Carbon Black Market Size, Share & Trends Analysis Report By Application (Tires, High-performance Coatings, Plastics), By Region (North America, Middle East & Africa, Asia Pacific, Europe), And Segment Forecasts, 2020 - 2025

Report Overview

The global carbon black market size was estimated at USD 18.2 billion in 2019 and is projected to expand at a compound annual growth rate (CAGR) of 6.1% from 2020 to 2025. Rising product usage in the production of plastics is anticipated to drive the global market over the forecast period. Moreover, the rising usage of these plastics in electrical and electronic components will boost the product demand further. 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, and 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. 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 in the region.

The country has also witnessed a rise in the refurbishing of automobiles, which is anticipated to propel the demand further. 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 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 tire 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 product demand. 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 Market Trends 

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 driving factor for market growth. 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 exaggerated the global product development increasing 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 in order to manufacture lightweight and fuel-efficient vehicles is anticipated to remain a key driving factor for market growth over the forecast years. The growth in the automobile industry is anticipated to drive the market.

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 the leading application segment in 2018. The product is widely used in tire manufacturing by adding it to 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 accounted for 7.0% of the overall volume in 2018. 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

The Asia Pacific led the global market followed by Europe and North America. Stringent environmental regulation may harm the North America and European market. However, owing to 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 the 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 market is dominated by the U.S., both in terms of product consumption as well as production. The demand for tires in North America has increased with a rise in the number of tires being replaced every year. Moreover, constant recovery of ongoing construction and automobiles 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 emission 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 substitute for metals to provide automobiles with better performance and fuel efficiency while reducing overall curb weight of the vehicle. These factors are expected to drive demand for carbon black in automotive applications.

Asia Pacific carbon black market accounted for 55.5% of the total market volume in 2018. The regional market is characterized by high industrial growth as result of favorable government policies and monetary framework encouraging private investments in manufacturing sector. China and India are major carbon black consumers are expected to grow exponentially over the forecast period.

Key Companies & Market Share Insights

Some of the key manufacturers and suppliers in the market include Evonik Industries AG, Nippon, Mitsubishi Motors Corp., Jiangxi Black Cat Carbon Black Co. Ltd., Phillips Carbon Black, and China Synthetic Rubber Corp. Most of these industry participants 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.

Carbon Black Market Report Scope

Global Carbon Black Market Segmentation

This report forecasts revenue and volume growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2014 to 2025. 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, 2014 - 2025)

  • Tires

  • High-performance Coatings

  • Plastics

  • Others

• Regional Outlook (Volume, Kilotons; Revenue, USD Million, 2014 - 2025)

  • North America

    • U.S

    • Canada

  • Europe

    • U.K.

    • Germany

    • France

    • Italy

  • Asia Pacific

    • China

    • India

    • Japan

    • South Korea

  • Latin America

    • Brazil

  • Middle East & Africa

    • UAE