Carbon Black Market is Anticipated to Witness Steady Growth Owing to Increasing Usage in Tire Industry

The carbon black market has experienced considerable growth in recent years owing to increased applications across various industries including tires, plastics, coatings and others. Carbon black, also known as acetylene black, is a powdered form of carbon that is widely used as a pigment and reinforcing agent. It enhances the strength and durability of rubber products while also improving heat resistance, UV protection, conductivity and lighter coloration.

The global carbon black market is estimated to be valued at US$ 1331.83 Mn in 2024 and is expected to exhibit a CAGR of 5.0% over the forecast period 2024 to 2030.

 The robust growth of the tire industry has been a key factor propelling the demand for carbon black. About 60-70% of total carbon black produced worldwide is consumed by the tire industry for manufacturing tire treads and sidewalls. Carbon black enhances the abrasion resistance and mechanical properties of tires while also improving traction and reducing rolling resistance. The growth of the automotive industry in developing regions is anticipated to boost the consumption of tires, thereby positively influencing the carbon black market.

Carbon Black Market

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Key Takeaways

Key players operating in the carbon black market are Orica, Enaex, Austin Powder Company, Incitec Pivot, CSBP, Yara International, San Corporation, Fertiberia, Neochim, URALCHEM Holding, Dyno Nobel, Vijay Gas Industry, Solar Industries, Maxam, AEL Mining Services, EPC Groupe, Gulf Oil Corporation, IDEAL Industrial Explosives, Sichuan Meifeng Chemical Industry, Jiaocheng Jinxin Chemical.

Key opportunities in the market include growing demand from plastics, coatings and other applications. Carbon black finds wide application in plastic products due to its ability to enhance conductivity, viscosity and lightfastness. It is also extensively used as a pigment in coatings, paints and inks.

The Carbon Black Market Growth is witnessing significant expansion across global regions. Key players are investing in capacity expansions and new production plants in Asia Pacific and Middle East & Africa to tap the growing demand from China, India and other emerging countries. Growing manufacturing industries in developing nations are driving the regional growth of carbon black consumption.

Market drivers:
- Increasing automotive production and rising vehicle parc are driving the demand for tires, which is the largest end-use sector for carbon black. Developing economies are witnessing high growth in passenger car sales.
- Robust growth of plastic and rubber industries. Carbon black is highly preferred as a reinforcing additive and pigment in plastics, coatings and other rubber products.

Market restraints:
- Stringent environmental regulations pertaining to carbon black production. Carbon black manufacturing involves emissions of sulfur dioxide and other air pollutants.
- Availability of substitutes such as silica and metal oxides that can be used in place of carbon black in some applications. This poses a threat to the growth of carbon black market.

Segment Analysis
The carbon black market is dominated by the rubber tyres sub segment which accounts for around 70% of total market share. Carbon black plays a vital role in enhancing the durability, reinforcement, and heat resistant properties of rubber tyres. It increases the tensile strength and decreases the rolling resistance of tyres which improves fuel efficiency of vehicles. This high demand from rubber tyres industry is expected to continue driving the overall carbon black market during the forecast period. The plastics segment is the second fastest growing sub segment owing to increasing utilization of carbon black in pipes, car parts, hoses, gaskets, wires & cables, packaging, and other plastic applications.

Global Analysis
On the regional front, Asia Pacific dominates the global carbon black market and is estimated to grow at the fastest CAGR during 2024-2030. This is mainly attributed to high automobile production in China and India along with rapid infrastructure development activities in the region. China accounts for over half of the global carbon black demand due to presence of a robust automotive industry and massive plastic goods manufacturing sector in the country. Europe is another major carbon black market supported by stringent regulations regarding vehicular emissions and fuel efficiency. Moreover, Middle East and Africa are projected to emerge as highly lucrative markets in the coming years led by development of local production facilities as well as demand from construction and paints & coatings industries.

 

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