According to a new research report by Global Market Insights Inc., the Carbon Black Market size will likely reach USD 24.4 billion by 2027 owing to increasing product demand from the tires & rubber goods industry in the Asia Pacific.
Tires & rubber goods will register the highest product demand
The demand for carbon black is largely pushed by the growing consumption of rubber products, prominently tires. The growing demand for tires in emerging economies due to the rising demand for automobiles will drive the carbon black market demand in the coming years.
The production of carbon black is increasing all over the world owing to rising product demand from end-user industries including tires & rubber goods, polymers, coatings, etc. Asia Pacific is by far the largest carbon black producer and consumer owing to the very concentrated presence of end-user industries in the region. Furthermore, the presence of two of the world’s largest domestic markets (i.e., China and India) makes this region more lucrative for the carbon black industry stakeholders. Growth in demand for tires, elastomers, polymers, and coatings will augment the carbon black market growth during the forecast period.
Browse key industry insights spread across 250 pages with 216 market data tables & 26 figures & charts from the report, “Carbon Black Market 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” in detail along with the table of contents:
COVID-19 will hamper the product demand for polymers
The polymer industry is associated with all other industries due to the increasing usage of polymers in various industries. Covid-19 pandemic has become an unprecedented global health crisis, which will cast a long shadow over the polymer industry. Many economists believe that Covid-19 will have devastating economic & social impacts on the scale of the Great Depression.
However, impacts on the polymer industry may vary based on the end-user industry. Consumer confidence is shaken due to the weak financial market, changing consumer preferences, and disrupted labor market. The global production of light vehicles is expected to drop by 20% during the pandemic. Similar drop in demand trend can be witnessed in building & construction and consumer goods and industrial applications. The weak demand for polymers affected the global carbon black market.
Carbon black production by the acetylene black process will grow with a CAGR of around 6%
The acetylene black process has higher structures and higher crystallinity. Acetylene black is most widely used for electric conductive agents. The rising demand for electrically conductive agents will drive the carbon black market growth for acetylene black during the forecast period. Some of the end users of acetylene black include fuel cells, batteries, solar panels, electronics, rubber compounds, paints, plastics, conductive coatings, ceramics, adhesives, lubricants, and sealants.
Lamb black held over 5% revenue share in 2020 and is expected to register more than 5.8% CAGR. This is the oldest method to produce carbon black. However, this method has lost its market share and is also not suitable for mass production. The products manufactured from this method are used as raw materials for ink sticks as they provide carbon black with specific colors.
N-762 grade generated over USD 2.6 billion revenue in 2020
N-762 grade has low reinforcing, high loading capacity, and low hysteresis. This grade of carbon black is used in manufacturing hoses, molded goods, and solutions. The product is used in tires and mechanical rubber goods as a reinforcing filler. The rising demand for rubber goods will drive the carbon black market share during the projected timeframe. N-772 grade is mainly used in manufacturing inner liner of tires. The growing demand for tires around the world will drive the demand for N-772 in the coming years.
Companies are increasing their production capacity to cater to the growing product demand
Major companies working in the carbon black industry are increasing their production capacity to cater to the growing product demand across the globe. For instance, in March 2016, Continental Carbon Company and Al-Jubail Petrochemical Company (Kemya) announced to start a carbon black plant in Saudi Arabia and created the opportunity for market expansion in the Middle East and Europe.