Carbon Black Market Synopsis

Carbon Black Market Size Was Valued at USD 15412.32 Million in 2023 and is Projected to Reach USD 23318.97 Million by 2032, Growing at a CAGR of 4.74% From 2024-2032.

Carbon black is a substance utilized in industrial sectors such as the manufacturing of plastics and rubber. It is composed of colloidal tiny carbon particles, usually in spherical or irregular shapes, with sizes ranging from 10 to 500 nanometers.

• Carbon black is a multipurpose substance that provides better mechanical characteristics, increased UV shielding, conductivity, and temperature regulation.
• It is more economical than other fillers and pigments and comes in different particle sizes for various uses. It is utilized in catalyst supports in industrial processes, medical applications such as implantable devices and wound dressings.
• In cosmetics and personal care items like eyeliner and skin care products, carbon black is used. The strength, UV protection, and electrical conductivity properties of carbon black make it an important ingredient in various industries.
• Carbon black is used in wound dressings to promote wound healing and reduce inflammation. Carbon black is used in conductive adhesives for electronic applications.

Top Active Players Involved Are:

Birla Carbon Thailand Public Co. Ltd. (Thailand), Cabot Corporation (US), Orion Engineered Carbons SA (Germany), Phillips Carbon Black Limited (India), CSRC Group (Taiwan), Omsk Carbon Group (Germany), OCI COMPANY Ltd. (South Korea), Himadri Specialty Chemicals Ltd. (India), Longxing Chemical Industry Co., Ltd. (China), Mitsubishi Chemical Holdings Corporation (Japan), Tokai Carbon (Japan), Sid Richardson Carbon & Energy Co. (USA), China Synthetic Rubber Corporation (China), Jiangxi Black Cat Carbon Black Inc., Ltd. (China), Aditya Birla Group (Grasim Industries) (India), Asbury Carbons (USA), Nippon Steel Carbon Co., Ltd. (Japan), Koppers Holdings Inc. (USA), Shandong Huadong Rubber Materials Co., Ltd. (China), Jiangsu Tianyin Technology Co., Ltd. (China), Zaozhuang Xinyuan Chemical Industry Co., Ltd. (China), Hebei Daguang Chemical Co., Ltd. (China), Shandong Province Huayun Group Co., Ltd. (China), JSC Khimprom (Russia), PJSC Khimdon (Ukraine), and Other Active Players.

Carbon Black Market Trend Analysis

Increasing Need for Plastic Manufacturing

• The industries of packaging, automotive, construction, and consumer goods are major consumers of plastics, accounting for a significant portion of global plastic consumption.
• The growing need for plastic bags, containers, automotive parts, construction materials, and consumer goods is causing an uptick in their manufacturing. In these industries, carbon black is essential for enhancing mechanical characteristics and providing UV protection in various plastic products by acting as a strengthening filler and colouring agent.
• Additionally, the rising demand for carbon black is also being driven by the growing manufacturing of plastics to fulfill the need for lightweight, fuel-efficient vehicles, sustainable buildings, and high-quality consumer products.
• The advancement of technology is leading to the development of specific types of plastics like bio-based plastics and nanocomposites that rely on top-quality carbon black. The increased focus on sustainability is also fueling the demand for recycled plastics, causing a higher need for carbon black production.

Release of CO2 During the Production of Carbon Black

• The significant release of CO2 from burning fossil fuels in the carbon black industry leads to high levels of global emissions, resulting in a substantial carbon footprint.
• Although there have been worries, the sector has been hesitant to embrace renewable energy sources, resulting in inefficiencies in manufacturing operations and significant environmental consequences.
• Regulations and carbon pricing are driving the need for reduced emissions, impacting the profit and competitiveness of industries. Investing in new technologies to decrease emissions is essential to prevent harm to the industry's reputation and market share caused by high emissions.
• Inadequate recycling initiatives lead to negative effects on the environment, underscoring the necessity for enhanced methods. It is essential to prioritize sustainability and reducing emissions in order to tackle issues with emissions, energy intensity, and inefficient processes.

Utilization of Carbon Black in The Automotive Sector

• There is an increasing demand in the automotive sector for light, fuel-efficient vehicles to comply with emissions regulations and decrease carbon footprint. This has resulted in higher utilization of carbon black in composite materials, especially in tires to improve performance.
• The increasing need for carbon black in battery technology is being fueled by the rising demand for tires and electric vehicles as well. Carbon black is currently being utilized in airbags and ABS systems as safety features in vehicles continue to evolve.
• The trend in the industry is moving towards sustainability and recyclability, increasing the demand for recycled carbon black. Carbon black is needed to improve the properties of advanced composites such as CFRP and GFRP.
• The self-driving cars are becoming more popular, using carbon black in sensor and radar technologies. The increasing need for top-notch coatings and paints in the automotive industry is driving the utilization of carbon black for both colouring and UV protection.

Carbon Black Market Segment Analysis:

The Carbon Black market is segmented on the basis of Type, Grade, and Application.

By Type, Furnace Black Segment Is Expected to Dominate the Market During the Forecast Period

There are four segments by type such as furnace black, channel black, thermal black, acetylene black. Among these, furnace black segment is expected to dominate the market during the forecast period.

• The tire industry heavily relies on the furnace black segment, which makes up more than 90% of total production. The tire sector depends on furnace black as a strengthening agent in tire production, with the rising tire demand anticipated to boost the demand for furnace black even more.
• The furnace black is commonly utilized in a range of industries like plastics, paints, coatings, and inks for its capacity to improve the strength, durability, and UV resistance of substances.
• Manufacturers find the cost-effective furnace process appealing, as it produces high-quality products. Advancements in furnace technology have enhanced efficiency and quality, increasing the competitiveness of furnace black in the market.
• The existing supply chain and infrastructure guarantee a consistent supply to keep up with the increasing demand, particularly in developing markets such as Asia and Latin America.

By Grade, Standard Grade Segment Held the Largest Share In 2023

There are two segments by grade such as standard grade, and specialty grade. Among these, standard grade segment held the largest share in 2023.

• The main type of carbon black used in the tire and rubber industry is standard grade because of its great reinforcing abilities and affordability. Tire manufacturers favor it due to its versatility and its ability to improve strength, durability, and UV resistance in different materials.
• This particular carbon black is cheaper than the specialty grade, making it perfect for cost-conscious uses where lowering production expenses is important. The reliable production infrastructure guarantees a steady supply to fulfill the high demand in various industries.
• Manufacturers often choose it for traditional uses like tires, rubber products, and coatings because it is easy to produce and readily available. Its wide availability and easy accessibility make it a convenient option for manufacturers.

Source: Wallfort Research

• This data clearly shows that volume of standard grade carbon black is greater than the volume of specialty carbon black every year from 2018 to 2023.

Carbon Black Market Regional Insights:

Asia Pacific is Expected to Dominate the Market Over the Forecast Period

• The Asia Pacific region is currently going through quick industrialization and urbanization, resulting in an increase in sectors such as automotive, construction, and manufacturing. This expansion is fueling the need for carbon black in sectors like tires and coatings.
• Countries such as China and India, which have large and expanding populations, are projected to enhance the market for consumer products, automobiles, and construction materials, thus raising the requirement for carbon black.
• The region is a significant center for car manufacturing, leading to an increased need for carbon black in the production of tires. Efforts to improve infrastructure and investments are boosting the construction sector, leading to an increased need for carbon black in coatings and paints.
• Major carbon black producers in countries such as China, Japan, and India guarantee a consistent supply for fulfilling the increasing demand. Government funding for infrastructure development and the expansion of industries, coupled with increasing consumer interest in sustainable products, is fueling the expansion of the carbon black market in the area.

Carbon Black Market Active Players

• Birla Carbon Thailand Public Co. Ltd. (Thailand)
• Cabot Corporation (US)
• Orion Engineered Carbons SA (Germany)
• Phillips Carbon Black Limited (India)
• CSRC Group (Taiwan)
• Omsk Carbon Group (Germany)
• OCI COMPANY Ltd. (South Korea)
• Himadri Specialty Chemicals Ltd. (India)
• Longxing Chemical Industry Co., Ltd. (China)
• Mitsubishi Chemical Holdings Corporation (Japan)
• Tokai Carbon (Japan)
• Sid Richardson Carbon & Energy Co. (USA)
• China Synthetic Rubber Corporation (China)
• Jiangxi Black Cat Carbon Black Inc., Ltd. (China)
• Aditya Birla Group (Grasim Industries) (India)
• Asbury Carbons (USA)
• Nippon Steel Carbon Co., Ltd. (Japan)
• Koppers Holdings Inc. (USA)
• Shandong Huadong Rubber Materials Co., Ltd. (China)
• Jiangsu Tianyin Technology Co., Ltd. (China)
• Zaozhuang Xinyuan Chemical Industry Co., Ltd. (China)
• Hebei Daguang Chemical Co., Ltd. (China)
• Shandong Province Huayun Group Co., Ltd. (China)
• JSC Khimprom (Russia)
• PJSC Khimdon (Ukraine), and Other Active Players.

Key Industry Developments in the Carbon Black Market:

• In January 2024, Birla Carbon, a leading provider of sustainable carbon solutions, announced plans to establish two advanced carbon black manufacturing facilities in Andhra Pradesh, India, and Rayong, Thailand. These new facilities will strengthen the company's presence and support key customers in the growing markets of India and Southeast Asia.
• In November 2023, Orion, a specialty chemicals company, launched its new carbon black plant in Huaibei, China, to meet the growing demand in Asia. With a total capacity of 70 kilotons per year, the facility will produce carbon black for various applications. This expansion reflects Orion's commitment to serving diverse industries, including coatings, rubber, and polymers.