Carbon Black Market to Reach $23 Billion by 2026: Allied Market Research

According to a new report published by Allied Market Research, titled, ” Carbon Black Market by Process, Grade, and Application: Global Opportunity Analysis and Industry Forecast, 2019-2026,” the global Carbon Black market was valued at $17.5 billion in 2018 and is projected to reach $23 billion by 2026, growing at a CAGR of 3.5% from 2019 to 2026.

Carbon black is a form of paracrystalline carbon that contains 95% of pure carbon. Carbon black is a material produced by the incomplete combustion of heavy petroleum products. Carbon black can also be defined as paracrystalline carbon, which has a high surface-area-to-volume ratio. The surge in the use of carbon black in manufacturing tires, plastics, mechanical rubber goods, printing inks, and toners is expected to drive the growth of the market.

Carbon black possesses properties such as conducting heat away from the tread and belt area of the tire, reducing thermal damage and increasing the service life of tires, which make it a preferred solution for manufacturers involved in manufacturing automotive components, such as tires. The Electric Vehicles International sets a target of production of 20 million electric cars globally by 2020.

These factors are expected to drive the market growth of the automotive industry, thereby augmenting the demand for tires. This, in turn, propels the need for carbon black, which significantly contributes to market growth. Furthermore, the U.S. Department of Energy (DOE) announced an investment of $19.7 million for the Vehicle Technologies Office to support R&D of advanced vehicle technologies, including batteries and lightweight & low-cost carbon fiber for the development of energy-efficient automobiles.

Thus, the development of the automotive industry is expected to drive the growth of the carbon black market.

The global carbon black market is segmented based on process, grade, application, and region. By process, it is classified as furnace black, channel, acetylene black, and lampblack. The furnace black segment was the highest contributor to the market and is estimated to grow with a CAGR of 4.23% during the forecast period.

Based on grade, it is divided into specialty and conductive. The specialty grade segment was the highest contributor to the market and is estimated to grow with a CAGR of 3.63% in the grade based carbon black market share.

Based on the application, it is categorized into tires, coatings, plastics, printing inks, and toners. The tires segment was the highest contributor to the market and is estimated to grow at a CAGR of 3.26% during the forecast period. The plastics segment is estimated to be the fastest-growing segment, growing with a CAGR of 4.08%.

By region, the global carbon black market is analyzed across North America, Europe, Asia-Pacific, and LAMEA. Asia-Pacific was the highest revenue contributor and is estimated to grow with a CAGR of 4%. China and the U.S. account for the highest revenue contribution, owing to a surge in demand for carbon black for tire and construction & manufacturing industries across countries.

“Various global governmental and nongovernmental organizations encourage the trend toward achieving environmental sustainability through reduction of greenhouse gasses such as carbon dioxide (CO2) emission from vehicles,” said Eswara Prasad, manager, Material & Chemical at Allied Market Research. “For instance, in 2012, the U.S. issued new corporate average fuel economy (CAFE) standards, with average requirement of 54.5 miles per gallon (mpg) for 2017–2025 for light-duty vehicles.

“In 2015, the European Union legislation has set mandatory emission reduction targets. The fleet average set for new automobile was at 130 g of CO2 per kilogram in 2015, and 95 g/kg by 2021,” Prasad continued. “A similar trend is being followed in Mexico, Canada, and Asia-Pacific countries. With growing regulations, the demand for recover carbon black is expected to increase particularly in automotive application. This factor is expected to offer lucrative growth opportunities to the global market.”