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The carbon black market size is forecast to increase by USD 4.43 billion, at a CAGR of 4.36% between 2023 and 2028. The expansion of the specialty carbon market depends on several key factors. These include increasing adoption across diverse end-user sectors, growing demand for specialty carbon black in lead acid battery, carbon fibre , and rising market opportunities in the Asia-Pacific region. However, several challenges hinder this growth trajectory. Fluctuations in crude oil prices significantly impact the cost dynamics of carbon black production. Furthermore, the rising use of silica as reinforcing fillers poses a competitive challenge. Additionally, environmental concerns surrounding production, particularly its contribution to pollution, present critical challenges that necessitate sustainable solutions. Addressing these challenges requires strategic innovation and a commitment to environmentally responsible practices to foster sustainable market growth. The accompanying market analysis provides an in-depth examination of trends, growth drivers, and challenges. Moreover, the report incorporates historical market data from 2018 to 2022.
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The market is influenced by various factors, including thermal decomposition of petroleum raw materials like ethylene cracking tar. Ultraviolet (UV) light exposure affects its properties, such as thermal conductivity and resistance to tire tread wear and rolling resistance. Its production involves oil furnaces, addressing plastic demand for consumer goods and automotive industries. It serves as a conductive filler material and particulate reinforcing agent with antistatic properties in diverse applications like industrial bags, pipes, photographic containers, and films. UV light stabilizers mitigate issues like discoloration, chalking, fading, and cracking in products like electronics, computers, and televisions.
The market share growth by the tires segment will be significant during the forecast period. Carbon black is extensively used for manufacturing tires and helps enhance their performance properties. It functions as a pigment that imparts a black color to the tires. It increases the service life of tires by protecting the tread from heat generated by friction.
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The tires segment was valued at USD 11.31 billion in 2018. Factors such as the ever-rising population and increasing purchasing power increase the demand for automobiles. The rising global vehicle production is instrumental in driving the growth of the global market during the forecast period. Europe is a key automotive manufacturing region. Germany and Italy are some of the key automotive markets.
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APAC is estimated to contribute 46% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The increasing rubber production in China, India, Malaysia, and Indonesia will drive the growth of the market in the region during the forecast period. Rubber is extensively used in end-user industries such as automotive market, pharmaceuticals, packaging, electronics, and electrical, which will significantly increase the demand. Rubber is used in tires, rubber hoses, and insulating materials. APAC will be the fastest-growing market during the forecast period. Several countries in the region, including China, India, Indonesia, Thailand, and Malaysia, are the major producers and consumers. The increasing use of rubber and non-rubber products will drive the consumption in the region during the forecast period.
The market is deeply intertwined with the utilization of heavy petroleum raw materials such as ethylene cracking tar. Exposure to ultraviolet (UV) light impacts its properties like thermal conductivity and resistance to tire tread wear and rolling resistance. Production, often involving oil furnaces, caters to various sectors including the tire and rubber industry and automotive production. Its application extends to tire manufacturing, enhancing mechanical and dynamic properties crucial for components like inner liners, sidewalls, and carcasses. Additionally, it contributes to heat dissipation capabilities and handling in vehicles, addressing aspects like tread wear, fuel mileage, and abrasion resistance. The market's resilience is evidenced by investments in specialty black for batteries and the growing interest in recovered carbon black, despite challenges like volatility in prices and the emergence of electric cars altering market penetration dynamics. Our researchers analyzed the market research and growth data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Increasing use in end-user industries is the key factor driving the growth of the global market. Rubber is used in many end-use industries such as automotive, medical, and pharmaceutical. In the medical and pharmaceutical industry, it is used for injection vials, infusion container closures, lyophilization, and blood collection tubes. In automotive air conditioning systems, carbon black reinforced rubber seals are used on fittings, shafts, and hoses to prevent leaks. Carbon black is used as a reinforcement and pigment agent in automobile tires. It helps in keeping away heat from the tread and belt area, thereby reducing thermal damage and increasing the life of tires.
The global automotive industry will register a moderate growth rate during the forecast period. The increasing production of tires in the automotive industry accelerates the demand. The rising demand for rubber tires in the automotive industry will drive the global market during the forecast period. The increasing use of rubber in end-user industries will positively impact the global specialty carbon market during the forecast period.
Increasing demand for sustainable carbon black is the primary trend shaping the global market growth. Global demand for sustainable carbon black is rising as a result of the movement toward sustainability in the chemical sector. As a more environmentally friendly substitute for conventional carbon black, which is made from fossil fuels, bio-based carbon black, which is manufactured using renewable feedstocks such as vegetable oil, is gaining popularity.
Recycled variant is also becoming more popular because it is made by recycling old tires or other debris, which cuts down on the quantity of rubbish that is dumped in landfills. Bolder Industries and Black Bear Carbon are two examples of businesses that produce sustainable variant. The need for sustainable variant is anticipated to increase between 2023-27 as consumers and regulators place more importance on sustainability, which, in turn, is expected to drive the growth of the specialty carbon market during the forecast period.
Increasing usage of silica as reinforcing fillers is a major challenge impeding the growth of the global market. Amorphous silica and carbon black are used as reinforcing fillers in the rubber industry. These fillers improve tire strength, durability, and longevity. Silica is commonly used in tires to reduce greenhouse gas emissions from vehicles. The use of silica in tire manufacturing poses a serious challenge to the global market.
Amorphous precipitated silica is used in the rubber industry and is commonly made from glassy silicates. The vitreous silicate is dissolved in water and transferred to a reactor where amorphous silica is precipitated by acidification and stirring. Amorphous precipitated silica is used as a substitute as it reduces greenhouse gas emissions from vehicles. The use of amorphous precipitated silica will adversely affect the global specialty carbon market during the forecast period.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the market growth and trends report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth and forecasting strategies.
Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Aditya Birla Management Corp. Pvt. Ltd.: The company offers carbon black solutions through its subsidiary Birla Carbon.
The research report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
Further, in the construction industry, it reinforces wires, cables, air springs, windows, and doors, ensuring durability against nitrogen oxide and carbon dioxide. Market dynamics encompass process type, furnace black, acetylene black, and thermal black production, serving tire and rubber industry needs. The market's growth hinges on carbon black consumption, automotive production, and market penetration in electric cars, addressing fuel mileage and abrasion resistance in tire shipments for passenger tires and conventional vehicles.
However, demand-supply imbalances, volatility in prices, and competition from domestic players impact its trajectory. It finds applications in paints, coatings, toner, and textile fibers, sustaining its relevance amid industrialization and manufacturing sector growth, particularly in textile exports and the textile and apparel sector. Varieties like gas black and lamp black cater to diverse industries, including toners and printing inks, ensuring the sustainability of coatings and textile fibers markets.
Market Scope |
|
Report Coverage |
Details |
Page number |
173 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 4.36% |
Market Growth 2024-2028 |
USD 4.43 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
4.11 |
Regional analysis |
APAC, Europe, North America, South America, and Middle East and Africa |
Performing market contribution |
APAC at 46% |
Key countries |
China, US, India, Japan, and Germany |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Abu Dhabi National Oil Co., Aditya Birla Management Corp. Pvt. Ltd., Bridgestone Corp., Cabot Corp., CSRC Investment Holdings Co. Ltd., DCL Corp., Dow Chemical Co., Himadri Speciality Chemical Ltd., Imerys S.A., Kemipex, Longxing Chemical Industry Co. Ltd., Mitsubishi Chemical Corp., Nippon Steel Corp., Nouryon Chemicals Holding BV, OCI Co. Ltd., Omsk Carbon Group, Orion Engineered Carbons SA, Phillips Carbon Black Ltd., Saudi Basic Industries Corp., and Tokai Carbon Co. Ltd. |
Market dynamics |
Parent market analysis, Market forecast, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by End-user
7 Market Segmentation by Grade Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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