Carbon Black Market Size, Share & Trends Analysis Report By Application (Tires, High-performance Coatings, Plastics), By Region, And Segment Forecasts, 2023 - 2030

Report Overview

The global carbon black market size was valued at USD 21.36 billion in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 4.8% from 2023 to 2030. Rising product usage in the production of plastics is anticipated to drive growth. Moreover, the rising usage of these plastics in electrical and electronic components will boost product demand. Carbon black is produced either by thermal decomposition or partial combustion method, which includes oil or natural gas as a feedstock. It is produced by four different processes, which are the furnace black process, channel process, acetylene black process, and Lampblack process.

Furnace black is the most commonly used method owing to its maximum production capacity. Industrially, it is produced by the combustion of heavy petroleum products, such as coal tar and Fluid Catalytic Cracking (FCC) tar, with vegetable oil. The U.S. tire industry is expected to witness a surge in demand owing to increasing automotive sales in the country. Tire manufacturers in the region are establishing new units in the vicinity of automobile production centers. Moreover, the quick adoption of advanced technologies in tire production is further expected to fuel market growth.

Growing environmental concerns coupled with the developing automotive industry is expected to drive the growth of the U.S. carbon black market. The refurbishing trend has resulted in increased demand for high-performance coatings in automotive as well as other industries, such as marine, aerospace, and industrial.

The market dynamics are largely dependent on the usage of rubber, electronic discharge compounds, and inks along with several regulations formulated for manufacturing technologies and raw materials used. The market is also influenced by the regulatory laws put in place by major North American and European government bodies. Within this industry, transportation is poised to be the dominant segment over the next seven years owing to the increasing demand for tires and rubber.

The product helps improve the strength and longevity of tires by providing better abrasion resistance and tensile strength. Also, growing construction and manufacturing sectors utilizing industrial rubber and equipment are anticipated to positively impact the demand for carbon black over the forecast period.

Product prices are majorly based on raw materials, auxiliary materials, and utilities. The crude oil price fluctuation has a major impact on the pricing of carbon black. Some other macro-level factors influencing the price include working capital and pre-operational costs. The installation and setup, capitalized interests, project engineering and management, and commissioning costs are included under the pre-occupational costs.

Carbon Black is formed by incomplete combustion of different petroleum-based constituents. Carbon black is an essential component for a range of end-use applications such as consumer goods, automobiles, appliances, electronics, and others. Since carbon black is a petroleum-derived product the manufacturers rely on sourcing their key raw materials at the right prices with no supply hindrance. Raw materials are critically selected by the manufacturers depending on their product quality, offering price, product portfolio holding, and market accessibility.

Growing automotive sales together with the implementation of progressive technologies in tire manufacturing are further estimated to fuel market progress in the region. Mounting high-performance coatings consumption in the aerospace and defense industry is anticipated to remain a key growth driving factor. Carbon blacks are cautiously aimed to transmute electrical characteristics from insulating to conductive in goods such as safety applications, electronic packaging, and automotive parts.

The rise in the global population has also increased product development, driving the demand for carbon black in the international market. Carbon black is extensively utilized in tire manufacturing by amalgamating it in rubber as both paddings and as well as a firming component. Several kinds of tires, it is used in sidewalls, inner liners, treads, and carcasses utilizing diverse forms based on precise performance requirements.

High-performance coatings are being widely used in end-use industries such as aerospace & defense, petrochemicals, infrastructure, and floor coatings. They are generally used in areas of high wear & tear and where exposure to adverse conditions is high. Major high-performance coatings include automotive basecoats, automotive refinishing, decorative coatings, electronic coatings, and wood coatings.

Increasing plastics demand in automotive components to manufacture lightweight and fuel-efficient vehicles is anticipated to remain a key driving factor for market growth over the forecast years. The growth of the automobile industry is anticipated to drive the growth.

Market players are adopting the product differentiation strategy that insulated them from price wars. The merger and acquisition activity in the market has been high for the past few years. Tokai Carbon has been leading the way as it has acquired a majority stake in 3 companies in the past 3 years.

Geographical expansion and technical expertise are the major intentions behind the acquisition. With the change in the competitive environment caused by the COVID-19 pandemic, the market is expected to witness more acquisitions. The market consolidation that has resulted due to the pandemic is expected to lead to companies targeting emerging economies or product categories that aid their market positioning

Application Insights

Tires emerged as a dominant application segment accounting for 68.8% of the overall revenue share in 2022. The product is widely used in tire manufacturing by adding rubber as a strengthening agent and as a filler. It is used in carcasses, inner liners, treads, and sidewalls utilizing different types based on specific performance requirements.

The plastics segment emerged as the fastest-growing segment in 2022. Carbon blacks are widely used for films, conductive packaging, moldings, fibers, semi-conductive cable compounds, and pipes in products, such as industrial bags, refuse sacks, stretch wraps, agriculture mulch film, and photographic containers. It is used in the production of conductive plastics as it exhibits antistatic and electrical conductivity properties.

Regional Insights

Asia Pacific led the global market with a revenue share of 63.3% in 2022 followed by Europe and North America. Stringent environmental regulation may harm the North America and European market. However, the high demand in tire manufacturing is expected to support the market. High economic growth along with rapid industrialization and urbanization in the emerging regions of Asia Pacific has boosted the regional demand for carbon black. Rising foreign investments and favorable regulatory policies are also contributing to market growth.

The region is rapidly transforming into a manufacturing hub, which has increased the demand for the material over the past few years. Major manufacturers are shifting their manufacturing facilities to countries like India, China, and Vietnam, as they have lower labor costs and support from the respective governments. Rising automotive production is also expected to drive product demand over the forecast period. Initially, the chemical was exported to developing countries like China, but with a rise in their production capacities, the exports have reduced.

North America is dominated by the U.S., both in terms of product consumption and production. The demand for tires in North America has increased with a rise in the number of tires being replaced every year. Moreover, the constant recovery of ongoing construction and automobile industries giving rise to the demand for paints, coatings, and non-tire rubber will drive the market further.

Plastics manufactured from carbon black are lightweight and thus help reduce carbon emissions and fuel consumption. North America is expected to witness significant demand over the forecast period over the forecast period owing to increasing tire, rubber, and high-performance coatings demand from end-use industries.

Europe is characterized by favorable regulatory policies regarding plastics usage in automotive component applications. Additionally, automotive OEMs in the region are actively incorporating thermoplastics as a substitute for metals to provide automobiles with better performance and fuel efficiency while reducing the overall curb weight of the vehicle. These factors are expected to drive demand for carbon black in automotive applications.

Key Companies & Market Share Insights

Some of the key manufacturers and suppliers in the market focus on increasing production capacities and the development of new and sustainable technologies to produce carbon black. For instance, Cabot Corp. has set up manufacturing units in developing countries of Asia for faster and cheaper production. Collaborations with raw material suppliers and end-use manufacturers will help industry participants to gain significant market share over the forecast period. Some prominent players in the global carbon black market include:

• 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.

• Cabot Corp.

• China Synthetic Rubber Corporation (CSRC)

• Himadri Companies & Industries Ltd. (HCIL)

• Mitsubishi Chemicals

• Nippon Steel & Sumikin Chemical Co. Ltd.

• Jiangxi Black Cat Carbon Black Inc.

Recent Developments

• In June 2023, Bridgestone Corporation announced the commencement of the development of tire-derived oil and recovered carbon black via pyrolysis of worn tires with the help of test units established at the Bridgestone Innovation Park in Tokyo. This is aimed at encouraging the social deployment of chemical recycling technologies that allow the efficient pyrolysis of worn tires. 

• In April 2023, Orion Engineered Carbons announced the implementation of its new cogeneration technology producing renewable energy in its Ivanhoe plant (Louisiana, U.S.). The system comprises a steam turbine generator, which ingests the waste steam from the production process of the carbon black plant and alters it to electricity. 

• In April 2023, Tokai Carbon Co., Ltd.  entered into a strategic partnership with Sekisui Chemical Co., Ltd., for the real-world application of the Carbon Capture and Utilization (CCU) technology. This deal was aimed at manufacturing varied carbon products and materials for the capture and storage of carbon dioxide (CO2) as solid carbon.

• In March 2023, Cabot Corporation announced the launch of EVOLVE SUSTAINABLE SOLUTIONS, an innovative platform for boosting the deployment of sustainable reinforcing carbons. Under this initiative, the company unveiled two new products– STERLING SO-RC110 circular reinforcing carbon and VULCAN 7H-C circular reinforcing carbon aligned with the mass balance approach of ISCC PLUS certification. 

• In November 2022, OCI announced the approval of the spin-off of the organization’s primary business in the chemical & carbon chemical sectors and the development of a new organization. In the sector of carbon chemicals, the new firm plans to fabricate a portfolio of high-value-added carbon products, and execute new businesses, including highly conductive carbon black deployed for conductive additives for rechargeable batteries and high-voltage cables.

• In July 2022, Birla Carbon, one of the significant manufacturers and distributors of high-end carbon black solutions unveiled the launch of the world’s first carbon black virtual showroom offering an appealing Virtual Reality experience. The virtual showroom also showcases the value and widespread adoption of carbon black via the lens of a Virtual Car .

• In June 2021, Asahi Carbon Co., Ltd. collaborated with Nippon Chemi-Con Corporation to devise the mass production technology and development of NH Carbon, a conductive assistant in lithium-ion batteries. As per the agreement, Asahi Carbon planned to handle the manufacturing process within their production facilities for different types of carbon black, on the other hand, Nippon Chemi-Con was strategized to be focused on sales. 

Carbon Black Market Report Scope

Global Carbon Black Market Report Segmentation

This report forecasts volume and revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global carbon black market report based on application and region:

• Application Outlook (Volume, Kilotons; Revenue, USD Million, 2018 - 2030)

  • Tires

  • High-Performance Coatings

  • Plastics

  • Others

• Regional Outlook (Volume, Kilotons; Revenue, USD Million, 2018 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • U.K.

    • France

  • Asia Pacific

    • China

    • India

    • Japan

  • Central & South America

    • Brazil

  • Middle East & Africa

    • UAE