Carbon Black Market - Global Industry Analysis (2017 - 2020) - Growth Trends and Market Forecast (2021 - 2025)

The global market for carbon black surpassed the revenue of US$17 Bn in 2018 and is poised to progress at a promising 6.5% CAGR during 2021 - 2025. A new study forecasts a healthy outlook for the carbon black market over the period of forecast. Typically derived from crude oils, or coal, carbon black has become a vital additive component for the manufacturing of a host of products worldwide. In 2019, the global carbon black production volume was approximately 15 MT. It is extensively employed for a wide variety of rubber, as well as non-rubber applications, and the adoption prominently continues to grow as an additive for enhanced material performance in terms of conductivity, viscosity, and static charge control.

Tyres Category Promises a Highly Remunerative Opportunity in Carbon Black Producers

While the global carbon black market is expected to gain significantly from the surging consumption for automotive rubber parts, and industrial rubber goods, it is likely to receive a strong impetus from prominently growing demand for high-performance premium automobile tyres. The tyres industry recorded more than 70% of the total carbon black consumption volume in 2019. Escalating rate of tyre replacements will continue to uphold carbon black sales in addition to the spiralling consumer demand for tyre pressure monitoring systems. Tyre radialisation is also expected to create an attractive opportunity in the tyres category. Moreover, sustained preference for carbon black as a colouring/pigmenting/reinforcing agent in paints and coatings, sealants, cables, wires, printing inks, batteries, and plastics is also expected to account for notable market growth during the period of forecast.

MRG Spearheads with Cost Benefit; Specialty Carbon Black to See Hike in Sales

Over 13.9 MT carbon black was consumed worldwide in 2019, around 8% of which was represented by speciality carbon black. Although speciality carbon black currently captures a negligible volume share compared to the commodity grades, i.e., mechanical rubber goods (MRG), and rubber carbon black, its share is set to expand at an exceptional pace in the near future. Its growing adoption as a UV stabilising agent is expected to win notable preference, whereas the application potential of speciality carbon black in Li-ion batteries will be instrumental for the market build-up. MRG, on the other side, represents over 90% of the total carbon black consumption banking on its cost-competitive attribute.

Production Remains Concentrated in China

With more than 3/5th of the total demand generation, Asia Pacific is the key consumer market for carbon black. China is the key producer, with over 40% production share globally. Led by China, Asia Pacific will continue to be a highly profitable market for carbon black producers through 2025. While the region reigns supreme in terms of production on the back of economically priced, and ready accessibility of the feedstock, consumption is also expected to remain more than 60% as a result of augmented tyre investments, and the exploding electric vehicles market. Europe is also expected to be among the key markets on account of the sustained demand for MRG, rubber, speciality carbon black.

Key Market Players

The report sheds light on the strategic profiles of the most prominent competitors in the global carbon black market space. Some of them include Orion Engineered Carbons, Birla Carbon, Tokai Carbon Co., Ltd., Cabot Corporation, and Jiangxi Black Cat Carbon. Top companies have been focusing on innovating carbon black production technologies in an effort to comply with global sustainability goals.