growth.
Rapid Growth of Rubber Industry
The rubber industry is growing rapidly, owing to the increasing demand from the automotive, electronics, consumer goods, and construction industries. In these industries, rubber goods are highly utilized in producing wires & cables, tires, hoses, air springs, windows & doors, belts, and gaskets.
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. Besides, it conducts heat away from the tread and belt area of tires. This leads to improving the lifespan of rubber products.
They are extensively added to various parts of tires such as inner-liners, sidewalls, and carcasses. The increasing product adoption of rubber products, coupled with rapid growth in the tire industry, will drive the global market during the forecast period.
Release of Harmful Gases
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 emissions not only impact the environment but also affect human health. Inhalation of these gases can cause dizziness, headache, nausea, difficulty breathing, and chest tightness. Due to this, several stringent regulations have been imposed by the governments of various countries.
For instance, the International Agency for Research on Cancer (IARC) raised concerns regarding the hazardous impacts of the product on humans. Hence, these factors are restricting product adoption and are anticipated to hamper market growth.
Segmentation by Type Analysis
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.
Segmentation by Grade Analysis
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.
The 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.
Segmentation by Application Analysis
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.
Related Read: Selecting Carbon Black for Paints, Coatings and Inks
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 Forecast with Highest Consumption
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.
Moreover, the rapid growth in the automotive industry will surge the product demand in Europe. Here, the higher adoption of the product can be seen in different parts of tires such as carcasses, inner-liners, treads, and sidewalls. Growing demand for tires and other rubber products from the automobile industry will boost the market in South America and the Middle East & Africa.
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Source: Fortune Business Insights