The 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 partial combustion of heavy petroleum products such as coal tar, natural gas and vegetable oils. It is a form of paracrystalline carbon that has a high surface-to-volume ratio, exhibiting properties between those of graphite and amorphous carbon. Carbon black is mostly used as a reinforcing filler in tires and other rubber products that require durability and strength. It is also used as a colorant in printing ink, toner, paints, and plastics.
Market key trends:
The carbon black market growth is majorly driven by the transition towards specialty carbon blacks feedstock in applications such as plastics, coatings, and toners. Specialty carbon black provides better product differentiation through customization of surface properties, structure, and particle morphology. Owing to its high tinting strength, UV resistance, purity and dispersion quality, specialty carbon black is increasingly replacing furnace carbon black in several industrial applications. Moreover, rising automotive production along with a significant rise in the demand for high-performance tires is further fueling the demand for carbon black. The global specialty carbon black consumption is projected to witness a CAGR of over 8% during the forecast period.
Porter's Analysis
Threat of new entrants: The carbon black market requires high initial capital investments and technical knowledge, acting as a barrier for new entrants. However, the growing market opportunities attract new players.
Bargaining power of buyers: The bargaining power of buyers is moderate due to the presence of substitute materials. Buyers can negotiate on price and quality of carbon black.
Bargaining power of suppliers: A few companies globally produce carbon black, giving them strong bargaining power over buyers. Supply constraints or disruptions can impact carbon black prices.
Threat of new substitutes: Alternatives like fumed silica and precipitated silica are substituting carbon black in some applications. However, carbon black still enjoys strong demand due to performance advantages.
Competitive rivalry: The carbon black market has major global players competing on quality, service and price.
SWOT Analysis
Strengths: Carbon black has a wide range of uses and is a critical material for rubber and plastic industries. Leading players have established brands and global production facilities.
Weaknesses: Carbon black manufacturing requires high capital and operating costs. Environmental regulations on emissions can increase costs.
Opportunities: Growing consumption of tires and plastics in emerging economies boosts carbon black demand. Developments in specialty grades widen application scope.
Threats: Substitute materials and changing regulations pose a threat. Volatility in crude oil prices impacts raw material costs.
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 consumption of tires and plastics globally. Asia Pacific currently dominates the market and is expected to remain the fastest growing region due to rising industrial activities and manufacturing sectors in China, India, Indonesia, and Thailand.
Regional analysis: Asia Pacific dominates the global carbon black market, accounting for over 50% of the overall demand in 2023. China represents the world's largest carbon black producer and consumer. Other high growth markets include India and Southeast Asian countries due to their developing automotive and construction industries.
Key players: 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 top players have integrated production facilities and market their products across regions to benefit from economies of scale.
Read More: https://www.rapidwebwire.com/carbon-black-market-demand-growth-and-regional-outlook-by-2030/
