Carbon Black Market Size By Process (Furnace Black, Thermal Black, Acetylene Black, Lamp Black, Channel Black), By Grade (N-550, N-660, N-762, N-772, N-774, N-990, N-991), By Application (Graphite Manufacturing, Tires & Rubber Goods, Coatings, Polymers, Printing, Electronics), Industry Analysis Report, Regional Outlook, Growth Potential, Price Trends, Competitive Market Share & Forecast, 2021 – 2027

Industry Trends

Carbon Black Market size was valued at USD 16.0 billion in 2020 and is estimated to exhibit a CAGR of over 6.3% from 2021 to 2027. The rapidly growing automotive industry in emerging economies, such as India, Indonesia, and Brazil, is expected to fuel the product demand for tire manufacturing.

Carbon black is available in various grade and is gaining considerable traction in printing applications. It is also used as a pigment for car fenders and for heat-molded plastics. Carbon black market value will expand along with a rising trend for using lamp black process.
 

Carbon black is a form of para-crystalline carbon with high surface to volume ratio, used in reinforcing tires, hoses and used as an absorbent. It can be produced by various processes including furnace black, acetylene black, thermal black, channel black, and lamp black. Furnace black is produced through partial combustion of coal oil or petroleum oil in refractory chambers. Whereas thermal black is manufactured by hydrocarbons decomposition in heated refractories in absence of air.
 

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Growth of the carbon black market is closely tied with the performance of the global tire and rubber goods industry as it is the largest end user of the product. Tires & rubber goods alone accounted for around 80% share in 2020 and is anticipated to grow at the highest CAGR 6.4% during the forecast timespan. The global tire industry will witness modest growth owing to the rising demand for new generation automobiles around the world. Increase in product demand in downstream industries, such as aluminum and graphite.
 

Many manufacturers are now focusing on specialty carbon with high-value addition and performance. Furthermore, the demand for lithium-ion batteries in sunrise sectors is rising, proliferating the product demand. Most of the manufacturers are widening their product portfolio and introducing new variants of products.
 

In long term, carbon black market growth will likely be influenced by the non-tire specialty applications. Rapid urbanization and industrialization in Asia Pacific and Latin America will fuel the demand for rubber goods in the coming years. The demand for tires is rising in the replacement market around the world, driving the demand for carbon black. The industry is consolidated with a number of players holding a prominent share of the global market, thus, the development of new products will be the key strategy for product manufacturers.
 

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The carbon black industry contracted in 2020 due to the COVID-19 pandemic

The global carbon black market share felt a significant impact in terms of demand and revenue loss due to the COVID-19 pandemic. The COVID-19 pandemic also delayed the volume ramp-up of many manufacturers due to weak near-term product demand. The product manufacturers can expect the overall scale of business and financial performance to be moderate in FY2021. However, these manufacturers witnessed a significant drop in demand in FY2020 owing to lockdowns, social distancing, and weakly performing end-user industries, especially the automobile industry.
 

Furnace black will dominate the market over the forecast period

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Among all the process types, furnace black will hold the largest share of more than 70% demand share in 2027. Furnace black process is used for mass production and has much better yield compared to other process types. Thermal black held around 10% demand share in 2020 and will grow with 5.5% CAGR through 2027. Thermal black is the second most preferred production process.
 

Lower grades will have higher demand compared to the higher ones

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The most common seven grades belong to a category of furnace carbon black, which is produced from oil. Lower grades were having the highest demand compared to the grades above N-550 due to higher application and low price. N-550 grade is primarily used in the tires & rubber goods industry. N-550 grade has good dimensional stability for extruded profiles shoes, belts, brake diaphragms, and plastic piping. N-660 grade has lower surface area and medium low structure compared to N-550. It is a general-purpose high modulus black. This grade accounted for over 35% demand share in 2020 due to high demand from the tires & rubber goods industry.
 

Graphite manufacturing will witness healthy demand growth in the coming years

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Graphite manufacturing is witnessing modest growth owing to the rising demand for graphite from China and India. The demand for metals, such as steel, is increasing, which will benefit the demand for graphite as it is essential for an electric arc furnace. The increasing use of electric arc furnaces will drive the demand for graphite during the forecast period. The graphite manufacturing segment will hold close to a 5% demand share in 2027. The demand for graphite from high tech applications will drive the carbon black market sales during the forecast period.
 

The coatings industry is witnessing strong growth owing to strongly growing end user industries in Asia Pacific. Carbon black market demand in the coating industry is expected to grow at a CAGR of around 6% during the forecast timespan. This can be attributed to the increasing coating industry in emerging markets owing to rapid industrialization, population growth as well as economic growth.
 

Increasing R&D investments and product innovations are also driving the coatings industry. However, the usage of carbon black in polymers for food contact applications is heavily regulated. This may act as a hindrance to the overall carbon black market growth. The demand for plastics will continue to rise in the coming years, increasing the demand for carbon black.
 

The North America is forecast to grow with a CAGR of over 6% by 2027

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North America is a matured market with revenue of over USD 3.4 billion in 2020. This is due to the presence of strong end user industries in the region. The countries in the region have strongly functioning tire and rubber goods industry. The market in North America is witnessing strong growth owing to the increasing penetration of specialty black carbon.
 

However, market growth may hinder due to stringent regulatory environment. Growing investment in the infrastructure and electronics industry will augment the carbon black market revenue in the coming years. Furthermore, the expansion of tire producing plants in the region will create market opportunities for carbon black manufacturers around the world.
 

Multinational companies are expanding their business by merger & acquisition

Major multinational companies are increasing their footprints across the globe by merger & acquisition strategy. For instance, in July 2020, Mitsubishi Chemicals acquired CFK Valley Stade Recycling GmbH & Co. KG and carboNXT GmbH, two German carbon fiber recycling companies, to develop the existing technology and promote the company’s business in the Europe market.
 

Other major companies operating in the carbon black industry are Cabot Corp., Continental Carbon Company, HEG Ltd., Showa Denko K. K., Bridgestone Corp., Phillips Carbon Black Limited, Birla Carbon, Orion Engineered Carbons, OCI Company Ltd., GrafTech International, Lianyungang Jinli Carbon Co., Ltd., Tokai Carbon, BTR New Material Group Co., Ltd., and Syrah Resources Limited.
 

The carbon black market report includes in-depth coverage of the industry with estimates & forecast in terms of volume in Kilo Tons and revenue in USD Million from 2017 to 2027 for the following segments:

By Process

• Furnace Black
• Thermal Black
• Acetylene Black
• Lamp Black
• Channel Black

By Grade

• N-550
• N-660
• N-762
• N-772
• N-774
• N-990
• N-991
• Others

By Application

• Graphite Manufacturing
• Tires & Rubber Goods
• Coatings
• Polymers
• Printing
• Electronics

The above information is provided on a regional and country basis for the following:

By Region

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Spain
  • Italy
  • The Netherlands
• Asia Pacific
  • China
  • India
  • Japan
  • Australia
  • South Korea
  • Thailand
• Latin America
  • Brazil
  • Mexico
• Middle East & Africa
  • South Africa
  • Saudi Arabia
  • UAE