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The coal tar pitch market is estimated to grow at a CAGR of 2.48% between 2022 and 2027. The size of the market is forecast to increase by USD 691.21 million. The growth of the market depends on several factors, including the increasing use of aluminum across various industries, the diverse use of activated carbon, and rising urbanization.
This report extensively covers market segmentation by application (aluminum production, graphite electrodes and specialty graphite products, carbon processing industry, and others), type (solid coal tar pitch and liquid coal tar pitch), and geography (APAC, Europe, North America, Middle East and Africa, and South America). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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Technavio categorizes the global coal tar pitch market as a part of the global coal and consumable fuels market within the global coal market. The global coal and consumable fuels market covers companies primarily involved in the production and mining of coal, related products, and other consumable fuels related to the generation of energy. Our research report has extensively covered external factors influencing the parent market growth during the forecast period.
The increasing use of aluminum across various industries is notably driving the market growth, although factors such as fluctuations in coal prices may impede the market growth. 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.
Key Coal Tar Pitch 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.
Aluminum smelting is a process where alumina is combined with electricity and molten cryolite in a reduction cell. 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. Coal tar pitch 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 coal tar pitch in the aluminum production process. Therefore, such factors will boost the growth of the global market during the forecast period.
Significant Coal Tar Pitch 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 $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 Coal Tar Pitch 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 coal 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 coal tar, which in turn will affect the global market adversely. Therefore, such factors are a major challenge for the growth of the global market during the forecast period.
Key Coal Tar Pitch Market Customer Landscape
The report includes the market's adoption lifecycle, covering 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 growth strategies.
Global Coal Tar Pitch Market Customer Landscape
Vendors 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 under one segment. The company under this segment 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 vendors, including:
Qualitative and quantitative analysis of vendors 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 vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
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 3,140.09 million in 2017 and continued to grow until 2021. 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 coal 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.
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APAC is estimated to contribute 82% 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 for coal tar pitches. Therefore, all the abovementioned factors will drive the growth of the regional market during the forecast period.
The outbreak of COVID-19 in 2020 negatively impacted the growth of the market in APAC. However, the lockdown restrictions were lifted by the end of 2020 owing to large-scale vaccination drives across APAC. This resulted in the resumption of production in the manufacturing facilities. Moreover, the operations in end-user industries also restarted, which is expected to increase the demand for coal tar pitches for various applications in these end-user industries during the forecast period. Additionally, coal tar pitch production and export are growing significantly post-COVID-19 in India. For instance, in April 2022, India's coal tar pitch monthly export reached an all-time high of 8,400 tons, the country's highest monthly export volume in at least ten years. Therefore, such factors are expected to drive the growth of the market in APAC during the forecast period.
The report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027. The market has been segmented by Application (Aluminum production, Graphite electrodes and specialty graphite products, Carbon processing industry, and Others), Type (Solid coal tar pitch and Liquid coal tar pitch), and Geography (APAC, Europe, North America, Middle East and Africa, and South America).
Coal Tar Pitch Market Scope |
|
Report Coverage |
Details |
Page number |
174 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 2.48% |
Market growth 2023-2027 |
USD 691.21 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
2.09 |
Regional analysis |
APAC, Europe, North America, Middle East and Africa, and South America |
Performing market contribution |
APAC at 82% |
Key countries |
US, United Arab Emirates, China, India, and Russia |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
Aparna Carbons Pvt. Ltd., 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, Rain Carbon Inc., Shree Shyam Chemicals, Sumitomo Corp., and Vanajaa Enterprises |
Market dynamics |
Parent market analysis, 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. |
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