Tire Carbon Black Market

Tire Carbon Black Market Outlook (2024 to 2034)

The global tire carbon black market was valued at US$ 11,421.5 million in 2024 and has been forecasted to expand at a noteworthy CAGR of 3.9% to end up at US$ 16,744.7 million by 2034.

Tire carbon black is a powder prepared from hydrocarbons used in the manufacturing of tires, which enhances their strength, durability, and resistance to wear and tear while providing better performance, grip, and longevity. The global market for tire carbon black is very important in tire manufacturing because the demand for improvement in the performance and durability of tires is so high.

Carbon black, in its majority uses as a filler, plays the most significant role in improving tire strength and wear resistance besides increasing their overall life.

Its main application domain is the automotive tire industry for enhancing tread life, fuel efficiency, and overall safety. Tire carbon black usage is also forecasted to gain traction in parallel with the performance of high-performance tires globally.

Several factors include advancements in production technologies for carbon black, expansion of automotive production in emerging economies, and increase in demand for eco-friendly as well as longer-lasting tires, which affect the market. For instance, on August 2024, Mitsubishi Chemical Group has started a study on the chemical recycling of end-of-life tires at its Japanese Kagawa plant.

The firm plans to use coke ovens to burn ELTs and produce carbon black, among other valuable products. This is part of MCG's dedication to sustainability and innovation in waste management. The studies are going to improve the recycling process and reduce the environmental impact of tire disposal.

Report Attributes	Details
Global Tire carbon black Market Size (2023A)	US$ 11,021.7 Million
Estimated Market Value (2024E)	US$ 11,421.5 Million
Forecasted Market Value (2034F)	US$ 16,744.7 Million
Global Market Growth Rate (2024-2034)	3.9% CAGR
North America Market Share (2024)	31.4%
U.S. Market Growth Rate (2024-2034)	4.4% CAGR
Key Companies Profiled	Birla Carbon; Cabot Corporation; China Synthetic Rubber Corporation (CSRC); Continental Carbon Company; Denka Company Limited; Himadri Specialty Chemical Ltd.; Mitsubishi Chemical Corporation; Omsk Carbon Group; Orion Engineered Carbons S.A.; Phillips Carbon Black Limited (PCBL); Ralson Goodluck Carbon; Sid Richardson Carbon & Energy Co.; Tokai Carbon Co., Ltd.; Other key players

Historic Analysis (2019 to 2023) and Future (2024 to 2034) Pathway Analysis for the Global Tire Carbon Black Market

The global tire carbon black market grew at a growth rate of 3.5% from 2019 to 2023, and by the end of 2023, it was valued at US$ 11,021.7 million. The stringent regulations related to tire carbon black are a major factor for the steady increase of the market during the forecasted period.

Historical Report Attributes	Details
Market Size (2019A)	US$ 9,557.8 million
Market Size (2023A)	US$ 11,021.7million
Historical CAGR (2019 to 2023)	3.5%
Forecasted CAGR (2024 to 2034)	3.9%

• Short Term (2024 to 2028): In the short term, the shift toward eco-friendly tires with reduced rolling resistance will drive growth. Manufacturers are including carbon black in sustainable tire solutions, which reduce fuel consumption and impact on the environment. This is most notable in the growth of electric vehicle production, where electric vehicle tires need specific carbon black to enhance their performance and efficiency.
• Medium Term (2028 to 2030): Technological advances in tire material and manufacturing are going to greatly impact market growth. The high-performance carbon black used in the advanced tire technology for electric and autonomous vehicles is going to push the market up. Tires that are going to be long-lasting, have higher fuel efficiency, and carbon footprints are likely to emerge; hence, specialized carbon black material in the tire-making process is in high demand worldwide.
• Long Term (2030 to 2034): The demand for eco-friendly products and long-term sustainability programs will fuel the tire carbon black market. Sustainability practices will force the tire producers to use the available carbon black in a more environment-friendly manner or from renewable sources. This development will be associated with the tightening of environmental norms and will also boost the usage of sustainable, high-performance carbon black formulations in the tire industry.

On the back of the aforementioned facts, the global tire carbon black market is anticipated to grow at a CAGR of 3.9% during the forecast period from 2024 to 2034, according to the Fact.MR, a market research and competitive intelligence provider.

Market Dynamics

What are the Factors Propelling Global Sales of Tire carbon black?

“Technological Advancements and Precision Strike Capabilities”

The global automobile industry is seeing good growth in demand from customers, which will help boost its growth. Higher demand for tires means a proportionate increase in production. Therefore, manufacturers need to satisfy this market growth which will likely push the demand for tire carbon black upwards.

Advancements in the technology of the tire, comprising all-season tires and performance, increase the need for high-grade carbon black in the market. Manufacturers are developing tires that meet performance, endurance, and safety requirements, boosting the demand for specific carbon black variants. This can be seen highly in emerging economies, where more people are adopting vehicles due to increasing disposable income and urbanization.

“Technological Advancements in Tire Manufacturing”

Advances in the processes of manufacturing tires have become significant drivers for tire carbon black demand. New materials and new production methods facilitate the manufacturing of tires that are more effective, safer, and more durable. Special carbon black formulations create high-performance tires that help enhance traction while decreasing the rolling resistance which helps to boost fuel efficiency.

Another opportunity for carbon black applications has emerged with the integration of smart technologies in tires, such as sensors for monitoring tire health. With continued investment in research and development by manufacturers, the demand for innovative carbon black products will continue to rise, further expanding the market.

What are the Challenges Encountered by Manufacturers of Tire carbon black?

“Cost Pressures and Raw Material Sourcing.”

One of the largest problems facing producers of tire carbon black is fluctuating raw materials costs. As a significant use for carbon black involves feedstocks that are directly dependent on global oil prices, changes in that commodity are easily felt through changes in petroleum costs. Those cost fluctuations directly impact the cost to produce, therefore the price one could reasonably anticipate being able to command for it.

Further, the increase in sustainability orientation and the turn to alternative materials might call for more investment from manufacturers in newer technologies and processing techniques, therefore putting a significant strain on resources. Thus, companies need to address all these challenges as they try to remain competitive in such a dynamic environment.

Country-wise Insights

Why is the Adoption of tire carbon black High in the United States?

“Operational Effectiveness and ability to produce concisely is expected to drive the market in United States (U.S.)”

The tire carbon black market in the United States is estimated at US$ 2,592.9 million in 2024 and is projected to expand at a CAGR of 4.4% through 2034. This market is projected to generate US$ 1,401 Million in absolute opportunities from 2024 to 2034.

The adoption of tire carbon black is very high in the United States, as the country has a strong automotive industry and stringent safety regulations. Several leading tire manufacturers are based in the U.S., which emphasize high-performance products, thereby driving the demand for advanced carbon black formulations.

The increasing focus on electric vehicles and sustainable practices has prompted manufacturers to invest in innovative tire technologies that require specialized carbon black. The fact that there exist established supply chains and a focus on research and development has further added to the high adoption rates, thus making the U.S. an important market for tire carbon black.

Why is China a Lucrative Market for Tire carbon black?

“Domestic Production and Export Growth”

The market in China is estimated to reach US$ 2,160.0 million in 2034 at a CAGR of 5.5%. This market is projected to generate US$ 895 Million in absolute opportunities from 2024 to 2034.

China is very profitable to producers of tire carbon black since there is a significant automotive and manufacturing industry for the tires. In this country, the demand for high-quality tires remains very high since China happens to be the world's largest automobile producer and consumer.

Further, China's large population continues to create a higher market for vehicle sales, thereby calling for durable, high-performance, and better-quality tires. Investments are going into carbon black advanced technology because of governmental support in this sector for China to pursue its goal of supporting green manufacturing, hence making an attractive market.

Category-wise Insights

Which Material is Widely Preferred for the Production of Tire Carbon Black?

“The most widely preferred material for the production of tire carbon black is furnace black”

Demand for furnace black is projected to increase at a CAGR of 4.0% from 2024 to 2034. The furnace black is one of the widely accepted materials for manufacturing tire carbon black, which results from the partial combustion of hydrocarbons. It is in preference because it possesses excellent reinforcement properties that add strength and resistance to tires.

Another advantage of the furnace black is a performance characteristic balance where low rolling resistance and improved resistance to wear are exhibited, therefore being suitable for all types of tire applications. Manufacturers opt for furnace black because it's cheaper, meeting the rigid demands of high performance in contemporary tires, thus being able to supply top-quality products for consumers.

How does the function of reinforcement in tire carbon black impact tire performance?

“It helps to improve mechanical properties of tires such as strength, durability, and wear resistance of tires”

The function reinforcement is projected to register a CAGR of 3.9% during the forecast period and is anticipated to reach a market valuation of US$ 12,039.5 Million by 2034-end.

Reinforcement is an important function of tire carbon black, which greatly enhances the mechanical properties of tires. The strength, durability, and wear resistance of tires are improved by incorporating carbon black in them, which is essential for optimal performance. This reinforcement also helps in improving traction and stability, thus making it safe to drive.

Carbon black reduces rolling resistance, which in turn improves fuel efficiency. Thus, the production of high-performance tires, especially those required for modern vehicles, relies on carbon black as an essential reinforcing agent.

Competitive Landscape

Key players in the tire carbon black industry  are Birla Carbon, Cabot Corporation, China Synthetic Rubber Corporation (CSRC), Continental Carbon Company, Denka Company Limited, Himadri Specialty Chemical Ltd., Mitsubishi Chemical Corporation, Omsk Carbon Group, Orion Engineered Carbons S.A., Phillips Carbon Black Limited (PCBL), Ralson Goodluck Carbon, Sid Richardson Carbon & Energy Co., Tokai Carbon Co., Ltd.

Companies devote a significant portion of their revenue to R&D to resolve problems and offer creative solutions to draw in new customers and stay competitive. Companies are developing customized offerings for issues that meet industry-specific needs to compete with other players.

• On September 2023, Birla Carbon declared a major investment in sustainable technology to improve the production process for carbon black. The company would introduce new techniques of manufacturing with reduced carbon emission and improved energy efficiency. The move is a part of the overall commitment towards sustainability by Birla Carbon, which fits into the larger global trend toward greener manufacturing. This investment will further strengthen the company's hold in the market, as this demand for environment-friendly products increases.
• On June 2024, CSRC and Sheico will construct the biggest rCB plant in North America. It is situated in the United States, where it will be built with an annual capacity to produce 30,000 tons of rCB, 35,000 tons of tyre pyrolysis oil, and 2,300 tons of steel wire per year. This significant investment is expected to improve the recycling capacity in the region and support sustainability in the tire industry. The plant is also expected to play an important role in waste reduction and to assist the circular economy by providing good-quality recovered material for various applications.

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

Segmentation of Tire carbon black Industry Research

• By Product Types :

  • Thermal Black
  • Furnace Black
  • Channel Black
  • Acetylene Black
  • Lamp Black

• By Function :

  • Reinforcement
  • Pigmentation
  • Conductivity

• By Tire Type :

  • Passenger Car Tires
  • Commercial Vehicle Tires
  • Two-Wheeler Tires
  • Off-The-Road (OTR) Tires
  • Specialty Tires

• By Grade :

  • Standard Grade
  • High-Performance Grade
  • Specialty Grade

• By Region :

  • North America
  • Latin America
  • Western Europe
  • Eastern Europe
  • East Asia
  • South Asia & Pacific
  • Middle East & Africa