According to Grand View Research, the global carbon black market size was estimated at $17.22 billion in 2018 and is projected to expand at a CAGR of 6% from 2019 to 2025. Rising product usage in the production of plastics is anticipated to drive the global market over the forecast period. Moreover, the rising usage of these plastics in electrical and electronic components will boost the product demand further.
Carbon black is produced either by thermal decomposition or partial combustion method, which includes oil or natural gas as a feedstock. It is produced by four different processes, which are furnace black process, channel process, and acetylene black process, and lampblack process. Furnace black is the most commonly used method owing to its maximum production capacity. Industrially, it is produced by the combustion of heavy petroleum products, such as coal tar and Fluid Catalytic Cracking (FCC) tar, with vegetable oil.
The US tire industry is expected to witness a surge in demand owing to increasing automotive sales in the country. The country has also witnessed a rise in the refurbishing of automobiles, which is anticipated to propel the demand further.
The market dynamics are largely dependent on the usage of rubber, electronic discharge compounds and inks along with several regulations formulated for manufacturing technologies and raw materials used. The market is also influenced by the regulatory laws by major North American and European government bodies. Within this industry, transportation is poised to be the dominant segment over the next seven years owing to increasing demand for tire and rubber.
Product prices are largely based on raw materials, auxiliary materials and utilities. The crude oil price fluctuation has a major impact on the pricing of carbon black.
Tires emerged as the leading application segment in 2018. The product is widely used in tire manufacturing by adding it to rubber as a strengthening agent and as a filler.