Carbon Black Market Revenue to Surpass US$23 Bn by 2025, Fairfield Market Research Spots Opportunity in Automotive Industry’s Expansion

October 2021

Rapid expansion of the global automotive industry is among the strongest factors driving the growth of global carbon black market as carbon black is extensively used in the manufacturing of tires. To put this into context, there are more tires than doors in the world, and this figure is expected to increase in time. Additionally, a steady increase in global population as well as the adoption of novel technologies such as electric vehicles, are also elements that are expected to lead a spike in new car sales. As technology continues to evolve, there is expected to be a higher adoption of electric and hybrid vehicles, thus leading to a greater need for new or refurbished tires.

Moreover, apart from being used as a reinforcement agent, carbon black is also extensively used as a conductive or insulating agent, a UV stabilizer, a pigment, and rheology modifier in various non-rubber and rubber-based applications. Essentially, carbon black is used in other applications apart from rubber tires such as a colouring agent in inks, paints and coatings, wires and cables, as well as plastics. Fairfield Market Research has found factors such as these to have a profound influence on growth trajectory of the global carbon black market in the years ahead.

Key Research Insights

• The global carbon black market was valued at US$17.4 Bn in 2018
  
  
• The market is expected to grow at a CAGR of 6.5%
  
  
• China accounted for 40% of the Asia Pacific market
  
  
• The speciality carbon black segment to gain traction in the coming years
  
  
• Asia Pacific to remain a key revenue contributor in carbon black market

Increasing Demand for Speciality Carbon Black to Uplift Carbon Black Market

The three main grades of carbon black – mechanical rubber goods, rubber carbon black, and speciality carbon black. Particularly in the last few years, there has been a steady increase in the demand for speciality carbon black, a niche segment in this industry. Speciality carbon black is used as conductive, black pigmenting, and UV stabilizing agents to enhance performance in printing ink toners, paints, batteries, sealant systems, wire & cables, and solid carbons. The continued expansion of end-use industries that extensively use speciality carbon black apart from the other forms of carbon black, is expected to be a major factor responsible for projected growth for the various players engaged in the global carbon black market.

Asia Pacific to Captures a Lion’s Share in Global Carbon Black Market

Comprehensive analysis by Fairfield Market Research has found that the Asia Pacific region is expected to account for the majority share of the global carbon black market over the forecast period. In 2019, this region accounted for over 60% of this global market, which can be attributed to lower labour costs and the widespread availability of low-priced feedstock. Out of all the countries such as India, Indonesia, and Thailand, making considerable progress in this industry, China accounted for about 40% of this regional market. A surge in investments in the tire market is expected to lead to a significant increase in the demand for carbon black. Europe is also expected to account for a stable demand for carbon and its various sub-segments in the coming years.

Carbon Black Market – Key Competitors

Cabot Corporation, Birla Carbon, Orion Engineered Carbons, Jiangxi Black Cat Carbon, Monolith Materials, and Tokai Carbon Co. Ltd., all collectively account for the majority revenue share of the global carbon black market and are extensively detailed under our comprehensive competitive profiling and strategic analysis.