Carbon black is widely used as a reinforcing filler and pigment in elastomers and plastics. As a reinforcing filler, it significantly improves the strength, abrasion resistance, and high temperature performance in applications ranging from vehicle tires to industrial hoses and belts. It is also used as a black pigment because of its excellent opacity, color properties and light stability that does not change or degrade over time. Carbon black is one of the primary pigments used in printing inks, toners and paints. The global demand for carbon black is driven mainly by its applications in automotive tires and other rubber applications. Carbon black plays a crucial role in manufacturing tires due to its ability to reinforce rubbers. It improves tire durability, reduces rolling resistance and provides wear resistance. With increasing automotive production driven by expanding global vehicle parc, the demand for automotive tires continues to surge thereby driving the global carbon black market.
The global Carbon Black Market is estimated to be valued at US$ 1331.83 Mn in 2023 and is expected to exhibit a CAGR of 5.0% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
One of the key trends in the carbon black market is the shift towards production of specialty carbons. Specialty carbons have enhanced reinforcing properties and pigmentation abilities compared to commodity-grade carbon blacks. They are increasingly being used in applications requiring high abrasion resistance, corrosion protection and UV stability like specialty hoses, wires & cables, conveyor belts, silicone rubber and engineering plastics. Leading carbon black producers are focusing on expanding their specialty carbon portfolio in order to tap opportunities in premium product segments and maximize margins. For instance, Cabot Corporation has introduced a new line of specialty carbons under the brand names, “Vulcan® XC72R Carbon Black” and “Vulcan® XC605 Carbon Black” expanding its specialty grades offering.
Porter's Analysis
Threat of new entrants: The carbon black industry requires high capital investments and stringent quality standards, which poses moderate threat of new entrants.
Bargaining power of buyers: The carbon black market has several global buyers from rubber, plastics, printing ink and coatings industries. However, differentiated products give moderate bargaining power to buyers.
Bargaining power of suppliers: Key raw materials for carbon black include petroleum feedstock and furnace oil. Availability of raw materials and dependence on oil prices gives high bargaining power to a few global suppliers.
Threat of new substitutes: New alternatives like nanoclay and nanosilica pose low-to-medium threat as substitutes in applications like plastics and coatings industries.
Competitive rivalry: The carbon black industry has few global players and regional presence of mid-sized companies leads to high competitive rivalry.
Key Takeaways
The Global Carbon Black Market Size is expected to witness high growth over the forecast period. The global Carbon Black Market is estimated to be valued at US$ 1331.83 Mn in 2023 and is expected to exhibit a CAGR of 5.0% over the forecast period 2024 to 2031.
Asia Pacific region currently dominates the carbon black market share due to large rubber and plastics industries in China and India. Expanding tire manufacturers and rapid infrastructural developments will boost the regional demand in the coming years.
Key players operating in the Carbon Black market are Orica, Enaex, Austin Powder Company, Incitec Pivot, CSBP, Yara International, San Corporation, Fertiberia, Neochim, URALCHEM Holding, Dyno Nobel, Vijay Gas Industry, Solar Industries, Maxam, AEL Mining Services, EPC Groupe, Gulf Oil Corporation, IDEAL Industrial Explosives, Sichuan Meifeng Chemical Industry, Jiaocheng Jinxin Chemical. Some of the leading players are focusing on capacity expansions as well as mergers and acquisitions to strengthen their market presence across regions.
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