Carbon Black Market

Carbon Black Market Growth Outlook (2023 to 2033)

The global carbon black market size is estimated to be valued at US$ 26.2 billion in 2023 and it is expected to grow at a CAGR of 6.0% to reach US$ 46.9 billion by the end of 2033.

The demand for carbon black is determined by growing applications of carbon black in many end-use industries, predominantly tires, rubber, paints & coatings, and others. Further, growing automotive industries across the globe is likely to fuel the demand for carbon black during the forecast period.

Report Attributes	Details
Carbon Black Market Size (2022A)	US$ 24.7 Billion
Estimated Market Value (2023E)	US$ 26.2 Billion
Forecasted Market Value (2033F)	US$ 46.9 Billion
Global Market Growth Rate (2023-2033)	6.0% CAGR
North America Market Share (2023)	22.0%
Key Companies Profiled	Asahi Carbon Co. Ltd Birla Carbon Public Co. Ltd. Continental Carbon Company Himadri Chemicals & Industries Ltd. Orion Engineered Carbons S.A. Phillips Carbon Black Limited Tokai Carbon Co. Ltd.

Historic and Future Pathway Analysis for the Market

The carbon black market is estimated to continue its growth trajectory in the coming years due to the increasing demand from the tire industry, which accounts for over 70% of the total demand, along with the growth in the plastics industry, particularly in the automotive, packaging, and construction sectors, are driving the demand for carbon black.

Technological advancements in the development of new grades of carbon black with improved properties are expected to increase the demand. The carbon black market is expected to experience steady growth in the coming years.

• Short Term (2023-2026): Carbon black is used in the production of plastics to improve their mechanical properties and provide UV protection. The increasing demand for plastics in various industries, such as automotive, packaging, and construction, is expected to drive the demand for carbon black in the coming years.
• Medium Term (2026-2029): Carbon black is also used in the coatings industry to provide color, UV protection, and conductivity to the coatings. The growth of the coatings industry, particularly in emerging economies, is expected to drive the demand for carbon black.
• Long Term (2029-2033): Advancements in technology have led to the development of new grades of carbon black with improved properties, such as high electrical conductivity, low particle size, and high surface area. These advancements are expected to increase the demand for carbon black in various industries during the projection period.

According to the Fact.MR, a market research and competitive intelligence provider, the market is projected to exhibit growth at 6.0% CAGR between 2023 and 2033.

Market Dynamics Outlook

“Expanding Automotive Industry Increases the Demand for the Carbon Black”

The growing automotive industry is a significant driver of the demand for the market. Carbon black is widely used in the tire industry, which is the largest consumer of carbon black, accounting for over 70% of the total demand. With the increasing demand for automobiles and the expansion of the tire industry, the demand for carbon black is also expected to rise.

Carbon black is also used in automotive parts such as belts, hoses, and seals, to enhance their durability and longevity. As the automotive industry continues to grow, the demand for these automotive parts will also increase, further driving the demand for carbon black. Hence, the growth of the automotive industry is expected to be a significant factor in driving the demand for the carbon black market.

“Fluctuation in Crude Oil Prices: Restrain”

Fluctuations in oil prices are observed to have a significant impact on the carbon black market growth. The primary reason for this is that carbon black is predominantly produced using heavy aromatic oils derived from crude oil. As a result, changes in oil prices directly impact the production costs of carbon black. For instance, when oil prices rise, the production cost for carbon black increases, which ultimately leads to higher prices for the end-users.

• For instance, according to data from the International Energy Agency (IEA), the average price of crude oil was US$ 64.4 per barrel in 2019, which increased to US$ 41.9 per barrel in 2020 due to the COVID-19 pandemic's impact on global oil demand.
• As of April 2023, the average price of crude oil stands at around US$ 80.0 per barrel.

This volatility in oil prices creates uncertainties in the carbon black market, which hampers market growth and pushes customers to seek out more affordable alternatives to carbon black, resulting in a decrease in demand for the product.

Country-wise Insights

Why China is a Prominent Player in the Carbon Black Market?

China is among the largest consumers and producers of carbon black globally. The country's robust tire manufacturing industry is the primary driver of the demand for carbon black, accounting for over 40% of global consumption.

China is also the world's largest automotive market, and the growth of the automotive industry has led to an increase in demand for carbon black in various automotive applications such as belts, hoses, and seals.

China has a significant advantage in terms of production costs due to its abundant and low-cost feedstock. The country has access to abundant coal resources, which is a more affordable alternative to crude oil and natural gas. This has made China one of the lowest-cost producers of carbon black globally, making it an attractive destination for carbon black manufacturers looking to reduce their production costs.

Why Does the Demand for Carbon Black is Increasing in India?

India is estimated to be the most lucrative market for carbon black chemicals in the South Asia and Oceania region, driven mainly by increased investment from some of the country's prominent players, as well as continued demand from the country's strong automotive industry.

The construction industry in India is growing rapidly, driving demand for carbon black in construction applications. Carbon black is used in the production of concrete and asphalt, which are key building materials used in construction.

Further, the Indian government has implemented several policies to support the growth of the manufacturing industry, which has led to an increase in the production of various goods, including tires and other rubber products, which are key end-users of carbon black.

Category-wise Insights

Why Standard Grade of Carbon Black is projected to hold the Majority of the Share?

The standard-grade carbon black is the most commonly used type of carbon black. It is widely used in various applications, including tires, plastics, coatings, and inks, due to its high surface area, excellent tinting strength, and good dispersion characteristics.

The demand for standard-grade carbon black is growing due to the growing demand for tires, which accounts for the largest share of carbon black consumption. Standard-grade carbon black is the most commonly used type of carbon black in tire manufacturing due to its superior performance characteristics.

Further, the low production cost of standard-grade carbon black compared to other specialty grades makes it more economically viable for manufacturers. This has led to a preference for standard-grade carbon black in various industries. Hence, the standard grade of carbon black is projected to hold the majority of the share in the global carbon black market.

Why the Furnace Black Production Method is Gaining Traction in Market?

The furnace black production method is gaining traction and accounts for the majority of the global carbon black market share compared to others. The furnace black method involves the combustion of heavy petroleum feedstocks in a furnace, which produces a high yield of carbon black.

The furnace black method is more versatile than other production methods, as it produces carbon black with a wide range of properties and characteristics. This makes it suitable for a diverse range of applications, including tire manufacturing, plastics, inks, coatings, and other industrial applications.

The furnace black method is more cost-effective compared to other production methods, such as the gas black method, as it uses lower-cost feedstocks, such as heavy petroleum residues and coal tar. This has made it an attractive option for manufacturers looking to reduce their production costs.

Eminent Players Key Stratagems

Prominent carbon black manufacturers are Asahi Carbon Co. Ltd, Birla Carbon Public Co. Ltd., Continental Carbon Company, Himadri Chemicals & Industries Ltd., Orion Engineered Carbons S.A., Phillips Carbon Black Limited, and Tokai Carbon Co. Ltd.

The market player operating in the carbon black market opted for both organic and inorganic approaches such as partnerships, acquisitions, and collaborations. For instances,

• In July 2021, Orion Engineered Carbons announced a partnership with HiQ-CARB to provide lithium-ion batteries, equipped with high-performance carbon additives
• in July 2021, Orion Engineered Carbons partnered with RISE and focused on the development of renewable carbon black. This approach would help the company focus on the sustainable development of products thus placing it at the center stage of innovation.

Fact.MR has provided detailed information about the price points of key manufacturers of carbon black positioned across regions, sales growth, production capacity, and speculative technological expansion, in the recently published report.

Segmentation of Carbon Black Industry Research

• Carbon Black Market by Grade :

  • Standard
  • Specialty

• Carbon Black Market by Production Method :

  • Furnace Black
  • Thermal Black
  • Others

• Carbon Black Market by Application :

  • Printing Inks
  • Paints & Coatings
  • Packaging
  • Batteries
  • Plastics
  • Tires
  • Others

• Carbon Black Market by Region :

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