Coal Tar Pitch Market Analysis APAC, Europe, North America, Middle East and Africa, South America - China, India, Russia, US, United Arab Emirates - Size and Forecast 2024-2028

Coal Tar Pitch Market Size 2024-2028

The coal tar pitch market size is forecast to increase by USD 618.2 million at a CAGR of 2.19% between 2024 and 2028.  The coal tar pitch market is experiencing significant shifts due to the increasing adoption of aluminum in various industries, including construction and packaging. Aluminum's lightweight, strength, and durability make it a preferred choice over traditional materials, leading to increased demand and subsequent growth in the market. Additionally, the diverse use of activated carbon in water treatment, air filtration, and pharmaceuticals is fueling market expansion. Lastly, urbanization, with its population growth and infrastructure development, is creating a surge in demand for coal tar pitch as a critical component in road construction and roofing materials. These trends are shaping the coal tar pitch market, ensuring its continued relevance and growth in the industrial landscape.

What will be the Size of the Market During the Forecast Period?

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Market Dynamics and Customer Landscape

The market is driven by the increasing demand from the production of aluminum and its applications in the automotive, aerospace, and space industries due to its low weight properties. However, challenges arise from stringent regulations on vehicle emissions, prompting the shift towards lightweight aluminum components. The market also faces trends such as the rising demand for electric vehicles and autonomous vehicles, further boosting the demand for aluminum. Yet, challenges persist in aluminum smelting due to the availability and cost , an essential component in the aluminum production process. Our researchers analyzed the data with 2022 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. Advanced water treatment technologies are essential for managing contaminants like phenols and aromatics in industrial process applications, particularly within the aluminum and steel industries.

Key Market Driver

The increasing use of aluminum across various industries is notably driving market growth. Coal tar pitch is a viscous, thick, black residue that is left after coal tar distillation. It has many applications, such as in paving roads, as a binder in asphalt products, and as a base for paint and coatings. It is also an important material in the production of aluminum and is used as a binding agent in the production of graphite electrodes, used in electric arc furnaces in steel plants, and in carbon anodes used in aluminum smelters. Smelting is a process where alumina is combined with electricity and molten cryolite in a reduction cell.

Moreover, direct current (DC) is applied to the molten cryolite from a carbon anode, which separates the carbon atoms from the alumina to produce CO2 and molten aluminum. It contributes to the strength, density, and electrical conductivity characteristics of the anode and cathode used in the conversion of powder alumina into liquid aluminum. Thus, the increase in the production of aluminum will increase the need for tar pitch in the aluminum production process. Therefore, such factors will boost the growth of the market during the forecast period.

Significant Market Trend

The use of coal tar pitch-based needle coke in lithium-ion batteries is an emerging trend in the market. Needle coke is used as a key material for graphite electrodes in an electric arc furnace. As compared to petroleum-based needle coke, coal tar pitch-based needle coke possesses favorable physical characteristics, such as a low coefficient of thermal expansion, low electric resistance, less breakage, and less spalling. Previously, most of the demand for needle coke came from the graphite electrode industry. However, needle coke makers have started working with other industries to explore their alternative uses due to the low-demand situation.

Graphite is the most suitable material used in producing Li-ion battery anodes as the use of other metal substitutes for anodes involves problems, such as expansion, safety issues, high costs, and lesser life. According to Technavio, the global Li-ion batteries market is expected to grow by USD 24 bn between 2021 and 2025. Therefore, the use of needle coke, which is produced from coal tar pitch, to make anodes for Li-ion batteries will drive the global market during the forecast period.

Major Market Challenge

Fluctuations in coal prices are major challenges impeding market growth. As per the Energy Information Administration (EIA) in the US, coal is classified into four main ranks (types), namely, lignite, anthracite, bituminous, and sub-bituminous. This classification depends on the amount of heat energy it produces and the amount and types of carbon it contains. Prices of coal with high heat content are generally higher.

Furthermore, the price of coal varies according to the coal grade, rank/type, mining method, and geography. This volatility in coal prices makes it difficult for companies to invest in the industry. Thus, the fluctuations in the prices of coal are a significant challenge for investors and other stakeholders who invest in the production of coke. This will affect the production of tar, which in turn will affect the global market adversely. Therefore, such factors are a major challenge for the growth of the market during the forecast period.

Customer Landscape

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 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

Key Companies & Market Insights

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.

Aparna Carbons Pvt. Ltd. -  The company operates as a manufacturer of coal chemicals such as Refined Naphthalene, Disinfectant Grade Creosote Oil, Wood Preservation Grade Creosote Oil, Cresylic Acid, and Anthracene Oil. The key offerings of the company include coal tar pitches for various chemicals. 

The report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:

• Bilbaína de Alquitranes SA
• China Risun Group Ltd.
• China Steel Chemical Corp.
• Coopers Creek Chemical Corp.
• DEZA AS
• Himadri Speciality Chemical Ltd
• JFE Holdings Inc.
• Jining Carbon Group Co. Ltd.
• Konark Tar Products Pvt. Ltd.
• Koppers Holdings Inc.
• Lone Star Specialties LLC
• Mitsubishi Chemical Corp.
• Nippon Steel Corp.
• NLMK Group
• Quimica del Nalon SA

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.

Market Segmentation 

By Application

The market share growth by the aluminum production segment will be significant during the forecast period. The segment is expected to witness significant growth during the forecast period due to the dependency of the aluminum industry on coal tar pitch for aluminum smelting.

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The aluminum production segment was valued at USD 3.30 billion in 2017. An incredibly important purpose for coal tar pitch is in the production of aluminum. To create carbon anodes, which are necessary for the electrolysis method of obtaining primary aluminum, coal tar pitch is employed as a binder. As the anode performance and quality depend on the quality of coal tar pitch and CPC used in the smelting process, accordingly, smelters set the key quality parameters for sulfur and trace metal impurities, including nickel, vanadium, iron, calcium, sodium, and silicon, in the CPC. As tar pitch is a critical element in the aluminum production process, its consumption is directly proportional to the growth of the global aluminum industry. Additionally, the automotive industry is the primary user of aluminum due to the increasing trend of making lightweight vehicles rising from environmental concerns and its reusability. Thus, an increase in the demand for such vehicles will positively influence aluminum production. Hence, these factors will boost segment growth during the forecast period. 

Regional Analysis

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APAC is estimated to contribute 43% 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. China is the leading contributor to the market in APAC. Most of the coal tar pitch produced in China is used in aluminum smelters. Additionally, steel production in China is also growing at a significant rate, owing to the growth in the construction industry. This growth in the steel industry will subsequently help in increasing the country's coal tar production. Furthermore, India also is a significant consumer of coal tar, especially for coal tar pitch processing. Himadri Speciality Chemical is one of the leading manufacturers in India, which suffices two-thirds of the demand for coal tar pitch from the Indian aluminum and graphite industries. 

Furthermore, in countries such as India and China, the construction industry's growth will drive the demand for coal tar pitches during the forecast period. For instance, in China, the Three George Dam, the South-to-North Water transfer project, and the Beijing Airport expansion are some of the construction projects that are expected to be completed during the forecast period. Similarly, in India, the construction of the Navi Mumbai International Airport in Mumbai, the Chenab River Railway Bridge in Jammu and Kashmir, and the Delhi-Mumbai Industrial Corridor will generate demand. Therefore, all the abovementioned factors will drive the growth of the regional market during the forecast period. 

Segment Overview

The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.

• Type Outlook 
  • Solid coal tar pitch
  • Liquid coal tar pitch
• Application Outlook 
  • Aluminum production
  • Graphite electrodes and specialty graphite products
  • Carbon processing industry
  • Others
• Region Outlook
  • North America
    • The U.S.
    • Canada
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa
  • South America
    • Chile
    • Brazil
    • Argentina

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Market Analyst Overview

The market plays a crucial role in various industries, including the aerospace and space industries, where it is valued for its binding property and ability to produce lightweight materials. Its specific weight makes it an ideal choice for applications requiring a light metal alternative to steel, reducing the dead weight and energy consumption. In the automotive sector, coal tar pitch finds application in automobiles, contributing to weight reduction and enhancing fuel economy.

Moreover, it serves as a key component in the manufacture of modern aircraft and electric vehicles, aligning with environmental regulations and sustainability goals. With its diverse applications in roofing, refractories, paints and coatings, and infrastructure development, coal tar pitch continues to drive industrial development while reducing the carbon footprint through the use of recycled aluminum and carbon raw materials. The market serves various industries, including the aerospace industry and space industry. Its applications extend to vehicle production and fractional distillations, highlighting its versatility and importance in these industries.

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What are the Key Data Covered in this Market Forecasting Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting of the market between 2024 and 2028
• Precise estimation of the market size and its contribution to the parent market
• Accurate predictions about upcoming market trends and analysis and changes in consumer behavior
• Growth of the market across Europe, North America, APAC, South America, and Middle East and Africa
• Thorough market growth analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive market analysis and report on the factors that will challenge the market research and growth of market companies

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