Carbon black is mainly used as a reinforcing filler in tires and other rubber products. It provides strength, abrasion resistance, and stability. Carbon black imparts durability, improves traction and reduces rolling resistance.
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 Opportunity:
Carbon black finds wide application in tire production as it improves wear resistance, damping behavior and strength of tires. Additionally, rising automobile industry is directly influencing the demand for tires, which in turn is propelling the carbon black market growth. Carbon black is also used in hoses, gaskets, belts, molded and extruded goods. The growing construction industry is fueling the non-tire application of carbon black. Furthermore, recovery in the agricultural sector is augmenting its application in conveyor and transmission belts. Thus, the rising demand from tire as well as non-tire segment is projected to offer lucrative opportunity for carbon black market expansion in the coming years.
Porter’s Analysis
Threat of new entrants: The carbon black industry requires large capital investments to build production plants and has stringent environmental regulations to adhere to, which poses high entry barriers for new companies.
Bargaining power of buyers: The carbon black market has numerous buyers from different end-use industries. However, the presence of several established players limits the bargaining power of individual buyers.
Bargaining power of suppliers: The key raw materials used for carbon black production like oil or natural gas are supplied by few major companies globally. This gives significant bargaining power to suppliers.
Threat of new substitutes: Alternatives like silica are emerging but cannot fully substitute carbon black due to property differences. The threat from substitutes is still moderate.
Competitive rivalry: The market is highly competitive with major players competing on pricing, product differentiation, and expansion. This intense competition increases industry rivalry.
SWOT Analysis
Strengths: Carbon black has unique conductive and reinforcing properties. Established manufacturers have strong production capabilities and global distribution networks.
Weaknesses: Carbon black production is a highly polluting process. Fluctuating oil prices impact raw material costs. Strict emission norms across regions raise compliance costs.
Opportunities: Rising demand from tire, plastics, coatings and other industries especially in developing nations offers scope for market growth.
Threats: Growing preference for alternative reinforcing fillers and plastic recycling may reduce carbon black consumption over time. Trade wars and geopolitical issues impact supply chain stability.
Key Takeaways
The Global Carbon Black Market Size is expected to witness high growth due to increasing tire production along with the recovering automotive industry. The global carbon black market is estimated to be valued at US$ 1331.83 Mn in 2024 and is expected to exhibit a CAGR of 5.0% over the forecast period 2024 to 2031.
Regional analysis – Asia Pacific dominates currently due to high growth in countries like China and India. China accounts for over 50% of global production. The Asia Pacific region is expected to remain the fastest growing as well as the largest market during the forecast period. North America and Western Europe are mature markets but will have steady demand from recovering automobile sector. Regions like Latin America and Middle East & Africa will see increased carbon black consumption with acceleration in industrialization.
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.
Major players are investing in capacity expansion as well as forward integration to gain competitive advantage. Collaborations and mergers are expected to continue amongst key industry participants during the forecasted period.
Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
