July 21, 2024
Carbon Black Market

Growing Demand From Tire Industry To Propel The Growth Of Carbon Black Market

The global Carbon Black Market is estimated to be valued at US$ 1,156.1 Mn in 2023 and is expected to exhibit a CAGR of 7.5% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:

Carbon black is a material produced by the incomplete combustion of heavy petroleum products such as coal tar, residual oils, and ethylene cracking tar. It is a form of amorphous carbon that has a black powdery appearance. Carbon black has a high tinting strength and UV protection, which makes it ideal for uses such as tires, hoses, belts, gaskets and other rubber products. It is also used in pigments, plastics, inks and paints. The growing automotive industry as well as increasing demand for non-tire applications like plastics, coatings and other rubber products are driving the carbon black market growth.

Market key trends:

One of the key trends in the carbon black market is the growing demand from tire industry. Tires consume around 70-75% of the total carbon black produced globally. The increasing vehicle production across the globe is fueling the demand for tires, thereby augmenting the carbon black market growth. As per International Organization of Motor Vehicle Manufacturers, over 90 million vehicles were produced in 2019. Also, the recovering construction industry is propelling the demand for industrial rubber products like hoses, belts and gaskets, thus positively impacting the carbon black market.

Porter’s Analysis

Threat of new entrants: The threat of new entrants is moderate as the carbon black industry requires high initial investments in setting up plants and technology. Also, customers prefer established brands with a proven track record.
Bargaining power of buyers: The bargaining power of buyers is high as carbon black has substitutes and buyers can shift to alternate materials if prices rise significantly. They can negotiate on prices and demand better qualities and services.
Bargaining power of suppliers: The bargaining power of suppliers is low as raw materials needed for carbon black production such as petroleum feedstock and natural gas are commodities traded globally. This eases raw material sourcing.
Threat of new substitutes: The threat of new substitutes is moderate as carbon black has partial substitutes like silicas, pigments, and other mineral fillers. However, no direct substitute offers its mix of properties and price.
Competitive rivalry: The competitive rivalry is high among major global players.

Key Takeaways

The Global Carbon Black Market Size is expected to witness high growth, exhibiting CAGR of 7.5% over the forecast period, due to increasing usage in tires and other rubber applications. The global tire industry is growing consistently with rising vehicle demand boosting carbon black consumption.

Regional analysis: Asia Pacific dominates the global carbon black market and is expected to continue its lead over the forecast period. China accounts for over half of global carbon black capacity. Other major markets are India, Japan, and Southeast Asia. Growth will be high in developing countries due to expanding automobile and construction industries.

Key players operating in the carbon black market are Orion Engineered Carbons, Cabot Corporation, Mitsubishi Chemical Corporation, Phillips Carbon Black Limited, Birla Carbon, Sid Richardson Carbon & Energy Co., Anyang HengXu Specialty Carbon Black Co., Ltd., and Imerys Graphite & Carbon. The market is consolidated with top players accounting for over 60% share. Companies are expanding capacity to cater to growing demand in Asia and other developing regions.

*Note:
1.            Source: Coherent Market Insights, Public sources, Desk research
2.            We have leveraged AI tools to mine information and compile it