Carbon Black Market By Process Type (Furnace Black, Channel Black, Thermal Black, Acetylene Black, and Others), Function (Reinforcement and Pigments), Grade (Specialty Grade and Conductive Grade) End User (Tire, Paints & Coatings, Inks, Plastics and Others), and Region - Market Share, Trend Analysis, Competitive Intelligence, Historical Data, and Forecast 2023 - 2032

Market Perspective

The global Carbon Black Market size was worth around USD 15.05 billion in 2022 and is anticipated to grow to around USD 22.66 billion by 2032 at a CAGR of around 4.6% between 2023 and 2032. The market for black carbon is growing significantly owing to its increasing utility in various end-use industries such as the paint & coating, tire, and rubber industry.

Manufacturers in this market are increasingly focused on product innovation and receive subsidy privileges in developing countries. The increase in demand for carbon black in the automotive industry is a global trend in the market. Manufacturing companies are focusing on overcoming market problems, such as raw material price fluctuations. Moreover, the raw material procurement for carbon black is being hampered by variations in oil prices.

The rubber industry is growing rapidly due to increasing demand from the automotive, electronics, consumer goods, and construction industries. In these industries, rubber products are widely used in the production of wires and cables, tires, tubes, air springs, windows, doors, belts, and seals. In addition, it helps strengthen the volume and vulcanization of the rubber. It also conducts heat away from the tire tread as well as the belt area extending the service life of rubber products.

Carbon black is widely added to various parts of tires such as inner surfaces, sidewalls, and frames which has expanded its application in the tire industry. The increasing product development of rubber products drives the carbon black market growth during the forecast period.

Carbon black is primarily used as a reinforcing agent, but it is also used as a pigment, conductor or insulator, rheology modifier, and UV stabilizer in rubber and non-rubber applications. The growing adoption of electric vehicles is thus creating demand for high-performance lithium-ion batteries, which is increasing the adoption of carbon black as a conductive additive. Several market players are focusing on maintaining steady growth to increase efficiency and productivity which thereby boosts market growth.

Key Insights

• Based on the process type, the furnace black segment held the largest market share
• Based on the function, the pigments segment is expected to dominate in the forecast period
• Based on grade, the segment conductive grade is projected to be the most dominating segment over the forthcoming years
• Based on end users, the tire segment is expected to generate the highest revenue
• On the basis of region, the Asia Pacific is anticipated to account for the largest market share

Proliferating Use of the Carbon Black in Tire and Rubber Goods Production to Drive Market Growth

The proliferating use of carbon black in tires and rubber products has expanded substantially over the past few years, as it helps to strengthen and absorb shocks. The carbon black is utilized across several parts of a tire including the frame, inner surfaces, tread, sidewall, and rubber products such as air springs, seals, tubes, wipers, membrane, and bushings. Tires equipped with carbon black extend the longevity of their tread because it resists the heat generated in the belt and tread areas. The phenomenal growth of the rubber and tire industry can thus benefit the production of carbon black in the coming years.

The growth of car sales has also had a significant impact on the carbon black market growth globally. The tire industry is moving towards setting up units near car manufacturing hubs and adopting modern manufacturing technologies that can benefit the global industry. In addition, the UV resistance of this material and its action as an ozone scavenger helps to stabilize the tire rubber against UV radiation and oxidation, preventing it from cracking. The addition of this carbon black also helps prevent electrostatic charge and conducts heat away from certain hot spots in the tire, particularly the tread and belt areas.

According to the statistics, Asia-Pacific currently accounts for approximately 59% of the world's carbon black manufactured for the tire industry and is predicted to increase to approximately 61% by 2027. The growing global automotive industry is creating a high demand for high-performance tires, which is contributing to the growth of carbon black market revenue.

Concerns Related to Emissions to Restrict Market Growth

Carbon black is produced by the reaction of hydrocarbon fuels such as oil or gas with limited combustion air at temperatures between 1320 and 1540 °C (2400 and 2800 °F). Unburnt carbon remains as very small, fluffy black particles ranging in size from 10 to 500 nanometres (nm). In the production process, the demand for products is limited by the release of various gases such as oxide, carbon dioxide, carbon monoxide, sulfur dioxide, and particles. These emissions affect not only the environment but also human health and inhalation of these gases can cause dizziness, headache, nausea, difficulty breathing, and chest tightness. For instance, the International Agency for Research on Cancer (IARC) expressed concern about the dangerous effects of the product on humans. Thus, these factors limit the adoption of the products and are expected to hinder the growth of the market.

Recent Developments

In January 2022: Cancarb introduced Thermax N990CG, a low PAH grade of medium thermal carbon black that allows clients to reduce the amount of polycyclic aromatic hydrocarbons (PAH) in their products while maintaining quality and performance.

In October 2021: VULCAN 3-LP carbon black, a novel low polycyclic aromatic hydrocarbon (PAH) compound for rubber applications, was introduced by Cabot Corporation. VULCAN 3-LP carbon black provides customers with a comprehensive line of carbon black materials for use in applications needing controlled ultra-low PAH content, such as rubber product wear.

Segmentation Analysis

Based on process type, the market is segmented as furnace black, channel black, thermal black, acetylene black, and others. With the rising usage of furnace black in a variety of industries, including the rubber, tire, coating, and cosmetics industries, this category is currently the most dominant. This material can be mass manufactured with various particle sizes, morphologies, and chemical compositions owing to the incomplete combustion of coal or petroleum oil in an oil furnace. Contemporarily, numerous rubber production methods employ furnace black as a reinforcing ingredient.

Based on application, the market is segmented into tires, paints & coatings, inks, plastics, and others. The tire segment is likely to dominate over the forecast period as a pigment and reinforcing component in car tires, carbon dark is most commonly used (70%) in these products. It is anticipated that the automotive market would grow significantly as the demand for vehicles rises and this element is expected to accelerate demand, especially for carbon black used in tires and seat belts.

Regional Landscape

Asia Pacific To Remain Dominating Region owing to the Rising Number of Tire and Plastic Goods Production

Asia Pacific is likely to dominate the carbon black market in the forecast period owing to its increasing utility in tire and plastic goods production. Rising research and developmental activities, along with product developments, promote product consumption in the region. Carbon black is in high demand in several Asia Pacific end-use industries. Market vendors are also expanding their product portfolio to cater to the rising demand from end-use industries.

The rising adoption of specialty grades in inks & coatings applications and shifting manufacturing facilities to this region owing to low-cost labor and support from respective governments augment market growth. In the region, there is a strong focus on providing affordable housing by the governments of various countries. Thus, the rapidly growing construction sector in the region is expected to drive the carbon black market revenue in Asia-Pacific.

Europe is the Fastest Growing Market With Increasing Sales of Electric Vehicles

Europe is expected to register the fastest growth owing to the increasing sales of electric vehicles with a proliferating number of existing regulations. The European Union (EU), for instance, proposed a ban on the sale of new petrol and diesel cars from 2035, in order to speed up the transition to zero-emission electric cars as part of a comprehensive package of measures to combat climate change. Efficient lithium-ion batteries are required in high-performance EVs, and to enhance the performance of lithium-ion batteries, carbon black is applied to NCM cathodes.

Increasing environmental regulations are driving the trend of electric vehicle production, which is increasing demand for high-quality ingredients in batteries to ensure that drivers arrive safely. In 2020, the European Commission (EC) revealed its mobility strategy, with the objective of having 30 million electric vehicles on European roads within ten years. These electrification efforts have accelerated the development of electric vehicles (EVs), resulting in a significant increase in demand for lithium-ion batteries to power these vehicles. These aforementioned factors are contributing to the market growth over the estimated time frame.

Competitive Landscape

• Aditya Birla Group
• BASF SE
• Cabot Corporation
• International CSRC Investment Holdings Co., Ltd
• Kemipex
• Mitsubishi Chemical Corporation
• Omsk Carbon Group
• Orion Engineered Carbons GmbH
• PCBL
• SABIC
• SAHI CARBON CO.,LTD.

 The global carbon black market is segmented as follows:

By Process Type

• Furnace Black
• Channel Black
• Thermal Black
• Acetylene Black
• Others

By Function

• Reinforcement
• Pigments

By Grade

• Specialty Grade
• Conductive Grade

By End User

• Tire
• Paints & Coatings
• Inks
• Plastics
• Others

By Region

• North America
  • The U.S.
  • Canada
  • Mexico
• Europe
  • France
  • The UK
  • Spain
  • Germany
  • Italy
  • Nordic countries
    • Denmark
    • Finland
    • Iceland
    • Sweden
    • Norway
  • Benelux Reunion
    • Belgium
    • The Netherlands
    • Luxembourg
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • New Zealand
  • Australia
  • South Korea
  • Southeast Asia
    • Indonesia
    • Thailand
    • Malaysia
    • Singapore
  • Rest of Southeast Asia
  • Rest of Asia Pacific
• The Middle East & Africa
  • Saudi Arabia
  • UAE
  • Egypt
  • Kuwait
  • South Africa
  • Rest of the Middle East & Africa
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America